Controversial new rent rules come into effect from today, introducing significant changes to the way landlords and tenants interact in the rental market. The Government said the legislation is aimed at increasing the supply of housing and providing more stability in the rental sector.
Under the new law, landlords of vacant properties can now set rents at market rates, removing the current cap that limits annual increases to 2 percent. The change applies only to new tenancies, while existing rental agreements remain unaffected.
The legislation also introduces a minimum tenancy duration of six years for new leases. The Residential Tenancies Board (RTB) said the law offers “stronger” protections for renters, giving tenants greater security and reducing the likelihood of sudden eviction.
Large landlords are limited in their ability to evict tenants during the six-year period. Evictions can only occur if a tenant breaches their obligations, such as failing to pay rent, or if the property is deemed unsuitable for continued occupation.
Smaller landlords, defined as those with between one and three rental units, have additional grounds for eviction. They can issue a notice to quit if the landlord or a close family member requires the property, or if the landlord faces financial hardship. After the six-year cycle, smaller landlords may also evict tenants to sell the property, carry out substantial renovations, or change the property’s use.
Opposition parties have strongly criticised the changes, warning that they may drive rents higher and worsen housing affordability. Critics say allowing market-rate rents for vacant properties could encourage landlords to seek turnover more frequently, placing additional pressure on tenants.
Supporters of the law argue that the changes will encourage investment in the rental sector and increase the availability of homes for renters. By providing longer tenancy durations, the Government aims to offer security to tenants while ensuring landlords can adjust rents for vacant units in line with market conditions.
For tenancies established before today, no changes apply. Existing tenants and landlords will continue under the previous rules, with rent increases capped at 2 percent annually and standard grounds for eviction remaining in place.
The Government has said it will monitor the impact of the law over the coming years and may adjust regulations if necessary to balance tenant protections with the needs of landlords. The RTB will continue to provide guidance and support to both landlords and tenants on navigating the new rules.
As the law comes into force, tenants and landlords are being urged to review their rights and responsibilities to ensure compliance and avoid disputes.
