Almost 4,000 entire properties listed as short-term lets, according to latest figures for Dublin and several regional cities
Landlords gaining from leasing suitable long-term properties as short-term lets
Monday March 21: Short-term rental properties are on the rise and far outnumbering suitable long-term options for private rental tenants. Multiple cases have been discovered throughout the country where landlords are leasing out potential long-term rental properties such as houses and apartments – as short-term stays for holidaymakers, increasing their income significantly.
This is despite regulations introduced in July 2019 that require homeowners in Rent Pressure Zones (RPZs) – such as Dublin, Cork and Limerick City – to apply to their local authority for planning permission to change the property use to short-term let, where such lets exceed 90 days in the year. However, as most highly populated parts of the country are classed as RPZs, it is unlikely that change of property use permission would be granted.
Long-term rent challenges
Research carried out by the national housing charity Threshold on AirDNA, a data collection website for short-term rental properties, shows that in December 2021 there were just under 4,000 entire properties available for short-term let in Dublin, Cork, Limerick and Galway. In comparison, 757 entire properties were available to rent long-term, on March 16th in the four counties. Of these, only 164 properties cost below €1,500 per month to rent, meaning this is either unaffordable, or would absorb a significant amount of earnings for prospective tenants.
Tip of the iceberg:
One landlord on a short-term letting platform was found to have a total of 18 property listings, 13 of which are in Dublin. Separately, a three-bed house located in a south Dublin suburb is listed for €433 for a two-night stay. However, only one three-bed home is listed for long-term rent on Daft.ie in the area for €1,850 per month. In this case, just over one week in a month needs to be booked to collect the same income, compared to listing it as a long-term private property rental.
A landlord in Cork lists just under 10 properties in both Cork City and County, with a short-term coastal two-bed apartment costing €302 for a two-night stay. Currently, the only two-bed apartment in the same area costs €1,650 per month. In Limerick, one landlord was hosting a similar property with a month-long minimum stay costing over €4,000. On Daft.ie, a two-bed apartment costs €1,224 per month for long-term rental, in a nearby area of the city.
A Galway-based landlord offers over 20 properties in Galway City and surrounding suburbs, with a three-bed apartment near the city centre costing €735 for a three-night stay. In comparison, the nearest property to the same location available for long-term rent is a one-bed apartment, costing €1,430 per month. Again, the property only needs to be rented short-term for one week to yield the same income.
CEO of Threshold, John-Mark McCafferty commented:
“It’s troubling to see so many landlords advertising suitable long-term rental accommodation as short-term properties. We see a crisis situation, where current renters are frozen out of buying, and there is a major increase in termination notices – with tenants literally having almost no option of finding another home, which is causing the homelessness numbers to rise again.
The lack of enforcement of the 2019 regulations, which restricts the use of long-term homes as holiday lets in the Rent Pressure Zones is not being enforced, from what we can see. This situation is certainly contributing even further to the major housing shortage across Ireland. Proper enforcement measures are needed to ensure these homes are brought back to the long-term rental market.”
Short-term property regulation
A new short-term let registration system will be launched by Fáilte Ireland in 2023. This new system will mean that property owners must officially register the accommodation with state tourism authority . This forms part of the government’s Housing For All Plan, launched last September.
John-Mark McCafferty urged anyone who is facing severe difficulties in accessing private rental accommodation – or facing a termination of tenancy [due to the landlord selling the property in most cases] – to contact Threshold for help and advice:
“We listen, advise, and represent tenants with disputes at the residential tenancies board, and we work to do everything in our power to keep private renters in their homes. It is often the case that termination notices do not comply with the law, and that is something we can check too. We urge people experiencing these issues to get in touch with Threshold and avail of our free service.”
Threshold’s helpline is open Monday to Friday, 9am- 9pm at 1800 454 454, with webchat at www.threshold.ie/advice/help for any renter in need of advice or support.