Appleton Property: Major Reforms to the Property Rental Sector

Some Advice for Landlords…

With the pending changes to the residential property rental sector, Austin Egan of Appleton Property sets out some guidance on upcoming changes for landlords.

So there are big changes coming once again to the regulation around residential property lettings. I have been involved in the letting and management of residential property for thirty years now and have seen a lot of changes over that time. Increased regulation is inevitable in these times. We always hope that changes to regulation will bring about the desired outcome without the unintended consequences we have seen in the past. The finer details of the intended changes are not yet known, but the principal changes in simple terms are as follows:

1. The Government intend to introduce further significant security of tenure for tenants while introducing changes to promote investment and stimulate the construction of apartments in the rental sector. As we all know, supply is a significant issue in the market.

2. The entire country will become subject to RPZ rules. Rent Pressure Zones have rent increases capped by inflation to a maximum annual increase of 2%. This is similar to the current regulations. The RTB recently published figures saying they estimated 75% compliance with current rent control regulations, or in reverse, 25% non-compliance. Fines for non-compliance are set to significantly increase with significant improvements to tenant protections in addition. 

3. There will be two classifications of landlords to which different rules will apply. Smaller landlords will be defined as those with three or fewer tenancies. Larger landlords will be all those with four or more tenancies. The vast majority of landlords are smaller landlords by classification.

4. For smaller landlords, tenancies will be rolling six-year tenancies. A landlord may only increase the rent by a maximum of 2% per annum, subject to the rent not exceeding the market rent during this term. At the end of the six-year period, the smaller landlord may reset the rent to the market rent if the rent is below market levels. 

5. For smaller landlords, tenancies cannot be terminated during the six-year period unless the landlord requires the property for immediate family members ( child, spouse, or parent ) or are experiencing hardship, which will be defined in legislation, i.e. separation/homelessness/emigrant returning from abroad/ bankrupt. 

There is no provision in these six years to end the tenancy for the purposes of sale. All landlords will be able to sell their property with the tenant in situ at any time.

6. For smaller landlords, after the expiration of six years, notice may be issued to end the tenancy if they intend to sell the property, renovate the property, require the property for a family member, or intend to change the property use. 

7. A tenancy can be terminated during the six years if there is a breach of tenant obligations, e.g. non-payment of rent, or in circumstances where the dwelling is no longer suitable for the needs of the tenant’s household.

8. Larger landlords, those with four or more tenancies, will not have the option to end the tenancy where the tenant has complied with their obligations except in very limited circumstances, as yet undefined. 

9. Larger landlords will also have the right to reset the rent to market rent after the expiration of six years.

10. Rent caps of 2% will not apply to new builds where the planning process commenced post 10 June 2025. These will be linked to the Consumer Price Index.

11. New arrangements will apply from 1st of March 2026 to allow time to develop the required legislation.

While much of our business is in property sales, we also manage a large portfolio of rental property.

We are setting aside time to meet with landlords individually to discuss the impact of this pending legislation on their investment property. We are preparing an advisory document in addition to help landlords make informed decisions on how best to proceed. 

We offer these 30-minute initial consultation appointments free of charge and without obligation. Non-resident landlords are also welcome to contact us. 

If you would like to schedule a meeting with us to determine how best to maximise the return on your investment while remaining fully compliant with new and existing regulations, give us a call on 087 131 1133 or 045 482 759, or email us at appletonps@gmail.com. 

While we can see some issues arising already with the intended changes, it is likely that they will be altered somewhat prior to enactment. Regardless, there is significant change coming, and we are happy to assist existing clients and any new or prospective clients. We look forward to speaking to you.

Austin Egan is an Auctioneer and Valuer with vast experience in the sale, letting, and management of residential property.  Austin is a graduate of Auctioneering, Valuation, and Estate Agency from DIT Bolton Street in 1994, a member of The Institute of Professional Auctioneers and Valuers since 2004, and an REV-qualified TEGoVA property valuer since 2013. He is also an honours Business Graduate from DIT in 2007 and a former member of the Insurance Institute of Ireland. Prior to establishing Appleton Property in 2010, he held senior positions in various Dublin-based property firms. For best results, contact Austin Egan at Appleton Property, Kilcullen. 

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