One of country's biggest landlords expects 25% hike in rental income due to new rules

A briefing to investors by IRES Reit says it believes its rental properties are currently 20% below market rent.

The largest institutional landlord in Ireland, Ires Reit, says its rental income could rise by 25% over time due to new rent rules which come into effect this weekend.

A briefing to investors by Ires Reit says it believes its rental properties are currently 20% below market rent.

Reforms to the rental market are set to come into effect on March 1, giving landlords the ability to reset rents to market rates every six years, or if a tenant voluntarily ends the lease.

For tenancies created after March 1, landlords will be permitted to hike rents to market rates. While in a lease, they will be restricted to yearly rent increases of 2% per year.

However, this 2% rule will not apply for new build apartments, with landlords permitted to increase rents in line with the Consumer Price Index instead.

The company’s briefing says it has 3,627 rental properties across the State, with the average monthly rent per unit being €1,852.

The company has welcomed the change in rental rules, with chief executive Eddie Byrne saying the improving regulatory backdrop means it will enter 2026 with “strong momentum”.

“We are now actively pursuing reinvestment opportunities to enhance the portfolio by investing in higher quality and higher yielding asset,” he added.

The document said by increasing cashflow, there will be a positive “impact on valuations” of its properties.

In the Dáil on Wednesday, Sinn Féin leader Mary Lou McDonald said the presentation paints a “frightening picture of the size of the rent increases coming down the tracks”.

“Due to your decisions, the property funds are set for a bonanza,” Ms McDonald told the Government.

She said the Government had been warned that reforms to rent laws would lead to rent hikes across the country.

“Now we see the proof, straight from the horse’s mouth, the biggest corporate landlord in Ireland is saying out loud the very thing that you denied. That they will make a fortune from your legislation, all on the backs of renters.”

In response, Taoiseach Micheál Martin said renters in existing tenancies would only face 2% hikes each year, while saying there were further protections for renters in place with restrictions on no fault evictions.

“We have over 513,000 people renting now made up in terms of different categories from public to the private sector, but over 290,000 people who are currently renting will not have their tenancies impacted,” Mr Martin said.

He said the Government wants to bring more investment into the market, saying supply is key to “moderate rents into the medium term”.

Ires Reit has been contacted for comment.