Setting and reviewing rent in a Rent Pressure Zone (RPZ)

What is a Rent Pressure Zone?

An RPZ is an area where rent increases are restricted to prevent sharp rent rises.

In an RPZ:

• Rent can only be increased once every 12 months.
• Rents cannot be increased by more than 2% per year, or by the rate of inflation if this is lower. The rate of inflation is recorded by the Harmonised Index of Consumer Prices (HICP). 

How to check if your property is in an RPZ

You can use the RPZ calculator to check if your property is in an RPZ. Just enter your address or Eircode.

Do RPZ rules apply to all tenancies in an RPZ area?

RPZ rules apply to all private and student specific accommodation tenancies in an RPZ area, unless the property has a valid RPZ exemption. Exemptions apply only in the rent setting immediately after the exemption is granted. It does not permanently exclude the property from RPZ requirements. RPZ rules will apply when you set rent:

• For existing tenancies where the landlord and tenant remain the same.
• When one tenancy ends and a new one begins but the landlord remains the same. You must calculate the rent for the new tenants using the previous tenant’s rent and the date it was last set.
• When you buy a vacant property that was previously rented out you must set the rent in line with the last rent paid by past tenants in the property. You must calculate the rent for new tenants using the previous tenant’s rent, even if you were not the landlord then. It is the responsibility of the new landlord to make every attempt to discover the previous rent amount. You need to ask for these details when buying the property. If it is not possible, you can contact the RTB to request the last rent amount reported by the previous owner and the date it was set.
• If you buy a property with sitting tenants, you can only increase the rent when the annual rent review is due within the rent review rules.

There are different rules for setting rent for Approved Housing Body and cost rental tenancies. RPZ rules do not apply to these tenancies.

What properties are exempt from RPZ rules?

Some properties in RPZ areas are exempt from rent caps. These include:

• A property that has not been rented for two years before the new tenancy start date.
• A property that is a protected or proposed protected structure and has not been rented for 12 months before the new tenancy start date.
• A property that has undergone a ‘substantial change in the nature of accommodation’.

What counts as ‘substantial change’?

There are strict rules about what ‘substantial change’ means. To qualify for an RPZ exemption, you must meet one of the requirements below:

• A permanent extension that increases the floor area by at least 25%.
• Work that improves the Building Energy Rating (BER) by at least 7 levels.
• Work that achieves three of the following:
  • The internal layout is permanently changed.
  • The dwelling is adapted for use by a person with a disability.
  • The number of rooms is permanently increased.
  • A BER of D1 or lower is improved by at least three levels.
  • A BER of C3 or higher is improved by at least two levels.

Important note about exemptions

Exemptions only apply in the rent setting immediately after the exemption is granted. It does not permanently exclude the property from RPZ requirements.

Reviewing rent in an RPZ

Using the RPZ calculator

The best way to set rent correctly is to use the RPZ calculator. The calculator will tell you the maximum rent increase allowed. It does this by examining the percentage change in the rate of inflation (HICP rate) since the rent was last set​. You will need to enter the:

• Current rent amount
• Date the last rent was set
• Date the new rent will begin

If you need to check if a previous rent increase was correct, enter the rent details from the last rent setting or review.

Rules for reviewing rent

• Rent can only be reviewed once every 12 months.
• You must give tenants at least 90 days’ notice before the new rent takes effect.
• The Notice of Rent Review must include:
  • The new rent amount
  • How you calculated the increase
  • A printout of the RPZ calculator results
• You must update the rent amount on your RTB registration account.

If a tenant thinks the rent review is incorrect, they can apply for dispute resolution.

Setting rent for a new tenancy

When a new tenant moves in, you must give them a written statement on how their rent was set. This should include:

• The last rent amount
• The date the last rent was set
• A printout of the RPZ calculator showing how the new rent was calculated​

This information must be given at the start of all tenancies in an RPZ, even if you have an RPZ exemption​.

You must also register the new tenancy including details of the new tenants and rent amount.

If a new tenancy starts, you can conduct a rent review and may be allowed a pro-rata rent increase in line with RPZ rules, even if it has been less than a year since the last increase in the previous tenancy.

Pro-rata means, for example, if there are 6 months left in the current rent review period, you can only apply half of the allowable annual rent increase.

The RPZ calculator will automatically calculate the pro-rata increase for you when the new rent start date is less than 12 months since the last date the rent was set.

What should I do if I set rent incorrectly in an RPZ?

If the RPZ calculator shows that the rent was set too high, you should:

• Calculate how much rent your tenants have overpaid: use the rent calculation sheet if needed.
• Refund any overpaid rent to your tenant: the repayment should be calculated up to the refund date.
• Update the tenancy registration: log in to your RTB registration account to update the rent amount. Your tenants will then receive a letter stating the new rent.
• Keep records: save proof of the refund and your calculations for future reference.

We regularly review our registration records to assess compliance with RPZ rules. If a landlord has broken RPZ rules, we have powers to investigate the landlord and to impose a sanction of up to €15,000.