Rental Regulator Reviews Controversial €200 Mid-Lease Exit Fee

A south Dublin letting agent’s attempt to impose a fee exceeding €200 for tenants wishing to exit their lease early has prompted a review by the Residential Tenancies Board (RTB). This decision follows objections from a tenant and the advocacy group Threshold, highlighting concerns about the increasing costs associated with renting.

The controversy began when the letting agent sought to charge a €200 “administrative fee” to a couple in Dublin 8 who planned to leave their €1,900-per-month apartment after three years. The tenants provided 56 days’ notice, as required by law, and agreed to find a replacement tenant. However, complications arose, particularly around the fee and the agent’s demand for supporting documentation from the outgoing renters.

Including value-added tax, the total fee proposed by the letting agent amounts to €246. Advocates within the private rental sector view this move as a potential financial burden for renters. Previous attempts to impose similar charges have been met with resistance, such as a now-retracted fee by Ires Reit for access to common areas in its buildings earlier this year, which was abandoned after legal advice.

In March 2024, the tenants lodged a formal complaint regarding the fee with the RTB. They assert that no such charges were included in their lease agreement. Threshold has criticized the requests for additional fees and documentation as “excessive” and questioned their legality under Irish law. The organization pointed out that while the Residential Tenancies Act does not specify the process for reassignment of tenancies, the requirements being imposed may exceed what is legally permissible.

Eoin Ó Broin, housing spokesperson for Sinn Féin, has echoed these concerns, urging tenants to report such issues to the RTB. He stressed that many tenants may not be aware of their rights regarding lease termination and replacement tenants.

A spokesperson for Threshold explained that current legislation should make the replacement of a tenant a straightforward process, with no additional conditions beyond the landlord’s consent required from the outgoing renter.

The tenants, who have been renting for nearly 20 years, expressed their frustration over the €246 fee. They stated, “We have done all the legwork for assignment of the lease. We published advertisements for viewings, facilitated several viewings, and gathered information from prospective tenants.” Their efforts included answering numerous questions about the property.

The letting agent’s owner responded to inquiries, asserting that the fee is necessary to ensure a smooth transition between tenancies. They described the process of transferring tenancies as “labour-intensive” and noted challenges in obtaining definitive guidance from the RTB regarding the legality of such fees.

When approached for comment, a spokesperson for the RTB indicated that it typically refrains from making determinations without reviewing the complete details of a lease agreement. They added that tenants are only obligated to pay fees stipulated in their contracts.

Misunderstandings often arise concerning tenant obligations when terminating a lease, according to Threshold. While it is common for departing tenants to seek replacements, the specific requirements can vary and should be clarified between all parties involved.

As the situation develops, the RTB is expected to make a ruling in the coming months, which could have implications for both landlords and tenants navigating similar disputes in the future.