Landlord greed and short term lets causing concern in Dublin

New research has revealed that short-term rental properties are on the rise and far outnumber suitable long-term rental options for private tenants in Dublin and throughout the country.

Multiple cases have been discovered where landlords are leasing out appropriate long-term rental properties, such as houses and apartments, as short-term stays for holidaymakers – allowing them to gain a far greater income.

This is despite regulations introduced in July 2019 that require homeowners in Rent Pressure Zones (RPZs) such as Dublin, to apply to their local authority for planning permission to change property use to short-term lettings – where these lettings exceed 90 days in the year.

However, as all of Dublin is defined as a RPZ, it is unlikely that change of property purpose permission would be granted.

Research carried out on AirDNA – a data collection website for short-term rental properties – by the housing charity Threshold, revealed that in December 2021 there were 2,134 entire properties available for short-term let in Dublin.

Of these, 756 were operated by hosts advertising more than one property.

On March 16, only 612 entire properties are available for long-term rent, with only 89 costing €1,500 or less per month.

One landlord on a short-term letting platform was found to have 13 properties listed in Dublin.

Separately, one property located 5km from Dublin City Centre is listed for €433 for a two-night minimum stay in a three-bed semi-detached house.

However, only one three-bed home is listed for long-term rent on Daft.ie in the same area for €1,850 per month.

In this case, just over a week in a month needs to be booked in order to collect the equivalent income of renting the property to a long-term private tenant.

A separate landlord hosts 40 properties throughout Dublin, with one property costing €1,932 for a two-week stay compared to the only one-bed studio in the same vicinity costing €1,550 per month.

Threshold’s Regional Services Manager for Dublin, Stephen Large is concerned at the findings.

“It’s a worrying issue to see so many suitable properties for long-term rent being leased out for short-term stays in Dublin and the surrounding suburbs,” he said.

“We are seeing tenants who are facing eviction left with little options, which is an increasingly worrying issue.

“While regulations for change of property use in Rent Pressure Zones exist, a stronger enforcement on regulations would certainly see the issue being minimised and would be of some benefit in minimising the housing crisis.”

A new short-term let registration system is set to be launched by Fáilte Ireland early next year.

This new system will mean that property owners must register the accommodation with Fáilte Ireland to let it is a short-term rental option.

This forms part of the government’s Housing For All Plan, launched last September.

Stephen Large reiterated that enforcement of regulations is key in resolving this current issue.

“All of Dublin is a Rent Pressure Zone, so it’s clear that enforcement on the regulations for these areas is needed and will effectively reduce the growing number of tenants struggling to find suitable and affordable accommodation in the capital.”

Threshold says it hopes the Government will go ‘one step further’ and place a responsibility on the letting platforms to require proof of registration before publishing the advertisement.