Key Post Summarising the rules for small landlords with existing tenancies

"tenancies will be kept up to date by the 2% maximum yearly rent cap or the six years reset of rents applying to smaller landlords."

"With first time tenancies created from 1 March 2026 onwards there will be a new distinction between landlords based onsize. For larger landlords, defined as havingfour or more tenancies, no fault evictions will be gone entirely, except in very limited circumstances. Smaller landlords, defined as having three tenancies or less, can reset rents every six years."

From the same page and both of these read to me that the 6 year reset only applies to small landlords.

I had thought that the six year increase applied to both types of landlord, but perhaps not as large landlord tenancies last forever. I am confused by this, but presumably IPAV know what they are talking about

If they are correct, is being a large landlord viable? The tenant can stay forever and the rent will continue to fall in real terms while the landlord remains liable for repairs and maintenance
 
Greenbook said:
If they are correct, is being a large landlord viable?
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Chatting to a letting agent I know last week and one of her clients is a landlord with one property containing four units so, a large landlord under the new rules. The tenancies are all in six-year cycles and the landlord has already issued a termination notice to one tenancy to ensure they will be a small landlord from Mar26.

Looks like the latest changes might not result in more rental supply and could actually have the opposite effect if a sizeable number of four tenancy landlords decide to drop one.

Just wondering what happens if say a married couple has six tenancies? Does the three tenancy rule apply to each individual ie. a couple can have six and each classed as a small landlord? Especially if the couple are separately assessed for tax.
 
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bipped said:
Just wondering what happens if say a married couple has six tenancies? Does the three tenancy rule apply to each individual ie. a couple can have six and each classed as a small landlord? Especially if the couple are separately assessed for tax.
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We'll have to wait and see the draft legislation. I suspect that the married couple with six tenancies will be a large landlord. They will want to catch as many people as possible in this category as the tenancies are forever and, it seems, you can't increase the rent to the market rate for as long as a tenancy lasts.
 
Greenbook said:
I suspect that the married couple with six tenancies will be a large landlord.
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Right and it may be the same for other joint owners. It’s odd that Revenue can treat individuals separately, the bank guarantee is per person, every individual is entitled to earn a living etc. Wouldn’t a joint owner with six tenancies be discriminated against compared to a single owner of three based on marital status?
 
bipped said:
Right and it may be the same for other joint owners. It’s odd that Revenue can treat individuals separately, the bank guarantee is per person, every individual is entitled to earn a living etc. Wouldn’t a joint owner with six tenancies be discriminated against compared to a single owner of three based on marital status?
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With tax law and company law, 'connected people' married couples, family members are often joined together. I'm assuming the same thing will happen here as they will want as many large landlords as possible, but that is just my assumption. We won't know until we see the legislation.
 
bipped said:
Chatting to a letting agent I know last week and one of her clients is a landlord with one property containing four units so, a large landlord under the new rules. The tenancies are all in six-year cycles and the landlord has already issued a termination notice to one tenancy to ensure they will be a small landlord from Mar26.
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My wife was talking to a small landlord she knows who has one property a couple of days ago. Himself and his wife bought during the boom, it was a big mistake, but they were able to keep going with it and have had the house for over 20 years now. They are selling. He said with the new rules coming in it is just too much hassle. He's had a few 'maggots' of tenants in the past and won't risk being stuck with one for 6 years. These sales may be across the board.
 
At a funeral the other day, sudden death of a widower with three adult kids, all married with their own families and homes. The kids will inherit the family home plus two rental properties which are to be sold. The family will likely have NoTs issued before next March but I wonder how that will work in future for families in a similar situation?

What happens under the new rules if a small landlord’s rental property is in a six-year no-eviction tenancy? Would that ‘hardship’ clause mid-cycle cover such a situation because revenue will be due CAT and if not paid on time, penalties and interest accrue. If the tenancy couldn’t be terminated until the six-year term is finished, plus the notice period before the tenant vacates, plus the time to sell the property, it could have serious financial implications for a family. Under the current rules, an executor can act as soon as possible (which they are obliged to do) but will that be possible for assets under a six-year no-eviction tenancy?
 
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bipped said:
What happens under the new rules if a small landlord’s rental property is in a six-year no-eviction tenancy? Would that ‘hardship’ clause mid-cycle cover such a situation because revenue will be due CAT and if not paid on time, penalties and interest accrue. If the tenancy couldn’t be terminated until the six-year term is finished, plus the notice period before the tenant vacates, plus the time to sell the property, it could have serious financial implications for a family. Under the current rules, an executor can act as soon as possible (which they are obliged to do) but will that be possible for assets under a six-year no-eviction tenancy?
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Having a CAT bill on the rental properties with no ability to pay it might constitute hardship. Otherwise, I think that the tenancies would have to continue until the 6 years are up. In the situation you describe, I think the RTB would say there was no hardship as the children could sell the familiy home to pay the CAT. Again, we'll have to see if the legislation says anything abou this.

If a large landlord is involved, the tenancies continue forever and there is no right to sell to get funds to pay the CAT due to hardship. That would cause problems where children were inheriting unless there was cash or other assets available.
 
If a small landlord has a tenancy hitting 6 years in Summer 2026 and they don’t want to hit the (good) tenant with full market rate, will they then be stuck at 2% pa until 2032? Assuming the tenant stays?

If this is the case, it’ll force small LLs to go to full market in one go. Hardly a good outcome.
 
Thomas1 said:
If a small landlord has a tenancy hitting 6 years in Summer 2026 and they don’t want to hit the (good) tenant with full market rate, will they then be stuck at 2% pa until 2032? Assuming the tenant stays?
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Nothing is changing for existing tenancies it seems. For as long as your current tenant stays, you can only raise the rent by maximum 2% or HICP if lower. If your tenant leaves of their own accord, you can relet to a new tenant at market rate. Save for a few exceptions, your new tenant can't be evicted for 6 years.
 
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