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PEOPLE USING THE Airbnb service to host guests in their homes in Dublin collectively earned €52 million last year, according to a new report commissioned by the company.
The report found that the average annual earnings of a typical host was €4,900 (with some earning more and others earning less).
Airbnb is a homesharing website that allows people to rent out rooms or their homes to travellers on a short-term basis, with the cost decided by the renter.
Since it was founded in 2008 in San Francisco, the company has grown enormously around the world.
The number of hosts in Dublin has shot up in the past number of years – with a 100% rise in just a year.
6,100 hosts let out part or all of their properties at some point for guests last year, compared to 2,960 hosts between October 2014 and September 2015.
As well as this, income earned from letting has also almost tripled: from €17.3 million in 2014/2015, to €52 million last year.
The vast majority of the lettings (5,200) were in the Dublin city area.
The majority of Airbnb hosts are required by Revenue to pay tax on the money they earn. TheJournal.ie has sought clarification on whether the top line figure of €52 million is before or after tax is deducted.
The report
The report – entitled Homesharing: The Positive Impacts on Dublin – also found that guests staying in Airbnb dwellings spent an estimated €221 million in Dublin last year.
In total, 403,500 guests stayed at properties in the capital hosted via the service.
Exactly half of all lettings were for private rooms. Meanwhile, just under half (47%) of listings were for an entire home.
In the case of an entire home listing the entire property is rented out by a guest and the host is not present in the building for the length of the stay.
The report also found that the vast majority of hosts (88%) shared their primary home. However, the report does not contain information on how many hosts put up more than one property for listing.
According to information on the data website Inside Airbnb compiled last August, almost half of hosts in Dublin have multiple listings on the website. These can be for separate rooms in the same building or for different buildings entirely.
TheJournal.ie has sought information from Airbnb on how many hosts have multiple dwellings.
Other notable figures from the report include:
Criticism
The home sharing service has come in for some criticism recently, and may be subject to stricter regulations in the future.
In October, An Bord Pleanála upheld a Dublin City Council (DCC) ruling that an apartment owner in Temple Bar needed to apply for planning permission if they want to continue to rent the property out via Airbnb.
This ruling was supported by Housing Minister Simon Coveney at the time. A working group is also being set up by Government to review if new regulations should be introduced.
Sinn Féin TD Eoin Ó Broin last week raised the issue in the Dáil with Coveney, calling on new laws to be published to regulate the market.
“Sinn Féin is not against the principle of Airbnb as it was originally designed however it is my view that renting out a room in your home is entirely different to renting out your entire property,” Ó Broin said.
Ó Broin argued that people using properties as “full-time B&Bs” was negatively affecting the property market in Dublin.
There are currently 1,494 listings for Dublin on rental property website Daft.ie.
Commenting on today’s report, Aisling Hassell, site lead and global head of customer experience at Airbnb, said that the service allowed families to boost their income and helped the local economy.
“Hosts provide great experiences for guests, spread visitors and benefits beyond tourist hotspots and give an economic boost to local families, businesses and communities,” she said.
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Eoin Ó Broin is correct on this one. Renting out a room in a property you live in yourself is fine by me, but when tranches of entire properties are being let out on an almost industrial scale it has to have negative consequences for everyone.
A lot of people like staying in an actual house rather than a room. How is this negative?
The massive shortage of rental properties perhaps?
@Darren Bates: The owner most likely doesn’t have the right planning permission to let out their house, for one. Secondly, the neighbours won’t take too kindly to the noise and anti-social behaviour it often brings to their locality.
Thirdly, as discussed elsewhere, it removes housing stock from the market which could be used for actual homes, and repurposes it to be used as a cash cow to be milked by speculative owners.
Fourth, it converts streets and apartment developments from communities into unstaffed hotel complexes without any of the necessary facilities and resources available.
Finally, it will probably make your house/apartment harder to sell if it’s stuck beside such a house.
People invest in property to make money not to fix a disasterous housing strategy from a series of governments. Build more houses
@Captain kirk: Yes, and people also use AirBnb for profit and so should regulated fully. Just because it’s a novel idea, doesn’t mean it shouldn’t be regulated in full like any other sector.
I paid 30k in tax last year on my income. I’ll pay more this year unless there’s a downturn on the way. I’ve no objection to people making a few quid, Airbnb included, but I strongly object to them doing it under the counter.
@Mr Snuffleupagus: you going to report your sister in law’s “considerable income” to revenue then?
And what has your income tax got to do with this?
Nobody is doing anything under the counter as revenue are informed of any dealings on Airbnb by the company. If they choose not to declare the income it would be easy for revenue to find out
Eric. When did it become the private sectors responsibility to provide housing/homes?
If you own a house it is yours to do what you please with, goes with ownership.
The problem is 1) it’s against planning permission 2) it invalidates block insurance policy 3) it creates anti-social behaviour and security issues 4) it removes much needed housing stock from the rental market.
Great that people are making a few quid from letting out a spare room, not so great when individuals and businesses remove decent homes in prime locations from the market at a time of a housing emergency. Yes we need more homes built, but there’s no point building when a portion of homes are being siphoned off as de facto hotels.
Strong need for regulation similar to that being introduced in other cities. What is the cost to the economy in having these properties being removed from the residential market?
@declan obrien: wrong, a guest would very quickly get a bad reputation if anti social and would not be allowed to stay anywhere else. Likewise due to the owners not giving a great experience to guests. Guests are no more antisocial than many tenants. Clearly airbnb are a boon to the tourist industry and contribute hugely to Ireland Inc. They also provide an alternative for home owners who are totally uncomfortable with the government’s continuous and self defeating attempts to tell people what they can and cannot do with their homes regarding the private rental market. The idea appears to be to encourage people to just go on the dole, not to work, not to try to improve one lot, just take, take, take. Fine much more “regulations” and we will do just that.
@Jeremy DeChad: I’m not just talking about anti-social behaviour in the sense of people trashing an apartment (although this of course does happen) – its more about the basic disruption that comes with living in a de facto hotel, cleaning crews coming in, guests arriving day and night etc. (i’m referring to the full-scale commercial letting of homes as hotels, not occasionally letting out rooms, which is a brilliant idea)
I agree with you that the rental sector is badly in need of reform – but Airbnb is not the answer in the long term. Allowing it to operate on a commercial basing, subverting planning regulation and having property owners avoid their commercial obligations while at the same time removing stock from the residential supply is just helping to add to the social problems. It’s one part of a puzzle, but Airbnb is doubling in size every year, so the issues are only set to intensify.
Also, it’s been established that this commercial activity is against planning law. If a unit is operating commercially, should it not be paying commercial rates, water rates, etc?
@declan, not clear that it is against planning law and you do have the same recourse as with any noisy, nuisance neighbour. What about the huge contribution to the economy from people who otherwise would not come. Ultimately aforementioned aside I beg to say that I should be able to do what I want with my home as per my constitutional property rights, as long as I am not breaking any rules re noise etc and I would like to use airbnb, it just suits me as I want my place back whenever I want. This is a case of gov’t interfering a little to much, but then maybe I need to learn to play the system and fill out that dole application form.
Air bnb…the largest hotel operator in the world and it owns no property.
@Dick Durkin: Just like Facebook creates no content, Alibaba carries no stock, and Uber owns no vehicles. It’s a brave new world
Putting power back into the hands of the people.
@_doesnotcompute: “Facebook creates no content, Alibaba carries no stock, and Uber owns no vehicles. It’s a brave new world” – and they all are worth billions $ !!
It’s a service. I’ve used them and to be honest between hostels and air bnb it’s allowed me to travel around the world for very cheap. Great service and I’ll continue to use them. Not in Ireland though. Everything here is over priced
So thats about 2,500 each of these people pay in extra tax each year then.
@Nick Allen: Are they all declaring? How do you know?
Ha yeah, I’d like to see how many have declared that!
1. Doubt that everyone declares the income.
2. Someone on low income would have a much lower tax liability (if declared)!
Airbnb passes on the figures to the revenue so they know anyway…
@Reg: I’d have no objection to Airbnb in principle, but having it negatively affect other bona fide businesses like BnB’s who have overheads and are regulated, doesn’t strike me as fair.
As long as AirBnb is regulated to the same degree I see no problem.
6000 plus hosts. Wonder how many made tax returns! It’s good that the information is passed to Revenue, hopefully they catch up with those that don’t file returns.
@Captain kirk:
Exactly.
We always get “there not declaring it” comments.
If anyone is renting out their property on Airbnb and not declaring it in the full knowledge that their details are been passed to the revenue, well they deserve the inevitable double the tax involved plus 18% interest in fines
@Reg: Unlikey they’ll catch up with them. I have a sister in law doing it since day 1 and has made considerable income from it these last few years. I wouldn’t begrudge her the income as she genuinely needs it to keep a roof over her head, but she damn sure doesn’t file returns.
@Glascott Richard Symes: 2 years ago revenue clarified that it does not apply to short term lettings of a few nights like Air BnB mostly operate
@Mr Snuffleupagus:
She / others may have gotten away with that in the past, but details of every penny earned by an Irish host since May 2015 has been passed to Revenue.
Would strongly recommend you let her know this (though am sure she’s aware).
@Brinster:
Also there is no time limit on when they can come back to her on that, I have seen guys on Stubbs list recently for income earned in the eighties. The interest was considerably more than the tax in question.
It’s actually safer to steal the money, you would probably only get probation if you stole it but the revenue will get theirs, of the estate if necessary.
Airbnb has now become vital in attracting tourism to ireland. The government should be doing everything to encourage it. We can’t afford to jeopardise that kind of income for the economy
@Captain kirk: As we’ve recently been told there is a shortage of hotel rooms in Ireland, you may have a strong point there. But there has to be a level playing field for businesses.
How many rooms/properties do you have on Airbnb cap?
Not enough Jason
Best of luck with them
Typical people making some extra cash to pay bills etc and the government wants to stick it’s F**kin nose in because hoteliers are upset ? If you rent out a spare room in your own home why is it the business of the government to get involved FFS !
I don’t think the government are that concerned about people renting out their spare room for some extra cash. But they are absolutely right to be concerned by people running it as a business, letting out full properties without the necessary planning authorisation or paying any tax on the income.
Well the government previously allowed a 12k exemption on letting a room in your own home and they have last year clarified that the exemption doesnt apply for airbnb. Suddenly after pressure from hoteliers they do care about taxing small profits.
@reg http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html great government F*** over small people the rule was changed last year
@Reg:
I would fully agree with you but a colleague of mine told me his parent’s, who rent out a couple of rooms in their house received a letter from the revenue asking about their AirBnB income
Tax the shit out of it. We have a rental crisis, and rental crisis or no rental crisis that amount of money needs to be regulated and taxed.
@Mr Snuffleupagus: yep..tax them all, the houses, the rooms, the owners, the neighbors, the dogs, the sheep, the houses, the cars, the buses + trains, the businesses, the workers, the shoppers, the farmers…tax the lot..TAX IRELAND…Céad Mile Fáilte (..tax that to…)
tax my comment as well ……sure why don’t you…your taxing every phuckin thing else !
@CJ Stewart: Thats’ right. everything is taxed. every penny I spend in the shop, pub, petrol, clothes. for my dogs I pay for an annual licence. everything is taxed. Get over it!
@Mr Snuffleupagus: when i’m ‘getting over it’…do I pay tax on that as well ? … maybe we could call it the GOT tax…the ‘Getting Over’it Tax’ …..send that one up the pipe line to Noonan…
Even when you die, you (estate) still pay tax
@Finbarr Barry: …tax that corpse …….
…including your sisters I assume…
There’s a lot of landlords that have been stung by tenants in the past .. non payments of rent ..property left badly damaged and more and more people are turning to air b&b because of it …
Airbnb owners pay tax at income tax rates on small profits on their own properties whereas hotels pay corporate tax rates. Seem fair? Not to me. Its your property you should be allowed do what you want with it. Private home owners arent responsible for solving the housing crisis.
@GunsGerms:
it is still more income for the private owner and income is subject to tax. After all, don’t we have to pay for our world class services, highly efficient health service, underpaid civil servants and the wonderful government that manager our country for us.
Why don’t dcc use airbnb to house the homeless
Airbnb..Tent for rent up in here Leitrim, Just like a home from home, all complaints ignored, free WiFi with neighbors password and accidentally eco-friendly…..Irish welcome assured..
Air bnb is just excuse to cover up our houseing problem, you work hard buy a 2 nd property why should you be told what you can do with it.
The real problem is one law for one and one for another,
There was a lady on the great Ireland sell of mortgage 2 something k a vulture bought her loan for 40 k just so the bank could write it off, imagine how better things be here if they just took smaller payments from the likes of her,
This is why our houseing is a mess our government createing markets just so a few can squeeze even more from us.
I m not saying air bnb dosen effect stock, if it we around 20 od years back when more bought their homes it be seen as great thing all these tourists visiting places they normally wouldnt go, the extra cash people with spare rooms get more cash for the economy means more spending.
Don’t tell the government this, they will air bnb apollo house now too! Wait… They ain’t that smart!
The downside of airbnb is that it is making the housing crisis worse by taking house and apartments out of the market
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