Short-term lets: property owners urged to ‘regularise affairs’

Property owners affected by new rules regulating the renting of homes for short-term lets on platforms such as Airbnb are being warned to “regularise their affairs”.

The new regulations come into effect on July 1st, and owners engaged in short-term lets in rent pressure zones, where there is high housing demand, are being advised to “ apply for change-of-use planning permission at the earliest opportunity” if they already have confirmed bookings.

The department advises that “it is unlikely a planning authority will take enforcement action while a change-of-use planning application is being determined”.

The advice is part of an information campaign to be rolled out by the department in advance of the introduction of the rules. Advertisements will appear in national newspapers on Tuesday and local newspapers in 11 local authority areas where there are rent pressure zones.

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A questions-and-answers format of 52 frequently asked questions will be offered to explain the regulations, which Airbnb has criticised as being difficult to enforce.

But Minister for Housing Eoghan Murphy has already said neighbours would know when houses were operating short-term lets with suitcases going in an out of properties day and night, and he did not believe there would be enforcement difficulties.

Enforcement will be the responsibility of local authorities, rather than a centralised unit within the department.

Ninety-day limit

Owners involved in homesharing or short-term lets in a rent pressure zone will be required to file a notification form at the beginning and again at the end of the calendar year.

Under the regulations, an annual 90-day limit will be imposed for renting out a home, and each renting episode is limited to 14 days or less.

Homeowners who currently let a second property on a short-term basis in a rent pressure zone, such as a city centre, will no longer be able to do this under the new rules.

If a property is a person’s principal private residence they can rent out a room or rooms without restriction, for short-term lets.

Non-compliance with the new rules carries a maximum penalty of €5,000 and up to six months imprisonment.

The new rules do not apply outside rent pressure zones.

The reforms aim to encourage the return of such houses and apartments to the traditional long-term rental market and help ease pressure on housing demand.

Key questions

In the Q&A format, one question is: “Are these permanent arrangements?”

The answer is that “the new provisions will only apply in areas designated as ‘rent pressure zones’ ”, areas of high population density and demand, where rent increases are capped at 4 per cent a year. All current rent pressure zones will continue to apply until December 31st, 2021.

“If in 2021 there are still rental supply issues and rent pressure zone designations are further extended, then the regulations relating to short-term lettings will continue to apply.”

A second property in a pressure zone will be allowed only if the property has planning permission for tourism or short-term letting use.

The series of questions includes the fees for change of planning permission from residential to commercial use, set at €3.60 per square metre, with a minimum of €240 for applications for retention permission.