Private Residential Leases Act Brief

Yesterday, the government held a press conference to provide a brief of the Private Residential Leases Act , described as intended to promote stability and certainty in the rental market for both the lessors and lessees.

The main points of this act include the introduction of a minimum one-year rental period, capping on rental price increases and tax incentives for lessors who enter into longer-term leases.

This reform will not affect pre-1995 rents or letting to holidaymakers.

Tenants may feel more secure and can plan their future better by the introduction of a minimum three month notice by the lessor in case the rental contract will not renewed. Failure to do so will automatically renew the contract for an additional year. According to the reform, tenants will be given the chance to cancel a contract after the first two months of signing, but will have to give one month notice before leaving.

Lessors who enter into lease contracts of longer than one year will receive tax incentives that vary from €200 to €400 based on the length of contract and number of bedrooms.

Room renting and short-lets will be subject to a six-month contract. As mentioned above, this does not affect holiday lettings.

All rental agreements must be registered online. Failure to do so may result in the lessor being taken to court and fined of up to €10,000.

Lessors will now have the right to demand payment for the period tenants remain in the property during a dispute about eviction. Before, this had to be requested in court.

The Housing Authority will receive further powers and resources to regulate the market. The reform is expected to come into force by January of next year.