Ireland’s rental sector changed significantly on 1 March 2026.
The Residential Tenancies (Miscellaneous Provisions) Act 2026 was signed into law on 24 February this year, and it introduces a new national system of rent control, along with new rules on tenancy duration, rent reviews, and when landlords can end a tenancy. The government has stated that the main provisions apply to new tenancies created on or after 1 March.
For anyone thinking about investing in residential property, these reforms matter. They affect not only rental income and long-term planning, but also how easy it may be to recover possession of a property in the future.
A shift from Rent Pressure Zones to a national system
One of the biggest changes is the move away from the old Rent Pressure Zone model.
Instead of having special rent rules in certain parts of the country, the Act introduces a national rent control system. Rent increases are now linked to the Consumer Price Index, subject to a 2% annual cap, calculated on a pro rata basis. This is intended to create more consistency across the market and more certainty for tenants.
For investors, that means rental growth may now be more predictable, but also more limited.
Different treatment for new apartments
The Act also makes a distinction for certain new apartments.
Where an apartment development commenced and completed on or after 10 June 2025, and the required building control certification is in place, rent increases are linked to CPI only, without the 2% cap. The stated aim is to encourage investment in new apartment construction and improve housing supply.
This is an important point for investors considering newly built apartments, as the rental rules may be different from those applying to other residential properties.
Stronger security of tenure for new tenancies
Another major reform is the introduction of Tenancies of Minimum Duration (or TMDs).
For new private tenancies created on or after 1 March 2026, tenants will have stronger security of tenure through a rolling six-year tenancy structure. During that period, the landlord’s ability to terminate the tenancy is more restricted than under the previous rules.
This means investors need to think carefully before purchasing a property for rental purposes. The ability to recover possession may be more limited than some landlords expect.
Small landlords and larger landlords are treated differently
The Act draws a clearer distinction between small landlords and larger landlords.
A small landlord is defined as one with three or fewer tenancies. These landlords retain greater flexibility in certain situations. For example, during a six-year TMD, a small landlord may be able to terminate a tenancy where there is financial hardship requiring a sale, or where the landlord, or a close family member, needs to live in the property. At the end of a six-year TMD, a small landlord may also be able to rely on grounds such as sale, occupation by the landlord or family member, substantial refurbishment, renovation, or change of use.
The position is more restrictive for larger landlords. The government has said that larger landlords will not be able to end tenancies on grounds such as sale, substantial refurbishment, occupation, or change of use.
This distinction is important to understand for portfolio investors and for anyone considering building up a larger residential rental business.
Market rent resets in certain circumstances
The Act also changes the rules on when rent can return to market level.
For new tenancies created on or after 1 March 2026, landlords may set the starting rent at the open market rate. The Act also allows rent to return to market level in certain limited circumstances between tenancies, including where the previous tenant left voluntarily, where the tenancy ended because the tenant breached their obligations, or where the property was no longer suitable for that household’s needs. In addition, rent may be reset to market level at the end of each six-year TMD.
From an investor’s perspective, this is one of the more significant features of the new regime. While annual increases are restricted, there may still be opportunities to realign rent with market conditions at certain stages.
Existing tenancies are not treated the same way
It is also important to note that the new regime does not apply in exactly the same way to existing tenancies. The new six-year tenancy model does not apply to tenancies in place before 1 March 2026.
This means that investors purchasing a tenanted property should pay close attention to the status of the tenancy already in place. The legal position may be different depending on when the tenancy began.
Require legal advice regarding an investment property?
If you are considering investing in property, the conveyancing team here at McCarthy + Co Solicitors LLP can advise you on the legal issues that may affect your purchase, including tenancy status, title investigations, and the implications of the new rental rules. Arrange a time to speak with a solicitor using our quick and confidential online form.
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