We dealt with a query this week in relation to the termination of a residential tenancy in circumstances where the landlord wants to sell the property that is being rented. The landlord was seeking our advice on how to ensure the termination was in compliance with the relevant legislation so as to avoid any dispute with the tenants.
Landlords should be mindful that once a tenancy has lasted for over six months, landlords have specific obligations to tenants should they wish to terminate the tenancy. These obligations are prescribed in the Residential Tenancies Act 2004. There is a helpful guide to termination of tenancies on the website of the Private Residential Tenancies Board.
It is essential to note that a landlord cannot simply terminate a tenancy that has lasted six months or more without a legitimate reason. The main grounds for termination by a landlord are set out in Section 34 of the Act. These include termination on the basis of the landlord’s intention to sell their full interest in the property within three months of the termination of the tenancy.
It is essential that any landlord seeking to terminate a tenancy on this basis or any other basis covered by the legislation is very careful to serve a proper notice of termination. Any notice must be in compliance with Section 62 of the legislation and must be: in writing, signed by the landlord or their authorised agent, specify the date of service on it, state the reason for termination, specify the termination date and provide the tenant with the whole of 24 hours of the termination date to vacate possession, and state that any issue as to the validity of the notice or right of the landlord to terminate must be referred to the PRTB within 28 days of the date of receipt.
Disputes over the validity of a notice of termination frequently come before the PRTB incurring costs and inconvenience to both landlords and tenants. It is essential that any landlord of a residential tenancy carefully consider the grounds of termination and the form to avoid any subsequent dispute.
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