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

Starting a Short-Term Rental Business in Killarney

If you're looking to start a short-term rental business in Killarney, Ireland, there are several important regulations and steps to be aware of. The Irish government has been implementing stricter rules on short-term lets, especially in rent pressure zones like Killarney, in an effort to increase the supply of long-term rental properties and ease the housing crisis.

Before listing your property on Airbnb, VRBO or other platforms, you must register it with the local authority in Killarney. This is a requirement for all short-term rental properties, but especially those located in rent pressure zones. If you plan to rent out your entire home for more than 90 days per year, you will also need to apply for a change of use planning permission.

In addition to registration, there are several other key steps when starting a short-term rental business in Killarney:

• Check local zoning laws to ensure your property is zoned for short-term rental use. Depending on the location, there may be limits on how many nights per year you can rent, how many guests are allowed, and other restrictions.
• Apply for necessary licenses and permits, which commonly include a general business license and a short-term rental license demonstrating your property meets health and safety standards.
• Follow tax rules by registering your business for tax purposes, collecting rental taxes from guests, and remitting those taxes to the proper agencies. Many booking platforms will handle this automatically.
• Create a business plan outlining your target guests, pricing strategy, marketing approach, and projected income and expenses. Having a clear plan is crucial for success.
• Invest in good security to protect your property and give guests peace of mind, such as smart locks, doorbell cameras, and other deterrents.
• Make your rental stand out with quality photos, detailed descriptions highlighting unique amenities, and a space tailored to your target guests' needs.

The Municipality of Killarney has published specific rules for short-term rentals in By-Law 2024-12. This requires rental owners to provide guests with an information package including a copy of the license, emergency contact info, fire safety procedures, noise restrictions, and more.

While navigating the regulations may seem daunting, many hosts have found success renting out properties in Killarney. For example, Airbnb Superhost Brian Gilfedder uses his rental income to pay for his kids' education and always makes an effort to support the local rural economy by connecting guests with the best businesses and activities in the area.

However, some hosts are concerned about how new government planning guidelines could negatively impact rural tourism. Airbnb is encouraging the government to consult with stakeholders and implement proportional rules that allow homeowners to continue renting secondary suites and holiday homes without burdensome planning permissions.

Overall, starting a short-term rental business in Killarney requires careful research and compliance with evolving regulations. But with increasing tourism demand, especially from the US, it can be a lucrative opportunity for hosts who prioritize guest experience and operate responsibly within the local laws.

Short-Term Rental Licensing Requirement in Killarney

To operate a short-term rental in Killarney, which is designated as a Rent Pressure Zone, property owners must obtain the proper licensing and planning permissions from the Kerry County Council. The specific requirements depend on the type of STR:

For homesharing (renting a room in your primary residence):

Register the property with the Kerry County Council

1. Submit Form 15 (Start of Year Notification) to declare the property will be used for homesharing
2. If renting the entire primary residence, the 90-day annual limit applies, after which change of use planning permission is required
3. Submit Form 16 if the 90-day limit is exceeded
4. Complete Form 17 (End of Year Notification) summarizing the rental activity for the year

For secondary properties (not the owner's primary residence):

Apply for a change of use planning permission to allow for short-term letting, unless the property already has specific permission for tourism or STR use

To submit the required forms and applications, property owners should send them to:

1. Homesharing and Short Term Letting
2. Planning Department, County Buildings
3. Rathass, Tralee, Co. Kerry, V92H7VT

The Kerry County Council website does not specify the fees for registering a homesharing property or applying for change of use permission. The typical timeline for processing these applications is also not provided.

However, new regulations set to take effect on September 1, 2022, will make it an offense to advertise STR properties without the required planning permissions, with penalties including:

1. Fines up to €5,000 or six months in prison, or both
2. Additional fines of €1,500 per day if a property continues to be advertised after the initial conviction

These stricter rules aim to return more STR properties to the long-term rental market in high-demand areas like Killarney. Property owners must ensure they obtain the proper licensing to avoid significant fines and legal issues.

Required Documents for Killarney Short-Term Rentals

To operate a short-term rental in Killarney, which is a designated Rent Pressure Zone, property owners must submit the following documents to the Kerry County Council:

1. Form 15 - Start of Year Notification: This form must be submitted within 4 weeks of the start of each year, and no later than 2 weeks before the first short-term let of the year for that property. It declares the property will be used for homesharing or short-term letting.
2. Form 16 - 90 Day Threshold Notification: This form is only required if you are a homeowner temporarily away from your principal residence and have reached the 90-day limit for short-term letting. It must be submitted no more than 2 weeks after the 90-day threshold has been reached.
3. Form 17 - End of Year Notification: This form summarizes the rental activity for the year and must be submitted between January 1 and January 28 of the year following the lettings.
4. Proof of Principal Private Residence: Documentation must be provided to prove the property being registered is the owner's principal private residence. Acceptable documents may include utility bills, bank statements, or a driver's license showing the address.
5. Change of Use Planning Permission: If the property is not the owner's principal private residence, or if a principal residence is rented for more than 90 days in a year, a change of use planning permission is required to allow for short-term letting. This can be obtained by submitting a planning permission form to the Planning Department of the Kerry County Council.

These forms and supporting documents can be submitted by email or post to:

Homesharing and Short Term Letting
Planning Department, County Buildings
Rathass, Tralee, Co. Kerry, V92H7VT

Failure to obtain the proper licensing and permissions can result in significant penalties, including fines up to €5,000 or six months in prison, with additional daily fines for continued non-compliance. It is crucial for short-term rental operators in Killarney to follow these regulations closely.

Killarney Short-Term Rental Taxes

When operating a short-term rental business in Killarney, it's important to understand the various taxes that apply and the deductions you may be able to claim. Here is a breakdown of the key tax considerations:

Income Tax

1. Short-term rental income is considered trading income rather than passive rental income for tax purposes in Ireland.
2. Trading income is subject to income tax at progressive rates of 20% and 40%, depending on your total taxable income.
3. You will also owe Universal Social Charge (USC) of up to 11% and Pay Related Social Insurance (PRSI) of 4% on your net rental profits.

Value Added Tax (VAT)

1. If your annual turnover from short-term rentals exceeds €37,500, you must register for and charge VAT at 9% (increasing to 13.5% on September 1, 2023).
2. Below this threshold, VAT registration is optional. If registered, you can reclaim VAT on your expenses.

Local Property Tax (LPT)

1. LPT is an annual tax charged on the market value of residential properties in Ireland.
2. The amount owed depends on the valuation band your property falls into, but is not a deductible expense for income tax purposes.

Allowable Expense Deductions

To calculate your net rental profit, you can deduct expenses that are wholly and exclusively incurred for the purposes of the rental business. These may include:

1. Mortgage interest (restricted to 75% of the interest paid)
2. Repairs, maintenance, and cleaning fees
3. Insurance premiums
4. Utility costs
5. Advertising and online booking platform commissions
6. Accounting fees
7. Depreciation on furniture and fixtures at 12.5% over 8 years

It's crucial to keep detailed records and receipts for all your income and expenditures to support expense claims. Consider engaging a qualified tax professional to assist with tax planning and preparation to optimize your deductions and ensure compliance.

By understanding the tax obligations and strategically claiming available deductions, short-term rental operators in Killarney can manage their tax liabilities effectively. However, it's essential to stay updated on any changes in tax laws and seek personalized advice for your specific circumstances.

Ireland Wide Short-Term Rental Rules

In addition to the specific regulations in Killarney and County Kerry, short-term rental hosts must also comply with national laws and requirements that apply across Ireland. Here are some of the key Ireland-wide rules to be aware of:

Planning and Development Act 2000 (Exempted Development) (No. 2) Regulations 2019

• Introduced new planning requirements for short-term lets in Rent Pressure Zones (RPZs) like Killarney.
• Hosts in RPZs must obtain planning permission to rent out a second property on a short-term basis.
• Hosts can rent out a room in their primary residence (while continuing to live there) or their entire home for up to 90 days per year without planning permission.

Short-Term Tourist Letting Bill (Pending)

• New legislation is being developed to require all short-term rental properties to be registered with Fáilte Ireland annually.
• Once launched, the online registration system will cover short-term lets of up to 21 nights.
• Registered properties will receive a registration number that must be displayed on all advertisements and booking platforms.

Income Tax and Universal Social Charge (USC)

• Income earned from short-term rentals is subject to income tax at progressive rates of 20% and 40%.
• Hosts also owe USC of up to 11% and PRSI (Pay Related Social Insurance) of 4% on their net rental profits.

Value-Added Tax (VAT)

• Hosts with annual turnover exceeding €37,500 must register for and charge VAT at 13.5% (increasing from 9% in September 2023).
• Below this threshold, VAT registration is optional. Registered hosts can reclaim VAT on expenses.

Local Property Tax (LPT)

• An annual tax based on the market value of the rental property.
• The amount owed depends on the valuation band but is not deductible for income tax purposes.

Rent-a-Room Relief Scheme

• Hosts can earn up to €14,000 per year tax-free by renting out rooms in their primary residence.
• This only applies if the property is the host's main home, no other relief is claimed, and the room is used for residential purposes.

It's important for Killarney hosts to understand and comply with these national regulations in addition to the local rules. Failure to do so can result in substantial penalties, including fines up to €5,000 or six months in prison for illegal short-term letting activity.

As the short-term rental landscape continues to evolve in Ireland, hosts should stay informed about any updates to legislation that may impact their business. Consulting with local authorities, tax professionals, and legal advisors can help ensure full compliance and avoid costly mistakes.

Does Killarney Strictly Enforce STR Rules?

Based on the information gathered, it appears that Killarney does take enforcement of short-term rental regulations seriously. In 2022, Kerry County Council issued 183 warning letters to ensure proper planning permissions were being adhered to for short-term lets. The council is actively assessing if this enforcement is resulting in more properties being returned to the long-term rental market.

While some hosts may still attempt to operate without the required permissions, the risk of substantial fines up to €5,000 or six months in prison likely deters many. The council states its initial enforcement focus is on the Killarney area as a designated rent pressure zone, but efforts will broaden over time.

However, Killarney's stance on short-term rentals is somewhat mixed compared to other cities. On one hand, rural areas like Killarney have seen a tourism boost from Airbnb, with North American visitors especially venturing beyond the major cities. This provides economic benefits to local businesses.

On the other hand, there are concerns that an over-supply of short-term rentals is negatively impacting housing availability and affordability for long-term residents. Some reports found 20 short-term listings for every 1 long-term rental in Killarney.

Airbnb itself has expressed worries that Ireland's new planning guidelines could be overly restrictive and harm rural tourism. They are encouraging the government to implement more proportional rules that still allow homeowners to rent out secondary units without burdensome permissions.

So in summary, while Killarney does appear to be cracking down on short-term rental violations, it faces a balancing act. The council must weigh the benefits of Airbnb tourism against the need to protect long-term rental supply. Compared to larger cities, Killarney may have more incentive to avoid overly harsh restrictions that could deter visitors from staying and spending money in the region. But the enforcement actions show they are still taking the rules seriously. Hosts should not assume they can skirt the regulations without consequence.

How to Start a Short-Term Rental Business in Killarney

• Research local regulations: Before getting started, thoroughly research the short-term rental regulations in Killarney. As a designated Rent Pressure Zone, Killarney has specific rules you must follow. Understand the differences between homesharing (renting rooms in your primary residence) and short-term letting of secondary properties. Familiarize yourself with the registration process and the 90-day annual limit for short-term rentals.
• Register your property: If you plan to do homesharing or short-term letting in Killarney, you must register your property with the Kerry County Council. Submit Form 15 at the start of the year to declare your intent. If you exceed the 90-day limit for short-term letting of your primary residence, additional permissions are required. Failing to properly register can result in substantial penalties.
• Obtain necessary licenses and permissions: For secondary properties or rentals exceeding 90 days, apply for a change of use planning permission from the Kerry County Council. Provide all requested information and pay any associated fees. The process may take several weeks, so begin early. You may also need a general business license to operate legally.
• Prepare your property: Ensure your rental property is safe, clean, and well-maintained. Consider the amenities and furnishings that will make it attractive to guests. Invest in high-quality photos that showcase your property's best features. Create a detailed listing description that highlights unique selling points and provides all essential information guests need.
• Choose a pricing strategy: Research similar listings in Killarney to determine competitive nightly rates. Consider factors like seasonality, events, and demand when setting prices. Many hosts use dynamic pricing tools that automatically adjust rates based on market conditions. Offering discounts for longer stays or last-minute bookings can help keep occupancy high.
• List your property online: Create listings on popular vacation rental platforms like Airbnb and Vrbo. Optimize your listings with compelling titles, descriptions, and photos. Clearly outline your house rules and cancellation policies. Respond promptly to inquiries and booking requests. Encourage satisfied guests to leave reviews, which greatly influence future bookings.
• Automate your business: Short-term rental management can be time-consuming. Invest in tools like a channel manager to sync calendars and bookings across multiple platforms. Automated check-in systems, smart locks, and cleaning scheduling software can streamline operations. This is especially important if you plan to manage multiple properties.
• Comply with tax obligations: Short-term rental income is subject to income tax, Universal Social Charge, and potentially VAT in Ireland. Familiarize yourself with these taxes and how they apply to your rental business. Consult with a tax professional to ensure you're setting aside adequate funds and filing returns correctly. Keep detailed records of all income and expenses.
• Prioritize the guest experience: Providing exceptional guest experiences is key to success in the short-term rental industry. Promptly address any concerns or complaints. Consider small touches like local treat baskets or personalized recommendations. Gather feedback from guests and use it to continually improve your offering.
• Market your business: While listing platforms provide exposure, proactively marketing your short-term rental can drive more bookings. Develop a professional website with an online booking system. Leverage social media to showcase your property and engage with potential guests. Partner with local businesses to cross-promote services. Building a strong brand identity can help you stand out in the competitive Killarney market.

Starting a short-term rental business in Killarney requires careful planning and compliance with local regulations. By following these steps and prioritizing guest satisfaction, you can build a successful and rewarding venture. Stay informed about any changes in local laws and best practices to ensure your business remains compliant and competitive in the dynamic vacation rental industry.

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

If you have questions about short-term rental regulations or zoning in Killarney, the best resource is the Planning Department of the Kerry County Council. They handle all planning applications, implement policies, and enforce the rules around short-term lets in the area.

You can reach out to them via:

Planning Department
Kerry County Council
County Buildings
Rathass, Tralee
Co. Kerry, Ireland
V92 H7VT

Phone: +353 66 718 3582
Fax: +353 66 712 0328
Email: plan@kerrycoco.ie

The council's website also has a dedicated section on Homesharing and Short Term Lettings with detailed information, FAQs, and the required forms for registering your property and notifying them of your rental activity.

In addition to contacting the authorities directly, connecting with other local hosts can be incredibly valuable for navigating the regulatory landscape and sharing best practices. Some online communities to check out include:

• Airbnb Community Center's Hosting Forum - An active forum where hosts worldwide discuss a wide range of topics, ask questions, and share advice.
• Airbnb Superhosts Facebook Group - A private group for officially recognized Superhosts to connect, collaborate, and stay informed.
• /r/airbnb_hosts on Reddit - The largest subreddit dedicated to Airbnb hosting, with over 5,000 members discussing news, strategies, and challenges.
• /r/AirBnB on Reddit - Another active subreddit used by both hosts and guests, offering diverse perspectives and suggestions.

While local Facebook groups or meetups for Killarney hosts may also exist, be cautious about the information shared in informal settings and always verify regulatory details with official sources.

The short-term rental industry is constantly evolving, so staying engaged with both the local authorities and host communities is key to ensuring compliance and success. Don't hesitate to reach out with any questions - the Planning Department is there to provide clarity and guidance as you navigate the regulations in Killarney.

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

Airbnb hosts in Killarney have mixed opinions about the local short-term rental regulations, according to discussions on Reddit, Bigger Pockets, and Airbnb's community forum. Here are some key takeaways from these sources:

Reddit - /r/irishtourism: In a thread about lodging options in Ireland, one user noted that "Whole-property AirBnBs are supposed to be restricted in the cities due to new regulations." They mentioned hosts can still list properties but risk being reported and shut down for lack of planning permission. Another user had their Dublin Airbnb canceled 2 weeks before their trip due to increased enforcement.

Bigger Pockets Forum: One post discussed a "short-term rental loophole" for stays averaging 7 days or less. However, the original poster's city requires a permit to list on Airbnb for 30 consecutive days or less, making it difficult to utilize this loophole legally. While not specific to Killarney, this highlights the complexities hosts face navigating local regulations.

Airbnb Community Center: In a post titled "My first bad guest experience," a host shared issues with guests misusing their septic system, as the property was on acreage rather than city sewers. Commenters advised adding clear labels and instructions to prevent future problems. Although not directly related to regulations, this underscores the unique challenges of hosting in more rural areas like Killarney.

Reddit - /r/ireland: A thread about the loss of hotel beds in Killarney due to accommodating refugees garnered many comments. Some blamed hoteliers for previously gouging prices and driving away tourists. Others noted how expensive and difficult it has become to book short stays in popular Irish destinations. While Airbnb wasn't the focus, the discussion reflects the broader tensions around tourism and housing in Killarney.

Overall, these sources suggest Killarney Airbnb hosts are grappling with evolving regulations, enforcement, and the practicalities of operating short-term rentals in a rural tourism hotspot facing accommodation shortages. Hosts appear concerned about the impact of restrictions on their businesses and tourism, but also recognize the need for clearer rules and guest education. As regulations continue developing, hosts will need to stay informed and adapt to ensure compliance.

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.