In accordance with their commitment in the Housing for All plan to increase protections for students in private rental accommodation the Government has today enacted the Residential Tenancies (Amendment)(No.2) Act 2024 (the “Act”). The Act was published on 2 July 2024 and progressed through the legislative process as a matter of urgency over the last week to ensure it was enacted before the Oireachtas broke for the Summer. The President signed the Act today. The provisions require a Commencement Order which the Department of Housing, Local Government and Heritage has confirmed will issue without delay.
The Act proposes a number of changes which will apply to student specific leases and licences created after the commencement of the provisions. One of the more significant changes is the ban on student accommodation providers seeking to bind students into year-round leases.
Duration of student specific accommodation leases and licences
Any lease or licence of student specific accommodation created after the commencement of the provisions must not exceed 41 weeks so as to align with the standard academic year. This section was introduced to ensure that students cannot be forced to pay for student specific accommodation over the summer months outside of the academic term.
A contravention by a landlord or licensor of this requirement can be referred to the Residential Tenancies Board (the “RTB”) for dispute resolution.
A landlord or licensor of student specific accommodation who requests or requires a person to enter into a lease or licence exceeding the 41 week duration (where it is not requested by the student) will be subject to sanctions by the RTB for improper conduct.
Notwithstanding this provision, a student can still choose to request and agree a tenancy in excess of 41 weeks.
Termination by students of the lease or licence
A fixed term tenant or licensee of student specific accommodation can terminate its lease or licence at any time during the period from 1 May to 1 October in any year by serving 28 days prior written notice without the need for the student specific landlord or licensor to have breached any obligations.
This new ‘no fault’ termination right can be exercised at the sole discretion of the student. It will allow a student who changes course shortly after commencement of the academic term to terminate its tenancy up until 1 October of that year. In the case of students committed to year-round tenancies, they can serve notice from 1 May to exit their lease or licence early.
Advance payments
Residential tenancy legislation already provides that a tenant cannot be required to make an advance payment of rent exceeding an amount equivalent to one month’s rent. The Act goes further and provides that a landlord or licensor cannot seek such a payment. This applies to tenancies generally, not just in respect of student specific accommodation.
The Act provides that an advance payment of rent exceeding an amount equivalent to one month’s rent will only be permitted where it forms part of a combined payment in respect of both rent and tuition fees to the same entity.
Should you require further information about the material referred to in this update, please contact any member of the Commercial Real Estate team or your usual Matheson contact.