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LATER THIS YEAR, new laws will be introduced to regulate property owners who let out their homes on a short-term basis.
From 1 July, new caps will apply to homeowners who want to rent out their residences, while the letting of second properties on a short-term basis will no longer be allowed.
However, TheJournal.ie has learned that Airbnb is encouraging hosts to contact politicians about the proposed regulations to request that they are postponed.
The company is understood to have told homeowners to ask politicians to seek a “grace period” in the introduction of the legislation and to tell Oireachtas members what effect the new laws will have on them and their local community.
Airbnb suggests that the postponement of the laws would allow for fairer regulations that would support tourism in a way that benefits everyone.
But those who support the laws say that hosts have had enough time to prepare for them, and suggest that they will help alleviate the housing crisis.
So today we’re wondering: Should the introduction of new short-term letting laws be postponed?
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I think it’s a disgrace people can’t do what they want with their own homes. It really is worse and worse this country is getting. For the record I don’t have a second home rented out.
@Gary Shanahan: This would not be a problem if it had not been used as a tax loophole. If it is additional income it should been taxed as such. Had that happened it would have been less attractive all along compared with a proper tenancy.
@Gary Shanahan: There are always limits and regulations to what you can do with your own home. Try run any other business out of it, without the proper licenses, and see how you can get on.
@Tina Pusse: income however it’s earned is a different issue. I agree, you earn income you pay tax. This new law doesn’t seem to be about taxing income.
@Chris Judge: agreed, and that business doesn’t have to be from your home. Try doing anything worthwhile and you’re met with one thing after another. regulation is fine but a line needs to be drawn.
@Tina Pusse: our houses are already taxed. It says a lot about the world we live in were every aspect of our life is semi owned by the government. If you do something positive for yourself their in with their measuring tape and cheese knife to take their cut. If you fall down in life they run as far away from you as possible but not before grabbing what they can from you before you become an ignorable truth in a sleeping bag in some doorway. Maybe the people you choose to do nothing and thus receive everything free have it all figured out because there really is no reward for honest hard working people anymore
@Gary Shanahan: I think your missing the point. The laws don’t apply to people letting out rooms in their home. The laws don’t stop people from renting out their property.
The laws are to free up thousands of homes in the city. People need houses and the demand is higher than supply. This won’t effect tourism, there’s plenty of hotels and b&b’s. Air bnb is not around that long and hasn’t boosted tourism. Why not enable people to rent a home who actually lives in the country
@Tommy C: If you’re renting your house out for profit then you should pay a higher rate of tax than your neighbor.
It’s completely unfair to pay the same while you’re making profits!
@Ali Ní Dhomhnaill: no my point is people should be able to do as they please with their own home. If they want to long or short term rent out their property, that should be their choice. I know a few people who rent out a second home and there all long term renters.
@Gary Shanahan: You’re missing the point, vast swathes of properties are being bought up by foreign investors with the sole purpose of renting them out as Airbnbs. Every house or apartment they buy is denying somebody that actually lives here the chance to buy a jaysus HOME. All they want is mega profit and two fingers to the social cohesion of society. Wake up to what’s going on around you.
@Gary Shanahan: I think it’s a disgrace that housing estates and residential blocks can be turned into tourist, stag&hen party, knocking shops were people come and go every other day that don’t care about the houses/apartments they are in or the people that live beside them.
@Gary Shanahan: I’ll rent the house next door to your and set up a knocking shop then Gary. I’m sure you and your neighbours won’t mind!
@Gary Shanahan: Usually regulations are there for a reason. They could definitely be streamlined to make it easier, but should not be removed completely.
If someone was renting out the house next door to your home to stag/hen parties every night of the week, would you be ok with it? Since the property owner should be able to do whatever they want, right?
@Gary Shanahan:
Yeah I always wanted to open up a blacksmiths in the apartment.. dam neighbors & planning laws
@Bingobango: that’s fine, why not deal with that issue then. Put a cap on the number of properties you can own or have a license system. I’m not talking about the big investors, I’m talking about the individual that trying to make a few euros.
@Chris Judge: I never said remove regulation in fact I agree with regulation as I’ve said in a previous commitment.
@Reg: can’t speak for the neighbors but let me know when you do, I’ll call over
@Gary Shanahan: But you don’t agree with the type of regulation discussed in this article…?
@Devilsavocado: that problem isn’t just caused by short term renters, plenty of estates like that around the country.
@Tina Pusse: agreed, Tax on letting a second home is massive, and is part of why rents are so exorbitant (so much that it’s hard to cover the mortgage, if there is one. On another note the people who pay a mortgage for a second property set the standard, non-mortgage investors ride this and will follow whatever trend is set). It’s Also why people are willing to switch to Air BnB or a similar modal, (theres a pathway to covering your payments with the potential to earn) especially in a city environment, the government really do not have the interests of their people in mind and are simply baiting an us vs them argument which serves nobody.
@Chris Judge: no I don’t but that’s just my opinion. Look obviously something needs to be done. Reading other commitments there seems to be issues around this industry. It’s a business at the end of the day so maybe you have to get planning permission and a license or something. My only point was if a person wants to short term let then they should be able to.
@Bingobango: and who invited the foreign investors in gave them no tax deals our elustereus gov and their previous incarnation ? this will do absolutely nothing for the homeless all it will do is reduce the amount of available holiday accommodation as people will just shut up shop and if it is a 2nd home sell it off most likely to a vulture, the govt need to get off their collective ass’s and start building not out but up every other city in the world has high rise in and around their city’s what’s wrong ? are they afraid of heights????
@Gary Shanahan: Your point was it’s my property, I should be able to do what the hell I want with it,, but you didn’t stop to think of the implications that running a business from a place that is zoned as residential and not commercial creates a load of issues with people that live their lives in these areas, long term rental and short term rental are completely different things, living in a home for a number of years and then suddenly having a hotel open next door to you without your knowledge is not on and should not be allowed,, try googling Air/B&B the neighbours from hell and then imagine that it’s you and your young family who have to live their lives like that…
@Gary Shanahan: so your answer is it’s ok to make that problem bigger so someone can make a few quid,, to hell with other people’s life’s if there’s a few bob to be made,,, you aren’t a member of a political party by any chance, are you Gary??
@Tina Pusse: AirBnB shared details of host income with Revenue dating from 2014 onwards. Yes it would have made AirBnB an attractive option initially but AirBnB only set up in Ireland in 2013 and there would have been very few hosts back then so very little tax was avoided. Now AirBnB owners are taxed and fully compliant. This measure isn’t about tax. It’s about trying to force property owners back into long term letting to replace the landlords who are selling up due to the legislation and taxation that was introduced that makes letting a loss making enterprise for all but the large institutional players who use deliberate loopholes to avail of charity status and pay negligible amounts of tax.
@Tina Pusse: all Revenue generated as an Airbnb host is treated as an additional income and so income tax (at PAYE rate) is charged.
@Devilsavocado:
Given this is FG policy, it’s unlikely he is a member of them at least…..
@Devilsavocado: perhaps you should read my other commitments here. You clearly have an issue with air b&b and that’s okay. You’re entitled to your opinion.
@Devilsavocado: no I’m not a member of any political party, not really sure what that’s got to do with my opinion. Not everyone agrees with me and that’s fine but it seems quite a few do agree.
@Gary Shanahan: if you want to make a few Euro you can rent a room longterm and earn €14.000 tax free a year. If you want to do the more lucrative short term rentals then absolutely it should be treated as a business.
@EillieEs:
Well put.
@EillieEs: don’t have an issue with that at all as long as you have the option to do so.
@Tina Pusse: it is taxed!
So much misinformation.
Airbnb is a fantastic and affordable accomodation for me when working away from home. Rent a small house for 4 night during the week in cork Galway ect, cheaper than hotels when there is two or three of us, full access to cook our own food which saves a fortune on takeout and breakfast rolls. Better than B&Bs where all you get is a kettle in your room and breakfast which doesn’t start until 0730 or 8am by which time I’ve an hours work done. Hotels are just too expensive. I wonder if there could be an appeal to the European courts based on competition laws.
@Brendan Hughes: interesting point about the competition laws, I’d like to see our own govt. look at that; however, hotels employ staff, pay business rates, and have other expenses in order to stay open. Which dictate the price.
If anything, I find Airbnb is rather expensive as the owner tries to maximize intake while still remaining just below hotel prices.
@Brendan Hughes: the laws don’t apply to the areas you speak of. They will only apply to areas where there is a housing crisis. Invalid argument
@Ali Ní Dhomhnaill: Galway and Cork are rent pressure zones.
@Steve Maye: only a small percentage of it. The whole of the county
Shouldn’t be introduced at all.
Regulate the business not the property owner.
@Logan Shepherd:
How many Airbnb properties have you, Logan?
@Logan Shepherd: what’s the difference?
@Patrick Nolan: None
@Patrick Nolan: You’ll change your tune when you have to bring welfare beneficiaries to the supermarket in your own car because of a shortage caused by government regulation of taxis and Uber.
@wormtubes: The difference is that the government are legislating as to the terms of use of privately owned properties.
Ensure proper compliance with the existing laws around short term letting. They shouldn’t be able to force people to make up a shortfall that they themselves are creating.
@Patrick Nolan: And why would it matter if I had 100 Airbnb properties?
@Logan Shepherd:
Completely agree with you. FG continues with their long list of Mickey Mouse knee jerk failed policies while the housing crises gets worse. They’re willing to do everything it seems other than address the problem head on. I.e increase supply.
@Logan Shepherd: 100 is not the problem.. it’s thousands that’s the problem.. it’s becoming impossible to rent or buy in the city
@Logan Shepherd: You may privately own a Residential property (build for that purpose) or a BUSINESS property. That’s the difference. Try to be a neighbour of one airb&b and you will see how pleasant it could be, what a great sleep (not) you will get before you need to get up and go to work.
@Ali Ní Dhomhnaill: Yes I totally agree with you. But it’s not just the 1000′s that are being legislated for.
@Jindrich Marz: Been there done that. Contact the relevant authority and report your complaint.
@Ali Ní Dhomhnaill: It’s the same for any major city in the world.
@Logan Shepherd:
I find that hard to believe.
@Patrick Nolan: What do you find hard to believe?
@Ali Ní Dhomhnaill: I had to buy down the country. Not ideal but I commute everyday by train to Dublin.
I would gladly pay a fair mortgage down the country than ridicules rents in Dublin for a room, where you have no security.
What’s the famous FG slogan, “let’s keep the recovery going”. It must have been penned on a back of a beer mat at a FG lovein.
It’s not Airb&b that’s the issues. It’s these vultures funds buying while buildings or whole areas to rent out. That’s the issue
@Vincent #SaveDaredevil: I think you’ll find there’s many private AirBnB hosts that own a ton of properties nowadays too. That’s essentially the problem, not people renting out their own home but those buying 10s of properties off the market to use for AirBnB at such high prices that they don’t even effectively compete with hotels.
The foreign investors buying up apartments for buy-to-let are at least letting them out afterwards, they aren’t diminishing the housing stock.
Stifling free enterprise is an idiotic way to try to fix a housing problem.
@bopter: your comment has the second most likes but is last in the comment section, i wonder is the Journal applying a socialist algorithm…
@bopter: i think its idiotic too, but our gombeen politicians are a joke, they usually end up destroying everything when they get involved, in their hamfisted efforts for themselves and the gov to make money out of it.
@bopter: Housing crisis is nothing else than massive speculation so the free market would only make it worse.
The free enterprise that you are talking about is just a bunch of foreign funds owning half of the housing here and paying no tax on their profits. I say, let’s regulate it.
@Mushy Peas: it’s the third comment on my feed.
@EillieEs: 5th on mine now. I may have jumped the gun with my tinfoil hat.
@Adrian: Amsterdam, Barcelona, New York, Paris London, Santa Monica and other cities around the world have regulated short term rentals such as Airbnb because in every city it distorts the housing market, reduces housing supply and pushes up prices for residents. Paris alone had over 60,000 listings. Are their politicians gombeens too?
It appears that the government is trying to shift the blame for the housing problems onto the private sector to distract from their own incompetence in dealing with the problem.
@John Mulligan:
Correct, they are, but that doesn’t mean if you want to run a business from a property, you should have to obey regulations like any other business
First time I’ve seen 100% agreeing with my opinion. Then again, first time I’ve been the first to vote…..
People have bought their homes, why should they be prevented from renting rooms in them? Total government over reach.
This is just more misplaced anger. It’s not Air bnbs fault we have a heavily over regulated house market. It’s not Air bnb’s fault our govt. are dragging their heels. It’s not Air bnb’s fault I can’t self build because joe the farmer thinks it will frighten his sheep!
@Liberal_Ireland:
People are not being prevented from renting a room or two in their house, they even give a generous tax break to encourage it.
It’s people conducting a business from a property that this is aimed at, they should have the same rates and regulations as any else in the same business
@Liberal_Ireland: this is miseducated rambling. People can rent out their second home, they just need the correct planning permission. Nothing new there. This law is to capture undeclared rent and ensure the planning system works as it is intended to.
@BreadBasketCase:
To be fair you are not altogether correct there.
Yes it does correct a flaw in planning, as it should, but they have announced that no one will get permission in a RPZ.
As regards undeclared rent, anyone who was not declaring income from Airbnb is exceedingly foolish as all income is reported to the revenue.
@Patrick Nolan: What is this tax break you’re talking about?
The original AirBnB concept – staying in someone’s spare room is fine. The problems happened where entire properties were put on the site. Properties that would otherwise have been available to long-term renters were taken out of the market.
Maybe a better idea would be for government agencies & local authorities to actually get more housing built
Make renting a second property cheaper and drop the ridiculous taxes! more people may do it, prices could drop, people wouldn’t be less inclined to step outside of the system, cash payments, air bnb, etc. This government is incapable of putting twitter down to look at the whole picture.
So really, why bother working hard and trying to get ahead when the government are going to tax you blind and then tell you what you can and can’t do with your own property?! I’m so angry that the government overspend, lie, blame and do nothing to help the people who elected them! They created the homeless situation and now the want the people who are working their ars*es off to fix the problem for them!? What are they actually paid for?! Stopping Airbnb is NOT going to fix the housing crisis!!
@Gerkygirl: Don’t bother. There is no point whatsoever.
This is coming from somebody who had multiple part-time and full time businesses.
The last one looked great on paper, had 3 people employed, was working all the hours outside of normal working hours to manage it.
Finally after a few years realised that I was basically doing all the extra hours to pay the tax man most of it and got feck all thanks for keeping 3 people employed.
Long story short if/when you hit the high tax rate, stop working harder as the rewards are crap.
Don’t even get me started on the buy-to-let where I have a low paying nightmare tenant (does not cover the mortgage) who wont give the place a lick of paint when she damages something and just constantly moans about everything.
Can I kick her out, nope. (rules and laws)
Can I up the rent to a point where it actually matches what it should cost considering what we have pumped into it. (nope, 4% max per year).
Can I sell it, nope still in negative equity. (And would not surprise me if nobody wanted the place by the time these and other new rules come into place).
Never ever again and as soon as I am in position to sell, its gone. 10 years of blood, sweet and tears down the drain but atleast I will not feel like such a fool for doing the job that government really should be doing.
It’s not a ban but an enforcement of the correct permissions required. That is all. If Airbnb are successful in delaying these regulations then I would be horrified at what the other big MNCs are successful in getting away with.
It only gonna push it to where it will be cash in hand .at least with air bnb there’s a taxable income and reliable tennents.
Govt has power to control short term letting and airbnb but they will not do nothing as they will not feel the pain of renter whose 80% wages is going in rent. Moreover big short let companies know all the loopholes
There’s more than one side to this. There are apartment blocks, I hear, in Dublin, where people find it impossible to live due to the 24/7 party scene that is a feature of Airbnb in cities. In tourist areas, however, Airbnb often brings much-needed extra cash to families and the local economies. My Airbnb house in a rural area runs almost trouble-free. I meet nice, interesting people and the money is handy, even though it’s taxed to the hilt. I can see no reason beyond begrudgery why the authorities should try to stop this. Like most regulation in Ireland, this is a blunt instrument for hitting people over the head. Could our government not think about the issue for about 5 minutes and come up with a more nuanced plan which would encourage activity where it is all positive, and control it where that’s necessary?
@Maureen Moran:
If, as you say your Airbnb is in a rural area these rules DO NOT stop up from continuing with it, it just means you need planning permission for it.
Doesnt really matter in the end because it wont be enforced so just continue to do what ever you like.
@RossHand:
Airbnb pass on the details of hosts on their website to the revenue so anyone that uses it and thinks the government won’t know would be incredibly foolish (think double the tax due plus 18% interest going back as many years as they like). They might as well just hand the house over to the revenue and hope that covers all the tax bill.
I’m sure there will be some cash in hand for a few regulars but there was already that and with the €14,400 rent a room exemption, why would you bother?
1st: IMO, those who do Airbnb should have proper public liability insurance ; particuluarly those who do Airbnb in an apartment complex where the management company (all owners) are responsible for compensating a customer who is injured on the common property. Most complex insurance policies preclude commercial activity.
2nd: Imo it is unfair to compete with small commercial businesses without having to comply with similar rules and regulations
3rd: IMO, it is unfair to subject neighbours to rowdy/noisy/drunken customers when neighbours have bought the property before the Airbnb fad and expect a peaceful/quiet
neighbourhood.
Two years ago the management company of a Killarney small exclusive apartment block won a High Court decision with costs prohibiting 3 out of the 16 unit owners from operating as Airbnb.
Some owners doesn’t know they property are being used for Airbnb, apparently they don’t ask for ID when creating an account. This sounds weird.
@Tina Pusse, I have an apartment that I have had on AirBnb and can assure you that revenue are made aware of every cent it generates and if there is a loophole I have no idea where it is. Tax is collected at almost 50% of the gross amount.
What about the owner that rented out a house for 3 years lease , got the house back last week and now has a bill of 10,000e to fix and repair the house , could he ask the minister for the 10k. or will he be going down the airbnb routh for the future .Its always easy to tell other people what they should do , but when the chips are down we get the silence from those spouting off .Let people do as they like with the property they own .
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