That is my interpretation. & I think as well that it will only apply if you sign a new lease after 1 March 2026. I would keep an eye on it though. We'll only really know what the plan is when the legislation is published.
Changes to rent controls announced - thread for clarifying
- Thread starter Brendan Burgess
- Start date
I think that the 6 years is irelevant to current leases or those entered into before 1 March 2026. If you enter into a lease post that date, it is the 6th anniversary of the start of the lease.
Again, we'll need to see the legislation to be 100% sure. I'm basing this on the press release.
JoeRoberts
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RTE news : Legislation to extend RPZs to be presented next week
www.rte.ie
Legislation to extend RPZs to be presented next week
The Tánaiste has said emergency legislation to extend Rent Pressure Zones (RPZs) to all parts of the country will be brought forward next week.
I actually think the biggest losers will be low income tenants who need long term tenancies (can't afford to buy and too much income for social housing). No landlord, especially a large one will rent to one. Think about it from the large landlord's perspective
1. It is a life long tenancy. They can never be evicted for sale etc. So the landlord can only sell to another landlord which is very unlikely.
2. So it is an investment based purely on yield. The landlord will be depending on inflation not being above 2% pa for each 6 year cycle and that market rents will increase every 6 years. This is far from guaranteed. Even if there is a big increase, the tenant may not be able to afford to pay it and the RTB would be sympathetic. AIB shares would be a safer bet if you were looking for yield alone.
3. The landlord has to pay for maintenance and repairs which will become more expensive as the property gets older. BER upgrades may also be required. The rent can't be increased to take this into account and it is likely that over time, as an older property, the market rent will actually decrease.
Smaller landlords would be very wary too.
It looks like the government has just knocked a large cohort of people completely out of the rental market????
1. It is a life long tenancy. They can never be evicted for sale etc. So the landlord can only sell to another landlord which is very unlikely.
2. So it is an investment based purely on yield. The landlord will be depending on inflation not being above 2% pa for each 6 year cycle and that market rents will increase every 6 years. This is far from guaranteed. Even if there is a big increase, the tenant may not be able to afford to pay it and the RTB would be sympathetic. AIB shares would be a safer bet if you were looking for yield alone.
3. The landlord has to pay for maintenance and repairs which will become more expensive as the property gets older. BER upgrades may also be required. The rent can't be increased to take this into account and it is likely that over time, as an older property, the market rent will actually decrease.
Smaller landlords would be very wary too.
It looks like the government has just knocked a large cohort of people completely out of the rental market????
@Millie*
It’s an existing tenancy so the status quo will continue to apply.
Entering into a new lease with the same tenant won’t change that.
So you can terminate the tenancy to sell in September 2026 in exactly the same way as you can today.
Be careful to get the documentation and notice requirements 100% right - it’s very easy to make a mistake.
It’s an existing tenancy so the status quo will continue to apply.
Entering into a new lease with the same tenant won’t change that.
So you can terminate the tenancy to sell in September 2026 in exactly the same way as you can today.
Be careful to get the documentation and notice requirements 100% right - it’s very easy to make a mistake.
Brendan Burgess
Founder
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No, you will only be able to get back to market rent if the existing tenant leaves voluntarily.
The 6 year reset does not apply to tenancies created before 1 March 2026.
Am I correct that an existing tenancy which is well below market rent and not due for a Rent Review for another year (currently not in RPZ) will be subject to the max of 2% or HCIP lower increase
In that case if the rent is subject to the cap it would take 36 years at a compound 2% rate for the rent to double plus,
(a) add extra years for rent freezes,
(b) add extra years where HCIP is less than 2%.
I would be classified as a Large Landlord 4 or more.
The good careful tenant in this case maybe the sacrificial lamb in the above scenario.
Apologies if I am unclear or incorrect in any way.
In that case if the rent is subject to the cap it would take 36 years at a compound 2% rate for the rent to double plus,
(a) add extra years for rent freezes,
(b) add extra years where HCIP is less than 2%.
I would be classified as a Large Landlord 4 or more.
The good careful tenant in this case maybe the sacrificial lamb in the above scenario.
Apologies if I am unclear or incorrect in any way.
Yep this is right - tenancies with a high probability of being short are the most desired renters now. The highest probability of achieving that are (1) foreign workers on fixed term employment contracts (2) high income workers (cause they'll buy something soon)
Put another way and exactly as you say......low income, Irish tenants who are likely to be in situ in your property for years are a financial disaster waiting to happen for a landlord.
Tobleroney
New Member
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Hi! Has there been any official clarification on whether a small landlord with a new tenancy commencing in March 2026 where tenants have voluntarily left before this date, can reset rent to market rates at the start of this tenancy or must wait until either that tenant voluntarily leaves or the 6 year period ?
We won't have any clarification until we see the draft legislation. However, I think the answer is that if your tenant has left and you enter into a new tenancy with a new tenant in March 2026, the rent will be at market value.
This is from the minister’s announcement on 10 June;
Just wondering what impact the new rules will have on a pre June 22 part4 tenancy that is still in a six year cycle? Under the current rules, when that cycle comes to an end, a landlord can terminate. If a landlord doesn’t renew as per the existing rules, would that be deemed a no-fault eviction?
Also, if the existing six year tenancy is ended and a brand new tenancy is created, can that be set at market rates?
- all landlords who have entered into a new tenancy arrangement on or after March 1st 2026 will have the right to reset rent where the rent is below market at the end of each six-year tenancy, unless a ‘no fault eviction’ occurs. Under the Residential Tenancies Acts it will remain prohibited to set a rent above market rent
Just wondering what impact the new rules will have on a pre June 22 part4 tenancy that is still in a six year cycle? Under the current rules, when that cycle comes to an end, a landlord can terminate. If a landlord doesn’t renew as per the existing rules, would that be deemed a no-fault eviction?
Also, if the existing six year tenancy is ended and a brand new tenancy is created, can that be set at market rates?
This hasn't been mentioned anywhere and goes to show how complicated the new rules will be.
I suspect that the answer will be that if you leave the tenant in place, it continues at the current rent. If you evict, your new tenant comes in at current rent. I simply think this is the case because they will be as pro-tenant as possible. They have already said that if you evict for family purposes and re-let later on, the old rent is carried forward so the same logic will apply here.
Here is an extract from one of Threshold's stories - it is in their recent impact report, but I think it shows the thinking at government level regarding the PRS:
"The landlord was surprised that Jackie was not willing to pay the 62% increase, and since then the relationship between the two has deteriorated. Jackie said that the idea that market rates can determine whether you have a home or not is “unthinkable”."
Anyone would resist a 62% increase in one go, but the point is that it is apparently "unthinkable" that tenants should pay market rents.
So, while this hasn't been answered, my view is that the current rent will be retained.
Was there a time limit on that mentioned? Say if a family member moved in, eg an older parent who then became ill and had to move into nursing care or unfortunately passed away, the rent of the previous tenant would stand?
Presumably the two year ‘off the rental market’ rule would still apply.
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Browneyedgirl4
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If a tenant who is place for 5 years and leaves before 1st Mar 20206 and rent was well below market rent, can a new tenancy be charged the current market rent?
Yes, you can charge market rent if you begin a new tenancy with a new tenant after 1 March. This will be a 6 year fixed term tenancy with very limited get outs for yourself. Also, your rent is capped for 6 years.