Dungarvan, Ireland Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Dungarvan, a scenic coastal town in County Waterford, Ireland, has seen a rise in short-term rentals through platforms like Airbnb and VRBO in recent years. While these rentals provide a unique accommodation option for tourists, they have also raised concerns about their impact on the local housing market and community. Here's what you need to know about short-term rental regulations in Dungarvan.

Starting a Short-Term Rental Business in Dungarvan

If you're considering renting out your property for short-term stays in Dungarvan, it's essential to understand the regulations and requirements. A short-term let is defined as renting out your property or a room in your property for less than 14 days at a time.

To operate a short-term rental, you may need to obtain planning permission from the Waterford City and County Council or apply for an exemption. This requirement applies whether you're renting out your entire property or just a room. Failure to comply with these regulations can result in legal action and fines.

The short-term letting regulations, introduced in July 2019, aim to bring properties used for short-term tourist lettings in Rent Pressure Zones (RPZs) back to the long-term rental market. While Dungarvan is not currently designated as an RPZ, there have been calls for it to become one due to the local rental crisis.

Labour Party Councillor Thomas Phelan has expressed concerns about the lack of available long-term rental properties in Dungarvan, noting that while there were no rentals within 12km of the town center listed on Daft.ie, 18 Airbnbs were available within 3km. He argues that designating Dungarvan as an RPZ would help address the shortage of long-term rental accommodation.

In addition to potential planning permission requirements, short-term rental hosts in Dungarvan must also declare their rental income to Revenue each year. A new online registration system for short-term lets is being developed by Fáilte Ireland and is expected to launch in 2024, which will require hosts to register their properties annually and confirm they have the necessary planning permission.

Despite the regulations, short-term rentals remain a popular option in Dungarvan. Airbnb and other platforms offer a variety of properties, from apartments and townhouses to luxury homes and studios. Prices range from around €150 to over €300 per night, depending on the property type, location, and amenities.

However, the growth of short-term rentals has not been without controversy. Some residents and local officials argue that the proliferation of Airbnbs has contributed to the housing crisis by removing properties from the long-term rental market. In a Reddit discussion, one user shared their experience of briefly hosting on Airbnb in 2016, noting that they could easily cover their rent by renting out a room or their entire apartment for just a few nights per month. They ultimately stopped due to feelings of guilt about contributing to the housing crisis.

As Dungarvan continues to grapple with the impact of short-term rentals on the local community, it's crucial for hosts and potential hosts to stay informed about the evolving regulations and to operate their businesses responsibly. By working together, the town can strive to balance the benefits of tourism with the needs of long-term residents.

Short-Term Rental Licensing Requirements in Dungarvan

To operate a short-term rental in Dungarvan, property owners must comply with the regulations set by the Waterford City and County Council. Here are the key requirements and steps to obtain a license:

Determine if your property is in a Rent Pressure Zone (RPZ): Dungarvan is currently not designated as an RPZ, but there have been calls to make it one due to the local rental crisis. If Dungarvan becomes an RPZ, additional restrictions may apply to short-term rentals.

Obtain planning permission or apply for an exemption: Property owners must obtain planning permission from the Waterford City and County Council or apply for an exemption to operate an STR. This requirement applies whether you're renting out your entire property or just a room.

Register with Fáilte Ireland: A new online registration system for short-term lets is being developed by Fáilte Ireland and is expected to launch in 2024. Hosts will be required to register their properties annually and confirm they have the necessary planning permission.

Submit required forms: Depending on your situation, you may need to submit the following forms to the Waterford City and County Council:

• Form 15: Completed at the start of the year for home-sharing in a principal private residence
• Form 16: Completed when the 90-day cap for home-sharing has been reached
• Form 17: Completed at the end of each year for home-sharing

Pay any applicable fees: There may be fees associated with obtaining planning permission or registering your STR. Check with the Waterford City and County Council for the most up-to-date information on fees.

Comply with safety regulations: Ensure your STR meets all safety requirements, such as providing a first aid kit, fire extinguisher, and clearly marked fire escape routes. Follow any applicable gas safety regulations and maintain working carbon monoxide detectors.

The process for obtaining an STR license in Dungarvan may take several weeks or months, depending on the complexity of your application and the workload of the local authorities.

Penalties for operating without a license:

1. Property owners who advertise their STR without a valid registration number may face a €300 fixed payment notice from Fáilte Ireland or a maximum fine of €5,000 if the case goes to district court.
2. Online platforms like Airbnb and Booking.com that advertise unregistered STRs could face fines of up to €5,000 per listing.
3. The Waterford City and County Council can take enforcement action if an STR operates without the required permission or if the terms of the permission are not met.

To avoid penalties and ensure compliance, it's essential to follow all local regulations and obtain the necessary licenses before operating a short-term rental in Dungarvan.

Required Documents for Dungarvan Short-Term Rentals

To comply with the regulations set by the Waterford City and County Council, short-term rental hosts in Dungarvan must submit the following documents:

1. Form 15 - Notification for Home-Sharing: This form must be completed at the start of each year if you are home-sharing in your principal private residence. It notifies the council that you intend to engage in short-term letting of your home for a period not exceeding 90 days in a calendar year.
2. Form 16 - Notification for Home-Sharing (90 Day Cap Reached): If you reach the 90-day cap for home-sharing in your principal private residence, you must complete and submit this form to the council. It informs the council that you have reached the maximum allowable days for short-term letting without requiring planning permission.
3. Form 17 - Notification for Home-Sharing (End of Year): At the end of each calendar year, home-sharers must complete and submit this form to the council. It provides details on the total number of days the property was used for short-term letting during the year.

These forms can be obtained from the Waterford City and County Council's website or by visiting their offices. The purpose of these documents is to ensure that short-term rental hosts are complying with the regulations and to help the council monitor the impact of short-term rentals on the local housing market.

In addition to these forms, hosts may also need to provide proof of planning permission or exemption, depending on their specific circumstances. It's essential to consult with the council to determine which documents are required for your short-term rental.

Failure to submit the necessary documents or obtain the required permissions can result in enforcement action by the council, including fines and legal proceedings. To avoid penalties and ensure compliance, hosts should familiarize themselves with the regulations and submit all required documents in a timely manner.

Dungarvan Short-Term Rental Taxes

As a short-term rental host in Dungarvan, it's essential to understand the various taxes that apply to your rental business. Here's a breakdown of the key tax types and rates:

Income Tax: Rental income from short-term lets is subject to income tax. The rates for individual landlords are as follows:

1. The first €42,000 of rental income is taxed at 20%
2. Any income above €42,000 is taxed at 40%

Universal Social Charge (USC): If your rental income exceeds €13,000, you must pay USC at the following rates:

1. First €12,012: 0.5%
2. €12,012 - €25,760: 2%
3. €25,760.01 - €70,044: 4%
4. Anything above €70,044.01: 8%

PRSI: As a non-resident landlord, you are generally not subject to Pay Related Social Insurance (PRSI). However, if you let your property through booking sites like Airbnb, your rental profit will be liable to PRSI at a rate of 4%.

Value Added Tax (VAT): Under the revised VAT rules effective January 1, 2024, short-term rentals will be subject to VAT at a reduced rate of 13% if the lessor is a legal entity or a natural person who owns at least three short-term rental properties. Natural persons with up to two rental properties will not be within the scope of VAT.

Local Property Tax (LPT): All property owners in Ireland, including non-residents, must pay LPT. The rate is 0.18% for properties valued under €1 million and 0.25% for the amount of the value over €1 million.

Deductions and Write-offs

As a landlord, you can claim various expenses and allowances to reduce your taxable rental income. Some of the allowable deductions include:

Mortgage interest: You can claim 100% of the interest as a deduction against your rental income.

Pre-letting expenses: If your property has been vacant for 12 months, expenses incurred during that period (up to €5,000) may be offset against your rental income when you next let out the property.

Capital allowances: You can claim 12.5% per annum over 8 years for the cost of qualifying assets purchased for your rental property, such as furniture and fittings.

1. Repairs and maintenance costs
2. Property management fees
3. Insurance premiums
4. Accounting and legal fees

It's crucial to keep accurate records of all your rental income and expenses to ensure you claim the appropriate deductions and pay the correct amount of tax. Consult with a qualified tax professional or accountant to optimize your tax strategy and ensure compliance with Irish tax laws.

By understanding the applicable taxes and available deductions, you can effectively manage your short-term rental business in Dungarvan and maximize your profits while meeting your tax obligations.

Ireland Wide Short-Term Rental Rules

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

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 or if the terms of the permission have not been met.

Taxes Consolidation Act 1997: Airbnb is legally required to provide Irish host earning information to the Irish Revenue annually. Reports include details like names, addresses, and amounts paid to hosts. Hosts must declare their rental income to Revenue each year.

Rent-a-Room Relief: Under Section 216A of the Tax Consolidation Act 1997, income up to €14,000 per year earned by renting a room in an individual's sole or main residence may be exempt from income tax and other fiscal obligations, subject to certain conditions. However, the Revenue has clarified that short-term rental income from occasional visitors does not qualify for this relief.

Fire Safety: Short-term rental properties must comply with fire safety regulations, including having working smoke alarms, carbon monoxide detectors, fire extinguishers, and clearly marked fire escape routes.

Insurance: While Airbnb provides some basic coverage through AirCover, it is highly recommended for hosts to review their homeowner's or renter's insurance policy to ensure adequate liability coverage and property protection.

Upcoming Registration System: The Irish government approved a new short-term rental proposal in December 2022 to address housing shortages in Rent Pressure Zones. This includes a registration system managed by Fáilte Ireland, requiring landlords to register properties rented for up to 12 nights. Fines of up to €5,000 may be imposed for illegally advertising unregistered properties.

It's crucial for Dungarvan hosts to stay informed about both local and national regulations to ensure compliance and avoid penalties. As the short-term rental landscape continues to evolve in Ireland, hosts should regularly check for updates from the Waterford City and County Council, Fáilte Ireland, and the Irish Revenue.

Does Dungarvan Strictly Enforce STR Rules?

Based on discussions among hosts on forums like Reddit and Bigger Pockets, it appears that Dungarvan and Ireland as a whole are not particularly Airbnb friendly compared to some other cities and countries. While short-term rentals are allowed in Dungarvan if the host is present in the home, there are increasing efforts to crack down on STRs operating illegally.

In December 2022, the Irish government approved a new proposal to address housing shortages that includes requiring STR hosts to register their properties with Fáilte Ireland. Hosts renting out their properties for up to 12 nights per year will need to register. Failure to do so could result in fines up to €5,000 for illegally advertising unregistered properties.

One Airbnb host on Reddit shared their experience briefly hosting in 2016, noting how profitable it was. They could easily cover their entire rent by letting out a room or their whole apartment for just a few nights per month. However, they ultimately stopped hosting due to feeling guilty about contributing to the housing crisis.

While there are still many STRs operating in Dungarvan and across Ireland, hosts are increasingly receiving Cease and Desist letters from planning commissions ordering them to stop hosting. Groups of STR operators are banding together to fight back against prohibitions, but the landscape is becoming more challenging.

Overall, the consensus among hosts seems to be that Dungarvan and other Irish cities are ramping up enforcement of STR rules and restrictions. Operating an STR that doesn't strictly comply with the regulations is becoming riskier. Dungarvan appears less friendly and tolerant of Airbnbs compared to some other global cities. However, the profitability of STRs means many hosts continue to operate under the radar despite the rules.

How to Start a Short-Term Rental Business in Dungarvan

Starting a short-term rental business in Dungarvan can be a profitable venture, but it's essential to follow the proper steps to ensure compliance with 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): Dungarvan is currently not designated as an RPZ, but there have been calls to make it one due to the local rental crisis. If Dungarvan becomes an RPZ, additional restrictions may apply to short-term rentals, so it's crucial to stay informed about any changes in legislation.
2. Obtain planning permission or apply for an exemption: In most cases, you'll need to obtain planning permission from the Waterford City and County Council or apply for an exemption to operate a short-term rental. This requirement applies whether you're renting out your entire property or just a room.Familiarize yourself with the exemptions to the planning permission requirements. For example, if you're "home-sharing" (renting a room while you also occupy the property) or letting your principal private residence for less than 90 days a year while temporarily away, you may not need planning permission.
3. Register with the planning authority: If you qualify for an exemption, you may still need to register with the planning authority. This applies if you're home-sharing or letting your principal private residence for less than 90 days a year.Visit the Waterford City and County Council website or offices to obtain the necessary forms and information on how to register.
4. Prepare your property: Ensure your property is clean, well-maintained, and equipped with all necessary amenities to provide a comfortable stay for your guests. Consider your target audience and tailor your decor and amenities accordingly. Invest in high-quality photos of your property to showcase its best features and attract potential guests.
5. Obtain necessary licenses and permits: In addition to planning permission, you may need to obtain other licenses and permits, such as a general business license and a short-term rental license. Check with the Waterford City and County Council for specific requirements. Work with a legal services provider or attorney to ensure you have all the necessary licenses and permits.
6. Register with Fáilte Ireland: A new online registration system for short-term lets is being developed by Fáilte Ireland and is expected to launch in 2024. Once launched, you'll need to register your property annually and confirm you have the necessary planning permission. Stay updated on the launch of this registration system and ensure you register your property as soon as it's available.
7. Understand your tax obligations: Rental income from short-term lets is subject to income tax, and you may also be liable for other taxes such as VAT and PRSI. Consult with a tax professional to ensure you're meeting all your tax obligations. Keep accurate records of your rental income and expenses to simplify your tax reporting and take advantage of available deductions.
8. List your property: Once your property is ready and you have all the necessary permissions and registrations, list your property on popular short-term rental platforms like Airbnb and VRBO. Craft a compelling listing description and use high-quality photos to make your property stand out from the competition.

By following these steps and staying informed about local regulations, you can successfully start and operate a short-term rental business in Dungarvan. Remember to provide excellent customer service and maintain your property to ensure positive reviews and repeat business.

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

If you have questions or concerns about short-term rental regulations and zoning in Dungarvan, there are several resources and contacts available to assist you:

Waterford City and County Council Planning Department: For queries related to planning permission, exemptions, and enforcement, contact the Planning Department at:

1. Email: planning@waterfordcouncil.ie
2. Phone: 0761 10 20 20
3. Address: Planning Department, 1st Floor, Menapia Building, The Mall, Waterford, X91 PK15

Short-Term Letting Queries: For specific questions about home-sharing or short-term letting in Dungarvan, email shorttermletting@waterfordcouncil.ie. You can also submit completed registration/notification forms (Forms 15, 16, and 17) to this email address or the Planning Department's mailing address.

Fáilte Ireland: Once the new online registration system for short-term lets launches in 2024, hosts will need to register their properties annually with Fáilte Ireland. Stay updated on the launch and registration process by visiting their website at https://www.failteireland.ie/.

Citizens Information: For general information about renting your property for short-term lets in Ireland, consult the Citizens Information website at https://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/renting_your_property_for_shortterm_lets.html.

Local Host Communities: Connecting with other short-term rental hosts in Dungarvan can provide valuable insights and support. Consider joining local host groups on platforms like Facebook or attending local meetups to network with experienced hosts and stay informed about the latest developments in the industry.

Online Resources: Participate in online forums and communities, such as the Ireland section on the Airbnb Community Center (https://community.withairbnb.com/t5/Ireland/bd-p/IE) or the Ireland forum on BiggerPockets (https://www.biggerpockets.com/forums/612-ireland), to ask questions, share experiences, and learn from other hosts.

By utilizing these resources and staying in contact with the relevant authorities, you can ensure that your short-term rental business in Dungarvan operates in compliance with local regulations and zoning requirements.

What Do Airbnb Hosts in Dungarvan on Reddit Think about Local Regulations?

While there aren't many Dungarvan-specific discussions on platforms like BiggerPockets, some Airbnb hosts have shared their experiences and thoughts about local regulations on Reddit. Here are a few notable examples:

Reddit user's experience hosting in 2016: In a Reddit thread discussing the need to ban Airbnb outright, one user shared their brief experience hosting on Airbnb in 2016. They had a two-bedroom apartment in town and decided to rent out the spare room on Airbnb for the summer instead of getting a new housemate. The user quickly realized how profitable it was, easily covering the entire rent by hosting for just a few nights per month. However, they ultimately stopped hosting due to feeling guilty about contributing to the housing crisis and the lack of long-term rental stock.

Concerns about the impact on the housing market: In the same thread, several users expressed concerns about the impact of short-term rentals on the local housing market in Dungarvan and across Ireland. They noted that the proliferation of Airbnbs has removed many properties from the long-term rental market, making it difficult for residents to find affordable housing. Some users called for stricter regulations or even an outright ban on Airbnb to address the housing shortage.

Discussions on fixing the housing crisis: In another Reddit thread asking what people would do to fix the country, users suggested various measures to address the housing crisis, including making it harder for groups to bulk buy houses through heavy taxation, providing tax incentives for tradespeople to build more houses, and taxing people with multiple properties exponentially per property.

While these discussions provide some insight into the sentiments of Airbnb hosts and residents in Dungarvan and Ireland more broadly, it's important to note that they represent individual opinions and experiences. The lack of Dungarvan-specific discussions on platforms like BiggerPockets suggests that the town may have a smaller Airbnb host community compared to larger cities.

Overall, it appears that while some hosts have benefited from the profitability of short-term rentals, there is growing concern about the impact on the local housing market and calls for stricter regulations to address the issue.

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.