Clampdown: Housing Minister Eoghan Murphy has indicated there will an effective ban on short-term lets in areas of high housing demand. Picture: Colin O'Riordan

LANDLORDS who rent out their properties on Airbnb face being hit with extra water, insurance and commercial rates bills from summer.

New rules will oblige landlords to secure commercial planning permission if they intend renting property out on a short-term basis.

This would leave them open to paying a host of costly additional charges.

Dublin City Council said Airbnb lettings were currently exempt from commercial rates, but this would be reviewed in the context of units being converted to commercial use.

Rates are calculated on the size of the building. In addition, water charges could also be applied, which would cost landlords a standing charge of €90 a year coupled with a €3.12 charge per 1,000 litres of water and wastewater utilised under a proposed charging system.

The landlords will also have to secure a change of planning permission, which costs around €80, and there may also be extra insurance premiums. New rules, to take effect from June 1, will force landlords to secure a commercial planning permission for properties they let on a short-term basis on platforms including Airbnb.

This will not apply to those renting a room in, or all of, their family home, although a 90-day annual limit will apply in these cases. These owners will also have to tell the local authority they intend to avail of an exemption allowing them to 'homeshare', and lettings can be for no more than 14 days.

However, Housing Minister Eoghan Murphy has indicated that in areas where there is a high demand for housing, there may be an effective ban on short-term lettings.

In Dublin, Galway, Cork and parts of other counties, councils will be given powers to refuse to allow planning permission for the properties to be let on a short-term basis.

The rules have been sharply criticised by Airbnb, which said homesharing did not cause the housing crisis and that claims the regulations were the solution were a "false promise".

"Legitimising homesharing with rules for the long term is good news for hosts in principle, however there is no clear rationale for the rules being proposed here," it said in a statement. "There is no data to support a 90-night restriction on primary residences, which are by definition people's homes, and not available on the long-term rental market.

"Banning the use of secondary homes is also unlikely to significantly boost Ireland's housing stock. This appears to be a cut and paste from regulations in other cities, without properly adapting them to the needs of Ireland's residents and communities."

Figures from analytics website AirDNA suggest there are more than 1,000 landlords who own multiple properties in Dublin which are listed on Airbnb, totalling 3,533 units. If the ban is enforced, it means thousands of homes will be available to the 'normal' rental market. It is hoped this will help meet demand, and reduce monthly rental costs.

Dublin City Council said accommodation used for short-term lets were exempt from rates, unless it formed part of an aparthotel.

"To date, Airbnb activities are exempt from rates," it said. "The reference... to landlords securing commercial planning permission to lease their properties will no doubt impact on their ability to lease their properties under Airbnb.

"The regulations when published will be reviewed in tandem with the Valuation Act to consider if properties let on a short-term basis will become liable for commercial rates."

Sinn Féin housing spokesman Eoin Ó Broin said the regulations were 'reasonable', but sanctions should be imposed on platforms including Airbnb if they allowed a property to be advertised without the appropriate permissions.

"The big issue is enforcement," he added. "Will councils have sufficient staff? Because if not, it would be a rather weak instrument."

The Green Party said the measures don't go far enough.

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Irish Independent