Deposit query

Landlady09

Hi
If a tenant has signed a 1 yr lease - but decides to vacate the property before the end of the lease - giving one months notice - are they entitled for the deposit to be refunded?

MarkR

From threshold.ie

1. What is a lease?
A lease is a written contract that binds the tenant to live in a property for the lease period. The lease must comply with the Residential Tenancies Act, 2004.
2. Please read the lease carefully!
Be sure to read through the lease before you sign. Take your time and make sure you understand everything. Contact a Threshold advice centre with any questions you have. Keep a copy of the lease.
3. Can a landlord increase the rent during the term of a lease?
Generally not, as the rent is fixed for the lease period. Rent increases are only permitted once every 12 months and cannot be higher than 'market rent'.
4. Can the landlord terminate a lease early?
The landlord can only terminate a lease before its end date if the contract contains a 'break clause' which allows both parties to end the lease prematurely. If there is no break clause, a lease can only be ended if the tenant is in breach of an obligation.
5. Can the landlord sell the property?
Unless there is a break clause, the landlord must sell the house with the tenant living there. The new owner is also bound by the lease. Click here for more information on this>>
6. Can the tenant leave before the end of the lease?
If a tenant wants to leave before the end of the lease (and there is no break clause), the tenant needs to:

• Find someone else to replace the existing tenant in the lease;
• Write to the landlord, requesting permission to assign the lease to this new person.

If the landlord refuses consent, the tenant can give the landlord notice of termination and leave. The notice period is calculated by how long the tenant has lived there.
7. If a tenant wants to stay on at the end of the lease?
A tenant who has lived in the property for at least 6 months should write to the landlord at least one month before (and at most three months from) the end of the lease to inform the landlord of his or her intention to stay on. Click this link for a draft letter>>
If you do not send the landlord this letter, you could be liable for costs incurred by the landlord in getting the property re-let. These costs could include the cost of advertising the property or engaging a letting agent.
8. Must a tenant sign a new lease after the expiry of a lease?
No, if a tenant has lived in the property for over six months and the lease has ended, the tenant does not have to sign a new lease. Instead, the tenant can avail of 'Part 4' rights to stay in the property for 3½ more years.
9. A tenant's lease is coming to an end and they want to leave, do they have to give notice?
A tenant does not have to give notice of their intention to leave a property at the natural end of the lease. The notice of an end to the tenancy is implicit in the fixed-term nature of the lease, i.e. the end date of the lease.
Therefore, if a tenant seeks to move out of a property at the natural end of the lease, they are entitled to their deposit back.
Be sure to read through your lease as some leases require that a tenant let the landlord know whether they will continue after the end of the lease. If a tenant fails to abide by such a provision, they are technically in breach of a provision of the lease. The tenant will not automatically forfeit the deposit for not abiding by this provision, but the landlord could seek compensation any losses incurred because of the breach of the lease.
It is good practice for a tenant to inform the landlord whether or not they intend staying on in the property once the lease period runs out.
10. As a tenant's lease is coming to an end, does the landlord have to give notice to the tenant if they want vacant possession of the property?
The answer depends on how long the tenant has been in occupation. If the tenant is in occupation for over 6 months, they acquire the right to a Part 4 tenancy. This is on top of other legal rights they have acquired through the lease. The landlord needs to end the tenant's Part 4 tenancy in accordance with the Act. This restricts the landlord to using the grounds contained in the Residential Tenancies Act to end a Part 4 tenancy where a lease has expired.
On the other hand, a tenant who has a 6-month lease and has lived in the property for less than 6 months does not have the benefit of a Part 4 tenancy. The landlord can use the end date of the lease as the end of the tenancy. It is good practice, however, for a landlord to inform the tenant that the tenancy ends with the expiry of the lease.
11. Getting your deposit back
If a lease has run its natural course, you are entitled to get your deposit back. The landlord can only retain the deposit if there are rent arrears or damage to the property beyond normal wear and tear.
For more information, call your nearest Threshold advice centre.
This information is provided for information only and is not a substitute for legal advice.

spockety

That FAQ doesn't deal with a scenario where a tenant cannot find someone else to take over the lease, but is going to leave anyway come hell or high water..

Does the landlord have to go through the courts to sue for breach of the lease and recover the balance of monies owed to the end of the term of the lease?

Landlady09

Hi - yes the situation here is the tenant is leaving regardless and has given a months notice - should deposit be refunded? I'm tending to think no - as the lease is being broken

MarkR

Lease is broken and you will be out of pocket for the rest of the lease if they don't have another tenant lined up.

What does your lease agreement actually say?

mylittlepony

I did this, I left house under a year, signed a year contract really wanted a six months contract to see how I get on but cos other friends already signed 1year contract i did same.

End up moving out in under six months and I did inform agent with 1 month notice. It didnt make any difference cos I did sign contract for 1 year, my own fault. I rushed into it.
So yes I knew I was going to lose deposit but I didnt care cos I wanted out of renting.

So you are right to keep deposit if your tenant left too early and even if they gave you notice, they still broke the contract.

Thats only my experience from years ago.
Hope thats help with your query.

li@mo

Can someone help me with this:

I recently left rental accomodation breaking the lease.

If I find someone to replace me til lease expires, does this mean that i am not liable for the rent due??

Anyway I cant afford the rent til May so I dont know what to do.

Whats the likelyhood of being taken to court?

mylittlepony

If you found someone to replace you to continue paying rent until lease up, then that should be fine, no court, etc.
You may lose your deposit cos broke the lease.
But Im not sure if the person replacing you will need to pay a deposit themselves or your depoisit cover them not sure confusing??

li@mo

Thanks. If I got someone else then the deposit would be the least of my worries. If I dont....and fail to pay rent due what will happen?
I havent got the cash for it.

mylittlepony

Are you sharing the rent or renting alone?

Just to give an idea of my experience.
I was sharing, gave notice but at same time try to find replacement.
I discuss this with the other tenants to let them what is going on, its only fair.
I asked the agency to find or know someone looking to share house but in the end the other tenants decided they didnt want stranger in their house and felt they could manage without me.
I left and the others just had to share the rent between them as they want/need to stay for a year.
Simple as that. I think I was lucky that it was a clean break.

Sorry couldnt really answer your question if you are renting alone as I dont really know what happens, no experience of this.
Best of luck.
Hope my answer help.

Uncle Junior

Li@mo,
The landlord would then be within his/her rights to bring a case to the PRTB (www.prtb.ie) seeking the repayment of the unpaid remaining portion of the lease. In the event that the PRTB found against you I am not sure what impact, if any, this would have on your credit history but your details as a defaulting tenant would be accessible to the public via the PRTB's website.