Cork, New Zealand Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Cork, Ireland?

Short-term rentals have become increasingly popular in Cork, Ireland, thanks to platforms like Airbnb and VRBO. However, property owners looking to start a short-term rental business need to be aware of the regulations and requirements in place. Here's what you need to know:

Starting a Short-Term Rental Business in Cork

Before listing your property on Airbnb or VRBO, it's crucial to understand the local regulations in Cork. As of July 1, 2019, new planning legislative reforms came into effect to regulate the short-term letting sector. These reforms aim to bring properties currently used for short-term letting back to the traditional long-term rental market, especially in designated "rent pressure zones."

In Cork, the following Local Electoral Areas are deemed rent pressure zones:

• Bandon Kinsale
• Carrigaline
• Cobh
• Fermoy
• Macroom
• Mallow
• Midleton

If your property is located in one of these areas, you'll need to adhere to the short-term letting regulations. Short-term letting is defined as the letting of a house or apartment, or part of a house or apartment, for any period not exceeding 14 days.

Homesharing (renting a room or rooms in your primary residence) is allowed on an unrestricted basis and is exempt from the new planning requirements. Homesharers can also sublet their entire primary residence for up to 90 days per year while temporarily absent. However, if the 90-day threshold is exceeded, a change of use planning permission will be required.

Property owners in rent pressure zones who don't live in the property and intend to use it for short-term letting will need to apply for a change of use planning permission, unless the property already has specific permission for tourism or short-term letting use.

Since the legislation was introduced in 2019, Cork City Council has received just seven planning applications from property owners seeking to change the use of properties for short-term accommodation. The council actively investigates listings on Airbnb and other platforms to ensure compliance. While no legal actions have been initiated yet, the council engages with property owners to regularize their lettings where appropriate.

One couple in Kinsale recently had their planning application for short-term letting rejected by An Bord Pleanála. The board stated that allowing the change of use would "exacerbate the existing shortage of availability of long-term rented accommodation" in the area.

To start a short-term rental business in Cork, property owners should:

1. Check if the property is located in a rent pressure zone
2. Apply for change of use planning permission if required
3. Register with Cork City Council using Form 15 if availing of the 90-day homesharing exemption
4. Ensure the property meets health and safety standards
5. Obtain any necessary business licenses and permits
6. Register to collect and remit occupancy taxes

While navigating the regulations may seem daunting, many property owners in Cork have successfully started short-term rental businesses. By understanding the requirements and working with the local authorities, you can tap into this lucrative market while remaining compliant.

Short-Term Rental Licensing Requirements in Cork

To operate a short-term rental in Cork, property owners must adhere to the following requirements based on the Cork City Council website:

1. Determine if your property is located in a Rent Pressure Zone (RPZ): The following Local Electoral Areas in Cork are deemed RPZs:

1. Bandon Kinsale
2. Carrigaline
3. Cobh
4. Fermoy
5. Macroom
6. Mallow
7. Midleton

2. If your property is in an RPZ and you wish to use it for short-term letting (defined as lettings not exceeding 14 days), you must apply for a change of use planning permission unless the property already has specific permission for tourism or short-term letting use.

3. Homesharing (letting a room or rooms in your principal private residence) is allowed on an unrestricted basis and exempt from the new planning requirements.

4. Homesharers can sublet their entire principal private residence for up to 90 days per year while temporarily absent. If the 90-day threshold is exceeded, change of use planning permission is required.

5. To avail of the homesharing exemptions in an RPZ, you must register with Cork City Council by submitting Form 15 at the start of the year, Form 16 when the 90-day cap is reached, and Form 17 at the end of each year.

6. Completed registration forms can be submitted via email to short_termlet@corkcity.ie or by post to:

Short-Term Letting Section
Cork City Council
Community Culture and Placemaking Directorate
City Hall, Anglesea Street
Cork T12 T997

7. The planning application fee for change of use is €80.

8. The typical planning permission process takes 8 weeks from the date of receipt of the application. This may be extended to 12 weeks if further information is requested.

9. Failure to comply with the short-term letting regulations can result in enforcement action by the local planning authority under the Planning and Development Act 2000. Fines of up to €5,000 or 6 months imprisonment can apply.

It's crucial for property owners in Cork to understand and adhere to these licensing requirements to legally operate short-term rentals. By registering homesharing exemptions or obtaining the necessary change of use planning permission, hosts can avoid penalties and contribute to a well-regulated STR market in the city.

Required Documents for Cork Short-Term Rentals

To operate a short-term rental in Cork, property owners must submit the following documents, depending on their specific circumstances:

1. Form 15 - Start of Year Notification: This form should be submitted to Cork City Council within 4 weeks of the start of each year and at least 2 weeks before the first short-term let of the year. It is required for homesharers in Rent Pressure Zones who wish to avail of the 90-day letting exemption.
2. Form 16 - 90 Day Threshold Notification: Homesharers in Rent Pressure Zones who reach the 90-day short-term letting threshold in a calendar year must submit this form to Cork City Council no later than 2 weeks after reaching the cap. It is only required if the 90-day limit is exceeded.
3. Form 17 - End of Year Notification: This form must be submitted to Cork City Council no later than 4 weeks after the end of each calendar year by homesharers in Rent Pressure Zones who have engaged in short-term letting.
4. Change of Use Planning Permission Application: Property owners in Rent Pressure Zones who do not live in the property they intend to use for short-term letting must apply for change of use planning permission, unless the property already has specific permission for tourism or short-term letting use. The planning application fee is €80.
5. Evidence of Principal Private Residence: When submitting Form 16 after reaching the 90-day threshold, homesharers must provide documentation proving that the property is their principal private residence.

All completed forms can be submitted to Cork City Council via email at short_termlet@corkcity.ie or by post to:

Short-Term Letting Section
Cork City Council
Community Culture and Placemaking Directorate
City Hall, Anglesea Street
Cork T12 T997

These documents are required to ensure compliance with the short-term letting regulations introduced in rent pressure zones to address housing shortages. Failure to adhere to these requirements can result in enforcement action and penalties under the Planning and Development Act 2000.

Cork Short-Term Rental Taxes

When operating a short-term rental business in Cork, it's essential to understand your tax obligations. The income you earn from renting out your property is subject to various taxes, which can impact your overall profitability. Here's a breakdown of the main taxes that apply to short-term rentals in Cork:

1. Income Tax: The income you make from short-term lets is considered trading income for tax purposes and must be declared to Revenue each year. The tax rate depends on your total income and personal circumstances. For the 2024 tax year, the standard rate of 20% applies to income up to €37,500 for single individuals and €45,000 for married couples. Income above these thresholds is taxed at the higher rate of 40%.
2. Value Added Tax (VAT): If your short-term rental income exceeds €37,500 in any continuous 12-month period, you must register for VAT. The current standard VAT rate in Ireland is 23%. As a VAT-registered business, you would need to charge VAT on your rental fees and remit this to Revenue. However, you can also claim back VAT on eligible expenses related to your rental business.
3. Local Property Tax (LPT): LPT is an annual tax charged on the market value of residential properties in Ireland. The tax rate depends on the valuation band your property falls into. For example, properties valued between €350,001 and €437,500 are charged €405 per year. Local authorities can vary the basic LPT rate on residential properties in their area by up to 15%.

It's important to note that if you are a non-resident individual earning rental income from a property in Ireland, you are still subject to Irish income tax on this income.

Possible Deductions and Write-Offs

To reduce your tax liability, you may be able to claim certain expenses and deductions related to your short-term rental business. These can include:

1. Advertising fees or online commission payments
2. Cleaning fees
3. Cost of food provided to guests
4. Reasonable apportionment of utilities (e.g., gas, electricity)
5. Capital allowances on fixtures and fittings at a rate of 12.5% over 8 years (for trading income only)

If you rent a room in your primary residence, you could potentially claim rent-a-room relief. This scheme allows you to earn up to €14,000 per year tax-free from renting out a room in your home, provided certain conditions are met.

It's crucial to keep accurate records of all your rental income and expenses to calculate your tax liability correctly. Consult with a qualified tax professional to ensure you are meeting your tax obligations and claiming all eligible deductions. By understanding the tax implications of your short-term rental business, you can make informed decisions and maximize your profitability.

Ireland-Wide Short-Term Rental Rules

In addition to the specific regulations in Cork, short-term rental hosts must also adhere to national laws and requirements. Here are the key Ireland-wide rules that affect Cork hosts:

1. Planning and Development Act 2000: Under this act, planning authorities can take legal action if a property does not have the required permission for short-term letting use or if the terms of the permission have not been met. Penalties can include fines of up to €5,000 or 6 months imprisonment.
2. Rent Pressure Zones (RPZs): Many areas in Ireland, including several in Cork, are designated as RPZs. In these zones, additional regulations apply to short-term lets to protect long-term rental supply. Hosts in RPZs must obtain planning permission for short-term lettings exceeding 90 days per year, unless already permitted for tourism use.
3. Short-Term Tourist Letting Registration: The Irish government is developing a new online registration system for short-term lets, expected to launch in late 2024. Hosts offering stays of 21 nights or less will need to register with Fáilte Ireland annually and display a valid registration number on listings. Booking platforms will only be able to advertise properties with valid registration.
4. Taxation: Income earned from short-term rentals is subject to tax. Hosts must declare this income to Revenue each year and pay the appropriate taxes based on their total earnings and circumstances. As of 2024, the standard tax rate of 20% applies to income up to €37,500 for single individuals and €45,000 for married couples, with the higher 40% rate kicking in above these thresholds.
5. Fire Safety: All short-term rental properties must comply with fire safety regulations, including having working smoke alarms, carbon monoxide detectors, and fire extinguishers. Hosts are responsible for conducting regular safety checks and ensuring their property meets the required standards.
6. Insurance: It's recommended that hosts obtain appropriate insurance coverage for their short-term rental business. This may include public liability insurance to protect against guest injuries or property damage, as well as specialized short-term rental insurance to cover potential losses or damages.

By understanding and complying with these Ireland-wide regulations, Cork hosts can operate their short-term rentals legally and responsibly. It's crucial to stay informed about any updates or changes to national laws that may impact the short-term letting sector in the future.

Does Cork Strictly Enforce STR Rules?

Cork, like many cities in Ireland, has seen a significant increase in short-term rentals through platforms like Airbnb in recent years. While the city has introduced regulations to manage the sector, enforcement has been a challenge.

According to discussions on Reddit, Cork City Council does actively investigate listings on Airbnb and other platforms to ensure compliance. One user shared, "Ohh they are, dublin city council regularly going round pinning notices to doors. I know of atleast 40 properties in the city that went from airbnb to just vacant because of it."

However, others argue that enforcement is lacking. A commenter noted, "And who is going to enforce any of this? If nobody cares to enforce the long-term rental market why should I believe the short-term will be any different?"

Compared to other cities, Cork appears to be less Airbnb-friendly than some, but not as strict as others. For example, Lisbon has implemented a comprehensive licensing system that Cork is looking to emulate. Amsterdam has also cracked down on short-term rentals in recent years.

Despite the rules, it seems that some hosts do continue to operate in Cork. One Redditor admitted, "I briefly did Airbnb back in 2016. Had a two-bed apartment in town and my housemate had moved out. Instead of immediately getting another housemate I decided to stick the room up on Airbnb for the summer." This suggests that the potential profits may tempt some to skirt the regulations.

Overall, while Cork has introduced measures to regulate short-term rentals, enforcement remains a work in progress. The city is not as Airbnb-friendly as it once was, but determined hosts may still find ways to operate despite the rules. As one user put it, "It's very easy to point the finger at Airbnb regarding the housing crisis. The government need to take a good hard look at themselves too, regulating Airbnb is good and has worked in places like Amsterdam but this won't be the big fix they want to portray it as."

How to Start a Short-Term Rental Business in Cork

Starting a short-term rental business in Cork can be a lucrative venture, but it's crucial to understand and comply with the local regulations. Here's a step-by-step guide to help you get started:

1. Determine if your property is in a Rent Pressure Zone (RPZ): Many areas in Cork, such as Bandon Kinsale, Carrigaline, Cobh, Fermoy, Macroom, Mallow, and Midleton, are designated RPZs. If your property is located in an RPZ, additional regulations apply to short-term lets. Use the interactive Local Electoral Area Map on the Cork County Council website to check if your property falls within an RPZ.
2. Obtain necessary planning permissions: If your property is in an RPZ and you plan to use it for short-term letting (defined as lettings not exceeding 14 days), you must apply for a change of use planning permission unless the property already has specific permission for tourism or short-term letting use. Homesharing (letting a room or rooms in your principal private residence) is allowed on an unrestricted basis and exempt from the new planning requirements.
3. Register with Cork City Council: If you wish to avail of the homesharing exemptions in an RPZ, you must register with Cork City Council by submitting Form 15 at the start of the year, Form 16 when the 90-day cap is reached, and Form 17 at the end of each year. Completed registration forms can be submitted via email to short_termlet@corkcity.ie or by post to the Short-Term Letting Section of Cork City Council.
4. Ensure your property meets health and safety standards: All short-term rental properties must comply with fire safety regulations, including having working smoke alarms, carbon monoxide detectors, and fire extinguishers. Conduct regular safety checks and maintain records to demonstrate compliance.
5. Obtain appropriate insurance coverage: It's recommended to obtain public liability insurance to protect against guest injuries or property damage, as well as specialized short-term rental insurance to cover potential losses or damages. Shop around and compare policies from different insurers to find the best coverage for your needs.
6. Create a detailed listing: Craft a well-written, detailed description of your property, including amenities and nearby attractions. Use high-quality photos to showcase your space and encourage bookings. Study successful listings in your area to identify best practices and make your property stand out.
7. Set competitive pricing: Research comparable properties in your area on platforms like Airbnb to determine a competitive nightly rate. Consider using dynamic pricing tools to adjust rates based on demand or seasonality. Offer introductory discounts or promotions to attract your first guests and build positive reviews.
8. Register for tax purposes: Income earned from short-term rentals is subject to tax. Declare this income to Revenue each year and pay the appropriate taxes based on your total earnings and circumstances. Keep accurate records of all rental income and expenses to calculate your tax liability correctly and claim eligible deductions.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in Cork. Remember to prioritize guest satisfaction, maintain open communication, and adapt to changes in the market to ensure long-term success.

Who to Contact in Cork about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations and zoning in Cork, here are the key contacts and resources:

Cork City Council Planning Department

1. Phone: +353 21 4924000
2. Email: planningpolicy@corkcity.ie
3. Address: City Hall, Anglesea Street, Cork, T12 T997
4. Website: https://www.corkcity.ie/en/council-services/services/planning/

For specific inquiries related to short-term letting, you can email the dedicated address: short_termlet@corkcity.ie.

Cork County Council Planning Policy Unit

• Phone: 021 4285900
• Email: planninginfo@corkcoco.ie
• Address: Floor 13, County Hall, Cork
• Website: https://www.corkcoco.ie/en/planning

Useful online resources and communities for short-term rental hosts in Cork include:

• The Airbnb Community Center has a dedicated forum for hosts to connect, ask questions, and share experiences: https://community.withairbnb.com/. Look for posts related to hosting in Cork or start a new thread.
• The Ireland Airbnb Hosting Forum on Facebook is an active group where hosts across Ireland, including those in Cork, discuss various aspects of short-term letting: https://www.facebook.com/groups/AirbnbHostingIreland/
• The r/AirBnB subreddit often has discussions related to hosting and regulations in different cities. Use the search function to find posts about Cork: https://www.reddit.com/r/AirBnB/
• Bigger Pockets, while primarily focused on the US market, has a short-term rental forum where hosts worldwide share advice and discuss regulatory issues: https://www.biggerpockets.com/forums/530-short-term-rental

By contacting the relevant authorities and engaging with host communities online, you can stay informed about the latest short-term rental regulations in Cork and connect with fellow hosts facing similar challenges. It's essential to do your due diligence and ensure compliance with all local rules to operate a successful and responsible short-term letting business in the city.

What Do Airbnb Hosts in Cork on Reddit and Bigger Pockets Think about Local Regulations?

To get a sense of how short-term rental hosts in Cork feel about the local regulations, we scoured relevant threads and comments on popular forums. Here are some key insights:

On the Airbnb Community Center, one host shared their experience offering to be a co-host in Cork: "I am offering myself as a Co-Host in Cork. If any host from Cork city needs help or just doesn´t have enough time to rule his renting apartment, contact me." This suggests that some hosts may be looking for assistance navigating the regulations and managing their properties.

Another host on the Airbnb forum asked for guidance on listing their apartment in Cork: "I am looking to list my apartment on Airbnb but need help managing it. Could I kindly ask someone who is doing it in Cork and can guide us?" The responses pointed the original poster to the Airbnb Help Center articles on responsible hosting in Ireland.

In a thread discussing new laws introduced in Ireland in June 2019, it was noted that "an annual cap of 90 days will apply for the renting out of a home and homeowners can only rent out their homes for 14 days or less at a time" in rent pressure zones. Cork hosts would need to be aware of these limitations.

On Bigger Pockets, one user asked about creating an LLC for a vacation home in Ireland they wanted to list on Airbnb. While not specific to Cork, the question highlights the complexity of navigating regulations and protecting assets when hosting in Ireland. The consensus was that consulting with local legal and tax professionals is crucial.

Overall, the discussions on these forums indicate that Cork hosts are seeking clarity and guidance on complying with local short-term rental regulations. Many are turning to online communities to connect with experienced hosts and learn best practices. However, the volume of Cork-specific discussions is limited, suggesting that hosts may be finding support through other channels or struggling to navigate the regulatory landscape on their own.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.