What property owners need to know about new short-term letting rules 

As you may be aware, new legislation affecting short-term residential lettings came into effect earlier this week. These regulations, which were first muted back in April, amend the Planning and Development Act 2000. The express aim  of the legislation is to bring more properties into the long-term rental sector, rather than being used for short-term lettings through Airbnb or similar. The legislation was politically and socially-motivated, with the expectation that return of these houses and apartments to the more traditional long-term rental market will ease the current rental crisis and reduce homeless figures. 

So, as a property owner, what can you expect?

The new rules mean planning permission will now be needed for  the short-term letting of properties that are not the owner’s principal private residence. Obtaining planning permission may be difficult depending on where you live, and with a further 19 towns/cities being designated as rent pressure zones (RPZs) this week, your property may well be impacted by these changes. Property owners involved in either home sharing or short-term lets in RPZs will be required to file  notification forms with their local authority. Under the regulations, an annual 90-day limit will be imposed for renting out a property, and each renting episode will be limited to 14 days or less. Significantly, owners who currently let a second property on a short-term basis in any of the RPZs will no longer be able to this without local planning approval. However, if the property is the owner’s main residence, then the owner may rent out rooms on a short-term basis without the above restrictions. To clarify, a second or subsequent property located within a pressure zone will require a grant of  planning permission for tourism or short-term letting use. Please note that registration with the relevant local authority is also mandatory. 

For property owners who are already renting out their property on a short-term basis, it will be necessary to apply for a ‘change of use’ planning permission, which will incur the usual planning permission waiting times and fees. With such huge demand for housing within the RPZs, media commentary speculates that it is “unlikely” planning permission will be granted. 

It is important to point out that the new guidelines will not affect rental properties in non-RPZs. As mentioned, a further 19 areas were added to this list, which effectively means that two-thirds of all residential investment properties in the State are now capped at 4% rent increases per year, with RPZs to remain in place until 31st December 2021. 

How will these rules be implemented?

The Department of Housing announced that additional resources will be provided within Dublin City Council’s planning section to oversee the registrations and to monitor regulations (news reports this week suggest that these resources have not actually been allocated as yet…). Non-compliant property owners may face fines, criminal conviction and/or up to six months imprisonment. If a breach persists, the offending property owner could face an additional sanction of €1,500 per day for each day the breach continues. Local authorities will also have the power to seek injunctive relief from the courts to ensure any unauthorised activity does not continue. 

There was no indication of a grace period so it will be interesting to how these new rules are implemented and, more importantly, enforced. As always, we look forward to hearing about your experiences regarding short-term lettings.

Ian Lawlor
086 3625482

Director / Business Development
Lotus Investment Group