March 2026 Reforms to Residential Rental Rules

The new Residential Tenancies (Miscellaneous Provisions) Act 2026 which took effect from 1 March 2026 introduced significant changes to the residential rental rules.  This Act creates a new two-tier system, with one set of rules for tenancies created before 1 March 2026 and another set of rules for tenancies created after 1 March 2026.  In this article, we will highlight some of the key changes and the new rules and procedures for rent resetting and terminations.    

Universal Rent Control 

Local RPZs are replaced with a new national system of rent control, where annual rent increases are capped in line with the rate of general inflation using the Consumer Price Index (CPI) or 2% a year, whichever is lower.  This affects both tenancies created before 1 March 2026 and tenancies created after 1 March 2026.

Newly built apartments commenced after 10 June 2025 are permitted to track CPI without being subject to the 2% cap.

From 1 March 2029, Student-Specific Accommodation providers will be allowed to reset a rent to market rent and will be allowed to do so again after each subsequent 3-year period.

Tenancies created after 1 March 2026

  • Tenancies of Minimum Duration: For tenancies created on or after 1 March 2026, there are new rolling 6-year minimum tenancies also known as Tenancies of Minimum Duration (“TMD”). 
  • New Categories of Landlords: 

Small: – non-corporate landlords with 3 or fewer tenancies are classified as small landlords; and

Large: – company landlords (regardless of the number of tenancies) or landlords with 4 or more tenancies are classified as large landlords.

An important point is that it is the number of tenancies, not properties that determine the classification as large or small landlord. 

  • Rent Reset: New “market value” rent reset rules and procedures for landlords for new tenancies, whether entitled to reset to market, set out below.
  • Termination: New rules for termination of tenancies set out below.

New Rent Setting Rules and Procedures

Tenancy created before 1 March 2026

Resetting to market rent is not allowed for an ongoing tenancy that was created before 1 March 2026.

Tenancy created after 1 March 2026

From 1 March 2026, if a new tenancy is created, a landlord can reset the rent to market value, if the previous rent was below market value, where: –

  • The last tenant ended the tenancy by choice;
  • The last tenancy ended because the tenant breached their obligations, for example , if they did not pay the rent;
  • The last tenancy ended because the property no longer met the tenant’s needs, for example, because it is too small;
  • It is a first-time tenancy in the property;
  • The property is a protected structure that has not been let in the previous one year;
  • The property is not a protected structure and has not been rented out at any time in the previous two years; and
  • The last tenancy ended for substantial renovation, the property has been substantially changed, and the landlord has offered it back to the previous tenant.  Substantial change means (i) a permanent extension that increases the floor area by at least 25%, (ii) work that improves the BER by at least 7 levels, (iii) work that achieves three of the following: (a) the internal layout is permanently changed, (b) the dwelling is adapted for use by a person with a disability, (c) the number of rooms is permanently increased, (d) a BER of D1 or lower is improved by at least three levels or (e) a BER of C3 or higher  is improved by at least two levels.

Landlords are not allowed to reset the rent after a “no fault termination”.  A “no fault termination” is when a landlord ends a tenancy even though the tenant has not done anything wrong.  This is to prevent landlords terminating a tenancy just to increase the rent.  Terminations by a landlord by reason of intending to sell the property or landlord or family member requiring the dwelling or change of use are all “no fault terminations”.

A landlord starting a new tenancy from 1 March 2026 cannot set the rent at market if there was a tenancy in the property within the last two years (within one year for protected structure) that was a terminated by the landlord because of a “no fault termination “.

At end of each 6-year TMD

Landlords of tenancies commenced after 1 March 2026 can reset to market rent at the end of each 6-year TMD, if the rent has fallen below the market rate.

Rent Resetting Procedure

In all cases, landlords must send the rent setting notice to the tenant and the RTB on the same day.  If you do not send it to the RTB, the rent setting notice is invalid.

To Market

From 1 March 2026, when a landlord is entitled to reset the rent for their property to market,

landlords are now required to provide with the rent setting notice three examples of rent paid for comparable properties of a similar size, type and character (including BER) drawn from the new online RTB Rent Register.  The tenancies must have begun in the last 3 months.

Subject to 2% CPI Cap

From 1 March 2026 where a landlord is not entitled to reset the rent for their property to market, the rent setting notice must include a statement that includes the last rent amount, the date the last rent was set and a printout of the RTB rent calculator showing how the new rent is calculated. 

Terminations of Tenancies created after 1 March 2026

Under the new 6-year TMD created after 1 March 2026 all landlords whether small or large will be able to end the tenancy where:

  • The tenant is not meeting their obligations including not paying rent.
  • The property no longer suits the tenant’s needs.

Small Landlords (1-3 tenancies non-company landlord)

For small landlords, the rules for terminating tenancies differ.

During the 6-year TMD, small landlords can only end a tenancy if: –

  • The landlord is experiencing undue financial or other hardship i.e. needs to the proceeds of the sale: –
    1. to provide a home that will be the landlord’s or their spouse or civil partner’s principal residence; 
    2. to repay a legally owed debt in full or to make a payment to Revenue of at least 15% of the property’s asking price, which debt or payment is legally required to be discharged within nine months of the tenancy ending.  It can be used to pay a debt under the Fair Deal scheme or 
    3. following the appointment of a personal insolvency practitioner, due to bankruptcy, at risk of being declared bankrupt or have agreed an arrangement with creditors.
  • The landlord needs the property for themselves or an immediate family member to live in.  The family member in this case can be the landlord’s spouse or civil partner, child, stepchild, foster child, adopted child, parent, stepparent or parent-in-law.

At the end of the 6-year TMD, small landlords can end a tenancy if: –

  • They intend to sell the property;
  • They are substantially refurbishing or renovating the property;
  • They need the property for themselves or a family member to use.  In this situation, a family member can be the landlord’s spouse or civil partner, child, stepchild, foster child, adopted child, parent, stepparent or parent-in-law, grandchild, grandparent, sibling, niece or nephew; or
  • They are changing the use of the property.

In these cases, the landlord must serve a notice of termination before the end of the 6-year TMD and the tenancy end date on the notice must be on or after the date the TMD ends.

Large landlords (4 or more tenancies or company landlord)

Large landlords are prohibited from terminating tenancies on the grounds of sale, substantial refurbishment/renovation, occupation, or change of use.  The prohibition applies at the end of or during the 6-year TMD.  There are no hardship or family related exceptions and no mechanism for RTB approval or exemption for large landlords.

Terminations of Tenancies created before 1 March 2026

  • There has been no change to the rules on termination of tenancies created before 1 March 2026.  These can still be terminated for the six reasons below: –
  1. The tenant breached the obligations in their tenancy agreement.  For example, by not paying their rent;
  2. The property is no longer suitable for the tenant’s needs.  For example, it is too small;
  3. The landlord plans to sell the property within 9 months;
  4. The landlord or an immediate family member needs to live in the property.  This only applies to private landlords;
  5. The landlord plans to carry out substantial refurbishments to the property; and
  6. The landlord plans to change the use of the property, for example to convert it into an office.
  • The additional right of termination for tenancies started before 11 June 2022 remains.  At the end of each such Part 4 tenancy or further Part 4 tenancy term, a landlord can end a tenancy for any reason.  It does not need to be one of the 6 reasons above.
  • The distinction between small or large landlord does not apply.

Service of Termination Notices on RTB: In all cases to be valid in addition notices of termination must be sent to the RTB the same day as they are sent to the tenant.

Termination of Tenancies within first 6 months: An additional requirement has been introduced requiring that a copy of the termination notice must now be sent to the RTB.  Where a landlord terminates for “no fault” during the first 6 months, the rent on the subsequent letting cannot be reset to market.

Conclusion

It is important where tenants leave voluntarily, that landlords retain documentary evidence of such “no fault terminations” for the purpose of resetting the rent to market.  We recommend that landlords and managing/letting agents familiarise themselves with the new regime and begin reviewing leasing documents, tenancy information and internal procedures now to ensure compliance with the new legislation.

If you have any queries regarding the impact of these reforms on your portfolio or upcoming transactions, please contact Noelle McDonald, Partner at noelle@crowleymillar.com or your normal point of contact in our Property Department.

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Crowley Millar Solicitors LLP Disclaimer: This is a general information note and is intended for brief guidance and information only. It does not constitute legal advice and should not be regarded as a substitute for legal or other professional advice. Such advice should always be taken before acting on any of the matters referenced to in this information note.