With new legislation on short term rentals coming to Ireland this year, the property market in Dublin is about to be about to be turned on its head.
Landlords who have made a killing letting their second properties on Air BnB are going to find this door closed to them. With a limit of 90 days per annum being imposed by the government, the Air BnB rental boom could be coming to an end.
Many landlords are unsure of what it actually means, which isn’t surprising given that the information provided on the government website is confusing, to say the least. But, in simple terms, the new legislation means that anyone letting out their second property – i.e. not their main residence – will require planning permission from the local council to enable them to do short term lets of more than 90 days in the calendar year. People found not to be in compliance with these changes will risk criminal conviction under the forthcoming legislation.
And this planning permission is not going to be easy to obtain. The government has certainly been very clear on this detail, stating that it is “unlikely to be granted in areas such as Dublin or Cork”.
These new restrictions gives landlords until June to decide how they are going to rent out their property in the future, with the obvious choices being a shift to longer term lettings or entering the corporate market.
Short term corporate lets can seem appealing as they do offer high returns, but this is also a restricted market and, like Air BnB, requires permission from the council. So this is not the easy solution it might appear.
Many have been put off the longer term lettings market due to its lower yields but it could be time to start looking at the many benefits.
A guaranteed income for the term of the lease is certainly not to be sniffed at, even if it does mean lower returns than those offered by short term lets. What’s more, Landlords will no longer be responsible for utility bills – which can be very high on short term lets – and, if they go down the managed property route, they will be spared from the burden of maintenance. No more midnight calls from demanding tenants!
At Bespoke, we offer Landlords a wide range of personalised lettings options to make their lives easier and more efficient. We manage leases from three months and upwards, with highly competitive lettings and management fees. And we also offer three months of property management free of charge for anyone signing up to the full service.
We take pride in tailoring our approach to each landlord, listening to their requirements and providing a service that suits their needs. If required, we can arrange for renovations, plumbing and electrical upgrades, and, more importantly, share our expert advice and knowledge.
Landlords in Dublin have certainly enjoyed the high incomes offered by the Air BnB market – even with all of the risks it presents – but there’s no easy way around the new legislation and they are going to have to start thinking differently.
But, as the saying goes, as one door closes, another one opens. The rental market in Dublin is vibrant and we believe that at Bespoke we can help landlords get round this obstacle by creating new opportunities in long term lettings. Why not give us a call?
