Leases and Licences
The purpose of this page is to help outline the difference between leases and licences. The leaflet is a general guide only and not an interpretation of the law. This leaflet is not conclusive and does not make reference to all relevant provisions legal or otherwise relating to leases and licences. The Private Residential Tenancies Board, its servants or agents assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided in this leaflet and do not accept any liability whatsoever arising from any errors or omissions contained therein
The Residential Tenancies Act 2004 applies to every dwelling which is occupied on foot of a tenancy. A tenancy can take a number of different forms and may be oral, written or implied. A written tenancy is known as a lease.
A licence is not a tenancy and therefore (save for one exception) the Residential Tenancies Act 2004 does not apply to such an arrangement. A licence can be best described as a permission to enter onto and/or occupy a dwelling (without which a trespass would occur). Examples of a licence are a person staying in hotel, hostel or guesthouse or a person sharing a house with the owner.
For a detailed overview of licensees in private rented accommodation and the application of the Residential Tenancies Act 2004 to them, please see PRTB leaflet on Licensees in Private Rented Accommodation.
How can you distinguish between a tenant and a licensee?
There is no hard and fast rule in relation to what arrangement constitutes a tenancy or a licence. This will depend on the facts of each case. Where necessary the PRTB will objectively assess every individual case to determine whether the arrangement amounts to a tenancy or a licence.
The following criteria are helpful in determining the nature of the arrangement between the owner and the occupier of a property but are not conclusive.
- Simply entitling a letting agreement a Licence does not automatically mean it will be considered a Licence and not a Lease. Neither the PRTB nor the Courts will just accept the title of a document but will look at the actual terms and substance of the agreement when assessing whether it has jurisdiction to deal with it.
- A tenant should always examine the terms of a tenancy agreement prior to signing it and know exactly what type of agreement is involved and whether it is a lease or a licence. Remember, the PRTB can only deal with “tenancies” and therefore does not have any jurisdiction to regulate genuine licence agreements.
- The legislative definition of “tenancy” is quite broad however and if you are in any doubt as to the significance of any terms contained in your tenancy agreement, please consult your legal advisors.
“Even though care has been taken in the preparation and publication of this guidance note the Private Residential Tenancies Board, its servants or agents assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided in this guidance note and do not accept any liability whatsoever arising from any errors or omissions contained therein".