Publication
Repair and Leasing Scheme (RLS)
From Department of Housing, Local Government and Heritage
Published on
Last updated on
- Bring your vacant property back into use as a home?
- Receive a regular guaranteed long-term income (between 5 and 25 years)?
- Breathe new life into your village, town, or city by regenerating homes and rejuvenating local communities?
Under the Repair and Leasing Scheme (RLS), the local authority or an approved housing body, will provide funding to carry out repairs to a property that has been vacant for 12 months or longer to bring it up to rental standards.
An interest free loan of up to €80,000 (including VAT) is available to repair each individual home leased to the local authority. For example, where a vacant former shop is converted into 4 homes, a loan of up to €320,000 is available.
In return, the refurbished homes will be leased to the local authority or an AHB and the property owner will receive a regular income based on a percentage of market rent, with the loan repaid as a reduction in the lease payment over an agreed term.
The RLS is an option for owners or purchasers of vacant properties who cannot afford or access the funding needed to bring their properties up to rental standards .
More information on the scheme is available:
The RLS can be used to convert vacant commercial/institutional properties into residential units.
The requirement that the property owner or purchaser is unable to fund the works is removed for the following categories:
- vacant commercial units
- vacant units associated with a commercial unit (for example, over the shop)
- vacant institutional buildings
- unfinished developments which have been vacant for a significant period of time
Capital funding is available, up to €80,000 (including VAT) for each individual home provided under such projects. For example, where a vacant former shop is converted into 4 homes, a loan of up to €320,000 is available.
Increasingly, builders/developers are using the RLS to convert vacant commercial buildings into social housing units. Such property owners have the skillset and expertise to convert unused premises into housing.
A loan of up to €80,000 (including VAT) is available for each individual home provided. For example, where a vacant former shop is converted into 4 homes, a loan of up to €320,000 is available.
Local authorities and builders, working together, can design homes that meet the needs of individual tenants (for example, those with accessibility issues or the creation of age-friendly homes).
The scheme provides a loan of up to €80,000 (including VAT) for each individual home provided, to carry out works necessary to bring the property up to the rental standards . In return, the property owner leases the property to the local authority or an approved housing body for 5 to 25 years.
The property owner repays the loan to the local authority/AHB as a reduction in the lease payment over an agreed term.
There is no limit on the number of units one property owner can provide under RLS. Funding of up to €80,000 is available for each home provided.
- interest free loan to fund repairs up to €80,000 (including VAT) per individual home leased to the local authority / AHB
- guaranteed rent on a property that has not been generating an income
- no loss of rent during vacant periods
- no dealing with tenants or day-to-day maintenance (long-term lease option only)
- social investment in the community
- deter antisocial behaviour in vacant/derelict properties by bringing them back into use
Any vacant property owner, or person in the process of buying a vacant property, can apply for the scheme.
The local authority will assess the application and determine if the property is suitable. Property must be vacant for at least 12 months. Proof of vacancy will be required. Property owners and contractors engaged under the scheme must be tax compliant. Information on the tax treatment of RLS is available on the website of the Revenue Commissioners .
There are two options for property owners under RLS:
- a direct lease
- a Rental Availability Agreement (RAA)
| Direct lease | RAA | ||
| Term | 5- 25 years | 5 – 10 years | |
| Rent | Maximum 80% / 85% of current market rent less RLS offset | Maximum 92% / 95% of current market rent less RLS offset | |
| Cost savings | No rent loss due to vacant periods | No rent loss due to vacant periods | |
| No rent arrears | No rent arrears | ||
| No letting fees | No letting fees | ||
| No advertising costs | No advertising costs | ||
| No RTB tenancy registration charge | |||
| No day to day maintenance costs | |||
| Tenant management | Local authority / AHB is the landlord | Property owner is the landlord | |
| Internal Maintenance | Local authority / AHB | Property owner’s responsibility |
Contact the Vacant Homes Officer (VHO) in your local authority to see if your property is eligible. For a list of VHOs in each administrative area visit vacanthomes.ie/officers
During the repair works, the owner may also be interested in carrying out home energy upgrades. The SEAI website contains information on these upgrades and grants.
Image: updated infographic
