Understand the difference between a licence and a lease
Licence
A licence is a permission to enter or stay in a property (or both). Without this permission, the person would be trespassing.
Examples of licences include:
- Staying in hotel, hostel or guesthouse.
- Sharing a house with the owner.
Simply calling a letting agreement a “licence” does not automatically make it one.
The RTB and the Courts will look at the actual terms and substance of the agreement, not just the title, when deciding whether it is a licence or a lease.
Some typical features of a licence (not a full list):
- The licensee does not have exclusive use of the property, in other words the owner can continue to access it.
- The owner (licensor) can move the licensee to another room or change the occupants.
- The rights in the license are personal to the licensee and cannot be transferred to another person.
- The licensor can end the agreement at any time with reasonable notice (minimum statutory notice periods do not apply).
- The arrangement was intended by both parties to be a licence.
- The licensee has no legal interest in the property and no property rights.
- Payment for staying may or may not be required.
Lease
A lease or tenancy is generally created when a landlord gives a tenant exclusive use of a property (or part of it) in return for rent or valuable consideration. Tenancies are covered under the Residential Tenancies Acts which set out the legal rules for how they operate in Ireland.
Typical features of a tenancy (not a full list):
- Both parties intended to create a tenancy arrangement.
- There is a tenancy agreement in place (can be written, verbal or implied).
- The tenant(s) has exclusive occupation of the rental property.
- Rent or other valuable consideration is paid.
- The tenant usually decides who they live with. Even if they don’t (for example in bedsits or group homes), they should still have exclusive use of their own room.
- The tenant generally controls what happens in their home.
- The landlord needs to permission in advance from the tenant to enter the property.
- A tenancy can only be ended according to the Residential Tenancies Act and the valid terms of any tenancy or lease agreement.