Proposed Rental Reforms from 1 March 2026: What Donegal Landlords Need to Know
Significant changes to residential rental legislation will take effect from 1 March. These updates introduce important adjustments to security of tenure and rent setting for new tenancies.
At Franklins, we are monitoring these developments closely to ensure our landlords remain fully informed and compliant.
Existing Tenancies
There is no change for existing tenancies. Current Rent Pressure Zone (RPZ) rules remain in place, with rent increases continuing to be capped at 2% per annum or the rate of inflation, whichever is lower. The existing rules governing notice of termination also remain unchanged for current tenancies.
The new legislation applies only to new tenancies created on or after 1 March 2026.
Security of Tenure for New Tenancies
From 1 March, all new tenancies will provide for a minimum six-year security of tenure.
Tenants are not obliged to remain in a property for six years and may terminate their tenancy at any time by giving the appropriate statutory notice. However, landlords must be in a position to allow a tenancy to continue for up to six years unless one of the permitted statutory grounds for termination applies.
Under the revised framework, landlords are categorised as either large landlords (more than three tenancies) or small landlords (three or fewer tenancies). For large landlords, termination will generally only be permitted where the tenant has failed to meet their obligations, such as rent arrears or breach of tenancy, or where the property is no longer suitable for the tenant’s needs.
Small landlords retain additional termination grounds, including genuine financial hardship requiring sale of the property, or where the landlord or an immediate family member requires the property as their principal residence.
These measures significantly increase security of tenure for tenants entering new agreements.
Resetting Rent for New Tenancies
A key change relates to rent setting when a tenancy ends.
Until now, RPZ caps applied even where a property became vacant and a new tenant moved in. From 1 March, where a new tenancy is created, landlords will be permitted to reset the rent to the prevailing open market level.
Once the new tenancy is established, standard RPZ caps will apply again to future increases.
This change is expected to result in higher rents for new tenancies in the short term, particularly where existing rents have fallen below current market levels.
Franklins’ View
In practical terms, there is no immediate change for existing tenancies. However, landlords should be aware of the extended security of tenure requirements for new leases and the opportunity to review rent levels in line with market conditions when a property becomes vacant.
Franklins will continue to ensure that all tenancy agreements, rent reviews and notices of termination are fully compliant with the updated legislation.
If you would like advice regarding your property or current rental level, please contact our office.