A&L Goodbody has a good summary of the implications for large landlords

[Brendan Burgess]

Irish Government to introduce package of changes affecting private rented sector | A&L Goodbody LLP

A&L Goodbody LLP, a leading Irish corporate law firm providing expert Irish legal advice to multinationals, financial institutions, and government bodies.

www.algoodbody.com

 

[Brendan Burgess]

Anyone want to have a go at the implications for small landlords in the same format?

 

[Greenbook]

That is a good summary.

It might be a good idea to sign up as a subscriber to their Property Legal Insider Blog. There will be updates as the legislation is produced.

 

[faketales]

Anyone want to have a go at the implications for small landlords in the same format?

Would it only be the column on terminations that is different?

The two setting of rent columns being the same.

Why couldn’t the government produce something like this…

 

[Fevertree]

In the Sunday Independent today it states

"If a renter currently in an RPZ leaves a tenancy, the new tenant's rent is the same as the one paid by the old tenant"

Is this correct?

 

[Greenbook]

Is this correct?

Yes. You can increase by the 2% but otherwise it is the old rent. Since the RPZs came in you can't reset the rent to market level when a new tenancy starts. You must relet at what the previous tenant paid plus any annual 2% or inflation increases you are entitled to.

The new rules are attempting to change that.

 

[Brendan Burgess]

Yes, if the new tenancy starts before 1 March next year.

But if the landlord leaves the property empty until the 1 March, the landlord can reset the rent.

 

[Greenbook]

But if the landlord leaves the property empty until the 1 March, the landlord can reset the rent.

Absolutely correct, but the downside is that you are granting a 6 year tenancy or a permanent tenancy if the tenant doesn't leave of their own accord. Your increases for the next 6 years are back to the current RPZ levels (again if the tenant stays) and you are hoping to get an large increase at year 6. What if the tenant can't or won't pay (they've factored in what is by now low rent in their livestyle), the government of the day facing large jumps brings in a temporary freeze, or and it has happened in the past rents have fallen.

To my mind anyway, the post March regime is very unattractive and risky. You're giving up quite a bit to get the rent up to market level. It'll be fine if you have a good tenant who leaves after a couple of years. But what if you end up with a long term one who is difficult? No matter how well you vet that is always a risk. Plus there will be competition for short term tenants.