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Legal & Compliance RPZ rent pressure zone rent increase 2% cap rent review landlord guide

Understanding Rent Pressure Zones (RPZs) in Ireland

A complete landlord's guide to Rent Pressure Zones. How RPZ rules work, how to check if your property is in an RPZ, and how to conduct a legal rent review.

Rents.ie Team

Rent Pressure Zones (RPZs) are areas where rent increases are strictly limited by law. Most of Ireland — including all of Dublin, Cork city, Galway city, and many other areas — is designated as RPZ. Understanding the rules is essential to avoid RTB disputes and financial penalties.

What Is a Rent Pressure Zone?

An RPZ is a designated area where:

  • Rent increases are capped at 2% per year
  • There must be a minimum of 24 months between rent reviews
  • You must give 90 days written notice of any increase

RPZs were introduced in 2017 to slow rent inflation in high-demand areas. The designation is made by the Minister for Housing, based on RTB rent index data.


Which Areas Are Designated RPZ?

Dublin: All Dublin postcodes (D01–D24) and all of Dublin county (including Fingal, South Dublin, Dún Laoghaire-Rathdown)

Cork: Cork City Council area

Galway: Galway City Council area

Limerick: Limerick City and County (most areas)

Waterford: Waterford City and Environs

Other towns: Drogheda, Dundalk, Bray, Wicklow, Navan, Ennis, Carlow, Kilkenny, and many other designated towns and areas

Check your property’s RPZ status →


The 2% Cap — How It Works

In an RPZ, the maximum increase is 2% per year, compounded.

Formula: New rent = Current rent × (1 + 0.02)^(years since last review)

Example: Rent of €1,500/month, last reviewed 24 months ago:

  • Maximum new rent = €1,500 × 1.02² = €1,500 × 1.0404 = €1,560.60
  • Maximum increase: €60.60/month

After 24 months, the compound effect gives you 4.04% total (not just 4%), due to compounding.


The 24-Month Rule

You must wait at least 24 calendar months from the last rent review before conducting another. The clock starts from the date the last increase took effect (not when you gave notice).

Example:

  • Last review effective: 1 March 2024
  • Next eligible review: 1 March 2026
  • Earliest you can give notice: 1 December 2025 (90 days before)

If you attempt a review before 24 months have elapsed, the increase is illegal and can be challenged at the RTB.


First Tenancy — No Previous Review

For a brand new tenancy (no previous rent set on the property), there is no restriction on the initial rent — you can set it at market rate. The 2% cap applies from that point forward.

Exception: If the property was previously tenanted, the new rent may still be limited to 2% above what was previously charged, even for a new tenant.


The 90-Day Notice Requirement

You must give your tenant at least 90 days written notice of any rent increase. The notice must:

  • Be in writing (letter, email if agreed, or through RTB)
  • State the new rent amount
  • State the date the increase takes effect (at least 90 days away)
  • Reference the RPZ rules if applicable
  • Explain the tenant’s right to refer to the RTB within 28 days

Generate a rent review notice →


Comparable Properties

In an RPZ, you are not required to provide comparable properties for the rent increase to be valid — unlike in non-RPZ areas. However, if challenged at the RTB, you should be able to justify that your rent is within the legal limit.


Exemptions to RPZ Rules

Some circumstances allow rent to be set above the 2% cap. These are narrow and strictly defined:

Substantial Refurbishment

If you carry out substantial works to the property (e.g., major renovation), you may be exempt from the cap for the first tenancy after the works. The works must:

  • Have cost at least €50,000 (or the equivalent structural/energy improvement)
  • Be evidenced by receipts and planning records

You must notify the RTB before claiming this exemption.

New Dwelling

A dwelling that has never previously been let is exempt from the RPZ cap for its first letting.

Change of Use

If a property changes from commercial to residential use, the first letting may be exempt.


Penalties for Breaking RPZ Rules

If you charge above the legal limit:

  • The tenant can refer to the RTB at any time
  • RTB can order you to refund overpaid rent
  • RTB can impose fines up to €30,000 for illegal rent increases
  • Revenue may deny deductions on the excess rental income

Step 1: Check your last review date. Count forward exactly 24 months.

Step 2: Calculate the maximum allowable rent.

Step 3: Draft your rent review notice.

Step 4: Serve the notice at least 90 days before the intended effective date.

  • Serve by registered post for proof of delivery
  • Keep a copy and the proof of postage

Step 5: Update your RTB registration to reflect the new rent.


If Your Property Is NOT in an RPZ

Outside an RPZ, you have more flexibility:

  • Rent can be set at market rate
  • Only 12 months (not 24) must elapse between reviews
  • Still requires 90 days notice
  • Still must not exceed market rate (no evidence required, but RTB can investigate)

Using the Rent Increase Calculator

Our calculator helps you:

  • Check if your Eircode is in an RPZ
  • Calculate the maximum legal rent
  • Validate your notice period
  • Generate a template dispute or negotiation letter

Check your rent increase →


Common RPZ Mistakes

  1. Counting 24 months incorrectly — from notice date rather than effective date
  2. Rounding up above the legal limit — round down, not up
  3. Not giving 90 days notice — even if the amount is legal, short notice is a breach
  4. Not updating RTB registration — always update after a rent change
  5. Claiming exemption without proper documentation — exemptions require RTB notification

Disclaimer: RPZ rules are complex and subject to change. This guide reflects the rules as of early 2026. Always verify the current rules at rtb.ie or seek legal advice.

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