It has been a tough few years for tech and accommodation giant “Airbnb”. Multiple security and regulation concerns facilitated the EU to empower cities to restrict the use of short-stay rentals. Ireland quickly reacted to the restrictions placed in Europe issuing its own regulations to the short-stay industry. But now it seems the EU wants to intervene as Ireland releases even tougher regulations and guidelines for Airbnb property owners.

Why are restrictions being placed on the short-stay model?

There are several reasons why the short-stay model has caused controversy, we will look at the top 3.

Security Concerns

Security concerns ranged from scams to unethical landlords accessing the property while occupied.

Regulative Concerns

The short-stay model was for a long while essentially unregulated, anyone could post their property without the need to register with an official body or adhere to any formal rules.  

Reduced Housing

The biggest issue cities face is that landlords earn far more money using the short-stay model than traditional lettings, this could mean without local authority intervention, that landlords could evict tenants and move to the short-stay model.

Why is Airbnb such a big deal for cities?

In the past decade, since Airbnb’s inception in 2008, the amount of short-term rentals in cities has been growing at a rapid rate.  Because this type of apartment is usually cheaper than traditional tourist accommodations, city trips have become more affordable. This, in turn, has led to an increase in city tourism. For cities, more tourists mean more money, so that is the benefit of Airbnb. But there are also negative issues that are related to the presence of Airbnb.

This is mostly because Airbnb apartments are often located in areas that are meant for residential living, and not for tourist vacations. Local residents in cities with large amounts of short-term rentals are complaining about nuisance, a change in local culture and a lack of social cohesion. Moreover, short-term rentals are being accused of further stimulating or starting gentrification processes which lead to higher rents and housing prices. 

Eventually, this can result in the displacement of local residents and businesses. Even though we currently know too little to determine to what extent this is true, cities that are experiencing such issues want to be ahead of the game and have started to take action by regulating Airbnb.

What are the short-term let regulations In Ireland?

If you are planning to rent out your property on a short-term basis here are a couple of things you should be aware of:

Planning permission

If you planning to use your property for short-term lets then you must apply for planning permission via your local authority. The use of your property must be changed to encompass tourism and short-term letting purposes.

This requirement for planning permission only applies to homeowners in Rent Pressure Zones (RPZs) who:

• Let out their entire home (principal private residence) for short-term lets of more than 90 days in total while they are away. (Your principal private residence is the place where you ordinarily live).

• Let out a second property for short-term lets.

It’s important to note the chances of planning permission being granted are far lower in areas of high housing demand, where there is high rent inflation, insufficient supply and lots of applications.

This year a new registration system for short-term lets/holiday lets will be launched it will allow homeowners will have to register short-term lets and holiday lets with Failte Ireland under this new registration system

What is the new regulation?

New rules will see both property owners and online platforms fined up to €5000 for advertising properties for short terms lets, the fine will apply to any advertised property that does not have the correct registration or planning permission.

Why?

It is hoped that a short-term tourist letting register, to be run by Fáilte Ireland, could lead to as many as 12,000 homes being freed up for longer-term use at a time of acute housing shortages.

Property Managers Ireland

For almost 25 years KPM Group has been delivering the highest standards in Property Management. 

We act for private investors, lenders, as well as domestic and international funds. Sectors of expertise include Private Rental, build-to-rent projects, owner management companies, Local Government agencies and best-in-class Social Housing developments.

Contact our experienced team to see how to maximise your property’s potential without having to resort to the time-consuming and labour intensive short term let model.