A recent report states Landlords claim they are considering selling their properties because of onerous new short-term letting regulations.
The new letting regulations introduced today could result in those who flout the rules being fined €5,000 or jailed for six months.
And it has been claimed that the new legislation will see landlords take their properties off short term rental schemes, like Airbnb.
Speaking to Independent.ie, the chairperson of the Irish Property Owners Association (IPOA) said that short term letting is ‘labour intensive’ and does not appeal to most landlords.
“It is likely that there will be some properties brought back into the private rental sector, however, landlords with large borrowings will not be able to service the borrowings from the income from letting in the private rental market and are likely to sell,” he said. “Legislation around rental property is continually changing, complex and difficult with more changes expected this year, in a market where 70pc of landlords own one property,” he added.
A landlord with two apartments on Airbnb who did not wish to be named stated that he will be selling his properties instead of leasing them out to long term tenants. “It’s not a pot of gold, there’s very high cost for services such as linen, internet and bills,” he said.
He added that leasing the properties short term through Air BnB works out in an additional profit of 10pc as opposed to long term rents. “It works out as an extra 10pc but it’s very labour intensive, if I went back to private I would get my weekends back,” he said. “There’s an assurance of income as it’s paid in advance.
A separate Airbnb host told Independent.ie that he will also be ceasing letting out his property through Airbnb for short term lettings. Instead, the landlord, who owns 20 properties in Dublin, said he will be turning to long term lettings. “Of course it puts me off Airbnb,” he said.
He stated that the legislation was a ‘ridiculous’ move by the government in order to tackle the housing crisis. “There’s something wrong somewhere but it’s not with Air BnB. “There’s 10,000 visitors coming into the country a week into Dublin. It’s going to devastate the tourism,” he said.