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Germany, Berlin: A suitcase lies on the bed of an Airbnb rental apartment Jens Kalaene via PA Images
airbnb
Explainer: What will the new Airbnb laws mean for homeowners and landlords?
The much-anticipated regulations will come into force in June 2019 in areas with high housing demand.
11.04am, 25 Oct 2018
69.5k
115
MINISTER FOR HOUSING Eoghan Murphy this morning confirmed that under new laws home sharing on platforms such as Airbnb will only be allowed where it is a person’s primary residence.
Homesharing is where a person rents out a part or all of their home for a period of time, usually to tourists who are visiting the country. It can often help homeowners meet their day-to-day bill or pay for their holidays, for example.
However, as home sharing has become more popular as a form of tourism letting, it has resulted in some professional landlords withdrawing houses and apartments that would normally be rented on a long-term basis to instead rent them out as short-term lets, the Department of Housing has said.
And as Ireland is currently in the midst of a deepening housing and homeless crisis, the Department has announced plans to implement new short-term let regulations, to help bring properties back onto the market.
The new short-term let regulations, kicking in on 1 June 2019, will operate on a ‘one host, one home’ model in areas of the country where there is deemed to be a high housing demand.
So, in short, what will these regulations entail?
Basically, homeowners who currently let a second property on a short-term basis will no longer be allowed to do so.
In addition, an annual cap of 90 days will apply for the renting out of a home and homeowners can only rent out their homes for 14 days or less at a time.
Short-term letting will be defined as “the use of a bedroom or bedrooms in a home as paid overnight guest accommodation for a continuous period of up to two weeks”.
Where a home or apartment is a person’s principal private residence, they will be permitted to rent out a room, or rooms, within their home for short-term letting without restriction (eg. B&B-type use).
However, they will only be allowed to sub-let their entire house without planning permission on the short-term market for an altogether period of 90 days or less annually.
Will people need to register their homes if they want to let rooms?
The new regulations will require people renting out their homes to register with their local authority.
If someone owns an apartment that they bought as an investment and want to rent it out on Airbnb for specific periods of time, they will now need to seek a special planning permission for this type of use as it is not their principal private residence.
The Department said that in areas of high housing demand (such as Dublin or Cork) it is unlikely that permission would be granted.
Where a house or apartment results in a material change of use, such as the example above, and the owners have not been granted an exemption, this may result in a prosecution for unauthorised development.
How will these regulations be monitored?
According to the Department of Housing, additional resources will be provided within Dublin City Council’s planning section to oversee the registrations and to monitor enforcement.
People found not to be in compliance with these changes will risk criminal conviction under the forthcoming legislation.
With the above information in mind, the Department of Housing has this morning published a number of scenarios homeowners and landlords may find themselves in when it comes to wanting to let rooms.
Here are a few examples:
Mary lives in the two-bedroom house in Cork that she owns near the sea. She wants to let a room occasionally on Airbnb, especially during the summer months. Can she?
Yes, she can let out her room year round, or the entire house for up to 90 days. She has to register with the council for her proposed short-term letting, as well and indicating which days (up to a total of 90) she intends to let out the whole house.
Breda and Martin own an apartment in Temple Bar that they bought as an investment. They used to rent it out to long-term tenants but now prefer to let it through short-term letting sites. They find they are occupied for 40 weekends a year and are nearly always full in the summer. Can they continue the short-term let?
No. Under these new legislative proposals they would need to seek a specific planning permission for this type of use as it is not their principal private residence. As Dublin is in a high demand area, it is unlikely that permission would be granted but this would be a matter for Dublin City Council.
Mike and John own a four-bedroom house which is their principal private residence (PPR). They let one of the rooms to a long-term tenant and the other room they keep on short-term letting websites. They find they have it rented for about 120 days a year. Can they continue?
Yes. If the house is their PPR, they can rent out the rooms on short-term let all year long, using the existing B&B exemptions. They need to register this with the council.
Bigcompany Ltd owns six apartments in a block in Dublin and operates a business renting them out on short-term letting websites for most of the year. Can they?
No, unless they have a specific planning permission that permits short-term letting. Under the proposed legislative changes, they would need a specific planning permission for this type of use, as Dublin is in a high demand area, it is unlikely that permission would be granted but this would be a matter for Dublin City Council.
Friendly Corporate Let Ltd owns a block of apartments which they provide as landing spots to employees of companies in Ireland coming from abroad. How will they be affected?
If the length of stay of each letting exceeds two weeks, then under the new regulations, it would not constitute short-term letting and would be viewed as normal residential use. However, if they operate short-term letting for any individual letting (ie. for periods of less than two weeks at a time), then planning permission will be required for a change of use, unless the permission associated with the property already permits such uses.
Have similar laws been implemented around the world?
Yes.
Amsterdam back in December 2016 signed an accord it hailed as “unique in Europe” with Airbnb banning rentals beyond 60 days a year.
Berlin, which has seen real estate prices soar in recent years, had months earlier passed one of the continent’s strictest regimes to hobble further Airbnb expansion entailing the rental of a maximum one room in one’s dwelling with €100,000 as a deterrent.
Even so, since May, that has been relaxed to allow renting out one’s entire private apartment.
In September, Toronto city introduced new laws which ensure a person can only rent their home as a short-term let if it is their principal residence.
Vancouver, which introduced similar rules, said since the regulations kicked in the number of listings on Airbnb fell from 6,600 in April to 3,742.
So, what happens now?
As noted above, the new regulations will kick in on 1 June 2019.
However, in order to bring in the changes, amendments to primary planning legislation will now be required.
Minister for Housing Eoghan Murphy said exempted development planning regulations have already been drafted, and amendments to primary legislation currently being drafted will “underpin and strengthen the new proposals”.
With a new licensing system for short-term letting hosts and commercial platforms taking some time to develop and come into force, the new rules will only kick in next summer.
With reporting by Christina Finn and AFP.
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@munsterman: 7 new homes (5 townhouses and 2 apartments) were completed beside where I live in Dublin City Centre early last year. They were snapped up by an investment fund and are up on multiple short term let websites on a continuous basis.
Yes, supply is nowhere close to meeting demand but when attractive new builds come on to the market, money talks.
The short term let industry has exploded nationwide but particularly in our cities. Without proper regulation and enforcement, more new builds will be converted into blocks of hotels effectively.
We need to temper the colossal greed which is running rampant through our housing market.
Yet another pointless policy that refuses to tackle the root of the problem… typical FG every impression of doing something without actually doing anything…and once again it seems that small private landlords will suffer and massive corporations and vulture funds will get off Scot free…
@Sarah: Hardly, Air BNB are a ‘massive corporation’ and the private landlords/pseudo-hoteliers that abuse its platform are hardly ‘small private landlords’. Be serious.
@Sarah: tackle the root problem… the root problem is more demand than supply, this is a regulation to increase supply, how is it not tackling the root problem?
@Paddington C.: Because the majority of those using AirBnB will not automatically make their property available for rent.
Identify the root problem which is, in short, the government lack of social houses. They only built just over 1000 houses in 2017. We have 10,000 people in emergency accommodate, how is this new law going to help with that number.
Majority of people using AirBnB are tourist, are they going to put a limit on the cost of hotels next?
@B9xiRspG: of course they have to build more social houses, but I don’t think anyone is pretending this is job done. And it is not only aimed at curbing the cost of rent. There were 8.5k airbnbs listed in Dublin last year, that’s absurd. As somebody who is actually extorted by paying rent in Dublin, this is a very welcome step.
@Sarah: It’s a huge problem. Not just in Ireland but worldwide where Air BnB exists. Other capital cities in EU have already taken measures against it. Ireland, rightfully so, should too.
@B9xiRspG: the they only built x number of houses last year is a misnomer.
All new developments must and do incorporate 10% social housing and people aren’t counting this in their warped numbers.
@Sarah: While not the only thing, Air BnB IS at the root of the problem because it allows financially stable people who can afford to holiday compete with families and individuals of more modest means for accommodation. This means that up to now, holidaymakers looking for a better deal were prioritised over people who needed a home. The cream was the difference between the top of the ascending rental market and the cost of hotels for 5 days or more and it was facilitated by the lack of regulation. It’s about time there was something done because un-regulated, it was causing havoc (like Über threatened to do in the transport industry) and created a situation where a stream of tourists were occupying the accommodation homeless people needed while the homeless stayed in hotels! Crazy.
@sarah. Agree. Landlords should not be responsible for the homeless crisis and it would be better if the local councils would work to provide rooms in houses under their control. In the news today’s their are 12700 bedrooms in Dublin under council control but empty. That’s a disgrace. Sick and tired of these short term solutions that put the responsibility back on the public to resolve when the Goverment could act.
@Paddington C.:
1. most people don’t want to get into letting as the red tape is too cumbersome. Airbnb allowed certain levels of toe dipping. This will hasten their exit from any sort of letting.
2. Now the Airbnb market will dry up increasing room rates in hotels therefore developers will apply capital building more hotels leaving even less capital for house building.
You must make it more lucrative for capital to be applied to residential development and yes that includes tax breaks…even if that is unpalatable.
@Emmet Doyle: but point 1 is a win win, because most people will either turn to long term renting or sell. There are obviously a minority who are happy to leave a property vacant, but they need to enact the vacant property legislation anyway, so that’s a distinct issue. Then yes, obviously fewer rooms for tourists is an issue, but ultimately I think homelessness and the renting crisis are bigger issues than rooms for people on holiday.
@Paddington C.:
So when a property is sold it will almost certainly leave the rental stock thereby reducing the amount of rentals and subsequently compounding the problem. You are using a solution in one sector as a fix for another. The hotel bed / B&B space shortage was compounded by using them as solutions to massage (lower) social housing lists in the first instance. When you hear ‘homeless’ it doesn’t refer to rough sleepers it refers to people in emergency or short term accommodation.
If on the other hand a unit is turned from current airbnb to long term rental it will simply create an equal shortage of short term or tourist rentals and thereby increase the cost of the remaining stock. Thereby making the application of capital at point 2 more pronounced.
The reality is as someone posted earlier there is about 300 such units in Dublin on Airbnb whereby if half came on stream it wouldn’t make a dent in the problem. If however this government were really serious and they announced a) section 23 or 48 type relief on the provision of rental stock or b) lower taxation on rental income I can guarantee you that the country’s rental crisis would be wiped out in two years.
Incidentally they vast majority of capital is being put into student beds because its more lucrative and the legislation is not so onerous. Strangely this will alleviate the problem quicker than tinkering with Airbnb.
The problem is simply a supply issue legislation on the margins cannot fix it. Supply will
very authoritarian to restrict what people want to do with their property, its almost like there are corrupt lobbies peddling influence with corrupt politicians .
@Dave Dublin: It’s not really though, this isn’t targeting private home-owners who want to lease out their property on a temporary basis, it’s about medium to large landlords who buy dwellings built to be used as residences and turn them into pseudo-hotels.
@Dave Dublin: Well said. The government want to get their filthy destructive hands on everything. Regulate and take away property rights whilst at the same time pass the blame to someone else. Gutless.
@Dave Dublin: I own a hotel outside Ireland in a country which restricts Air BnB. I would gladly welcome a level playing field where all accommodation providers are all regulated equally. Either to the level hotels operate or if my regulations are relaxed to the Air BnB levels. Although I am not sure too many people would want to stay in a hotel with no fire extinguisher etc.
@Dave Dublin: if you want to build an extension over the garage of your house you need planning permission (most cases). Maybe the concept of planning permission should be scrapped…my gaff and all that?
@Dave Dublin: to a certain extent but using residential property as a commercial business isn’t allowed under any other circumstances. For example you cant operate a shop out of your garage, it’s no different really
Watch the price of hotel rooms go through the roof after this. Tourism & home holidaying will be a thing of the past as it will be too expensive. I don’t think they government thought this out very well
@ciaran kehoe: Airbnb has become a racket. Neighbours are being driven out of their minds with stag and hen parties every night of the week in some areas. It has gone too far even apart from the housing crisis.
@ciaran kehoe: “Watch the price of hotel rooms go through the roof after this.”
Where have you been for the last god knows how many years, hotel prices have always been through the roof even when the Vat was left low. It didn’t effect our tourism then so not sure how this will cause issues.
@windbag: Am I right in saying if you want to let a premises other than the one you live in for more than 90 days a year you seek planning permission from your local authority. The same local authorities that have built competing Greenways rather than houses and are doing everything humanly possible to promote those Greenways. Do you really think they will refuse planning permission or put tourists before poor people??
@windbag: Am I right in saying if you want to let a premises other than the one you live in for more than 90 days a year you seek planning permission from your local authority. The same local authorities that have built competing Greenways rather than houses and are doing everything humanly possible to promote those Greenways. Do you really think they will refuse planning permission or put tourists before poor people??
@*The* Brendan Gordon: how? you are making a massive assumption that those properties will become available to rent or for sale and you are assuming the 10,000 people in emergency accommodation can afford either, which I would wager can’t.
Great….take airbnb out of the tourism market, send tourists(if they come) into over priced hotels (if you can find one)..turf all the homeless out of the hotels….that will really impact the homeless crisis. This is a big diversion tactic from the real problem.
Most airbnb properties/rooms will not suddenly flip into available homes for those looking to rent/buy. Target the big “industrial” airbnb landlords (mainly in cities) who are screwing it up for all those making a few extra bob renting rooms, paying their taxes & bringing badly needed tourists into our country.
@Jerriko17:
Nail on the head.
I rent my place out because my job lets me. It’s a primary residence in the center of Dublin. Being self employed I get nothing from the state. No security whatsoever. This is my fallback.
I Airbnb my place out when I’m gone. I would never let it out long term. Airbnb offer huge security on payment and breakage. Their legal department is immense.
So I bring tourists in. I look after them. Show them an excellent part of Dublin and they leave delighted. Tax paid, income brought into the city and both parties protected by Airbnb.
Utterly ridiculous to do this. Put a body in place that protects landlords and their property and make renting an actual protected and legitimate business. Not this rubbish
@Anton Dec: fair dues to you ….hope they see sense & support people like you not penalise them.
This is a sop to the hotel/hospitality industry after the vat increase in the budget ….nothing to do with the housing problem.
@Anton Dec: your spot on. You brought in people who otherwise may never have came to Dublin they in turn spent money which is now in our economy. Let’s fu@k up the tourist industry to hide our complete incompetence well done irish government you always manage to make a balls of things
@Paddy O: Planning exist so other members of the community are not adversely affect by some kind of monstrosity that affects the locality, traffic, noise etc. Once the building is built it should be up to the owner what type of accommodation he uses his accommodation property to be used for. None of this will help the homeless, only serves to protect the traditional hotel industry. A total failure
@Paddy O: you’re not changing the physical purpose of the property by letting it out to a tourist, unless they try open a shop from it or build another room over the garage.
Im sure the neighbours of these properties will be delighted.
Hardly fair living next door to a property thats being let as rental for stag and hen parties each weekend.
@Neil Ferriter: Easy to deal with one-off stags and hens – it’s not like they are going to stay in the house partying, they are going to go out on the town.
Try living next door to a bad tenant and the landlord unable to do anything because of the new laws.
@Stephenkee: a landlord would be foolish to let a house to tenant without registering the tenancy with the PRTB Because if they did the tenant could report them to the PRTB and the tenant would get refund of rent. Once registered with the PRTB the landlord could not avoid paying tax prsi and usc on rent amounting to 49.5% .
@Clare without an i: Airbnb is already linked to Revenue. Every host recently got a letter from Revenue warning them about declaring the income. Anyone who has more than 2 properties on airbnb or other sites should be targeted & leave those ordinary hosts renting rooms alone….they are invaluable to the tourism industry.
@RM: not.foolish just trying to avoid tax. I discovered the house beside my parents is
Let to a crowd paying cash for at least 8 yrs . I did some enquiring not regiatered with prtb and you should see the state of it. Guy that owns it is on a permanent holiday too.
@Clare without an i: All you have to do is monitor websites and go to the premises and you will instantly know if there registered, sure you don’t even need to go there because most have the addresses listed.
They think this will solve the housing crisis?? Saps. The prob is 3 bed terrace houses at 400k. How about some regulation on actual house prices ?? Some new homes up 100k since Sep 17 100 f$%king k
Just did a check on Airbnb for renting an “entire place” in Dublin for a week in November. …306 places available !!!! How many of these will become available after these measures come in ….I’d guess less than half ?
150 houses/apartments are going to make a huge difference to the housing problem, reduce rents drastically and make homes much more affordable for young 1st time buyers….give me a break !!!
Telling a landlord what to do with his own property or prohibiting a landlord renting his own property out would seem contrary to article 40.3(2) of the constitution.
@Erik Raftery: a search for entire places in Ireland, excluding pure tourist accommodation, (has kitchen, is a house, apartment or cottage, etc) throws up around 300 results. Lol
@Erik Raftery:
‘The changes would take effect in January, but would be delayed through September of next year for hosts with existing short-term rental units.’ I was interested in your comments until I read this. These laws have not come into effect yet and is clearly being driven by the hotel industry lobby.
Should be brought in now not in eights months time. Sham of a government. Yet they can bring in legislation and charges overnight relating to water charges and LPT.
@Eamonn Kiely: This is a big diversion tactic from the real problem. .. . Clamping down on the ordinary airbnb host will do nothing to aleviate the housing problem. … tackle the multi rental landlords. Airbnb bring badly needed tourists to places in Ireland where there’s no other reasonable accommodation available.
Always a way around everything & Very hard to police, Also what’s the punishment for a breach of these laws? A tiny fine. This wont fix the homeless crisis. May mess around with tourism & rip the ordinary visitor off with absurd hotel rates.
@Mark McDermott: Always a way Mark you know the saying where there’s a will there’s a way.. I smell a black Market type industry here big time.I bet the punishment will be so minuscule in fact it will make it worth it.
@B9xiRspG: I know a block of apartments in which the tenants were giving notice to leave, place is up for sale advertising its AIRBNB potential being close to a Greenway.
Just as they are finding these restrictions unconstitutional in other jurisdictions..
More meddling at the margins here which will have unintended negative consequences… just give tax breaks to developers to build residential properties already, we have shown an ability to ramp up building when there’s incentives.
Had a quick look on Air BnB and looks like eur70-80 is going rate for 2 bed outside city centre (Kilmainham etc). Assume you rent 7 days per week at eur70 then that is 2,100 per month so not too dissimilar to long term rentals on daft.
It seems to me that short term rental would be alot more hassle than long term and the only benefit I can see is if you don’t declare the income and pay tax.
@Paddy O: Airbnb is linked to Revenue & you have to declare your Airbnb earnings. …like any undeclared income Revenue will come down really hard if you’re caught not declaring.
Also Airbnb brings badly needed tourists to Ireland who spend money here, keep people in jobs…a lot of that is going to dissappear….many tourists won’t pay exorbitant hotel rates.
@Jerriko17: You are making a big assumption that revenue are doing anything with the data they receive. I have yet to hear any stories of people getting denand letters from revenue with regards income from Air BnB.
Demand letters are being issued to people who have registered with ptrb and not file tax returns.
@Paddy O: I’m a compliant Airbnb host …I rent 2 rooms in South of Ireland to tourists who have very little options otherwise & I got a letter from revenue as did every host.
I’ve no problem paying my taxes….the little income I get for the Airbnb work I do helps bridge the gap in a meagre pension & it’s great to meet people & at the same time help the local pubs , restaurants etc. I’ve had nothing but compliments. ..not only for the hospitality I provide but for giving tourists a flavour of our beautiful locality. There’s thousands like me & penalising us will do nothing for the housing crisis but will damage local economies in rural areas & towns.
@Jerriko17: Is this a 2nd property you have or primary residence? If it’s your primary residence then there is no issue and you can continue to meet people and make a few quid. And fair play that you pay your taxes on the income as I doubt a lot of others do.
@Paddy O:
Its being used to circumnavigate onerous red tape and bureaucracy of letting long term.. there in lies the problem any attempt to further regulate to the detriment of landlords will remove rental stock. The price of a hotel in Dublin will sky rocket there is no winner with this
Revenue are issuing letters to people whose names have been passed to them by Airbnb, including to people who have already filed tax returns declaring the income. I work on a voluntary basis in my local Citizens Information Centre and I often see clients who have had a revenue letter and need help returning the income, or telling Revenue that they already have!
Yes, Revenue have now sent letters to everyone ever registered with Airbnb making them aware of their tax obligations. Anyway a lot of Airbnb earnings are used to pay mortgages, school fees, grocery shopping etc. – in other words, money circulates in Ireland. What about all the new Student Residence blocks (19 in Dublin city to be finished by the end of 2019) being built by Vulture funds/foreign corporations – only paying tax at 12.5% (if that after their tax breaks) and the money all leaving the country. They are charging students exhorbitant rents in the winter months but now taking tourists in the summer – despite not all having planning permission????
In the budget the hospitality VAT rate increased from 9 to 13.5%, then they introduce these rules on holiday lettings, such as airbnb etc. This is the main competition to the hotel industry for accommodation in this country. I wonder if a deal was made with the hotels – we restore the 13.5% VAT rate and in return, we attempt to decimate the competition.
Do what the Germans do you can rent out for sixty days max break the law and be fined €100,000 this should free up a lot of rental property and the knock on affect should reduce rental prices across the board this is what equality of esteem is for the people
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Measure content performance 79 partners can use this purpose
Information regarding which content is presented to you and how you interact with it can be used to determine whether the (non-advertising) content e.g. reached its intended audience and matched your interests. For instance, whether you read an article, watch a video, listen to a podcast or look at a product description, how long you spent on this service and the web pages you visit etc. This is very helpful to understand the relevance of (non-advertising) content that is shown to you.
Understand audiences through statistics or combinations of data from different sources 113 partners can use this purpose
Reports can be generated based on the combination of data sets (like user profiles, statistics, market research, analytics data) regarding your interactions and those of other users with advertising or (non-advertising) content to identify common characteristics (for instance, to determine which target audiences are more receptive to an ad campaign or to certain contents).
Develop and improve services 119 partners can use this purpose
Information about your activity on this service, such as your interaction with ads or content, can be very helpful to improve products and services and to build new products and services based on user interactions, the type of audience, etc. This specific purpose does not include the development or improvement of user profiles and identifiers.
Use limited data to select content 52 partners can use this purpose
Content presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type, or which content you are (or have been) interacting with (for example, to limit the number of times a video or an article is presented to you).
Use precise geolocation data 67 partners can use this special feature
With your acceptance, your precise location (within a radius of less than 500 metres) may be used in support of the purposes explained in this notice.
Actively scan device characteristics for identification 38 partners can use this special feature
With your acceptance, certain characteristics specific to your device might be requested and used to distinguish it from other devices (such as the installed fonts or plugins, the resolution of your screen) in support of the purposes explained in this notice.
Ensure security, prevent and detect fraud, and fix errors 126 partners can use this special purpose
Always Active
Your data can be used to monitor for and prevent unusual and possibly fraudulent activity (for example, regarding advertising, ad clicks by bots), and ensure systems and processes work properly and securely. It can also be used to correct any problems you, the publisher or the advertiser may encounter in the delivery of content and ads and in your interaction with them.
Deliver and present advertising and content 128 partners can use this special purpose
Always Active
Certain information (like an IP address or device capabilities) is used to ensure the technical compatibility of the content or advertising, and to facilitate the transmission of the content or ad to your device.
Match and combine data from other data sources 96 partners can use this feature
Always Active
Information about your activity on this service may be matched and combined with other information relating to you and originating from various sources (for instance your activity on a separate online service, your use of a loyalty card in-store, or your answers to a survey), in support of the purposes explained in this notice.
Link different devices 69 partners can use this feature
Always Active
In support of the purposes explained in this notice, your device might be considered as likely linked to other devices that belong to you or your household (for instance because you are logged in to the same service on both your phone and your computer, or because you may use the same Internet connection on both devices).
Identify devices based on information transmitted automatically 120 partners can use this feature
Always Active
Your device might be distinguished from other devices based on information it automatically sends when accessing the Internet (for instance, the IP address of your Internet connection or the type of browser you are using) in support of the purposes exposed in this notice.
Save and communicate privacy choices 108 partners can use this special purpose
Always Active
The choices you make regarding the purposes and entities listed in this notice are saved and made available to those entities in the form of digital signals (such as a string of characters). This is necessary in order to enable both this service and those entities to respect such choices.
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