IRELAND’S LARGEST RESIDENTIAL landlord, Ires Reit, has told investors that incoming changes to tenancy rules could see a major increase in its rental income.

The landlord firm told investors that they expect and increased income from their tenancies as they will be able to reset rents to market value between tenants.

Under the new rules, set to kick in this Sunday, landlords will not be able to reset rents to market value for existing tenants even if their tenancy is up for renewal. However housing charities have voiced concerns that the new rules could lead to people who are seeking new tenancies getting priced out of the market.

Sinn Féin finance spokesperson Pearse Doherty told The Journal that Ires Reit’s projections show that large landlords are planning to hike rents, and that the Government should “scrap” the incoming changes to rent rules. 

Asked about the landlord firm’s call with investors national housing charity Threshold said that it does not believe that market rent resets will “provide relief for renters” who are already struggling, and that the needs of tenants need to be prioritised. 

Ires Reit 

Ires Reit owns around 3,627 properties, and had a tenancy turnover rate of around 14% last year.

The firm operates at such a scale that it can influence rental markets in the areas where it owns the most units, namely in Dublin and Cork city.

Based on their projections, if they had a turnover of 14% again this year, it would mean around 500 households would face a rent increase from an average of €1,852 to €2,315 under the new rental rules.

In its presentation to investors the firm notes that rent caps will be in place for existing tenancies meaning they’ll be tied to a 2% increase or the rate of inflation, whichever is lower.

Ires Reit further notes that new-builds will be exempt from the 2% cap, and rents can increase in line with inflation, and this rule change, alongside their ability to reset rents to market value between tenancies will allow them to “increase rental income reversion” and to have “increased cashflows”.

The firm notes that they believe this will allow for “more apartment building”.

Stephen Mulcair, the head of investor relations for Ires Reit, told investors in the call that the regulatory landscape in Ireland has changed “for the better”.

“Under these rules, every unit in our portfolio with the lease commencing after the 1st of March 2026 can be re-let at prevailing market rents once vacant,” Mulcair said.

He added that Ires Reit rents are currently 20% below market value.

Mulcair said that there is now a “substantial” opportunity for the company to realise that value, which will lead to “enhanced returns for the company and our shareholders”.

The firm projected in its preliminary results that there is potential for the gradual realisation of a 25% “potential rental income uplift with additional minimal costs” as a result of the changes.

It’s understood that Ires Reit believes that it could take up to ten years for its rental stock to be fully reset to market value, and that the firm intends to continue its preference for long-term tenancies during this gradual process. 

In comments reported last week Ires Reit CEO Eddie Byrne said he expected that 10% of the firm’s portfolio would turn over on an annual basis. 

‘Disastrous’ 

Speaking today Pearse Doherty TD told The Journal that the details of Ires Reit’s projections would “send a shiver down the spine of all renters”. 

Tenants taking up a new tenancy after 1 March, he said, could end up paying €6,000 more than the previous tenant in a house or apartment in the space of 12 months, he said. 

“The government are trying to ram through the biggest rent hike we have ever seen. Even now the government needs to scrap the rent hike bill,” he added. 

Social Democrats Housing spokesperson Rory Hearne said the “blunt” claim that the new rules will see increased returns for shareholders “puts a hole in the claim by the Government that these rental measures were about increasing supply through making apartments more viable”.

Hearne said that increased rents will mean further returns for corporate landlord shareholders, “most of whom are US, UK, German and Irish pension and wealth funds”.

“It’s a disastrous housing policy that is turning more and more homes in Ireland into financial assets for global wealth funds”.

Heated Dáil exchange on rent hikes 

Taoiseach Micheál Martin has repeatedly hit back at criticism of the new rent rules and has said in the Dáil that they will give tenants greater security.

Raising the issue of renters of new tenancies facing increased rental costs, Mary Lou McDonald said the largest landlord in Ireland will now be able to hike rents and they are rubbing their hands in glee at the prospect. 

In a heated exchange with the Sinn Féin leader, Martin focused merely on those in existing tenancies and not those currently searching for a rental property or those that could be in that position come March. 

“Over 290,000 people who are currently renting will not have their tenancies impacted,” he said, stating that these measures is about boosting rental supply and giving certainty to the market. 

McDonald called on the Taoiseach to intervene now to prevent those searching for an apartment to rent in March from facing eye-watering monthly rents. 

“This sends a shiver down the spine of every renter right across the land, and it is directly because of your decisions, your choices, Fianna Fáil and Fine Gael, your legislation is causing this to happen,” said McDonald.

However, today in the Dáil the Taoiseach repeatedly stressed that the changes are intended to stimulate greater private investment in order to increase housing supply.

Cat Clark, Campaigns Officer at Threshold said that the charity’s research shows that on average renters are now spending 39% of their income on rent, which is significantly above the widely accepted 30% benchmark for affordable housing costs. 

She said that while it is true that market rent resets may “appeal to investors” which may lead to more development, “serious questions remain about the nature of that supply”. 

In particular she flagged that there is no cap on rents in new-build properties. 

“The emerging reality is a private rental market that is increasingly unaffordable and out of step with the needs of the people who rely on it,” Clark added.

Ires Reit reported increased pre-tax earnings of nearly €50 million for 2025. The landlord firm has flagged its boosted shareholder returns with a proposed dividend payable next month.