What is a short-term letting?
Short term lettings are currently governed by the Residential Tenancies (Amendment) Act 2019 and the Planning and Development Act 2000 (Exempted Development) (No. 2) Regulations 2019 which were introduced in July 2019 (‘2019 Regulations’). A short-term letting is defined as the letting of an entire property such as a house or apartment or a room within that property for a period of up to 14 days.
What is a Rent Pressure Zone?
Rent Pressure Zones are designated areas wherein rent cannot be increased by more than 2% per annum pro rata.
Do you require planning permission for your short-term letting?
The 2019 Regulations state that short term lettings, that are situated within a Rent Pressure Zone are now deemed to be a material change of use of the property for planning purposes so planning permission for said use will be required.
This means, that if a homeowner wishes to rent out their property as a short-term letting, they are required to apply to the Local Authority and obtain the necessary planning permission for this change of use so it can be used for tourism and short-term letting purposes. It is unlikely that planning permission for short-term lettings will be granted in areas of high housing demand, where there is high rent inflation or insufficient supply of housing.
Principal Private Residences which are let for more than 90 consecutive days per annum are also subject to the 2019 Regulations.
Are there any exemptions to the 2019 Regulations?
The 2019 Regulations do not effect:
What happens if I don’t follow the 2019 Regulations?
Under the Planning and Development Act 2000 planning authorities can take legal action if a property does not have the required planning permission, or where terms of the permission have not been met.
The Planning and Development, Maritime and Valuation (Amendment) Act 2022 once fully enacted will mean that property owners and websites that advertise short-term lettings, will both be fined if the properties being advertised do not have the correct planning permission.
Future Developments
The Government is developing a new online registration system for short-term lettings which is due to be launched later in 2024. Once this registration system is launched, homeowners will be required to register their short-term lettings online with Fáilte Ireland. Once registered you will be provided with a short-term tourist letting registration number which you will need to list your property on holiday booking websites and in advertisements.
The Planning and Development, Maritime and Valuation (Amendment) Act 2022 once fully enacted will seek to prevent the online advertisement of short-term lettings on websites such as Airbnb, unless the short-term letting has been registered with Fáilte Ireland and the owners have confirmed that the correct planning permission is in place for the property.
For further information on this topic or for any other property related queries please contact a member of OSM Partners LLP’s Property team.
Short term lettings are currently governed by the Residential Tenancies (Amendment) Act 2019 and the Planning and Development Act 2000 (Exempted Development) (No. 2) Regulations 2019 which were introduced in July 2019 (‘2019 Regulations’). A short-term letting is defined as the letting of an entire property such as a house or apartment or a room within that property for a period of up to 14 days.
What is a Rent Pressure Zone?
Rent Pressure Zones are designated areas wherein rent cannot be increased by more than 2% per annum pro rata.
Do you require planning permission for your short-term letting?
The 2019 Regulations state that short term lettings, that are situated within a Rent Pressure Zone are now deemed to be a material change of use of the property for planning purposes so planning permission for said use will be required.
This means, that if a homeowner wishes to rent out their property as a short-term letting, they are required to apply to the Local Authority and obtain the necessary planning permission for this change of use so it can be used for tourism and short-term letting purposes. It is unlikely that planning permission for short-term lettings will be granted in areas of high housing demand, where there is high rent inflation or insufficient supply of housing.
Principal Private Residences which are let for more than 90 consecutive days per annum are also subject to the 2019 Regulations.
Are there any exemptions to the 2019 Regulations?
The 2019 Regulations do not effect:
- Property not in a Rent Pressure Zone.
- Property in a Rent Pressure Zone, but you let rooms or the entire property out for 15 days or more at a time.
- Property which already has planning permission to be used for tourism or short-term letting purposes.
- Property used for corporate, or executive lets. For example, lettings provided for people coming to Ireland under employment contracts.
- Where property is rented out under the ‘rent-a-room scheme’.
- You are ‘home-sharing’. Home-sharing is where a homeowner rents a room or rooms in their principal private residence for short-term lets while they are also occupying it. (In this situation you can offer unlimited short-term lettings for less than 14 days at a time.)
- You rent out your entire principal private residence for short-term visitors for less than 90 days a year while you are temporarily away. The 90 days do not have to be consecutive.
- Property purpose-built for student accommodation.
What happens if I don’t follow the 2019 Regulations?
Under the Planning and Development Act 2000 planning authorities can take legal action if a property does not have the required planning permission, or where terms of the permission have not been met.
The Planning and Development, Maritime and Valuation (Amendment) Act 2022 once fully enacted will mean that property owners and websites that advertise short-term lettings, will both be fined if the properties being advertised do not have the correct planning permission.
Future Developments
The Government is developing a new online registration system for short-term lettings which is due to be launched later in 2024. Once this registration system is launched, homeowners will be required to register their short-term lettings online with Fáilte Ireland. Once registered you will be provided with a short-term tourist letting registration number which you will need to list your property on holiday booking websites and in advertisements.
The Planning and Development, Maritime and Valuation (Amendment) Act 2022 once fully enacted will seek to prevent the online advertisement of short-term lettings on websites such as Airbnb, unless the short-term letting has been registered with Fáilte Ireland and the owners have confirmed that the correct planning permission is in place for the property.
For further information on this topic or for any other property related queries please contact a member of OSM Partners LLP’s Property team.
