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

Starting a Short-Term Rental Business in Ennis

To operate a short-term rental in Ennis, Ireland, property owners must comply with regulations set by the Ennis Town Council. As of July 2019, short-term letting is defined as renting out a house or apartment, or part of one, for any period not exceeding 14 days.

Owners who wish to let their principal private residence in Ennis, which is a designated Rent Pressure Zone, can avail of a 90-day per year exemption without requiring planning permission. However, they must register with the local planning authority and fulfill specified reporting obligations.

If the property is not the owner's principal residence, or the 90-day limit is exceeded, a change of use planning permission is required to legally operate as a short-term let. It is up to the local planning authority to make a determination on such applications.

Despite these regulations, enforcement seems to be lacking. Locals have complained that many houses in Ennis that previously housed families are now operating as full-time short-term rentals, contributing to the housing shortage.

As of May 2024, there were only 7 long-term rental houses available in Ennis and surrounding areas on Daft.ie. In contrast, 316 entire houses were listed on Airbnb for short-term stays in roughly the same region. One house in a residential estate was charging €430 per night, despite a family having lived there just a year prior.

To address these issues, the Irish government is developing an online registration system for short-term lets, expected to launch in late 2024. Under this system, STR operators will have to annually register with Fáilte Ireland and confirm they have the correct planning permission. Short-term rental booking platforms like Airbnb will only be able to list properties with a valid registration number.

Failure to comply with the regulations can result in legal action by planning authorities under the Planning and Development Act 2000. The upcoming legislation will also introduce fines for both property owners and websites that advertise STRs without the proper planning permission.

In summary, while Ennis has enacted rules to regulate short-term rentals and return housing stock to the long-term market, gaps in enforcement have allowed STRs to proliferate. Stricter oversight and penalties are on the horizon to ensure compliance and protect housing availability for local residents.

Short-Term Rental Licensing Requirement in Ennis

To legally operate a short-term rental in Ennis, property owners must register their rental property with the City of Ennis Rental Registration Program. This program aims to promote public health, safety, and welfare by regulating the use, occupancy, construction, and maintenance of all rental units within the city.

To register a single-family rental property, owners can submit an online application through the City of Ennis website. For multi-family properties (3+ units), a separate online application is available.

The following fees apply for the Rental Registration Program:

• Single-Family Dwelling Units: $20 per unit annually
• Duplexes: $20 per unit annually
• Multi-Family Dwellings (3+ Units): $15 per unit annually
• Initial Late Registration (1st month): $75
• Late Registration (each month thereafter the initial late fee): $50

As part of the registration process, the City conducts inspections of rental dwellings to ensure they meet minimum safety and health standards. The initial inspection and first re-inspection have no charge. However, a second re-inspection costs $75, and any subsequent re-inspections are $150 each.

Failure to register a rental property or obtain the required permit can result in penalties. The fine for work started or completed without a permit is an amount equal to the required fee, with a minimum of $250. This penalty is in addition to any other fees or penalties that may be due.

It's important to note that a new online registration system specifically for short-term lets is being developed by the Irish government and is expected to launch in late 2024. Under this upcoming system, STR operators will need to annually register with Fáilte Ireland and confirm they have the correct planning permission. Booking platforms will only be able to list properties with a valid registration number.

While the exact processing time for STR licensing in Ennis is not specified, the City aims to schedule inspections within 48 business hours of receiving a registration form submitted before 3:00 p.m. Monday through Friday (excluding holidays). Property owners should plan accordingly and initiate the registration process well in advance of offering their unit as a short-term rental.

In summary, to avoid fines and operate legally, Ennis STR owners must register their property with the City, pay the applicable annual fees, and ensure their rental meets all health and safety requirements. Stricter enforcement of STR regulations is on the horizon, so compliance is crucial for those wishing to offer short-term accommodations in Ennis.

Required Documents for Ennis Short-Term Rentals

To operate a short-term rental in Ennis, Ireland, property owners must submit the following documents as part of the registration process:

1. Completed Town of Ennis Short-Term Rental Property Inspection Checklist: This checklist ensures the rental property meets minimum health and safety standards. It covers areas such as fire safety, electrical systems, plumbing, and general building conditions. The checklist is available on the Ennis Town Council website and must be completed by the property owner or their authorized agent.
2. Annual Business License Application: STR operators in Ennis are required to obtain a business license from the Town Council. The application form can be downloaded from the Council's website and must be submitted along with the inspection checklist and applicable fees.
3. Planning Permission (if required): If the STR property is located in a Rent Pressure Zone (RPZ) and is not the owner's principal private residence, or if the 90-day annual limit for short-term letting is exceeded, a change of use planning permission is necessary. This permission must be obtained from the local planning authority before registering the STR.
4. Proof of Registration with Fáilte Ireland (upcoming requirement): The Irish government is developing an online registration system for short-term lets, expected to launch in late 2024. Under this system, STR operators will need to annually register with Fáilte Ireland, the National Tourism Development Authority, and confirm they have the correct planning permission. A valid registration number will be required for listing on booking platforms like Airbnb.
5. Evidence of Property Ownership or Landlord Consent: STR operators must provide proof that they own the property or have the legal right to rent it out on a short-term basis. If the operator is a tenant, written consent from the landlord may be required.
6. Proof of Insurance: STR operators should obtain appropriate insurance coverage for their rental property, including public liability insurance. Evidence of this coverage may be required during the registration process.

By submitting these documents and complying with all applicable regulations, STR operators in Ennis can legally offer their properties for short-term accommodation. Failure to provide the necessary documentation or obtain proper permissions can result in fines and legal action by the Town Council and planning authorities.

Ennis Short-Term Rental Taxes

When operating a short-term rental business in Ennis, Ireland, several types of taxes apply. It's crucial for STR operators to understand their tax obligations and comply with all applicable regulations to avoid penalties. The main taxes that STR businesses in Ennis need to be aware of are income tax, Value Added Tax (VAT), and Local Property Tax (LPT).

Income Tax

Income generated from providing short-term accommodation in Ennis is subject to income tax. The tax treatment depends on whether the income is considered trading income (Case I) or other income (Case IV).

If you frequently provide STR services on a commercial basis with a view to making profits, your income will generally be treated as trading income. In this case, you can deduct allowable expenses and capital allowances for plant and machinery (12.5% per annum over 8 years) when calculating your taxable profits.

If your STR income is from occasional or once-off lettings, it will likely be considered other income. While there are no specific provisions for deducting expenses, Revenue allows deductions for costs directly associated with providing the accommodation. However, capital allowances are not available.

The tax rate you pay depends on your total income and personal circumstances. In the 2024 tax year, the standard rate of 20% applies to income up to €39,300 for single individuals and €49,000 for married couples/civil partners. Income above these thresholds is taxed at the higher rate of 40%.

Value Added Tax (VAT)

VAT applies to STR operators carrying on a trade whose annual turnover exceeds or is likely to exceed €37,500. As of January 1, 2019, the VAT rate for short-term accommodation in Ireland increased from 9% to 13.5%.

Local Property Tax (LPT)

LPT is an annual tax charged on the market value of residential properties in Ireland. The tax is based on valuation bands, with rates ranging from 0.1029% to 0.2563% of the property's value, depending on the band. STR operators in Ennis must pay LPT on their rental properties.

Possible Deductions and Write-Offs

STR businesses in Ennis may be able to deduct certain expenses when calculating their taxable income, such as:

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. Repairs and maintenance costs
6. Insurance premiums
7. Accounting and legal fees

If you rent out a room in your primary residence, you might be eligible for rent-a-room relief, which can exempt rental income up to €14,000 per year from income tax, PRSI, and USC. However, this relief only applies to lettings of at least 28 consecutive days, which may exclude most STRs.

In summary, STR operators in Ennis must navigate income tax (at 20% or 40%, depending on total income), VAT (13.5% if annual turnover exceeds €37,500), and LPT (0.1029% to 0.2563% of the property value). Careful record-keeping and professional advice can help ensure compliance and maximize available deductions.

Ireland Wide Short-Term Rental Rules

In addition to local regulations in Ennis, short-term rental hosts must also comply with Ireland's national laws and ordinances. These country-wide rules, introduced in July 2019, aim to regulate the growing STR market, particularly in Rent Pressure Zones (RPZs) where housing demand is high.

Under Irish law, a short-term let is defined as the rental of a house or apartment, or part of one, for any period not exceeding 14 days. Property owners in RPZs who wish to use their properties for short-term letting may need to obtain planning permission from their local authority or apply for an exemption.

However, there are some exceptions. Hosts can rent out a room or rooms in their principal private residence (PPR) in an RPZ for unlimited short-term lets while also occupying the residence. Additionally, they can let their entire PPR for up to 90 days per year without requiring planning permission.

To streamline the process, the Irish government is developing a new online registration system for short-term lets, expected to launch in late 2024. Under this system, STR operators will need to annually register with Fáilte Ireland and confirm they have the correct planning permission. Booking platforms like Airbnb will only be able to list properties with a valid registration number.

Failure to comply with these regulations can result in legal action and penalties. Under the Planning and Development Act 2000, planning authorities can pursue STR operators who lack the required permission. Fines for both property owners and websites that advertise unregistered STRs are also on the horizon.

In terms of taxation, STR income is subject to Irish Revenue regulations. Hosts must declare their earnings annually, with Airbnb legally required to provide Revenue with details such as names, addresses, and amounts paid. Tax forms for Airbnb hosts are due every October 31st.

While navigating these national regulations may seem daunting, they are designed to balance the benefits of short-term rentals with local housing concerns. By understanding and adhering to these rules, STR hosts in Ennis can operate legally, avoid penalties, and contribute positively to their communities.

Does Ennis, Ireland Strictly Enforce STR Rules?

Based on discussions from hosts on Reddit and the Airbnb Community, it appears that Ennis, Ireland does not strictly enforce short-term rental rules compared to some other cities. Many hosts continue to operate Airbnbs in Ennis despite regulations that require planning permission.

One Reddit user noted there are only 7 long-term houses for rent in the Ennis area on Daft.ie, but a whopping 316 entire houses listed on Airbnb in roughly the same region. Another mentioned a house in their estate listed on Airbnb for €430 per night that used to have a family living there, but has been an STR for the past year with minimal occupancy. This suggests STR rules are loosely enforced.

On the Airbnb Community forum, a host shared that Ennis recently became a Rent Pressure Zone due to high rental demand and prices, yet the number of STRs continues increasing. The Ennis Chamber of Commerce even stated the government should be careful not to damage tourism with new legislation restricting STRs.

So in summary, while Ennis technically requires planning permission for short-term rentals, the reality is that many hosts operate Airbnbs without strictly following the rules. Enforcement seems lax compared to stricter cities, making Ennis relatively Airbnb-friendly in practice, if not fully in policy. The abundance of STRs vs. long-term rentals demonstrates that hosts are able to skirt the regulations with few repercussions.

How to Start a Short-Term Rental Business in Ennis, Ireland

Starting a short-term rental business in Ennis, Ireland requires careful planning and execution. Here are the key steps to get your Airbnb operation off the ground:

1. Understand the legal requirements: While Ennis doesn't strictly enforce STR rules compared to some cities, it's still important to obtain the proper planning permission from the local authority if required. If your property is in a Rent Pressure Zone, you'll likely need permission unless it's your primary residence that you're renting for under 90 days per year. Familiarize yourself with the regulations to avoid penalties.
2. Identify a suitable property: Look for a property in Ennis that has strong potential for short-term rentals. Consider factors like location (proximity to tourist attractions), amenities, size, and condition. You can purchase a property or rent one to sublease on Airbnb. Browse current real estate listings to get a sense of prices and availability.
3. Set up your Airbnb listing: Once you have a property ready, create a compelling Airbnb listing that showcases its best features. Take high-quality photos, write an enticing description, and set competitive rates. Highlight amenities like fast WiFi, free parking, or unique decor. It can take up to 72 hours for a new listing to appear in search results.
4. Automate your operations: Use vacation rental software to streamline tasks like guest communication, dynamic pricing, calendar management, and more. This will save you hours of work per week. Smart locks are also essential for providing a smooth check-in experience for guests without meeting them in-person.
5. Optimize your pricing: To maximize revenue, you'll need to adjust your nightly rates frequently based on factors like seasonality, special events, and competitors' prices. Consider using an automated dynamic pricing tool to update your rates in real-time across multiple booking platforms.
6. Hire a reliable cleaning service: Cleanliness is crucial for getting 5-star reviews and repeat bookings. Interview local cleaning companies and hire one that you trust to consistently prepare your Airbnb for the next guests. Create a detailed cleaning checklist for them to follow.
7. Provide excellent customer service: Be responsive to guest inquiries and go above-and-beyond to create memorable stays. Welcome them with a local treat, offer personalized recommendations, and address any issues promptly. Solicit 5-star reviews from happy guests to further boost your listing in Airbnb search results.

Some additional tips for Airbnb success in Ennis:

1. Network with other local hosts to trade best practices and get support when issues arise.
2. Use social media to market your listing to potential guests, showcasing the beauty of Ennis.
3. Provide a digital guidebook with your recommendations for local restaurants, pubs, and attractions.
4. Be upfront in your listing about any quirks or potential hazards to manage guest expectations.

With some entrepreneurial spirit and hard work, you can build a profitable short-term rental business in Ennis. While the government has proposed new restrictions on STRs, the laws are facing delays, so now is still an opportune time to get started. Once you've mastered the process, you can look to expand your portfolio and hire additional help as needed.

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

If you have questions about short-term rental regulations and zoning in Ennis, your first point of contact should be the Planning Department of Clare County Council. They are responsible for managing development proposals and can provide guidance on the rules for operating an Airbnb. Here is their contact information:

Planning Department
Clare County Council
Áras Contae an Chláir
New Road, Ennis, Co. Clare, V95 DXP2
Phone: (065) 6846232
Email: planoff@clarecoco.ie
Hours: 9:00 a.m. to 4:00 p.m. Monday – Friday (closed Saturdays, Sundays, and Bank Holidays)

For general information about renting your property for short-term lets in Ireland, you can also contact the Citizens Information Phone Service at 0818 07 4000, Monday to Friday from 9am to 8pm. Their website has a helpful overview of the regulations and tax obligations for STRs.

While there don't appear to be any Ennis-specific forums for Airbnb hosts, you may find useful information and support in these online communities:

Airbnb Community Center - Hosting forum: https://community.withairbnb.com/t5/Hosting/ct-p/hosting-cc

New hosts can ask questions and learn from experienced hosts. There are some discussions related to Irish regulations.

Irish Property Owners Association forum: https://www.ipoa.ie/forum/

A place for residential property owners in Ireland to discuss various topics, including short-term letting. Requires membership to post.

/r/airbnb_hosts subreddit: https://www.reddit.com/r/airbnb_hosts/

An active community of Airbnb hosts worldwide sharing tips and discussing challenges. Use the search bar to find threads about Ireland.

Connecting with other local hosts, whether online or in-person, is a great way to navigate the evolving regulatory landscape and optimize your STR business. Don't hesitate to reach out to Clare County Council for specific guidance to ensure you are operating your Airbnb legally in Ennis.

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

While there aren't many Ennis-specific discussions about short-term rental regulations on Reddit or Bigger Pockets, some insights can be gleaned from broader conversations about the Irish Airbnb market:

On the Ireland subreddit, one user noted the stark contrast between long-term and short-term rentals in Ennis: "7 houses to rent in Ennis and surrounding area on Daft, all listed with rent per week. 316 Entire Houses listed on Airbnb for same region more or less. One house listed on Airbnb in my estate is €430 a week night. There used to be a family living in it. They moved out this time last year. I've only ever seen 2 different groups of people at the house since." This suggests that STR rules are not being strictly enforced.

In a Bigger Pockets forum post titled "Creating an LLC for a Foreign Airbnb Property", an investor asked about the legal structure for operating an Airbnb in their father's vacant vacation home in Ireland. While not specific to Ennis, this shows that some hosts are navigating the regulatory landscape to turn underutilized properties into STRs.

Another Bigger Pockets thread on the "Hardest Lessons Learned from Short Term Rentals" highlights the challenges of reaching revenue goals with a new STR property. This is a common issue regardless of location, as hosts often underestimate the ramp-up period.

On the Galway subreddit, a discussion about rising rents and "greedy landlords" touched on the proliferation of Airbnbs: "3 houses in my estate are empty and have been for ages. They are listed on Airbnb for about 400 a night. Should be a temporary ban put on that immediately." The sentiment here is that STRs are contributing to the housing shortage.

Overall, while there is limited Ennis-specific commentary from hosts, the broader discussions indicate that short-term rentals continue to operate in Ireland with varying degrees of oversight. Hosts seem aware of the regulations but find ways to list properties on Airbnb regardless. The lack of affordable long-term housing has led to some backlash against STRs, but the market remains fairly active. Aspiring Airbnb hosts in Ennis would be wise to thoroughly research the local rules and gauge community sentiment before listing properties.

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.