Since the end of the pandemic, many properties have returned to the short-let property sector, further contributing to an already under-resourced rental market. According to the department of housing, this influx of short-term rentals is a major contributing factor to the increase in rent costs in the few remaining available rental properties in Ireland.
In a bid to combat the negative effects that the short-term rental market is having on landlords, new rules have been introduced.
As of September 1st, a new set of regulations has been actioned to stop the growing monopoly that short-term rental sites have on what is left of the depleted Irish rental market.
From the inception date, no short-term rentals will be allowed to advertise properties inside of RPZ (Rent Pressure Zones) which do not have the requisite planning permission. Supplementary to that, second homes shall not be advertised – or be able to accept bookings – on online platforms for short-term lets for a period of six months without the necessary planning permission in place.
Another move by the government to help keep existing and would be short-term letters at bay requires the proprietor of any property to produce evidence of planning compliance as certified by a planning authority, or an exemption from the same, to confirm they are entitled to advertise it as a short-term let.
In a recent report issued by government officials, it stated that the majority of short-term letters are not following the correct procedures or obtaining the correct planning permission when advertising their property for short-term rent. The new legislation, active from 1st September, hopes to reduce the number of properties operating contrary to policies issued by the department of housing.
What does this mean for landlords in Ireland?
The good news for landlords in Ireland is that further legislation is planned for next year, and a new online registration system from Fáilte Ireland is due to be rolled out in 2023. The interim measures until then are aimed at reducing the current shortage of available rental properties in Ireland.
Once the new registration system is in place it will become far more difficult, time consuming and costly for short-term rentals to exist and profit compared to traditional rental properties.
Property Management Company Dublin
At a time when the rental market is so turbulent, it’s more important than ever for multi-property landlords to seek expert advice. At KPM Group we can offer insight into the latest legislation and help landlords navigate these new waters.
KPM Group has helped countless landlords free themselves from the day-to-day management of their portfolios and trust us to deliver the maximum return on investment while providing quality property management services.
If you would like to speak to us here at KPM about your portfolio, then get in touch today, and a member of staff will be happy to help in any way we can.
