The Irish government has approved new legislation that grants tenants the right of first refusal when their rented home is put up for sale. This significant change in property law aims to provide more security for tenants and potentially increase homeownership opportunities.
What is the New Law?
The Residential Tenancies (Amendment) (No.3) Bill 2024 introduces a legislative basis for tenants to have the first right of refusal when their landlord decides to sell the property they’re renting. Under this law, landlords must invite tenants to make a bid within 90 days of serving a notice of termination due to intent to sell. If the initial bid is unsuccessful, tenants have the opportunity to match the final sales price agreed with another party on the open market. Importantly, landlords are obligated to accept a matching bid from the tenant. This law applies specifically to tenants in private rented accommodation who do not receive housing supports, distinguishing it from other existing schemes.
What Does the Law Mean for Landlords?
For landlords, this new legislation introduces additional steps and potential complications in the property sale process. The 90-day bidding period may extend the overall time required to sell a property, and the obligation to accept matching bids from tenants could limit their choice of buyers. Additionally, the process of inviting bids and managing tenant offers adds complexity to property sales. However, the law also aims to balance the rights of both tenants and landlords, maintaining landlords’ ability to sell their property while offering tenants increased opportunity for homeownership.
Is Now a Good Time to Become a Landlord?
Despite the new legislation, becoming a landlord is still a very attractive option. The rental market in Ireland remains strong, with consistent demand for quality rental properties. Recent reviews and legislation demonstrate the government’s commitment to improving and regulating the rental sector, which could provide stability for landlords in the long term. Property can still be a solid long-term investment, especially with proper management and adherence to regulations.
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