Ireland Rental Reforms 2026 – Understanding the Two-Tier Tenancy System

Home » Ireland Rental Reforms 2026 – Understanding the Two-Tier Tenancy System

From 1 March 2026, the Irish rental sector will move to a new framework that effectively creates two parallel tenancy systems:

• Pre-1 March 2026 tenancies (existing tenancies)
• Post-1 March 2026 tenancies (new tenancies under the reformed rules)

At Herman White, we are advising landlords to understand this distinction clearly, as each group will operate under different regulatory rules.

Landlords should review the official Government guidance here:
Proposed Legislation on Gov.ie

Why There Is a Two-Tier System

The Government has confirmed that new tenancy protections will apply only to tenancies created from 1 March 2026, while existing tenancies will largely continue under the current legal framework.

However, some rules — particularly rent caps — will apply across both systems.

Tier 1: Pre-1 March 2026 Tenancies (Existing Tenancies)

What Stays the Same

If your tenancy is already in place before 1 March 2026:

• Existing tenancy structures continue
• Current termination rules broadly remain
• New “Tenancy of Minimum Duration” rules do not apply

Government policy states that tenancies already in place will not be affected by the new tenancy protection measures.

What Changes for Existing Tenancies

The main change is rent control alignment:

• Rent increases capped at CPI or 2% — whichever is lower

This creates nationwide consistency on rent increases going forward.

Practical Impact for Landlords

For existing tenancies:

• Continue under current tenancy law structure
• Termination rules largely unchanged
• Rent increases move to CPI / 2% cap

Tier 2: Post-1 March 2026 Tenancies (New Tenancies)

All new tenancies created from 1 March 2026 move into a new regulatory system.

New 6-Year Rolling Tenancies (TMD)

New tenancies will become Tenancies of Minimum Duration, typically operating as rolling 6-year cycles.

During the 6-year period, landlords can only terminate in limited cases, such as:

• Tenant breach of obligations
• Property no longer suitable for tenant needs

Smaller landlords (3 or fewer tenancies) will retain limited additional termination grounds such as hardship or family occupation.

Different Rules for Small vs Large Landlords

Small Landlords (Less Than 3 Tenancies)

During the 6-year term, termination is limited, but at the end of each cycle they may terminate for:

• Sale
• Renovation
• Family occupation
• Change of use

Large Landlords (4+ Tenancies)

Will generally not be able to terminate for sale, renovation, occupation or change of use, unless tenants breach obligations or the property is unsuitable.

Rent Setting Rules for New Tenancies

For new tenancies from March 2026:

• Initial rent may be set at market level (if prior rent was below market and tenant left voluntarily or breached terms)
• Future increases capped at CPI or 2%
• Market rent resets may occur at the end of each 6-year tenancy cycle (subject to conditions)

Key Rule Across Both Systems

Tenant Leaves Voluntarily

If a tenant leaves of their own accord, landlords retain flexibility to decide how to proceed with the property.

Tenant-in-Situ Sales

Landlords can continue to sell properties with tenants in place.

What This Means Strategically for Landlords

If You Have Existing Tenancies

Focus on:

• Rent review strategy under CPI / 2% cap
• Compliance documentation
• Long-term asset planning

If You Expect New Tenancies After March 2026

Prepare for:

• Longer tenancy durations
• Tighter termination grounds
• Structured rent review timelines

Compliance Preparation Checklist

We recommend landlords:

• Review lease templates
• Prepare documentation for rent setting decisions
• Maintain BER, maintenance and safety records
• Track tenancy start dates carefully
• Monitor legislative updates as final legislation is enacted

How Herman White Supports Landlords

Herman White provides nationwide property advisory, lettings and sales services, supporting landlords through regulatory change and compliance planning.

We can assist with:

• Rental valuations under new rent rules
• Portfolio strategy planning
• Compliance audits
• Tenant-in-situ sale advice
• Full lettings and property management

Final Advice to Landlords

The biggest change is not just rent caps — it is the structural separation between existing and future tenancies.

Understanding which category each property falls into will be critical to long-term rental strategy and compliance.

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