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

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

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Limerick, Ireland. However, property owners must navigate a set of regulations and requirements before listing their homes for short-term stays. This article explores the key aspects of short-term rental regulations in Limerick and provides guidance for those looking to start a short-term rental business in the area.

Starting a Short-Term Rental Business in Limerick

Before listing your property on platforms like Airbnb or VRBO, it's essential to understand the local regulations and zoning laws in Limerick. Here are some key considerations:

• Planning Permission: In Limerick, homeowners who want to rent out their property on a short-term basis (less than 14 days at a time) within a Rent Pressure Zone (RPZ) may need to obtain planning permission from the local authority or apply for an exemption. This requirement was introduced in July 2019 to bring properties used for short-term tourist lettings back to the long-term rental market.
• Zoning Laws: Check Limerick's zoning or administrative code to ensure your property is zoned for short-term rental. Some cities limit the duration of short-term rentals, typically between 30 to 180 nights per year. Additionally, zoning laws may restrict the number of guests allowed in a property at one time.
• Lease Agreements and HOA Rules: If you lease your property, review your lease agreement as sub-letting may be prohibited. Similarly, if your property is part of a Homeowner's Association (HOA), check if short-term rentals are allowed and if there are any restrictions on the number of guests or pets.
• Tax Obligations: Short-term rental owners in Limerick must declare their rental income to Revenue each year. Familiarize yourself with the tax implications and requirements for your specific situation.
• Pricing and Expenses: When setting your rental rates, consider factors such as mortgage or rent, insurance premiums, business license and permit fees, renovation and repairs, listing fees, cleaning and laundry services, landscaping, and HOA fees. Aim to be competitive while covering your expenses.
• Listing Your Property: List your short-term rental on popular platforms like Airbnb and VRBO, and consider creating your own property website for more control over your listing. Promote your rental on social media to engage with potential guests and share updates, images, and promotions.
• Automating Tasks: To streamline property management and bookings, take advantage of online reservations, guest reviews, contactless check-in, occupancy tax remittance, and payment processing. This will create a seamless experience for both you and your guests.

It's important to note that new legislation for short-term lets is being developed in Ireland, which will require property owners to register their short-term rentals with Fáilte Ireland and confirm they have the correct planning permission. This system is expected to launch later in 2024.

By understanding and adhering to the short-term rental regulations in Limerick, property owners can successfully start and operate a profitable short-term rental business while contributing to the local economy and tourism industry.

Short-Term Rental Licensing Requirements in Limerick

To operate a short-term rental in Limerick, property owners must adhere to the following requirements, as outlined by the Limerick City and County Council:

Planning Permission: If your property is located in a Rent Pressure Zone (RPZ) and you intend to use it for short-term letting (less than 14 days at a time), you may need to apply for change of use planning permission from the local authority. This requirement was introduced in July 2019 to bring properties used for short-term tourist lettings back to the long-term rental market.

Exemptions: You may be exempt from applying for planning permission if:

1. Your property is not in an RPZ
2. You let rooms or the entire property for 15 days or more at a time
3. Your property already has planning permission for tourism or short-term letting
4. You rent under the rent-a-room scheme or are "home-sharing" (renting a room in your principal private residence while occupying it)
5. You rent out your entire principal private residence for less than 90 days a year while temporarily away

Registering with the Planning Authority: If you qualify for an exemption, you must register with the local planning authority and fulfill specified reporting obligations. This applies if you:

1. Rent a room in your principal private residence for short-term lets while also occupying it
2. Will be away from your principal private residence and want to let it out short-term for less than 90 days in a calendar year

Submitting Requirements: To register with the planning authority, you must complete the relevant forms (Forms 15-17) provided in the Schedule to the Regulations and submit them to your local authority.

Fees: There is no charge associated with notifying the planning authority that you are availing of the short-term letting planning exemption.

Processing Time: The processing time for planning permission applications may vary depending on the complexity of the case and the workload of the local authority. It is advisable to submit your application well in advance of your intended short-term letting activity.

Penalties: If you engage in short-term letting without the necessary planning permission or fail to register with the planning authority when required, you may be subject to enforcement action by the local authority. This could result in fines or legal proceedings.

It is important to note that new legislation for short-term lets is being developed, which will require property owners to register their short-term rentals with Fáilte Ireland and confirm they have the correct planning permission. This system is expected to launch later in 2024.

To ensure compliance with the short-term rental regulations in Limerick, property owners should consult with the Limerick City and County Council and seek guidance on their specific circumstances.

Required Documents for Limerick Short-Term Rentals

To operate a short-term rental in Limerick, property owners must submit the following documents to the local planning authority, as outlined in the Planning and Development Act 2000 (Exempted Development) (No. 2) Regulations 2019:

Form 15 - Start of Year Notification: This form is used to notify the planning authority at the start of each year of your intention to avail of the short-term letting planning exemption. It must be submitted by January 31st each year and include details such as:

1. The address of the property
2. The Eircode of the property
3. The number of days the property was used for short-term letting in the previous year
4. A declaration that the property is your principal private residence

Form 16 - 90 Day Threshold Notification: This form is only required if you exceed the 90-day threshold for short-term letting in a calendar year. It must be submitted within 2 weeks of exceeding the threshold and include:

1. The address of the property
2. The Eircode of the property
3. The number of days the property was used for short-term letting
4. A declaration that the property is your principal private residence

Form 17 - End of Year Notification: This form is used to notify the planning authority at the end of each year of the number of days the property was used for short-term letting during that year. It must be submitted by January 31st of the following year and include:

1. The address of the property
2. The Eircode of the property
3. The number of days the property was used for short-term letting in the previous year
4. A declaration that the property is your principal private residence

These forms can be obtained from the Limerick City and County Council's Planning Department or downloaded from their website. Completed forms and any required supporting documents should be submitted to the Planning Department of the Limerick City and County Council.

It is important to note that if you engage in short-term letting without the necessary planning permission or fail to register with the planning authority when required, you may be subject to enforcement action by the local authority, resulting in fines or legal proceedings.

As new legislation for short-term lets is being developed, property owners should stay informed about any additional registration requirements that may be introduced later in 2024.

Limerick Short-Term Rental Taxes

As a short-term rental owner in Limerick, it's crucial to understand the various taxes that apply to your rental income. In Ireland, income from short-term rentals is considered trading income and is subject to income tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI).

Income Tax: Short-term rental income is taxed at your marginal rate, which can be up to 40%, depending on your total income and personal circumstances.

Universal Social Charge (USC): USC is a tax payable on your gross income, including rental income. The rates for USC range from 0.5% to 11%, depending on your income level.

Pay Related Social Insurance (PRSI): If you are self-employed, you will need to pay PRSI at a rate of 4% on your rental income.

Value Added Tax (VAT): If your short-term rental income exceeds €37,500 in a continuous 12-month period, you may need to register for VAT. The VAT rate for short-term accommodation is currently 9% but is set to increase to 13.5% on 1 September 2023.

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 taxes on that income.

Deductions and Write-Offs

To reduce your taxable rental income, you can claim certain expenses and deductions. These may 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. Mortgage interest relief (subject to certain conditions)
6. Wear and tear allowances on furniture and fittings (12.5% per year for up to 8 years)

Additionally, if you rent out a room in your primary residence, you may be eligible for the Rent-a-Room relief scheme. Under this scheme, you can earn up to €14,000 per year tax-free, provided you meet certain criteria, such as renting the room for a minimum of 28 consecutive days.

It's essential to keep accurate records of all your rental income and expenses to ensure proper tax reporting and to maximize your deductions. Consult with a tax professional to understand your specific tax obligations and to ensure compliance with Irish tax laws.

Ireland-Wide Short-Term Rental Rules

In addition to the specific regulations in Limerick, there are several Ireland-wide rules that hosts need to be aware of when operating a short-term rental business.

Planned National Registration System

The Irish government is developing a new online registration system for short-term lets, expected to launch later in 2024. Under this system, hosts offering accommodation for 21 nights or less per year will be required to register their property with Fáilte Ireland, the national tourism authority.

To register, hosts will need to provide personal details, property information (including Eircode), confirm they have the necessary planning permission, and pay a registration fee. Once registered, hosts will receive a unique registration number which must be displayed on all online listings and advertisements.

Booking platforms like Airbnb will only be permitted to list properties with a valid Fáilte Ireland registration number. Unregistered properties face fines of up to €5,000.

Focus on Rent Pressure Zones

Current short-term letting regulations primarily target Rent Pressure Zones (RPZs), which cover many urban areas in Ireland. In RPZs, planning permission is required for short-term lets exceeding 90 days per year. The aim is to return properties used for short-term rentals back to the long-term housing market.

However, enforcement of these rules has been lacking to date. Investigations have found a majority of Airbnb listings in Dublin operating without proper planning permission.

Delays Due to EU Considerations

The rollout of Ireland's new short-term letting legislation has faced delays due to European Commission concerns that the laws may be too restrictive on platforms like Airbnb. The Irish government is engaging with the Commission to address these issues and align the regulations with EU proposals.

Despite the delays, the government hopes the new system will unlock up to 12,000 homes currently used as short-term lets and make them available for long-term renters. The registration system itself is reportedly ready to launch once the legislation is enacted.

By familiarizing themselves with these national regulations and ensuring compliance, short-term rental hosts in Limerick and across Ireland can operate their businesses successfully while contributing to a well-regulated industry. Staying informed of legislative developments will also be key as the new registration system is rolled out.

Does Limerick Strictly Enforce STR Rules?

Based on the information gathered from various sources, it appears that Limerick does not strictly enforce its short-term rental rules, despite having regulations in place. Limerick, like many other cities in Ireland, has designated Rent Pressure Zones (RPZs) where property owners are required to obtain planning permission to change the use of their dwelling for short-term letting purposes.

However, the reality on the ground paints a different picture. According to figures from Limerick City and County Council, only one planning application for change of use from residential to short-term letting has been submitted since 2019, which was subsequently refused. Despite this, a search on Airbnb reveals 35 properties listed for short-term rental in Limerick City and suburbs, all of which are within RPZs.

The lack of enforcement is further highlighted by the Limerick Chamber's Short-Term Letting Report, which shows that since the legislation came into effect in 2019, only 142 planning applications for 'change of use' to short-term letting have been submitted across Ireland, despite 16,000 properties being advertised for short-term let.

Discussions on forums like Reddit also suggest that many hosts continue to operate STRs in Limerick despite the rules, as the financial incentives often outweigh the risks. Hosts can typically earn more from short-term rentals compared to long-term tenancies, making it an attractive option even if it means operating in a legal grey area.

In conclusion, while Limerick has strict STR regulations on paper, the city appears to be more Airbnb-friendly in practice due to a lack of enforcement. Many hosts continue to operate short-term rentals illegally, taking advantage of the higher profits and the low likelihood of facing consequences. Until the city takes a more proactive approach to enforcing its rules, the STR market in Limerick is likely to remain largely unregulated.

How to Start a Short-Term Rental Business in Limerick

Starting a short-term rental business in Limerick can be a lucrative venture, but it requires careful planning and adherence to local regulations. Follow these steps to successfully launch your STR business:

1. Research local regulations: Familiarize yourself with Limerick's short-term rental rules, particularly in Rent Pressure Zones (RPZs). Determine if you need planning permission for change of use and understand the registration requirements for the upcoming national registration system.
2. Choose a suitable property: Select a property that meets your budget and has the potential to attract guests. Consider factors like location, amenities, and parking. If you already own a property, assess its suitability for short-term rentals.
3. Obtain necessary permissions: If your property is in an RPZ, apply for planning permission for change of use from residential to short-term letting. Once the national registration system is in place, register your property with Fáilte Ireland and display your unique registration number on all listings.
4. Set up your business: Register as a self-employed individual or set up a company for your STR business. Open a separate bank account and keep accurate records of all income and expenses for tax purposes.
5. Prepare your property: Furnish and decorate your property to create a welcoming atmosphere for guests. Invest in quality furniture, linens, and amenities. Consider hiring a professional photographer to showcase your property in its best light.
6. List your property: Create listings on popular STR platforms like Airbnb and VRBO. Write compelling descriptions, highlight unique features, and use high-quality photos. Set competitive rates based on your location, property type, and amenities.
7. Manage bookings and communication: Respond promptly to guest inquiries and maintain a high response rate. Use a booking calendar to avoid double bookings and consider using a channel manager to sync reservations across multiple platforms.
8. Arrange cleaning and maintenance: Hire a reliable cleaning service to ensure your property is spotless between guests. Conduct regular maintenance checks and promptly address any issues to maintain a high standard of accommodation.
9. Provide excellent guest experience: Create a welcoming environment for your guests. Offer clear check-in instructions, provide local recommendations, and be available to answer questions during their stay. Encourage guests to leave reviews to build your reputation.
10. Comply with tax obligations: Keep accurate records of your rental income and expenses. Register for and pay relevant taxes, including income tax, USC, PRSI, and VAT (if applicable). Consult with a tax professional to ensure compliance.

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

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

If you have questions or need guidance regarding short-term rental regulations and zoning in Limerick, here are some key contacts and resources:

Limerick City and County Council Planning Department:

1. Phone: +353 61 556 000
2. Email: planning@limerick.ie
3. Address: Limerick City and County Council, Merchant's Quay, Limerick, V94 EH90, Ireland
4. Website: https://www.limerick.ie/council/services/planning-and-placemaking

The Planning Department can provide information on planning permission requirements, exemptions, and the process for registering with the planning authority for short-term lets.

Limerick City and County Council Short-Term Letting FAQ:

PDF: https://www.limerick.ie/sites/default/files/media/documents/2019-06/FAQs.pdf

This comprehensive FAQ document answers common questions about the new short-term letting regulations in Limerick and across Ireland.

Airbnb Community Center:

Website: https://community.withairbnb.com/t5/Community-Center/ct-p/community-center

The Airbnb Community Center is a platform where hosts can connect, learn, and share experiences. While not specific to Limerick, it provides a wealth of information and support for short-term rental hosts.

Airbnb Host Community on LinkedIn:

LinkedIn Post: https://www.linkedin.com/posts/airbnb-host-community_community-leader-spotlight-activity-7122693185306255360-vhwl

The Airbnb Host Community on LinkedIn highlights local community leaders, including Lorna, who leads the Clare, Limerick & Tipperary Host Club. Connecting with local host clubs can provide valuable insights and support.

r/Ireland Subreddit:

• https://www.reddit.com/r/ireland/comments/sa5obs/short_term_rentals_3_months_or_so/
• https://www.reddit.com/r/ireland/comments/ndbtsn/short_term_rental/

While not an official resource, the r/Ireland subreddit often features discussions about short-term rentals, including advice on finding legitimate listings and navigating regulations.

By reaching out to these contacts and engaging with the local host community, you can gain a better understanding of the short-term rental landscape in Limerick and ensure compliance with all relevant regulations and zoning requirements.

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

To gauge the opinions of Airbnb hosts in Limerick regarding local short-term rental regulations, we turned to popular online forums like Reddit and Bigger Pockets. Here's what we found:

Reddit - "Government cracks down on Airbnb hosts with raft of new rules":

In this thread, hosts discuss the Irish government's plans to introduce a licensing regime similar to Lisbon's, which would require hosts to obtain planning permission to list their properties on short-term rental platforms. Some hosts express frustration with the additional bureaucracy and potential loss of income, while others acknowledge the need for regulation to address the housing crisis.

Reddit - "Someone listed all properties for rent on daft and all the AirBNBs too...":

This thread highlights the disparity between the number of properties available for long-term rent on Daft.ie (22) and those listed on Airbnb (1,684) in Limerick City and County. Hosts discuss how the strict tenancy rights in Ireland deter landlords from offering long-term rentals, driving them towards short-term lets instead. Some argue that enforcing existing regulations could help rebalance the market.

Reddit - "Rise in new Airbnb lets as landlords flout rules despite housing...":

Hosts in this thread discuss how many landlords in Limerick and other areas worst hit by the housing crisis are ignoring regulations aimed at clamping down on short-term lettings. Some attribute this to a lack of enforcement and the financial incentives of short-term rentals compared to long-term tenancies.

Bigger Pockets - Limited discussions on Limerick specifically:

While Bigger Pockets has extensive discussions on short-term rental regulations in various cities and countries, there were no threads focused specifically on Limerick at the time of our search. However, the general sentiment among hosts is that navigating local regulations and ensuring compliance is crucial for the long-term success of their rental businesses.

Overall, the opinions of Airbnb hosts in Limerick regarding local regulations appear mixed. Some express frustration with the additional bureaucracy and potential loss of income, while others acknowledge the need for regulation to address the housing crisis. Many point to the lack of enforcement of existing rules and the financial incentives of short-term rentals as reasons for the continued growth of Airbnb listings despite the introduction of new regulations.

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.