The letting of property in Ireland has become increasingly complex in recent years. It is a highly regulated sector with rules and requirements that change regularly, which can make the process feel confusing and daunting for landlords. While there is a large amount of information available online, it can often be overwhelming for those who are not dealing with these regulations daily.
This article aims to clarify the recent changes to rent-setting laws that came into effect on March 1 and explain what they mean for landlords.
One of the most important points for landlords to understand is that the new legislation does not apply to existing tenancies that were already in place before March 1, 2026. These tenancies continue under the previous rules, and their terms remain unchanged. The new system only applies to new tenancy agreements created on or after March 1, 2026, so it is important for landlords to understand which rules apply to their tenancy.
The most significant change is the introduction of a national rent control system. Previously, rent controls were governed by Rent Pressure Zones (RPZs ), but the new legislation replaces this with a single nationwide system. Under these rules, rent increases are now limited to once per year, and the increase is capped at two per cent or the rate of inflation (measured by the Consumer Price Index ), whichever is lower.
For landlords, this effectively means that the annual ability to increase rent is more restricted and predictable. While some landlords may see this as limiting, it also introduces a level of clarity and consistency across the entire country, as the same rules now apply nationwide rather than varying depending on whether a property is located within an RPZ.
Another key feature of the legislation is the ability to reset rent to market levels in certain circumstances. For new tenancies created after March 1, 2026, landlords may set the initial rent at the current market rate when the tenancy begins. It is important to note that market rent is set using the RTBs rent register, which is more restrictive than how market rent was calculated under previous legislation. Additionally, rent can be reset to market level at the end of a six-year tenancy cycle, provided the tenancy has run its full course.
However, it is important to note that not all tenancies can be reset to market rent. If a tenancy ends due to what is considered a “no-fault eviction” by the landlord, the property cannot simply be re-let at a higher market rate. Even if there is a new owner of the property, i.e. a previous owner evicted their tenant due to selling the property under previous legislation. New owner purchases property with the view of resetting the property to market rent. This would not be allowed under this new legislation. Market resets are generally permitted only where the previous tenant left voluntarily, breached their obligations, or where the property is no longer suited to the tenant’s needs.
Another practical change landlords should be aware of is the documentation required when setting or reviewing rent. Under the new rules, landlords must provide a formal rent setting notice explaining how the rent level was determined. This notice must include three examples of comparable rental properties in the same area to justify that the rent being set is in line with market levels. These examples can be sourced from the RTB Rent Register.
As with any regulatory change in the property sector, staying informed is key. Seeking advice from a professional letting agent or estate agent can also be extremely valuable in ensuring that rent is set correctly and that all legal requirements are fully complied with.
Ocean Property Management is one of the leading letting agents in Galway. Since 2013, we have supported landlords by providing clear guidance and a professional letting service in an increasingly regulated rental market.
If you would like advice on how the recent rental legislation may affect your property, or require assistance with letting and managing your property, please contact our office by email at [email protected] or by phone on (091 ) 568 831 and quote ‘Advertiser’ for a complimentary property rental assessment.
