Chatting to my neighbour last night and she told me she had just been offered a 5 year lease by her landlord. I said jee that’s weird I never heard of a lease than long before but she says John next door has also been offered a 5 year lease by his landlord. It may just be a coincidence or maybe I’m overly suspicious but is this some way of side stepping the rent review rules introduced by that muppet Kelly before Christmas.
Is the rent fixed over the 5 years? Would have thought that the rent review rules apply regardless, in addition to any more onerous restrictions in the lease itself.
i’m not sure but my neighbour mentioned her rent was increasing even though she only moved in a year ago,
I guess the tenant could voluntarily increase rent in exchange for the 5 year lease…? But if they didn’t want the lease then the landlord still couldn’t evict them until the 2 year period had passed?
From what I know it was the landlord increasing the rent.
Well that’s directly in violation of the current rules (as I understand them, at least). But then I’d wager plenty of landlords will try to increase rents anyway, and hope tenants don’t know/aren’t willing to fight for those rights.
Make sure they get a downward review option too!
Yeah thought so, so sent her off to cirtizens advice.
Is a lack of an downward/upward rent review provision legal on a 5 fixed term lease.
A downward review option introduces the possibility of an upward movement also.
IMO there is very little risk of rents falling in the next 5 years. I believe they could rise 3O% to 40%. This is based on a lack of meaningful supply of coming on stream, the arrival of the professional landlord and anecdotal evidence of the smart, ballsey, 1-2 unit landlord exiting the market.
Yes, in theory, however, I don’t think either side can contract out of a legal right.
There are a number of reasons by which the landlord could evict them. For example - by selling the property.
Sorry, yes, didn’t mean to imply otherwise.
That would be the case with a part 4 tenancy, but not a fixed lease, I don’t think? A lot of the reasons that a part 4 can be broken aren’t available for fixed leases.
No, not with a 5 year lease in place.
If the LL was in trouble with the banks would there be an upside to offering a 5 year lease. Could it make it harder for the back to sell the property?
5 years lease proposition sounds to me like the Bank talking, i.e. commercial lease terms/thinking has no pale in residential part IV regulated market.
In commercial, once possession has been established (5 years I think) you have the right to a renewal of a lease for a period of no less than 5 years and no greater than 20 years.
every 2 years 