Buying a buy-to-let property is not quite the same as buying a home to live in. You are not only buying bricks and mortar. You are also buying an income stream, a legal structure, and a set of ongoing compliance obligations.
That has become even more important in Ireland following the rental reforms that took effect from 1 March 2026. I recently wrote about the new rent controls and tenancy protections, and how these changes affect how rent can be reviewed, how tenancies operate, and how easily a landlord can recover possession in certain situations. For anyone investing in residential property, due diligence now needs to go beyond title and survey issues.
Vacant possession or tenant in situ?
One of the first things to establish is whether the property will be sold with vacant possession or subject to an existing tenancy.
That distinction matters. A vacant property gives the buyer more flexibility, subject, of course, to the usual legal and financing issues. A tenant in situ purchase is different. In that situation, the buyer needs to understand the tenancy that already exists, the rent currently being paid, the date the tenancy began, and what legal restrictions may apply after completion. Following the new framework that came into effect on 1 March, the date the tenancy began can have a direct bearing on how the tenancy is treated, and how rent may be reviewed going forward.
For that reason, buyers should be wary of relying on broad assumptions such as “the rent looks low, so I can increase it later” or “I can sell it vacant in due course”. Those assumptions may not match the legal reality.
Check the tenancy history before you check the yield
Many investors look first at the projected rent and the headline yield. In my view, the smarter approach is to look first at the tenancy paperwork.
If the property is being sold subject to a tenancy, it is sensible to review the lease or tenancy agreement, the tenancy start date, the current rent, the date of the last rent review, the deposit arrangements, any arrears position, and whether there have been disputes or notices served. A buyer will also want to know whether the tenancy has been properly registered with the Residential Tenancies Board, because RTB registration is an ongoing legal requirement. New tenancies must be registered within one month of the tenancy start date, and registration must then be renewed annually.
This information matters because it helps answer a series of practical investment questions. Is the current rent lawful? Has it been reviewed correctly? Is there a risk of challenge? Is there a compliance gap that could create difficulty after the purchase? Without clear answers, the projected return may be built on shaky ground.
Understand what the 1 March 2026 reforms mean in practice
The March 2026 reforms changed the Irish rental landscape in several important ways.
For new tenancies created from 1 March 2026, the Government introduced rolling 6-year tenancies of minimum duration, giving tenants greater stability. During that period, landlords may only end the tenancy in specified circumstances. Government guidance also states that smaller landlords, meaning those with three or fewer tenancies, have some additional ability to terminate in limited cases, including financial hardship requiring sale, or where the landlord or a close family member needs to live in the property. Existing tenancies in place on 28 February 2026 remain outside the new tenancy protection regime, but their rent increases are also capped by reference to CPI or 2%, whichever is lower.
For a buy-to-let investor, that means due diligence should include a careful review of the seller’s assumptions, and your own. If your investment model depends on recovering possession quickly, resetting the rent aggressively, or selling with flexibility, the tenancy status needs to be checked very carefully before contracts are signed.
Do not assume the rent can simply be increased to market level
This is one of the areas where investors can get caught out.
The RTB guidance makes clear that rent reviews from 1 March 2026 are governed by a stricter process. For new tenancies, rent may generally be reviewed every 12 months, and when giving a rent review notice, the landlord must support the proposed rent with details of three comparable tenancies from the RTB Rent Register. Those examples must be for similar properties, and must be comparable in size, type, character, and BER.
That means the legal and documentary history of the tenancy really matters. A buyer should not only ask what the current rent is. The better question is whether the current rent has been set and reviewed lawfully, and what room, if any, actually exists for future increases within the present legal regime.
Check that the property is genuinely ready to let
A property may look attractive in photographs, but still presents compliance issues once you examine it as a rental asset.
The RTB states that landlords must provide a safe and healthy environment and comply with minimum standards for rental properties. These standards cover structural soundness, hot and cold running water, controllable heating and ventilation, natural and artificial lighting, fire safety measures, carbon monoxide detection where needed, safe gas and electrical systems, proper cooking facilities, and more. Local authorities enforce these standards and can take enforcement action where properties fall short.
From a due diligence perspective, this means not stopping at a general survey. It is important to check that it is compliant as a rental property, whether any upgrade works are likely to be needed, and whether those costs have been properly factored into the investment.
Review the BER and likely upgrade costs
Energy performance is another area that deserves close attention.
SEAI states that buildings which are sold or rented must have a valid BER certificate and advisory report, and that the responsibility for obtaining the BER lies with the landlord or property owner. Prospective buyers and tenants can also check the BER details on the National BER Register.
For an investor, the BER is not just a box-ticking issue. It can affect tenant demand, likely future expenditure, and the comparability of the property with other rental units in the same market. A poor BER may also signal that capital expenditure is coming, even if the purchase price initially looks attractive.
If it is an apartment, look closely at the management company position
For apartments and duplexes, due diligence needs to extend beyond the unit itself.
Service charges, sinking fund contributions, house rules, planned works, and the wider condition of the development can all affect the value of the investment. Even a well-located apartment can become less attractive if there are major expenditure issues on the horizon, or if the development has unresolved management or fire safety concerns.
This is one of the reasons solicitor-led due diligence is so important in apartment transactions. The legal paperwork can reveal issues that are not immediately visible from a viewing or from the estate agent’s particulars.
Make sure your exit strategy still works
A buy-to-let purchase should always be considered with the end in mind.
Some investors plan to hold long-term for income. Others expect to refinance, refurbish, sell, or possibly recover the property for family use later on. The problem is that these plans often assume a level of flexibility that the law may not in fact allow. Since the 2026 reforms strengthened protections for new tenancies and placed greater emphasis on defined grounds for termination, exit planning should now form part of the initial due diligence, not an afterthought.
Need advice on a buy-to-let purchase?
If you are purchasing a buy-to-let property, our conveyancing team at McCarthy + Co Solicitors LLP can assist with the legal due diligence, review the tenancy and title documentation, and help you identify issues before you sign contracts. Arrange a consultation by completing our quick and confidential online form.
0 Comments