Changes to rent controls announced - thread for clarifying

DrDoolittle said:
I am a single house landlord and have tenants in a lease from 2022. Am I correct in saying the 'tightening' of the rules on no fault evections will not impact me until if and when I sign a new lease ?
Click to expand...
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.
 
Does anyone know when the 6 years starts? Is it March 2026 or if I had a tenant for 3 years already has the clock started already? BTW I am a LL and just about breaking even on way below market rate. Very happy with tenants and will not fleece them. Thanks.
 
The status quo will continue for existing tenancies.

You will only be able to reset to market rates for any new tenancy that starts after 1 March 2026 and thereafter every six-years (assuming the rules don’t change again in the meantime).
 
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.
 
@bipped

I don’t see any contradiction between the two quoted statements.

My understanding is that a landlord can reset to market rates for any new tenancy post 1 March 2026 and thereafter every six years.
 
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????
 
@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.
 
imalwayshappy said:
If I have a tenant in place for the last 3 years in a RPZ, I need to wait now 9 years to get back to market rent? (assuming the tenant is in for long haul and doesnt leave)
Click to expand...

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.
 
Greenbook said:
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).
Click to expand...

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.
 
You must log in or register to reply here.
Menu
Log in
Register