The Irish Property Owners' Association, IPOA, has called for radical changes to the laws relating to renting property in their pre-budget submission.
The group, which represents landlords, said that in spite of the fact that many small landlords are dependent on rental income as their main income and business, business expenses in the rental industry are treated differently from other industries.
Changes such as affording landlords the same access to tax deductible expenses as sole traders and allowing Local Property Tax as a business expense, they say, 'would go a long way to rejuvenating the viability of the market.'
The IPOA has also backed a tiered relief system for RPRIR allowance, which they claim 'reflects the reality of the market.'
As of Q4 2024, 72% of all landlords had only one or two tenancies, and 79%, or 83,031 had three tenancies or fewer.
As such, allowing the RPRIR credit to be claimed for up to two or three tenancies would provide a benefit for the vast majority of landlords, the group said in a statement.
The IPOA is also calling for the Government to introduce a limited, trial-based investment scheme aimed at attracting individual investment into the rental sector, taking what it described as 'learnings from the overextension and unsuitability of previous tax relief schemes'.
Mary Conway, Chairperson of the IPOA, said: “It is clear that radical changes are needed to stabilise the apprehension in external investment in the Irish property market and to accelerate progress in housing delivery.
"As the national voice for private residential property owners, the Irish Property Owners' Association has a deep knowledge of the sector, and we believe that these proposals are urgently needed to inject fresh energy to the market.
"With uncertainty, rising costs and inflation, it is imperative to reform taxation of landlords in recognition that letting of residential property is a legitimate and important business activity.
"Meaningful supports, incentives for investors, and fair tax treatment will go a long way towards stabilising the rental supply, and in turn, controlling rising rents."
