Legislative changes to Short Term Lettings (such as Air BnB) in Rent Pressure Zones
by Denis Healy
 
 

Eoghan Murphy T.D., Minister for Housing, Planning and Local Government, announced on 25th October 2018 new regulations in respect of short-term lettings in areas designated as rent pressure zones.

The reforms which are now underpinned in legislation and which became effective on 1st July 2019 are primarily aimed at addressing the impact on the private rental market by the use of residential homes for short-term tourism type letting in areas of high housing demand. Accordingly the new provisions only applies in areas designated as “rent pressure zones” under the Residential Tenancies Act 2004, as amended.

In general, short-term letting relates to residential property lettings (for tourism or otherwise) to different occupants for periods of 14 days or less. Residential letting periods for longer than 14 days shall not be considered to be ‘short-term letting’.

 

Short-term letting of a Principal Primary Residence (in rent pressure zones)

Home-sharing continues to be permissible where it is a person’s primary residence, and the home-owner is required to register with their local authority as such. An annual cumulative cap of 90 days applies for the renting out on a short-term basis. Where the 90 day threshold is exceeded, change of use planning permission is required.

Short-term letting of a Non Principal Primary Residence (in rent pressure zones)

Where a person owns a second property and intends to let it as a short-term let, they will no longer be allowed to do so unless the property is already permitted to be used for tourism/short-term letting purposes.

Planning permission for a change of use to Short Term Letting can be sought and it will be up to each local Planning Authority to grant permissions, based on guidance issued from the Department of Housing, Planning and Local Government. In areas of high housing demand permission may not be granted.

Properties not affected by the legislative changes

The legislative changes in relation to short-term letting does not affect the following:

  1. Short-term letting in areas outside the designated rent pressure zones;
  2. Operation of holiday homes as typically understood;
  3. Longer-term flexible lettings which are provided for those coming to Ireland under employment contracts;
  4. Properties that currently have permission to operate in the tourism market.

Commercial activity

It is important to note that permission granted by a Local Authority under a change in use application may render a short-term let a commercial activity which may introduce extra charges for the property owners, such as water, insurance and commercial rates.

 

Regards

 

Denis Healy