Changes to rent controls announced - thread for clarifying

[Greenbook]

That is now my understanding as well. So as a 'large' landlord (ie. owner of 4 properties), I don't need to worry about any of the existing tenancies as the current rules will continue to apply. If one of them ever to decides to leave voluntarily (unlikely for a while), I then need to weigh up whether I begin a new tenancy (which will come with the new 'large' landlord restrictions that will mean I can't ever do a no fault eviction) or take it off the rental market altogether.

That is my reading of it as well. You entered into the tenancy on the old basis, so I don't think they can fundamentally change its terms while it is still running its course.

So once your tenant leaves, the decision is to sell or keep going. You could insist on short-term tenants only, of course. But a short-term tenant may turn into a long-term one. There is more churn, gaps, costs and effort as well. I suspect we'll see a lot of sales. Even the small landlord option isn't great as barring a divorce or a bankruptcy you can only get vacant possession once every 6 years. Also, even that mightn't be allowable if Sinn Fein get into government - they may impose a 'temporary' eviction ban.

 

[Greenbook]

The current rules will continue to apply until 2026 or can the minister apply some of the renter protections by something like a statutory instrument?

I don't think he can do that by statutory instrument as that would be changing the law and only Acts of the Oireachtas can do that.

 

[joe sod]

What about Ires reit will they be able to sell off properties on the open market or sell off the whole portfolio as had been threatened before?

 

[bipped]

Does this change only apply to rtb registered properties? What about owners who have let to a LA under a long-term leasing scheme for 5/10+ years as those properties are not subject to rtb rules. Say an owner has 4 properties, two are rtb and two are let to the LA. Are they small or large landlords?

 

[bipped]

You entered into the tenancy on the old basis, so I don't think they can fundamentally change its terms while it is still running its course.

Confused. So say an existing tenant is there since September 2022, under the existing rules they have a tenancy of unlimited duration. If they choose to stay for the next 10 years (with 2% rent increases) what will change?

 

[Premos]

they choose to stay for the next 10 years (with 2% rent increases) what will change?

Nothing...

 

[david995]

Hi - I own a property in a non RPZ area. Am I correct in thinking I can raise the rent without restrictions anytime before March 1st 2026?
For context, Tenants in the house for 9 years and rent (€700) is 50% below the local market value. Never minded too much as the Tenants were great ... but I don't want to get locked in at a low rate indefinitely going forward.

 

[8till8]

Hi - I own a property in a non RPZ area. Am I correct in thinking I can raise the rent without restrictions anytime before March 1st 2026?
For context, Tenants in the house for 9 years and rent (€700) is 50% below the local market value. Never minded too much as the Tenants were great ... but I don't want to get locked in at a low rate indefinitely going forward.

Yes you are correct so unfortunately for the tenant, you must increase the rent without delay in order to preserve the value of the asset/tenancy

 

[Brendan Burgess]

This thread is for understanding what is proposed. It is not for discussing the merits which can be done in another thread.

Folks, please try to stick to this. It's very annoying for someone who is trying to understand the rules and the implications for them to have to sift through people letting off steam about the new rules which they can do in the other thread.

Likewise if you want to discuss your particular circumstances in detail, then start a new thread.

 

[letitroll]

So what's the situation for large landlords - the institutional ones who are already with existing old (non-new build) property portfolios? IRES etc.

- existing tenancies continue under the max 2% rent increase rules?
- but when tenant leaves they can reset to marker rent?
- a tenancy consummated after March 1st 2026 for a large landlord is now by default a tenancy of indefinite duration with the 2% rent increase cap attached?
- technically a large landlord could have tenant move in on March 1st 2026....and that tenant could stay there for life (40 or 50yrs) and the max the landlord could increase the rent by is 2% every year....regardless of what CPI does in that period?

 

[DannyBoyD]

after March 1st 2026 for a large landlord is now by default a tenancy of indefinite duration with the 2% rent increase cap attached?

How does this differ from the current position?

tenant could stay there for life (40 or 50yrs) and the max the landlord could increase the rent by is 2% every year.

Again, is that not what we have at present?

 

[Dr Strangelove]

I suspect they will join up 'connected parties'.

I suspect they won’t. It would discriminate against two landlords with two properties each who get married for example.

Also if you’ve never dealt with the RTB you won’t believe how awful their IT system is.

 

[Greenbook]

I suspect they won’t. It would discriminate against two landlords with two properties each who get married for example.

I suspect that they will. These type of rules are extremely common in tax law and company law. Way too easy for a husband and wife with 6 properties to split them 3/3 otherwise. 'Connected party' rules are very common in other legal areas. Likewise if two landlords with two properties get married they automatically become one large landlord; this is simply one of the many consequences of getting married.

Also if you’ve never dealt with the RTB you won’t believe how awful their IT system is.

It is awful. Possibly all the small landlords will be classed as large landlords and vice versa because of the glitches in their systems.

 

[Dr Strangelove]

I suspect that they will. These type of rules are extremely common in tax law and company law.

Perhaps.

There is already differential treatment of landlords by size in the RTA - what was called the “Tyrellstown Amendment” a few years ago. It doesn’t have any anti-abuse measures.

 

[Brendan Burgess]

I am tired of deleting posts Letting off Steam from this thread, despite repeated requests.

So anyone who does not stick to clarifying the measures is being banned from replying to this thread.

They can still contribute to this thread:

Changes to rent controls announced - discussion

This thread is for discussing the pros and cons of the new measures.

www.askaboutmoney.com

 

[Greenbook]

There is already differential treatment of landlords by size in the RTA - what was called the “Tyrellstown Amendment” a few years ago. It doesn’t have any anti-abuse measures.

Agreed, it doesn't, but I would still expect these here. The large landlord rule is just too easy to avoid otherwise. We'll have to wait and see.

 

[bipped]

Is my understanding correct?

From 01 March 2026 for existing properties

- All locations in the country will be an RPZ
- Existing tenancies that continue will remain indefinite duration
- Existing tenancies that continue will remain at currently set rent but with capped annual 2% increase
- If a landlord terminates for a no-fault reason, the existing rent stands for any following new tenancy
- If a tenant vacates voluntarily, any following new tenancy created can have rent set to market rates
- Every new tenancy will be indefinite duration and with a six year rolling cycle
- During the six years, rent increases will be capped at 2%
- During the six years, no-fault termination by small landlords is restricted
- During the six years, no-fault termination by large landlords is banned
- At the end of the six years, a small landlord can terminate to sell, renovate, for own use, change use.
- At the start of the next six year cycle, rent can be matched to the new market rate


From 01 March 2026 for new build properties.
- Every new tenancy created can increase rents in line with CPI rates


Are all other rules then the same as above? Also,

Does the CPI increase apply for every new build, house or apartment?
Does the CPI increase apply to both Large and Small landlords in a new build?
Does the CPI increase apply forever to any property built after 01 March 2026 ?

 

[DannyBoyD]

To be honest, I still don't see what the actual change is from where we are at present.

There's a lot of guff about 'no-fault evictions' - we don't have "no-fault" evictions here.

You can only evict for cause, e g. default, own use or sale.

The only real change that I see is the 6 year limit for own use / sale (assuming no untoward circumstances).

 

[JoeRoberts]

You can only evict for cause, e g. default, own use or sale.

The sale bit is being removed , not totally clear if it applies both to current and new tenancies though. This is the biggest impact for small LL

 

[misemoi]

- If a tenant vacates voluntarily, any following new tenancy created can have rent set to market rates

Would this create instances where a landlord would offer to pay a tenant to leave? It might make financial sense if the tenant has somewhere else they could potentially go.