Landlord Exodus – A Crisis for Renters: A Window for Sellers

The rental property market is changing fast.   Across Ireland, small landlords are exiting; and while this creates challenges, it also presents a rare window of opportunities for others. 

For many landlords, managing a rental property has become more difficult than rewarding.  Increased regulation, legal complexities, and rising taxes have made the role unsustainable for some. Once considered a long term investment, for some small landlords, the business of renting is a daily struggle to stay compliant and financially afloat. 

The shift doesn’t just mark the end of an era for these landlords but opens a new chapter for sellers and buyers alike. 

Why Landlords Are Stepping Back 

The government’s approach to protecting renters may be well-intentioned, but in reality, it has placed immense pressure on small landlords including what many face: 

  • Unfavourable tax treatment: Individuals can face tax rates of up to 52% on rental income, while institutional investors often benefit from more favourable terms. 
  • Heavy regulation: Rent Pressure Zones (RPZs) limit rent increases to a maximum of 2% annually, even as inflation and maintenance costs rise.  This, combined with long notice periods, result in continuous shrinking margins. 
  • Complex legal processes: If tenants do not pay or overhold, landlords may find themselves tied up in drawn out RTB disputes that can drag on for months, even years. 
  • Growing bureaucracy: Managing compliance, registrations, and RTB data requests has become a burden too great for many small property owners. 

The Impact on the Market 

This shift is reshaping the property landscape: 

  • Fewer properties to rent:  As landlords exit, the volume of available rental stock continues to fall, forcing more renters to compete for less. 
  • Rising rental prices: In Limerick, new rental listings are reaching on average €1,800 per month. 
  • Evictions and instability: As properties are sold, tenants are left in limbo. The idea that new developments will fill this gap ignores the market reality—most new stock is aimed at a different segment altogether. 
  • A supply bottleneck: Former rental homes are often sold through off-market schemes like the Cost Rental Tenant in Situ Scheme, meaning fewer second-hand homes are available for first-time buyers. This is fuelling price increases in an already undersupplied market. 

On the Ground: What I’m Seeing 

In my work across Limerick, I speak daily with landlords worn down by regulations and first-time buyers desperate to get on the ladder. The dynamic is shifting. 

Apartments that once appealed to investors are now being snapped up by first-time buyers, driven by changing lifestyle preferences and the lack of affordable houses in the suburbs. 

This is the hidden opportunity for sellers.  Many long-term landlords stuck with low rental yields under RPZs are now able to exit at strong market values.  In some cases, they are finally seeing appreciation after years of stagnation. 

For renters, the picture is more difficult.  Affordability is a growing issue, and for those caught in the middle, the system offers few immediate solutions. 

Possible Steps Forward 

There’s no quick fix—but there are areas that could be improved: 

  • Tax reform: A fairer system for small landlords could keep more homes in the rental pool. 
  • RTB efficiency: Faster resolution processes would benefit both landlords and tenants. 
  • Balanced protections: Regulation must support tenants while also allowing landlords to manage their properties effectively. 
  • Increased housing supply: More focus on affordable housing is needed to meet growing demand. 

The Upside for Sellers 

Amidst the uncertainty, sellers have a clear and growing advantage: 

  • Improved sale prices: Properties previously limited by RPZ caps can now be sold at open market value. 
  • First-time buyer interest: Motivated buyers are coming to the market – especially for well located, lower priced apartments. 
  • Exit options on your terms: For landlords ready to step back, this is the right moment to realise the return on your investment. 

Making the Most of the Market 

The landscape has changed, but that does not mean opportunity is gone.  It simply looks different. 

For landlords looking to sell, this could be the right time to act.  For buyers, especially first-time buyers, the door is open wider than previous years in terms of apartment purchases.  As someone working closely with both sides, I see the real stories behind the headlines—and we are here to help people move forward with clarity and confidence. 

If you are thinking of exiting the rental market, or stepping into your first home, now could be your window.  Get in touch to discuss how to make the most out of it. 

Thinking of selling? 
Download our free SELLWISE Guide at https://www.mcea.ie/sellwise-contact/to see how a clear, structured strategy can help you prepare your property for sale—and make the most of today’s market.