What is a licensee?
There are broadly two types of renters in Ireland: tenants and licensees. Tenants are defined and protected by rental legislation, but licensees are largely not. Licensees are generally renters who are not covered by the Residential Tenancies Act, or the main legislation protecting renters. It is important that you know if you are a licensee.
Licence arrangements can range from, but are not restricted to, digs style accommodation where you are living in the house with your licensor (landlord), to accommodation provided/owned by your employer, to renting from another tenant, to renting in a retirement community.
There is little legal protection for licensees. For example, licence arrangements do not have to be registered with the RTB, and no rent book regulations or minimum notice periods apply. If there is a dispute, most licensees cannot take a case to the RTB, and while the Small Claims Court may be an option for applying to recover an unfairly retained deposit, this is not always an option in every scenario.
We can help you see if your renting arrangement is a tenancy or a licence arrangement with our quick Tenant or Licensee? quiz. However, it can be tricky to tell. To be fully confident, we suggest getting in touch with our team of expert advisors. They are happy to walk through your situation and give you the most accurate advice.
Setting up a licence arrangement
Licence arrangement agreement
If you are entering a licence arrangement, we would suggest you and your licensor (the person you are renting from) fill out a licence arrangement agreement. There are several templates available online. We also have a template for a licence arrangement agreement (docx).
This agreement should be signed and dated by both you and your licensor.
This agreement should include the following:
- The names of both the licensee and licensor
- The address of the property
- The letting commencement date
- If the arrangement is for a fixed term, the details of the fixed term
- The amount and frequency of the rent and the details of how it is to be paid (e.g. bank details)
- The amount of the deposit paid
- The details of any bills and how the licensee is expected to contribute to these. Copies of the bills will be provided to the licensee.
- An inventory list of all items provided as part of the arrangement. Taking photos showing the condition of the property and items provided at the commencement of the arrangement would be recommended.
Expectations agreement
We would also suggest you and your licensor sit down and discuss your expectations for the licence arrangement. We have a template in a Word document format to allow for you and your licensor to make changes to fit your specific licence arrangement.
During the licence arrangement
If you have any questions or issues during your licence arrangement, do get in touch with our expert team of advisors. We can give tailored advice for your specific situation.