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Creating a New Tenancy

On 24 December 2016, The Planning & Development (Housing) & Residential Tenancies Act 2016 (“the Act”) was signed into law. The Act aims to provide greater stability and protections for residential tenants.

Click here to request a copy of the complete overview of the Planning & Development (Housing) & Residential Tenancies Act 2016

A significant amendment has been introduced in relation to the creation of new tenancies in a Rent Pressure Zone. Where a landlord is creating a new tenancy in a Rent Pressure Zone, the landlord is required to furnish the tenant in writing with the following information at the commencement of the tenancy:

  • the amount of rent that was last set under a tenancy;
  • the date the rent was last set; and
  • a statement as to how the rent set under the tenancy with the new tenant has been calculated having regard to the rental cap formula.

This requirement effectively places a limit on the amount of rent which a landlord can charge when granting a new tenancy of an existing dwelling. The rent in effect must be similar or comparable to the rent which the landlord previously charged in relation to that residential unit.

From a landlord’s perspective this is a very significant imposition and will curtail its ability to obtain a premium rent from a new tenant on the creation of a new tenancy as the rent must be comparable to the rent previously charged for the dwelling by the landlord. In practice, and particularly where a property has been sold since it was last occupied, it may prove difficult to establish the last rent paid by a tenant and it may be the case that market rent will be considered in these circumstances.

Contact our Property Lawyers in Dublin, Ireland

If you require legal advice on any of the above services or any other legal matter, get in touch on +353 1 663 2000 to speak with one of our experienced solicitors.


We have found the Sherwin O’Riordan team to be reliable, very responsive in cases of tight deadlines, business focused and have given us sound commercial legal advice.

Geoff Ryan - VP Finance, Profitero


"We simply cannot fault the service we receive from SOR. They have specialist solicitors in each area where we need advice and we’ve had contact with 4 different partners during the last 14 months, and the experience has been the same each time. Really really good."

Justin Cahill, Chairman, CMC Platform Financials

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74 Pembroke Road
Dublin 4

Phone +353 1 663 2000
Fax +353 1 663 2001


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