As a leading property management firm in Ireland, KPM Group has been at the forefront of the rental sector for nearly 25 years. Recent developments in landlord tax breaks and market trends have caught our attention, and we believe it’s crucial to examine these changes through the lens of experienced property managers.
Are Tax Breaks for Landlords Needed?
The Irish government’s decision to introduce a tax break for landlords, costing an estimated €160 million annually from 2026, has sparked considerable debate in the property management sector. As property managers, we’re often caught between the needs of landlords and tenants, and this tax relief raises important questions about market dynamics and policy effectiveness.
Has There Really Been An Exodus Of Landlords?
For years, there’s been talk of a mass exodus of landlords from the Irish rental market. This narrative has been repeated by business groups, media outlets, and even prominent politicians. As property managers, we’ve heard these concerns firsthand from many of our clients. However, recent data from the Residential Tenancies Board (RTB) presents a more nuanced picture.
RTB Figures
The RTB’s new registration system, which requires more detailed information from landlords, has revealed some interesting trends:
- The number of registered tenancies increased from 213,000 in mid-2023 to 230,000 by the end of 2024.
- Registered landlords grew from just under 97,000 to 103,000 during the same period.
These figures suggest a modest increase rather than a decline in the rental market. However, as property managers, we understand that data interpretation is rarely straightforward.
Other Factors
While the RTB data shows an increase in registered tenancies and landlords, we must consider several factors:
- Compliance Lag: The rise could be due to landlords catching up with the new, stricter registration process.
- Historical Context: The current figures are still lower than previous years, with 246,000 tenancies registered at the end of 2022.
- Data Cleanup: The RTB’s efforts to remove duplicate and inactive tenancies may have affected the numbers.
- Census Discrepancy: The 2022 census reported 331,000 private rented homes, significantly higher than RTB figures.
As property managers, we see these conflicting data points as a reminder of the complexity of the rental market.
The Tax Break
The introduction of the landlord tax break, worth up to €1,000 per year, was justified by claims of declining numbers of small-time landlords. However, our experience in property management suggests that the reality is more complex:
- Many landlords leaving the market are ‘accidental landlords’ from the Celtic Tiger era, who always intended to sell when market conditions improved.
- An RTB study found that only 6% of small landlords cited taxation as a motive for leaving the market.
- 54% of small landlords who left the market had bought their properties between 2001 and 2007, suggesting many were always planning to cash out eventually.
Is The Policy Effective?
As property managers, we believe that policies should be based on clear evidence and targeted solutions. The €160 million tax relief raises questions about resource allocation in the housing sector:
- Evidence-Based Policy: Is there sufficient data to support the need for this specific tax break?
- Alternative Investments: Could these funds be more effectively used in other areas of the housing market?
- Long-Term Impact: How will this tax relief affect the rental market’s overall health and sustainability?
Do You Need A Property Manager?
Professional property management has become increasingly valuable in this complex and evolving landscape. At KPM Group, we offer:
- Expert navigation of regulatory changes and tax implications
- Data-driven insights into market trends
- Efficient management of properties to maximise returns and minimise vacancies
- Mediation between landlord and tenant needs
Property Management Dublin
For almost 25 years, KPM Group has been delivering the highest standards in Property Management across Ireland. We act for private investors, lenders, and both domestic and international funds. Our expertise spans Private Rental, build-to-rent projects, owner management companies, Local Government agencies, and best-in-class Social Housing developments.
As the rental market continues to evolve, trust KPM Group to provide the insights and management expertise you need to navigate these changes successfully. Contact us today to learn how we can support your property investment goals in this dynamic market.
