When it comes to residential property management, there are definitive rules that must be followed to ensure landlords are acting in accordance with the Residential Tenancies Act.
Even though this might seem like a straightforward process, landlords must dot all "i's" and cross all "t's" to prevent any future complications.
The first thing you must do is understand the terms of the Lease Renewal
The critical requirement regarding any rental agreement is to have a thorough understanding of all clauses contained in the lease, particularly those pertaining to the initial term, vacancy date and lease renewal options.
Generally, lease terms will either be fixed tenancies for a specified period such as 6 or 12 months, or periodic agreements which will automatically roll over beyond the current fixed term tenancy should an agreement still not be in place.
Essentially if you, the owner, wishes to officially renew the lease or alternatively end the tenancy for any reason, you need to put your intentions in writing to the tenant, regardless of the type of agreement both parties have entered in to.
Landlords also need to be aware of the required time-frames for notices should they wish to alter any conditions of the lease.
Whether terminating or renewing the lease or increasing the weekly rental amount, tenants must be given sufficient notice under the Residential Tenancies Acts.
Renewing the Lease without a Rental Increase
Lease renewal without any increase in the current rent or changes to terms are straight forward.
Our team will reach out to you in advance of the expiry of the lease, normally between 8-12 weeks. We provide you with up to date market information to assist you in your decision making. You simply need to advise us of your instructions on whether you wish to renew the lease terms, and it is recommended that you do so before the tenancy ends.
We will then notify the tenant, who can decide whether they wish to take up the renewal option or submit their 14 days notice to vacate the premises at the expiration of the lease.
Renewing the Lease with a Rental Increase
If you intend to increase the rent but still want the current tenant to stay on, you must advise them in writing at least 60 days prior to the increase coming into effect, usually in line with the commencement of the new lease term.
Unless you include an additional clause in the tenancy agreement that states a rent review may occur sooner, you can only seek a rent increase at the end of the lease.
In cases where the lease is less than six months or periodic, you cannot seek a rental increase any more frequently than every six months.