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HOUSING MINISTER SIMON COVENEY has said he will be forced to introduce regulations for Airbnb if a memorandum of understanding cannot be reached with the company.
Coveney met with Airbnb bosses recently to discuss the role the company plays in Ireland’s rental market.
He wants to curtail property owners choosing to rent to guests for short stays rather than to long-term tenants.
The number of hosts in Dublin has shot up in the past number of years – with a 100% rise in just a year.
A total of 6,100 hosts let out part or all of their properties at some point for guests in 2016, compared to 2,960 hosts between October 2014 and September 2015.
People using the Airbnb service to host guests in their homes in Dublin collectively earned €52 million last year, according to a new report commissioned by the company.
Time limits
Recently, a number of major cities around the world have clamped down on the use of Airbnb.
Hosts in Berlin are only permitted to rent out their property for 50% of the year, while Amsterdam imposed a limit of 60 nights per year.
Is Ireland likely to go down the same road?
“Well, lets wait and see what the discussion with Airbnb results in,” the minister told TheJournal.ie yesterday.
I would be hopeful we would be able to put in some memorandum of understanding that can make it very clear that those who want to use Airbnb need to do so responsibly.
“We don’t want to be facilitating the use of the Airbnb platform on a commercial basis, in a way that undermines the rental market,” said Coveney.
If we get a satisfactory arrangement in place with them, and I think we can, then I don’t think I will need to legislate or to introduce regulations. If we can’t do that, then obviously I will be forced to do that.
Temple Bar property
Last year, such use of short-term lettings hit the headlines when An Bord Pleanála upheld a Dublin City Council (DCC) ruling that an apartment owner in Temple Bar needed to apply for planning permission if they wanted to continue to rent the property out via Airbnb.
The apartment on Crown Alley in the middle of Dublin’s busiest tourist area reportedly made €79,000 in one year from renting out to visitors, rather than one long-term tenant.
Following the ruling, Coveney vowed to tackle the issue of landlords renting out their properties through Airbnb.
The minister issued guidelines to local authorities with a specific focus on those in urban areas where the housing and rental crisis is most acute.
Following his meeting with the website’s bosses, he said the government and Airbnb committed to work together to ensure that people are not using the platform for commercial use without having the proper planning permission in place.
Use on a commercial basis
The minister told TheJournal.ie that many people use the lettings platform on a short-term basis for a number of weeks or months in a year.
However, he said that to purchase properties to let them out on the AirBnb site – using them almost as B&B or hostel-style accommodation – is not right.
That, in my view, is not the spirit of what should be happening through that platform and I think they [Airbnb] agree with that and we are going to look to try and end that.
He said those who use the website and have tenants on a rolling basis are required to apply for a “change of use in planning permission” for the home.
“Because essentially their private residence or apartment is being used on a commercial basis, just like a B&B would be. Airbnb recognise that – they want their platform to be seen as a positive [addition] to the Irish accommodation discussion.”
He added that AirBnb is a very positive thing for many homeowners and visitors to this country.
“I wouldn’t like to undermine that, particularly in a country that relies on so many people coming and going for weekend breaks and so on.”
The minister added that he does not want to see owners bypassing tenancy arrangements by using the Airbnb platform as a commercial business.
“That isn’t how the platform should be used and I think the company recognise that.”
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Let’s blame Airbnb for a housing shortage that FG are unwilling and incapable of solving. Reduce capital gain tax and incentivise new developments through tax. Stop the building height restrictions. Half of north Dublin City is in ruin with empty houses all over it.
A few weeks ago he said he wasn’t going regulate it, I think this guy is making it up as he goes along.
Kirk he’s trying to be popular FG leadership coming up ok
A lot of people that rent out rooms etc on Airbnb, do so out of necessity. It provides an income supplement that many people needed during the height of the recession because of the austerity imposed by the government. Of course some people are going to make a fortune out of it, and more luck to them. In my opinion though, regulating Airbnb will only serve as a tax collecting tool, not something that will actually fix the housing crisis. I think their first port of call should be to reduce the tax on rental income that landlords have to pay. This would encourage more people to invest in property, as it would mean the property would pay for itself when rented out!
@pheilum. A lot of people also rent out entire properties on a full-time basis via airbnb. I agree that it won’t fix the housing crisis, but I strongly believe that those renting out full time should be regulated. They should have to apply for planning permission for change of use. After all, the premises is no longer a home. They should pay taxes and they should have to ensure that they meet health and safety standards. A person occasionally renting out a spare room entirely different.
Well if you agree that it won’t fix the housing crisis what is the problem? Btw who said they don’t pay taxes?
Coveney be better off regulating hotel prices in city’s over weekends ?
Only if he wants hotels to go out of business. Hotel prices are the sort of thing that don’t need regulation. If they’re too high, the rooms remain empty. If they’re too low, the hotel runs at a loss. Encouraging the building of more hotels – or the use of houses and apartments as short-term lets – would drive hotel prices down.
Convey, ask Europe what to do. If it suits FG, go for it , If not , ignore em. Ain’t that the FG way ?
Willy FG are a facist party
Regulate, regulate, regulate.
Keep regulating so that any competition to the status quo is abolished.
Keep regulating so that home owners can’t generate a small side income without being hammered with taxes.
Keep regulating so that there is no more innovation.
Keep regulating so that costs to employers are driver up thereby squeezing wages.
Keep regulating, Keep regulating, Keep regulating FFS.
Why isn’t there anyone standing up for property rights? Why is it the individual property owners responsibility to solve the housing crisis caused by government? The little guy paying the bills yet again
I don’t do ab&b but surely it’s a property owner’s responsibility to do what they want with he property they pay for?
Airbnb is responsible for bringing in tourists who spend a lot of €€€€€€€€, thread carefully.
Nanny state strikes again….
The more he interferes with the rental market the more flee from it ..including his beloved large professional landlord firms
The headline makes it sound like he’s looking for a brown envelope. “Satisfactory arrangement”, I wonder what that could mean?
When they say It’s not right, what they really mean is it exposes the government’s failure to adequately implement any real policy to address housing shortages. It has nothing to do with being right and everything to with making the government look incompetent and its housing policy look non-existent.
Airbnb overall increases the supply of accommodation. It has the potential to take an under-utilised resource… a house or apartment which is vacant part of the time or a place someone does not want to let long term and makes it available on the market.
Governments around the world are going to have to get used to a sharing economy and too technology easily, cheaply and efficiently connecting individuals with something to share with someone else that has need.
Why doesn’t he keep his fat nose out of our business?
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