Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

One tenant is leaving and landlord refuses assignment

  • 19-09-2024 1:22pm
    #1
    Registered Users, Registered Users 2 Posts: 2


    Hello,

    One of our housemates wants to move out, and has offered the landlord to find someone to replace him.

    The landlord has refused him to be replaced and is now asking us to prove that we'll be able to pay the rent without him.

    We think that the landlord is trying to kick us out, because he currently can't as we've been living there more than 6 months now.

    What can we do? I saw that when the LL refuses the assignment, we can end the lease, but that's not what we want, because the rest of us still wants to live here.

    Thanks for your help.



«1

Comments

  • Registered Users, Registered Users 2 Posts: 1,750 ✭✭✭dennyk


    What does your lease say about taking in a licensee? If your lease doesn't prohibit that explicitly, then you can invite a licensee to live in the property (and pay rent for their room to you or your housemates) and the landlord can't stop you. (Also, note that taking in a licensee is not "subletting", so if even your lease prohibits "subletting" by that specific term without the landlord's permission, that doesn't prevent you from taking in a licensee…)

    You are also under no obligation to "prove" to the landlord that you can afford to pay the rent, as a sitting tenant; you are only obligated to actually pay the rent. The landlord can end your tenancy eventually if you are in arrears on the rent, but not just because he thinks you won't be able to afford to pay the rent in the future.



  • Registered Users, Registered Users 2 Posts: 2 BlueBird222


    Hey, thanks for your help.

    Unfortunately, there's something in our contract that prohibits us from letting someone else live in the apartment..

    Good to know that they can't ask us to prove that.



  • Registered Users, Registered Users 2 Posts: 10,492 ✭✭✭✭Marcusm




  • Registered Users, Registered Users 2 Posts: 818 ✭✭✭SupaCat95


    The Land Lord wants to sell the property and needs it vacant for sale. There is no nice way to ask you to vacate with the market being in the state it is in. Its probably too much to ask ye to pay an extra 33% rent plus increased facilities (esb gas bins etc). You either need to lawyer up or plan to rent elsewhere.



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    That clause is perfectly enforceable. There is an obligation to tell the landlord the name of everyone resident in the apartment. If you tell the landlord he can issue a warning letter to direct you to remove that person failing which he will terminate the tenancy.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 23,741 ✭✭✭✭ted1


    was the place let as one unit and you divide the rent yourselfs. If so then the person moving needs to be held accountable. He needs to learn you just can’t back out if contracts where you are a joint party



  • Registered Users, Registered Users 2 Posts: 10,492 ✭✭✭✭Marcusm


    Based on the facts as presented, the landlord is confecting a situation to force their departure. This is not a circumstance where they are seeking to introduce an additional resident merely to replace one who is departing. There is a lack of parity of arms in a contract which would not permit the other resident to be replaced. A tenant can bring in a licence (not a sublet or an assignment) generally without the landlord’s consent - even the Irish Property Owners Assiciation recognises this. Where it is to replace a departing resident and to mitigate against the prospect if an ability to pay rent, a case could be asserted that the landlord was impinging on the tenant’s right to quiet enjoyment if the property as forcing the remaining residents to supplement the rent without increasing the burden on the landlord would be a substantial interference by the landlord in the tenants’ ability to continue to occupy the property.



  • Registered Users, Registered Users 2 Posts: 2,734 ✭✭✭ec18


    Your statement that he can't kick you out because you have been there 6 months is incorrect. The notice periods for termination differ before and after 6 months he can still serve you notice to leave.

    From the landlord perspective he probably doesn't want the hassle of having reassigned leases going on?



  • Registered Users, Registered Users 2 Posts: 1,693 ✭✭✭ittakestwo


    Sorry to hijack tread but can a landlord put in lease that property is only for a certain no.of people to live there and it to be legal.

    We were in this situation where a tenant tried to move her boyfriend in and the we pointed to the terms of lease saying the property can only have 3 individuals living there. Was that legal? If not is there anyway a landloed can restrict the property to a certain no.?



  • Registered Users, Registered Users 2 Posts: 1,750 ✭✭✭dennyk


    There is no legal entitlement for a tenant to bring in a licensee or invite anyone else to live in the property with them, so a tenancy agreement can prohibit taking in a licensee or allowing anyone else to occupy the property who isn't on the lease. If the tenancy agreement says nothing about it, the landlord has no legal right to prevent it, but since the law also doesn't grant that entitlement to the tenant, it can be prohibited by the tenancy agreement.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 197 ✭✭advisemerite


    You probably can't sublet Subject to lease details but you can take in a licensee.



  • Registered Users, Registered Users 2 Posts: 106 ✭✭scrabtom


    I would advise giving Threshold a call



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    The landlord has to be told who is living in the dwelling. There are issues with a licensee if the landlord knows about it.



  • Registered Users Posts: 54 ✭✭FunkyChicken24


    Hi there,

    I have only just learned about this difference, unfortunately too late to stop us from losing a house we thought we were going to sign the lease on yesterday 😫 because he got spooked when we asked to be permitted to sublet one of the rooms. Despite us explaining how it would work he was not happy and claims he is now going to sell instead.

    I would be super grateful if you could give me a bit more detail please, and if possible, a reputable source to back up what you are saying regarding the legalities of whether or not we would have to tell them in advance that we plan to rent out the other room etc.

    Thank you so much 😊



  • Registered Users, Registered Users 2 Posts: 23,741 ✭✭✭✭ted1


    a licencee can me made a tenant after 6 months, and the landlord can’t say no. So many landlords would be against it.



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    https://revisedacts.lawreform.ie/eli/2004/act/27/section/16/revised/en/html

    Look at sub clause (n) in the ACT. The tenant is obliged to notify the landlord of the identity of every person ordinarily resident in the dwelling.

    If someone simply springs up and says they have been there for 6 months and want to be a tenant, the landlord can demand to know why they weren't told and want the situation rectified.



  • Registered Users Posts: 54 ✭✭FunkyChicken24


    Thank you for that. However, letting the landlord know the identity of the people living there is not the same as saying that you have to ask permission in advance for the person to move in.

    So, the question is, can the tenant allow a licensee to move in and then inform the landlord when they have moved in and give them the details of their identity?

    Also, that clause says "(n) notify in writing the landlord of the identity of each person (other than a multiple tenant) who, for the time being, resides ordinarily in the dwelling", what does multiple tenant mean in this context do you think?

    Honestly, I am not sure why a landlord would have a problem with the tenant allowing someone else to move into one of the rooms? If the landlord trusts the tenants who signed the lease to live there then surely the landlord can recognise that these tenants aren't going to let someone live there that they themselves cannot live with, so they won't allow someone to continue living with them who doesn't take care of the home and behave in ways that are prescribed in the lease, not least because surely the tenants are still obliged to fulfill their obligations so they will need to police the licensee. It just smacks of a paternalistic and infantilising attitude towards tenants without much logic or basic respect. If the landlord doesn't trust the tenants to make good choices about the people they have to live with them or to resolve the issue if one turns out to not be suitable, then why are they renting to those people in the first place?



  • Registered Users Posts: 54 ✭✭FunkyChicken24


    I think most tenants who are renting out a room to a licensee would probably not want to make them a tenant as it is too hard to get them out if things go wrong. It is one thing wanting to get tenants out if you don't like them but it is another thing if they are living with you, you need to be able to get someone out if they live in your home if they turn out to be a dick so I don't think the landlords should worry too much about that.

    Also, even if they are made a full tenant, they still have to abide by the terms of the original lease so I'm not sure what the problem is?



  • Registered Users, Registered Users 2 Posts: 23,741 ✭✭✭✭ted1


    after 6 months a licence has to become a tenant if they ask.

    A licencee to a tenant is the tenants problem

    Once they become a tenant they become the landlords issue



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    If there is a clause in your contract forbidding subletting or sharing possession (which is a standard clause in residential leases) then you will be telling the landlord you have broken your contract. The landlord can then warn you that if you don't remove your licencee he will terminate the tenancy.

    The landlord will have his own views on whether he wants a new occupant in one of the rooms. It is none of your business. The contract you negotiated means the landlord has the right to decide. It is a convenient way for a landlord to end a tenancy if they are minded to by finding a breach of tenant obligations and terminating.



  • Advertisement
  • Registered Users Posts: 54 ✭✭FunkyChicken24


    Except, they don't have to be a problem. Why is there this assumption that they would be a problem? I fthey are paying the rent and behaving themselves and abiding by the lease then they are surely not a problem?

    I'm not sure that it is true that the licensee has the right to become a tenant after 6 months, they can ask but I am not sure that they get to just be a tenant against the wishes of the tenants on the lease?



  • Registered Users, Registered Users 2 Posts: 23,741 ✭✭✭✭ted1


    they absolutely do get to be a tenant after 6 months.
    see renting from a tenant :

    https://threshold.ie/faq/i-am-a-tenant/#:~:text=If%20you%20are%20renting%20a,as%20the%20existing%20tenant%2Fs.


    They can be a problem. E.g if the original tenants decide to move out. The licences would also have to move. However a tenant will stay. So getting possession back is harder



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    The problem from the landlords point of view is that the notice period in a multi occupant house starts when the first tenant moves in. By allowing in replacement tenants that new tenant gets the benefit of the notice period accrued by the existing tenants. landlords like to recover vacant possession every few years to keep the notice periods as low as possible.

    Landlords will also have references for the original tenants but won't have them for licencees.

    Landlords don't like tenants who tell them how to run their business either.
    the landlord sees an opportunity to get rid of you and is snatching it with both hands.
    Life is short, move on!



  • Registered Users Posts: 54 ✭✭FunkyChicken24


    Seems like a very short sighted way of operating a business. As someone who has been renting from our landlord for the last 15 years, I can tell you that he has benefitted from not having any vacancies during that whole time, nor any expenses associated with having to redecorate or buy new furniture, or clean the house or pay agents etc etc.

    We have been renting out the other room to various people over the last few years and our landlord didn't have to do anything with them, never even met them and was totally happy with that as long as he got his rent. We asked them for references, and it was on us as we were the ones who had to live with them and who were responsible for the full rent if they they didn't pay and responsible for any damage or disturbance they might cause while there. We were able to ask them to leave the odd time things went badly. None of them ever asked to be a full tenant, we wouldn't have agreed to it as it was our house, our home.

    Landlords may not like people telling them how to run their business however just like other businesses, they might find that it actually makes good business sense to consider the needs, desires and feedback of the customer. If one has an excellent customer then perhaps it is worth it to them to drop the bluster and ego and compromise and actually provide some good customer service. Seems like lots more work and hassle to do things the way you describe.



  • Registered Users, Registered Users 2 Posts: 23,741 ✭✭✭✭ted1


    if the bad ones were there for 6 months you can ask them to leave… but they could just request to become a tenant. And then they can stay.

    See the problem



  • Registered Users, Registered Users 2 Posts: 26,804 ✭✭✭✭Peregrinus


    Seems like a very short sighted way of operating a business. As someone who has been renting from our landlord for the last 15 years, I can tell you that he has benefitted from not having any vacancies during that whole time, nor any expenses associated with having to redecorate or buy new furniture, or clean the house or pay agents etc etc

    There have been no vacancies over the past 15 years because you have been the tenant the whole time. This would be true whether or not you took licencees in for some or all of that time.

    In other words, taking in licensees was primarily for your benefit; it helped you pay the rent. Whether or not you took in a licensee, the landlord was entitled to the full rent from you.

    We have been renting out the other room to various people over the last few years and our landlord didn't have to do anything with them, never even met them and was totally happy with that as long as he got his rent. We asked them for references, and it was on us as we were the ones who had to live with them and who were responsible for the full rent if they they didn't pay and responsible for any damage or disturbance they might cause while there. 

    And your landlord was happy with that. But other landlords might take the view that they want to be the one who gets to assess prospective occupants, consider whether their references are acceptable, etc.

    None of them ever asked to be a full tenant, we wouldn't have agreed to it as it was our house, our home.

    They wouldn't be asking you; their right is to become a tenant of the landlord. If they had exercised that right, you wouldn't have any say in the matter. (Meaning, you shouldn't accept as a licensee anyone you wouldn't be happy to have as a co-tenant.)

    Landlords may not like people telling them how to run their business however just like other businesses, they might find that it actually makes good business sense to consider the needs, desires and feedback of the customer.

    From the landord's point of view, it comes down to balancing competing considerations. On the one hand, risk ending up with a tenant that he would never have accepted. On the other hand, risk having otherwise excellent tenants give notice because they object to the landlord having a veto over licensee arrangements.

    Obviously, the choice the landlord will make will be hugely affected by how well he knows you, the existing tenants, and how much he trusts your judgment. I would think for the first couple of times at least the landlord would want to have involvement in, and the final say over, any licensee arrangement. After you have built up a track record of finding satisfactory licensees and ensuring the licensee arrangement goes smoothly, then maybe he'd be happy to back out and let the tenant enter into further licensee arrangements without requiring landlord consent. But at a minimum I think any half-way responsible landlord is going to want to be told about any licensee arrangements, including the identity of the licensee; it's not a good look for a landlord to have no idea who's living in his house.



  • Registered Users Posts: 54 ✭✭FunkyChicken24


    I think you need to be a bit more granular with your argument, as it isn't as obvious as you seem to think it is. It doesn't appear to be the case that they just need to ask and then they get to stay. I thought I had replied to you on this point before quoting the wording from your link but either it was deleted or somehow I managed to delete it. So I will try again… from your link in your post above "Am I the Tenant?";

    "If you are renting a room from one of the existing tenants, you may also be a licensee and the normal landlord and tenant laws also do not apply. After six months, however, you can apply to become a tenant on the same terms and conditions as the existing tenant/s. If the landlord/agent refuses your request to become a tenant you may be able to refer a dispute to the Residential Tenancies Board (RTB) see www.rtb.ie. "

    So you can apply to become a tenant but not automatically become one as the landlord/agent can refuse. Presumably, a smart landlord is going to check with the original tenants to see what they think before agreeing.

    Also, if they are made a tenant then they are under the same terms and conditions as the original tenants and lease so they can only stay as long as the original tenants stay in my view.

    Now presumably if the applicant refers the dispute to the RTB then the landlord has to have a good reason to refuse the applicant but if the original tenants say they don't want the person to stay then I would assume the refusal would be upheld. I don't see a situation where the RTB is about to force people to live with someone they don't like.



  • Registered Users Posts: 54 ✭✭FunkyChicken24


    I was responding to the line in the post from Claw Hammer; "landlords like to recover vacant possession every few years to keep the notice periods as low as possible" to dispute the idea that landlords like to get rid of people every couple of years to keep notice periods low as I don't see the logic of why they would want to do this when they could have someone there for several years and have no vacancies and associated costs. That was my point.

    Although I understand that a landlords decisions will often depend on how much they trust you, however, there seems to be a culture of an automatic lack of trust, even when landlords/agents make you jump through all sorts of hoops, and a lack of general logic applied when dealing with these things too. Especially now that it is a landlords market due to such low supply and exorbitant rents, there seems to be a general air of treating all tenants as if they are untrustworthy children.

    Again, if your tenants have to live with the person and also be responsible for any damage or disturbance they create, then they are going to check out this person and police them while they are there. It is pretty simple really. Yeah, sure you might want to be informed about who the person is and have their details on file if you need to pursue them for whatever reason but if you can actually look to the original tenants for reparations for any costs incurred due to that licensee then I can see how that is perhaps less of a need too.

    Having said all that, if a landlord wanted to be able to veto any licensee and did so in a reasonable fashion then I wouldn't be averse to that, as long as they don't block me from having a licensee outright and just veto every single one we propose. I think if you are allowed to rent out a room in your own home then you should be allowed to rent out a room in your own rented home.



  • Registered Users, Registered Users 2 Posts: 23,741 ✭✭✭✭ted1


    The landlord is not allowed to refuse unless he has a damn good reason for it. Which they don’t.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    There is no requirement for a landlord to have a good reason. There is no veto in the case of existing tenants. If a tenant takes in a licensee and the licensee is there 6 months they can't prevent the landlord accepting that licensee as a tenant.

    The o/p has been there 15 years.

    The property is likely rent capped. The landlord may well want to take the opportunity to break the rent cap. It is the landlords call, not the o/ps.



  • Registered Users, Registered Users 2 Posts: 1,893 ✭✭✭mrslancaster


    Do you mean that tenants can move in any number of licensees who can request to become tenants and the landlord must agree? Where does it say that a landlord is obliged to accept replacements and/or or additional tenants?

    Afaics, these clauses mean that sub-letting and assignments of only part of a tenancy are not allowed :

    S32. (2) The creation of a sub-tenancy in respect of part only of the dwelling, the subject of a Part 4 tenancy or a further Part 4 tenancy, is prohibited.

    (3) Any such sub-tenancy purported to be created is void

    Also:

    S38. (4) The assignment of a Part 4 tenancy with respect to only part of the dwelling, the subject of the tenancy, is prohibited.

    (5) Any such assignment purported to be made is void.

    It seems from S38 than an assignment must be for the entire lease, so if one member of a group of tenants decides to leave, they can't assign their part of the lease to another individual.

    The decision to accept a replacement tenant is down to the landlord. It seems reasonable that a landlord would expect any potential replacement tenant to provide the same paperwork as the original tenants ie. references, ability to pay etc. If he agrees, the tenancy/ lease agreement would need to be modified which would incur solicitors fees. Modifying the lease is a separate thing to the obligation on the landlord to update the changes on the RTB registration. New tenant/s then need to have six months occupancy to gain their own individual part4 rights within that modified tenancy/ lease.

    If the tenants want a non-tenant ie. a licensee to reside in the dwelling, they are required to:

    S16. (n) notify in writing the landlord of the identity of each person (other than a multiple tenant) who, for the time being, resides ordinarily in the dwelling.



  • Registered Users, Registered Users 2 Posts: 278 ✭✭CoffeeImpala


    50(8) of the RTA notes "The landlord may not unreasonably refuse to accede to such a request". By extension this means that the landlord may reasonably refuse to accede.

    The Irish Property Owners Association notes "The tenant is under a statutory obligation to inform the landlord of the identity of resident in the dwelling however, the landlord is not in a position to to accept or veto the individual concerned as he/she would with a tenant." If the OP wants to let the spare bedroom to a licensee there's nothing the landlord can do.

    https://ipoa.ie/difference-between-subletting-an-assignment-and-a-licensee/

    The OP has not posted in the thread since the first post. It is another poster who has been a tenant for 15 years.



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    If it states in the lease (which is a standard condition) that the tenant cannot assign, sub-let, or share possession with anyone else without the express written consent of the landlord, the landlord can refuse to let the existing tenant let a room to anyone else. The landlord can terminate for breach of condition if the tenant breaks the terms of the lease.

    It is also arguable that the tenant in letting a room is carrying on a business which in itself may be a breach of the lease.



  • Registered Users, Registered Users 2 Posts: 278 ✭✭CoffeeImpala


    We don't know what the OP's lease says. However the term you have outlined does not exclude licensees. Clearly a license is not a sub-let or assignment and a licensee does not share possession with the tenant.

    If a term was written that limited a tenants ability to licence a bedroom it would be voided by section 18(1) as an attempt to "to vary, modify or restrict in any way section 12". As has been mentioned previously in the thread it would breach 12(1)(a) which covers the landlords obligation to "allow the tenant of the dwelling to enjoy peaceful and exclusive occupation of the dwelling".

    Long term licensing in a property you occupy is covered under various finance bills as not being considered a business so good luck trying to argue that.



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer




  • Advertisement
  • Registered Users, Registered Users 2 Posts: 1,893 ✭✭✭mrslancaster


    Agree that S12 (a) says a landlord must "allow the tenant of the dwelling to enjoy peaceful and exclusive occupation of the dwelling"

    How does that mean a tenant can decide to move in another person to live there and pay 'rent'?

    If tenants can move in paying licensees/ lodgers without a landlord's permission, who decides how many they can take before they are in breach? Is it one licensee, two, an unlimited number?

    The tenancy agreement grants permission to occupy the dwelling to the specific number of occupants named on the lease. There can be no changes made by the tenants without the landlords agreement. Similarly, no changes by the landlord either. If a landlord suddenly decided to add another tenant to the lease and move in an extra 1, 2, or more individuals, he would rightly be told where to go. The lease is binding on all parties.

    Of course tenants have the right to use their home as they want in terms of guests and visitors eg having overnight or short-term guests is part of normal life. The thing is, that generally people don't expect payment from their overnight guests. If a tenant is charging 'guests' or guests are staying over enough as to be living in the property, they become lodgers/ licensees and that is changing the terms of the lease without permission.

    Why do you say that charging rent to long-stay lodgers / licensees would not be seen as running a business?



  • Registered Users, Registered Users 2 Posts: 365 ✭✭DFB-D


    There is a term which allows the landlord to terminate based on

    "The dwelling is no longer suitable to the accommodation needs of the tenant and of any persons residing with him or her having regard to the number of bed spaces contained in the dwelling and the size and composition of the occupying household."

    Business is rather a generic term, but the generally accepted interpretation is a level of activity beyond letting of rooms, e.g. Airbnb, B&B etc. It is ludicrous to even suggest the Irish courts will consider a term inserted prohibiting business use as limiting the tenants ability to create a licence.

    In settlement of this particular argument, the following are the pertinent facts:

    1. In 20 years of RTB published cases, there are 0 instances of a landord terminating a tenancy on the basis of a license arrangement entered into by the Tenant.
    2. The law society residential lease template contains 0 terms in relation to licences.
    3. Most estate agents charge a documentation fee for tenants replacing prior tenant's. Bizarrely it has been claimed that replacement tenants/ licences are prohibited in most leases despite points 2&3.

    OP you should consult threshold or FLAC on this matter, anyone on boards can give you advice, but they do so risk free to themselves and often while well meaning posters exist, there are trolls and idiots who will give you maliciously false information.



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    Letting in order to generate an income is a business activity, whether it is as a contribution to rent or not.

    Standard leases forbid the subletting assignment or sharing possession without the express written consent of the landlord.

    20 years of RTB cases are not available to view. The only cases which can be read are tribunal decisions. IS there one reported case where the Tribunal upheld the tenants right to introduce a licensee without the consent of the landlord. In some cases the landlord accepted rent from the licensee and the RTB held that by conduct the landlord had recognised a tenancy.



  • Registered Users, Registered Users 2 Posts: 365 ✭✭DFB-D


    "Letting in order to generate an income is a business activity, whether it is as a contribution to rent or not." - No - refer to badges of trade for the test used by Irish courts.

    "Standard leases forbid the subletting assignment or sharing possession without the express written consent of the landlord" - No, Standard would suggest that you would expect to see this term in all leases (nearly impossible to measure this btw) but no such term in the law society template or EAs leases, so based in this, the OP/others can decide for themselves whether it is standard or not.

    In any case, a licence does not share "possession" - this is again a legal term which conveys legal rights to the property, which a licence does not create. Such a term would not prohibit a licence arrangement.

    "20 years of RTB cases are not available to view. The only cases which can be read are tribunal decisions. IS there one reported case where the Tribunal upheld the tenants right to introduce a licensee without the consent of the landlord. In some cases the landlord accepted rent from the licensee and the RTB held that by conduct the landlord had recognised a tenancy." - A person who makes payment to the landlord = tenant, that is not remotely relevant to the issue at hand.

    Point stands - you cannot produce a single case, legal article to support your opinion, can you?



  • Registered Users, Registered Users 2 Posts: 1,893 ✭✭✭mrslancaster


    @ DFB-D, I can't find an answer to this query, do you know how this works? In a multi-occupant house share, a licensee who pays rent seems just the same as RaR or a short-let Airbnb, insofar as the tenant/s receive payment for use of the dwelling. The licensee has no direct agreement with the owner, and even though tenants may call it a rent contribution, it is rental income received directly by the tenant/s.

    Are tenants obliged to make a tax return for the licensee rents they receive in the same way as a head tenant in a sub-let or an owner occupier would? How does it work in practice, ie are licensee rents split between all tenants for tax purposes?

    Presumably all types of rental income must comply with revenue rules.

    Queries relating to licensees are very common on boards and other forums, because many renters are not sure about the rules and want to get a better understanding so any info appreciated.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 365 ✭✭DFB-D


    Revenue look at the substance of the arrangement, which is to share the rental expense, this situation would be an non issue for Revenue in most instances as there is no tax due.

    But technically yes, the rent recieved by the tenant is considered Case v income and relieved by RAR (in which case can be returned on form 12), alternatively if RAR is not claimed, the rent paid to the landlord is deductable from the rent recieved.

    Short term rental income is different, at a low level, it can be Case V, intensively, it is Case I.



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    badges of trade is a tax concept to differentiate between earning income and one off income. Carrying on a business activity is determined by consumer law. If an activity is intended to make a profit it is a business activity. AIB v Higgin in 2010 being the leading case.

    The DSBA lease contains clause that the lease of the premises is for the tenants own use and for business purposes is not allowed.

    You are trying to claim that all decisions on every possible point of residential tenancy law have been decided by the RTB and if therefore any proposition of law is capable of being supported by decided cases or else the proposition is false.

    That is nonsense. The RTB have been found to have erred in law time and again even in the current year.


    I note that you have produced no case or legal article to justify your propositions so it is a case of the pot calling the kettle black.



  • Registered Users, Registered Users 2 Posts: 365 ✭✭DFB-D


    Serious error there - you claim the leading case for carrying on a business activity is a consumer credit case? Have you read it? Those acts define a "business" for the purposes of contrast to a consumer - thereby excluding businesses from the protections available to consumers - in no way relevant outside of consumer legislation. Have you got a case mentioning these acts?

    Read the badges of trade.....it makes sense as a test, and no your description is incorrect.

    Regarding your last remark, you gave the OP pointed and clear advice based on your opinion, but you had no basis from which to do so, you also added a sarky comment "move on with your life", that is one major difference between our positions....

    Now be a good man and leave this topic. I know your style is to never admit you were incorrect or to admit you misrepresent yourself as an expert, but hey, maybe you have grown since my last interactions with you?



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    You are claiming a serious error without showing how the badges of trade have any relevance.
    All that is at issue is whether a business is being carried on, not what class of taxation any particular straem of income might have.

    You have resorted to a personal attack. I will always admit it when I am wrong. Show me one instance where I did not admit I was wrong.



  • Registered Users, Registered Users 2 Posts: 1,893 ✭✭✭mrslancaster


    Thanks. There's stuff about licensees - Revenue rules and RTA regulations - that are not very clear (to me).

    Revenue:

    In a single tenant letting, the tenant can do long term RaR (tax free) or short term AirBnB (taxable) as far as Revenue is concerned. The tenant always needs to include the rental income on their tax return.

    In a multi-tenant letting, the tenants can also do both as far as Revenue is concerned, but they don't need to make a tax return for the RaR, only for AirBnB income as Revenue looks at the substance of the arrangement. Fair enough, but it seems wrong to me that an individual tenant would be treated differently to a group of tenants for tax purposes.

    RTA:

    I wonder if RTA regulations are being broken when there are a group of tenants in a single unit, ie. a house-share. The RTA says that 'part' of a tenancy can't be assigned or sub-let. It would be very transparent if the group, who share kitchen and bathroom facilities, had their own individual lease. They could assign or sub-let their own lease (with landlord's permission) but afaik, individual leases are not allowed because a tenancy agreement can only be for a self-contained unit.

    Tbh, it sounds to me like RaR and AirBnB are actually sub-leases of 'part' of the tenancy. Also if one tenant surrenders their interest ie. their 'part' of the lease, it can't be assigned. In reality, that's what happens when a licensee is moved into the vacant bedroom by the remaining tenants. The new house-mate is a long term occupier and pays the rent due for that room. In which case, the tenants have either part sub-let, or part assigned. Then in Part4, Ch6, S50.7 it says licensees who are 'lawfully in occupation'. Does that not mean only licensees in occupation with the landlord's permission can request to become a tenant?

    I think what happens in a lot of house-shares is that the landlord and tenants agree changes to the lease beforehand, but, if it's not agreed, and the tenants do it anyway, does that mean they will likely get a NoT?



  • Registered Users, Registered Users 2 Posts: 365 ✭✭DFB-D


    The serious error was claiming a consumer credit act case is somehow relevant here. Furthermore, renting a room fails to meet the business criteria discussed in that case.

    Now consumer credit and partnerships clearly are very relevant to licences (massive sarcasm there), but call me mad, I think the actual classification of the income for tax purposes might give a little clue on how your claim would be treated.

    Another error you made was claiming that licences somehow "share possession" and hence are prohibited by the standard lease term you invented - licences have no property rights at all.

    Finally, it wasn't a personal attack, you can treat it as a frank assessment of the interactions I have had with you and witnessed here, it appears every tread you get involved in degrades into nonsense.



  • Registered Users, Registered Users 2 Posts: 365 ✭✭DFB-D


    There is no difference between a single tenant and multiple tenants, Revenue just don't chase non issues as there is no tax liability.

    Look, some situations require legal advice, in my case the advice given to me was that terms limiting licences should not be included in leases as unenforceable. You can choose to believe differently, but that position is not documented by previous cases, articles or anything that could give you reasonable expectation that your position is correct. If you have a solicitor confident enough to include the term and a convincing legal argument, great - let me know and I will be their next client.

    Actually, the RTB now have a lease template, I think they would have included the common terms which they consider valid.

    As regards licences lawfully in occupation - the landlord cannot issue licences as per the RTA on relevant properties, a licence/permission from the landlord = tenancy. Hence it could only mean a licence agreed by the tenants.



  • Registered Users, Registered Users 2 Posts: 23,741 ✭✭✭✭ted1


    wouldn’t it fall u see rent a room and be take free providing it’s less than €14,400 ( or €14,000)



  • Registered Users, Registered Users 2 Posts: 1,893 ✭✭✭mrslancaster


    Yes, I can see how licensees couldn't be mentioned in a lease as that classification could include eg children of tenants, or guests and visitors. Appreciate the information.



  • Registered Users, Registered Users 2 Posts: 6,360 ✭✭✭Claw Hammer


    You are claiming a serious error without any real contradiction. Ypou still haven't said how the badges of trade have any relevance.

    You are now say someone needs legal advice and are talking about advice given to you. You haven't indicated the source of this advice or the basis for it.
    I don't know whther you were or not.
    I don't agree that a landlord can't prevent a tenant from taking in a licensee who is permanently resident and paying the tenant, without consent.

    The RTB have a lease template. You can't infer from that that the absence of any term means that such a term can't be inserted in a lease.

    The template nots say
    "Additional terms may be added to the template but they will not be binding if theyare inconsistent with the RTA 2004 and any other relevant legislation. "


    The RTB have upheld terms not allowing pets, even thought there is nothing in their template about pets.


    The tenant who avails of the Rent a Room scheme must file a tax return and declare the income, even if it is not taxable. The tenant is trading even if it is not traxable.
    landlords are under a duty to see that their property is not over-crowded and are supposed to know who is living in the property and on what basis.

    The original group is the tenant, jointly and severally liable. The landlord is under no obligation to accept an alteration to the constitution of the group by allowing one member to substitute for another.

    The RTB have expressly refused to recognise the concept of a lead tenant.

    A landlord can licence occupants of property but it is quite difficult to do so successfully as the RTB may deem the arrangement to be a lease.

    The RTB have found some arrangements to be a licence and others to be a lease.



  • Advertisement
Advertisement