Rent Pressure Zones changes: What every landlord needs to know
If you’re a landlord in Ireland, Rent Pressure Zones changes are something you need to know about right now.
These zones come with rules that limit how much you can increase rent each year, and breaking those rules can lead to serious fines.
But don’t worry, this guide will explain everything clearly and simply, so you know exactly what’s expected and how to protect your rental income. Let’s get you set up to stay compliant and stress-free.
Here’s what we’ll cover:
- What are rent pressure zones?
- Which areas are in a rent pressure zone?
- How much can I increase my rent by?
- How does this affect landlords?
- How do rent reviews work for new tenancies in a rent pressure zone?
- How to rent reviews work for existing tenancies in a rent pressure zone?
- What properties are exempt in RPZ?
- How much can landlords be fined for not following RPZ rules?
- What powers does the RTB have?
What are rent pressure zones?
A Rent Pressure Zone is an area where the government believe rents are rising too quickly. The government puts limits on how much landlords can increase rent each year in these zones.
Right now, rent increases in RPZs are capped at 2% per year, or the rate of inflation, whichever is lower. (And in recent years, that’s been the 2%.)
Which areas are in a rent pressure zone?
A new law has been introduced, that extends Rent Pressure Zones to all areas nationwide until February 28, 2026. Previously, Rent Pressure Zones (RPZs) were designated only in areas where rents were rising fastest, such as major city centres including Dublin, Cork, Galway, and parts of Limerick, as well as towns like Bray, Maynooth, and Drogheda.
On RTB’s website, you can enter your address or Eircode to check when your area became an RPZ.
How much can I increase my rent by?
The RTB’s Rent Pressure Zone calculator works out the rent increase you’re allowed to charge your tenants.
How does this affect landlords?
Rent increases will be linked to inflation, capped at 2% during times of high inflation. This cap, however, will not apply to newly built apartments.
Landlords who own 4 or more rental properties won’t be allowed to end tenancies without a valid reason.
Stronger protections with 6-year tenancies for smaller landlords.
If a landlord owns 3 or fewer properties, tenants will now get rolling 6-year agreements. During those 6 years, the landlord can only ask a tenant to leave in very limited cases. After each 6-year period, landlords have more flexibility, like ending a tenancy to sell their home.
All landlords, whether big or small, can update the rent to current market rates after six years, unless the tenancy was ended unfairly without a valid reason.
How do rent reviews work for new tenancies in a rent pressure zone?
If you have new tenants moving into a Rent Pressure Zone, you as a landlord can only review the rent once every 12 months.
At the start of your tenancy, as a landlord you have to give tenants a few key details in writing:
- What the previous rent was
- The date that rent was last set
- And a short explanation of how they calculated the new rent, using the RPZ calculator
How do rent reviews work for existing tenancies in a rent pressure zone?
If you already have a rental property when your area is newly designated as a Rent Pressure Zone, a landlord can’t change the rent right away.
The first rent review can only happen 24 months after one of these two dates (whichever comes later):
- The day the tenancy began
- The most recent date you as a landlord provided written notice about a rent review
What properties are exempt in RPZ?
Not every rental property is locked into the 2% rent cap. There are a few key exemptions where landlords can set the rent to market rates, even if the property is in an RPZ.
Your property may be exempt if:
- It’s been substantially refurbished: Major works have been done like replacing bathrooms, kitchens, heating systems, or adding an extension. You’ll need to prove the improvements and meet the RTB’s criteria.
- It hasn’t been rented in over 2 years: If the property hasn’t been let at all during the past 2 years, the RPZ rules don’t apply to the first new tenancy.
How much can landlords be fined for not following RPZ rules?
Landlords who break RPZ rules by increasing rent above allowed limits or failing to follow the correct procedures could face fines of up to €30,000 by the Residential Tenancies Board.
What powers does the RTB have?
The Residential Tenancies Board (RTB) is the body that oversees rental rules in Ireland including Rent Pressure Zones (RPZs) and they have legal power to enforce them.
Here’s what the RTB can do:
- Investigate landlords: The RTB can launch investigations even without a tenant complaint if they believe a landlord has broken RPZ rent rules.
- Request documents: They can ask you to provide rent records, tenancy agreements, or proof of exemptions (like major refurbishments). You must comply.
- Impose fines: If you’ve breached rent caps or failed to follow RPZ procedures, the RTB can impose fines up to €15,000 and legal costs up to €15,000.
- Refer cases to court: In serious or repeat cases, the RTB can bring landlords to court where further fines or penalties may apply.
Not sure about some of the new rules or missing out on tax savings?
At Tax Return Plus, we help both resident landlords and non resident landlords stay fully compliant and make sure you’re claiming every tax deduction you’re entitled to, including Capital Gains Tax.