Rental sector reforms effective 1 March 2026 – what landlords and investors need to know

From 1 March 2026, Ireland’s rental market will undergo one of its most significant legislative changes in recent years. Based on recommendations from the Housing Agency’s review of Rent Pressure Zones (RPZs), the Government has approved a reform package designed to strengthen rent controls and enhance tenant protections. While existing tenancies are unaffected, all new tenancies created on or after 1 March 2026 will fall under the new framework.

Bitesize summary

• New six-year fixed tenancy terms will apply to all new tenancies from 1 March 2026
• Termination rights will differ for small landlords (three or fewer tenancies) and large landlords (four or more)
• Rent for new tenancies may be set at full market rate in certain circumstances
• Annual rent increases across both new and existing tenancies remain capped at CPI or 2%, whichever is lower

Key changes in detail

1. Introduction of six-year fixed tenancy terms

All new tenancies established on or after 1 March 2026 will follow a Tenancy of Minimum Duration (TMD) model. This introduces:

• A standard rolling six-year tenancy
• Restricted grounds for termination, with different rules for small and large landlords

Small landlords (three or fewer tenancies)

Small landlords retain more flexibility under the new regime. During the six‑year term, they may terminate a tenancy in cases involving:

• Financial hardship requiring sale
• Occupation by the landlord or their family
• Tenant breaches
• Tenant suitability issues

At the end of each six‑year period, small landlords may also terminate for:

• Sale
• Family occupation
• Renovation
• Change of use

Large landlords (four or more tenancies)

Large landlords face tighter restrictions. They cannot terminate for sale, renovation, occupation, or change of use.
They may terminate only in the first six years in cases of:

• Tenant breaches
• Tenant suitability issues

This marks a significant shift in expectations for institutional and multi-property investors. All corporate landlords, irrespective of tenancy numbers, are deemed to be large landlords.

2. Rent setting and rent increase rules

New tenancies from 1 March 2026

The reforms provide for specific cases where rent may be set to full market rate. This applies when the previous tenant:

• Left voluntarily, or
• Was required to leave due to breach

Beyond initial rent setting, annual rent increases for new tenancies are capped at CPI or 2%, whichever is lower.

Existing tenancies

Existing rental agreements remain under the current regime, with annual rent increases similarly capped at CPI or 2%.

How Crowe Ireland can help

For landlords, investors, and developers, these reforms introduce new strategic, financial and compliance considerations. Crowe Ireland’s property and taxation teams can support you in navigating this transition through:

• Regulatory compliance assessments – ensuring rental operations and tenancy management structures align with the new rules
• Portfolio strategy reviews – assessing long‑term implications of six‑year tenancy cycles
• Financial modelling and rent yield impact analysis – evaluating how capped rent increases affect revenue and valuations
• Tax planning and implications guidance – understanding the tax interactions of changes in rental structures or disposals
• Cashflow forecasting under new rent‑cap dynamics
• Advisory on restructuring or repositioning rental assets – whether for long‑term retention, refinancing, or exit strategies

If you would like support assessing the impact of these reforms on your portfolio or investment strategy, please contact Rory Cotter or your usual Crowe advisor.

The information provided in this document is for general informational purposes only and does not constitute property management or tax advice. Any  treatment described is a general statement and should only be used as a guide. It does not constitute advice for specific situations and is based on current laws and our interpretation. Your individual situation may differ, and so you should seek independent professional advice. No representations are made regarding the consequences of any actions taken based on the information provided.