Short-Term Lets in Dublin: Beyond the Pale

Dublin's magic extends beyond the folklore. Tourists flock to its cobbled streets, lively pubs and historical gems, fueling a booming short-term rental market.

But before you hop on the bandwagon, let's peel back the layers and explore the regulations, opportunities and responsibilities that come with hosting in this vibrant city.

So, is Dublin your short-term rental El Dorado? Let's find out!

Understanding Dublin’s Short-Term Rental Regulations

In Dublin, short-term letting refers to the rental of a partial or entire house for a period of 14 days or less.

Unlike many European countries and the USA, Dublin's regulations primarily revolve around land use and its changes. The key distinction lies in whether the landlord resides in the property as this impacts the need for planning permission.

For landlords not residing in their primary private residence, planning permission is required to operate short-term rentals for more than 14 days. Long-term rentals, on the other hand, do not necessitate planning permission.

Can you Strike Gold in Dublin’s Short-Term Let Market?

The Dublin short-term rental market offers lucrative opportunities for investors and property owners. Bloomberg reported a 13% increase in average rental rates in Dublin last year while AirDNA highlighted a 63% occupancy rate with hosts earning €43.7K in annual revenue.

These figures indicate that Dublin is an ideal location for starting a short-term rental business with regulations not significantly impacting profitability. However, success hinges on navigating the regulatory landscape, understanding demand patterns and delivering exceptional guest experiences.

Is Short-term Letting Right for You? Understanding Dublin’s Rules

Dublin, like many cities worldwide, has implemented regulations to manage the growth of short-term lets and address concerns such as housing availability and neighborhood disruption. Key regulations include:

Rent Pressure Zones (RPZs)

Dublin, like many other cities, has designated Rent Pressure Zones where additional regulations apply to short-term lets.

These zones aim to protect the supply of residential rental properties and prevent rent inflation. It's crucial to be aware of whether your property falls within an RPZ and understand the specific regulations that apply.

Exemptions

• Properties that have not been leased for two years prior to the beginning of the immediate tenancy.
• New tenancies in protected structures that have not been rented out within the preceding 12 months before the commencement of the tenancy.
• Properties that undergo a substantial change in the nature of the accommodation as defined by specific criteria.

Planning permission

Property owners must obtain planning permission from the local authority before converting a property into a short-term let. Failure to do so can result in hefty fines and legal consequences.

In 2019, Dublin City Council officially approved the following regulations outlined in the previously mentioned acts:

1. The duration of short-term rentals is restricted to 14 days. Planning permission is unnecessary for stays longer than 14 days.
2. Properties can only be listed on Airbnb for a maximum of 90 days.
3. Landlords intending to let their property for over 90 days in a year must obtain planning permission for a change of use.
4. Principal private residences can be leased out for up to 90 days annually provided the landlord is temporarily absent. This exemption applies to home shares in houses and apartments, eliminating the need for planning permission.
5. Planning permission is mandatory for letting out a second property where the landlord does not personally reside.

Understanding the planning regulations and obtaining the necessary permissions are essential steps for anyone considering short-term letting in Dublin.

Registration with the planning authority

Landlords must register with the planning authority even when exemptions apply. Filing Form 15 Statutory Notification Form and Form 17 Statutory Notification annually is mandatory ensuring compliance with regulations.

Penalties for violating regulations

Dublin's proposed penalties aim to enforce compliance with short-term rental regulations. Violations, such as illegal advertising or failure to register a property, can lead to fines of up to €5,000 levied by the District Court.

Failte Ireland, responsible for tourism can charge a penalty fee of €300 for an invalid registration number.

Hosting responsibly

Responsible hosting is not just about following regulations; it's also about being considerate neighbors and contributing positively to the community.

Property owners should establish clear house rules, communicate effectively with guests and address any concerns promptly to maintain a good relationship with neighbors and local authorities.

Short-Term Let Reporting Obligations and Tax Implications

Reporting to the Irish Revenue

Hosts engaged in short-term rentals must comply with Irish Revenue regulations. Airbnb is legally obligated to provide host earnings information to the Irish Revenue annually.

Additionally, hosts are required to declare income earned from short-term lets with reports covering details such as names, addresses and amounts paid. The Irish Revenue receives this information by September each year.

Tax implications

Tax forms for Airbnb hosts in Ireland are due every October 31st. Hosts need to understand the specific rules that apply to primary and secondary residences. Compliance with tax obligations is crucial for hosts to avoid penalties and legal issues.

Popular Neighborhoods for Short-Term Lets in Dublin

City Centre

The heart of Dublin, the City Centre, offers an array of attractions including historic landmarks, cultural sites and vibrant nightlife. Short-term lets in this area are in high demand, making it an attractive option for property owners.

St. Stephen’s Green

Situated just south of the City Centre St. Stephen’s Green is a picturesque neighborhood known for its beautiful park, upscale shops and elegant Georgian architecture. Short-term lets in this area appeal to tourists seeking a central location with a tranquil ambiance.

Ballsbridge

Located to the southeast of the City Centre, Ballsbridge is an affluent neighborhood characterized by its leafy streets, upscale residences and proximity to the Aviva Stadium and the RDS Arena. Short-term lets in Ballsbridge cater to discerning travelers looking for luxury accommodations.

Dublin 8

South of the River Liffey, Dublin 8 is a diverse and dynamic neighborhood known for its cultural attractions including the Guinness Storehouse and Kilmainham Gaol. Short-term lets in this area offer visitors a taste of Dublin's rich history and vibrant cultural scene.

Docklands

Dublin's Docklands situated along the River Liffey is a thriving business and residential district known for its modern architecture, tech companies, and trendy bars and restaurants. Short-term lets in Docklands appeal to business travelers and tourists looking for contemporary accommodations in a dynamic urban environment.

Maneuvering Through Dublin's Short-Term Rental Terrain

So there you have it! Navigating Dublin's short-term rental market might seem daunting at first but with a little knowledge and the right attitude, you can turn it into a success story.

Remember, it's all about understanding the rules, being a responsible host and maximizing your potential. Whether you're a seasoned pro or dipping your toes into hosting for the first time, arming yourself with knowledge and having the right tools are crucial for making the most of Dublin's short-term letting landscape.

FAQs

1. How do hosts apply for Planning Permission?

Hosts can initiate the planning permission application process by completing a form provided on the website of their local authority. The average processing time for these applications is approximately 8 weeks.

2. What are the exemptions from Planning Permission?

Exemptions from short-term rental regulations in Dublin include:

• Properties located outside Rent Pressure Zones (RPZs).
• Rentals lasting for 15 days or more.
• Properties with existing planning permission.
• Corporate/executive lets.
• Rent-a-room scheme accommodations.
• Purpose-built student accommodation.

These exemptions provide flexibility for certain rental scenarios, but landlords should ensure compliance with applicable regulations.

3. How might the rules change for short-term lets?

There are discussions within the government regarding potential changes to further restrict short-term lets of primary residences. Proposed measures include prohibiting home-sharing platforms from listing properties in rent pressure zones without the requisite planning permission.

Additionally, an online registration system for regulating short-term lettings is being developed by the Department of Tourism and Fáilte Ireland and is expected to be operational by the end of the year.