Property Advice: How will the new rental rules impact my property?

Selling the property or opting for a professional property manager to maintain it really depends on your personal finances, future plans, and appetite for risk and responsibility, writes Majella Galvin

With restrictions on rent increases, new legislation announced and a strong sales market, many small-scale landlords like yourself are asking, should I stay, or should I sell?

Hi Majella, 

I let out a property in Cork City three years ago for €1,000 a month, which I thought was fair at the time. I didn’t realise I’d be locked into that rent long-term, especially now that similar homes are renting for €1,900. Am I really limited to 2% rent increases per year? Will the rules change in 2026? 

I’ve heard mixed things. With rising costs and more regulations, I’m starting to wonder if I should sell. The market seems strong, and demand is high. Would I be better off selling now while prices are up, or holding onto the property long term? 

Also, what happens with my tenants if I do sell? How does a sitting tenant affect the sale price, and what’s involved in giving notice if I want to sell it with vacant possession? Your advice would be appreciated. 

Sean, East Cork

Dear Sean, 

These are questions we’re hearing more and more, especially from landlords who entered the market in good faith but now find themselves navigating tighter margins, new complex rules, and increased uncertainty.

The rental landscape in Ireland has changed rapidly over the past few years. With restrictions on rent increases, new legislation announced and a strong sales market, many small-scale landlords like yourself are asking, should I stay, or should I sell? 

Let’s have a closer look at your situation and your options.

Because your property is in a Rent Pressure Zone (RPZ) — Cork City was already covered by RPZ rules before RPZs were extended nationwide on June 20 — you are currently limited to increasing the rent by a maximum of 2% per year, provided:

• The current rent is at or below market level.

• You follow the correct procedures when serving notice of the rent review.

So even though similar properties are now renting for €1,900, your rent of €1,000 can only rise incrementally. In your case, for example, a 2% increase would mean the rent would increase incrementally from €1,000 to €1,020 per month in the first year and then €1,040.40 and so on. 

Clearly it will take many years to reach the actual market rate – if ever - and that’s understandably frustrating.

The new rental changes 

Firstly, it’s very important to note that the proposed changes will not apply to existing tenancies. They will only apply to tenancies created from March 2026.

Here are the proposed changes due to take effect from March 2026, which aim to offer some long-term flexibility:

• Once every six years, landlords will be permitted to reset the rent to full market value — even if the same tenant remains in place.

• If the tenancy ends and a new tenant moves in, the rent can once again be set at market value.

This is designed to give landlords some relief from the current strict caps, but it’s not an immediate solution. Unless your tenant leaves or you end the tenancy for a legally valid reason, you remain bound by the current cap.

Valid reasons for resetting rent 

The only real way to reset rent to market level sooner is if the tenancy ends. 

That can happen:

• If the tenant voluntarily moves out 

• Or, you legitimately end the tenancy for a permitted reason, such as: You or a family member intends to move in; You intend to substantially refurbish the property; You intend to sell the property.

Each scenario has strict evidence requirements, and the law has recently tightened around “no-fault evictions”, making it much harder to end tenancies without very clear justification.

Is it a good time to sell?

From a market point of view, yes — it could be an excellent time.

House prices in Cork City and right across Munster have increased significantly over the past 12 to 18 months, driven by strong demand, low stock levels, and returning urban-to-rural buyers. Family homes in good condition, especially three-bed semis or detached properties, are particularly sought after.

Selling now may allow you to unlock the full current market value of your property while ensuring that you avoid the stress and financial uncertainty brought about via the recent changes to the rental market. After paying off any debts you could then choose to re-invest in the property market after the changes come into force in March 2026 or invest your money elsewhere.

Selling with tenants in place vs vacant possession 

You can legally sell the property with a sitting tenant. However, there are trade-offs.

Buyers seeking a home to live in usually want vacant possession. A tenanted property, particularly one generating below-market rent, may go for a sales price of 30% less. You’ll be selling into a limited market as you’ll be targeting landlords or investors only, not owner-occupiers. 

Any new owner will inherit the tenancy and will have to consider the ongoing restrictions including rent caps and the rights of the current tenant.

If you want to sell and get the best possible price, vacant possession is often the preferred route, but you must strictly follow legal procedures. This means you’ll have to provide the correct notice period to your tenant, citing the intention to sell as the grounds.

Notice periods depend on how long your tenant has been there. For tenancies over two years, it's 180 days (six months). You must serve the notice correctly and submit a copy to the Residential Tenancies Board (RTB). 

Failing to follow these steps correctly can result in delays, disputes, or even fines. Check the RTB website for more information.

Should I keep the property as a long-term investment?

There are some advantages to holding the property. Property tends to appreciate over time, if you're thinking long-term, but just remember capital gains could be considerable.

While the rental income is modest for now, it may offer a retirement supplement or financial legacy. You can also claim tax relief on mortgage interest, repairs, and property management costs. 

However, you need to ask yourself if you can afford to keep renting it at €1,000–€1,040/month, given rising maintenance and compliance costs?

You don’t mention if you have a mortgage on the property but the ability of the rent to cover that as well as insurance and tax will be key. 

Another consideration will be whether you intend to manage the property yourself – which means dealing with tenants, paperwork and inspections – or hire a letting agent and the costs that will involve.

Key questions

 To help clarify your next move, I think you need to carry out a cost-benefit analysis on your property investment in the context of your overall financial position. 

Some of the questions you need to address include:

• Am I financially better off selling now or keeping the property?

• Would I prefer a lump sum now, or regular monthly income — even if comparatively modest?

• Do I have the appetite to stay compliant with evolving rental rules?

• What are the tax implications of selling now versus in a few years?

Speaking to a financial advisor or tax consultant can help ensure you make an informed decision but there’s no “one-size-fits-all” answer. It really depends on your personal finances, future plans, and appetite for risk and responsibility.

If you're leaning toward keeping the property but want to reduce hassle, a professional property manager can handle compliance, rent reviews, and tenant relations — and their fees are tax deductible.

Majella Galvin: 'The most important thing? Make a decision that suits your life, not just the market.'

If, however, the emotional and financial strain of being a landlord is outweighing the rewards, then selling now while the market is strong could make sense. At the very least, book a market appraisal with a licenced estate agent, check your obligations with the RTB, and review your numbers with an accountant.

The most important thing? Make a decision that suits your life, not just the market.

• Majella Galvin is Chair of the Membership and Public Affairs Committee of the Society of Chartered Surveyors Ireland. A chartered surveyor, estate agent and registered valuer at DNG Galvin Auctioneers Bandon, she has been working in the property sector for over a decade - dnggalvin.ie If you have a property-related query or issue you would like to raise with Majella, please email [e-mail]