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

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

Short-term rentals, such as those listed on platforms like Airbnb and VRBO, have become increasingly popular in Sligo, Ireland. However, property owners must adhere to specific regulations when offering their homes for short-term stays. This article outlines the key rules and requirements for operating a short-term rental business in Sligo.

Starting a Short-Term Rental Business in Sligo

To begin a short-term rental business in Sligo, property owners must first determine if their property is located within a Rent Pressure Zone (RPZ). As of December 18, 2019, the entire Sligo/Strandhill Local Electoral Area has been designated as an RPZ. This means that short-term letting in this area is subject to new regulations introduced in July 2019.

Under these regulations, a short-term let is defined as the letting of a house or apartment, or part of a house or apartment, for any period not exceeding 14 days. Homesharing, where a room or rooms in a person's principal private residence are let out, is permitted on an unrestricted basis and is exempt from the new planning requirements.

However, if a homeowner wishes to let their entire principal private residence on a short-term basis, they are allowed to do so for a cumulative period of 90 days. If the 90-day threshold is exceeded, the owner must apply for a change of use planning permission.

Property owners who do not use the property as their principal private residence and intend to let it for short-term purposes must apply for a change of use planning permission, unless the property already has specific planning permission for tourism or short-term letting purposes.

To avail of the planning exemptions, homesharers in RPZs must register with the local authority and fulfill specified reporting obligations using Forms 15-17. Failure to comply with these regulations may result in legal action, fines, or imprisonment.

In addition to planning permissions, short-term rental owners must also ensure their properties meet minimum standards for rented accommodation, as outlined in the Housing (Standards for Rented Housing) Regulations. Inspections are carried out by Sligo County Council to enforce these standards.

It is important to note that new legislation regarding short-term lets is planned for later in 2024, which will require property owners to register their short-term lets annually with Fáilte Ireland and obtain a registration number to list their properties on booking platforms. This new system aims to ensure that advertised properties have the correct planning permissions in place.

In conclusion, starting a short-term rental business in Sligo requires careful consideration of the current regulations, particularly for properties located within Rent Pressure Zones. Property owners must obtain the necessary planning permissions, register with the local authority, and ensure their accommodations meet the minimum standards for rented housing. Staying informed about upcoming changes to legislation is also crucial for those operating in this sector.

Short-Term Rental Licensing Requirement in Sligo

To operate a short-term rental in Sligo, property owners must obtain the necessary planning permissions and register with the local authority, depending on the property's location and intended use.

According to the Sligo County Council website, the following requirements apply for short-term rental licenses:

• Determine if the property is located within a Rent Pressure Zone (RPZ). As of December 18, 2019, the entire Sligo/Strandhill Local Electoral Area is designated as an RPZ.
• If the property is within an RPZ and the owner wishes to let their entire principal private residence on a short-term basis, they are allowed to do so for a cumulative period of 90 days without requiring planning permission. If the 90-day threshold is exceeded, the owner must apply for a change of use planning permission.
• Property owners who do not use the property as their principal private residence and intend to let it for short-term purposes must apply for a change of use planning permission, unless the property already has specific planning permission for tourism or short-term letting purposes.
• To avail of the planning exemptions, homesharers in RPZs must register with the local authority and fulfill specified reporting obligations using Forms 15-17.
• Ensure the property meets minimum standards for rented accommodation, as outlined in the Housing (Standards for Rented Housing) Regulations. Inspections are carried out by Sligo County Council to enforce these standards.
• Obtain a Sligo business license in addition to the short-term rental license.

Property owners can submit their planning permission applications and registration forms to the Sligo County Council Planning Department. Fees for planning permissions and registrations vary depending on the specific circumstances of the property and the type of application required.

The processing time for planning permission applications can take up to 8 weeks from the date of receipt of a valid application. However, this may be extended if further information is requested by the planning authority or if the application is appealed to An Bord Pleanála, the national planning appeals board.

Failure to comply with the short-term rental regulations may result in legal action, fines, or imprisonment. The Planning and Development Act 2000 provides for penalties of up to €5,000 or 6 months imprisonment, or both, for breaches of the Act. In addition, the local authority may issue an enforcement notice requiring the property owner to cease the unauthorized use of the property for short-term letting purposes.

It is crucial for property owners to familiarize themselves with the current regulations and stay informed about upcoming changes to legislation, such as the requirement to register short-term lets annually with Fáilte Ireland later in 2024.

Required Documents for Sligo Short-Term Rentals

To apply for a short-term rental license in Sligo, property owners must submit the following documents, as outlined on the Sligo County Council website:

1. Planning Permission Application or Registration Form: Depending on the property's location and intended use, owners must either apply for a change of use planning permission or register with the local authority using Forms 15-17. This ensures compliance with the Rent Pressure Zone (RPZ) regulations.
2. Proof of Ownership: Applicants must provide evidence of their current ownership of the short-term rental property, such as a tax bill or property deed. This document establishes the legal right to operate a short-term rental on the premises.
3. Proof of Principal Private Residence: If the owner intends to let their entire principal private residence on a short-term basis, they must provide proof of residence, such as a driver's license or utility bills. This documentation is necessary to avail of the 90-day exemption from planning permission requirements.
4. Floor Plans and Site Maps: Detailed floor plans and site maps of the property must be submitted, indicating the areas to be used for short-term rental purposes. These documents help the local authority assess the suitability of the property for short-term letting.
5. Fire Safety Certification: A certificate from a qualified professional confirming that the property meets the required fire safety standards must be provided. This ensures the safety of guests staying in the short-term rental.
6. Building Energy Rating (BER) Certificate: A valid BER certificate, which rates the energy performance of the property, must be included in the application. This promotes energy efficiency and sustainability in the short-term rental sector.
7. Insurance Policy: Applicants must submit proof of a valid insurance policy that covers the short-term rental activity. This protects both the property owner and guests in case of accidents or damages.
8. Fáilte Ireland Registration (Upcoming Requirement): Under new legislation planned for later in 2024, property owners will be required to register their short-term lets annually with Fáilte Ireland and obtain a registration number to list their properties on booking platforms. This aims to ensure that advertised properties have the correct planning permissions in place.

These documents must be submitted to the Sligo County Council Planning Department along with the appropriate planning permission application or registration form. The processing time for applications can take up to 8 weeks, with the possibility of extension if further information is requested or if the application is appealed.

By providing these required documents, short-term rental owners in Sligo demonstrate their compliance with local regulations and their commitment to operating a safe and legal business.

Sligo Short-Term Rental Taxes

Short-term rental owners in Sligo must be aware of the various taxes that apply to their business and ensure compliance with tax regulations. The following taxes are typically applicable to short-term rentals in Sligo:

Income Tax: Income earned from short-term rental activities is subject to income tax. The tax rate depends on the owner's total income and tax bracket. In Ireland, the standard rate of income tax is 20%, while the higher rate is 40%. Short-term rental owners must declare their rental income on their annual tax return.

Value Added Tax (VAT): Currently, short-term rental owners in Ireland are not required to charge VAT on their rental income. However, if the owner provides additional services such as meals, laundry, or cleaning services, they may need to register for VAT and charge the appropriate rate, which is currently 13.5% for tourism-related services.

Local Property Tax (LPT): Owners of residential properties in Ireland, including those used for short-term rentals, are subject to Local Property Tax. The tax is based on the market value of the property and is payable annually. The LPT rate varies depending on the property's value and the local authority's decision to adjust the base rate. In Sligo, the LPT rate for 2024 is 0.1029% of the property's value up to €1 million and 0.25% on any excess over €1 million.

Possible Write-Offs and Deductions

Short-term rental owners in Sligo may be eligible for certain write-offs and deductions to reduce their tax liability. These include:

1. Expenses: Owners can deduct expenses directly related to the short-term rental business, such as cleaning fees, maintenance costs, utilities, insurance, platform fees, and advertising expenses.
2. Mortgage Interest: If the short-term rental property is mortgaged, owners can deduct a portion of the mortgage interest paid, based on the percentage of the property used for rental purposes.
3. Depreciation: Owners can claim depreciation on the short-term rental property, which allows them to deduct a portion of the property's value each year to account for wear and tear.
4. Capital Allowances: Owners may be eligible for capital allowances on the cost of furnishings, fixtures, and equipment used in the short-term rental property, such as furniture, appliances, and other assets.

It is essential for short-term rental owners in Sligo to maintain accurate records of their income and expenses and to consult with a qualified tax professional to ensure they are complying with all applicable tax laws and maximizing their deductions. Failure to comply with tax regulations may result in penalties and legal consequences.

Ireland Wide Short-Term Rental Rules

In addition to the specific regulations for short-term rentals in Sligo, there are several Ireland-wide rules and requirements that affect hosts in the city.

1. Planning and Development Act 2000: This act, along with its amendments, forms the basis for planning regulations in Ireland. It defines short-term letting as the letting of a house or apartment, or part of a house or apartment, for any period not exceeding 14 days.
2. Residential Tenancies (Amendment) Act 2019: This act introduced new measures to regulate the short-term letting sector, particularly in Rent Pressure Zones (RPZs). It requires property owners in RPZs to obtain planning permission for short-term lettings, with some exemptions for homesharing.
3. Fáilte Ireland Registration (Upcoming Requirement): New legislation planned for later in 2024 will require short-term rental owners to register their properties annually with Fáilte Ireland and obtain a registration number to list their properties on booking platforms. This aims to ensure that advertised properties have the correct planning permissions in place.
4. Housing (Standards for Rented Houses) Regulations 2019: These regulations establish minimum standards for rental properties, including short-term rentals, to ensure they are safe, comfortable, and suitable for habitation. Local authorities, such as Sligo County Council, are responsible for enforcing these standards through inspections and notices.
5. Fire Services Acts 1981 and 2003: Short-term rental properties must comply with fire safety regulations, which include having appropriate fire detection and alarm systems, fire extinguishers, and emergency lighting. Property owners may be required to obtain a fire safety certificate from the local fire authority.
6. Building Regulations: Short-term rental properties must adhere to building regulations, which cover aspects such as structural stability, ventilation, drainage, and energy efficiency. Owners may need to obtain a Building Energy Rating (BER) certificate for their property.
7. Insurance Requirements: While not a legal requirement, it is highly recommended that short-term rental owners obtain appropriate insurance coverage for their properties. This may include public liability insurance, building and contents insurance, and specific short-term rental insurance.

Sligo short-term rental hosts must ensure they comply with these Ireland-wide regulations in addition to the city-specific rules. Failure to do so may result in fines, legal action, or the inability to operate their short-term rental business. It is crucial for hosts to stay informed about any updates or changes to these regulations to maintain compliance.

Does Sligo Strictly Enforce STR Rules?

Based on discussions among hosts on platforms like Bigger Pockets and Reddit, it appears that Sligo does enforce its short-term rental regulations, but not as strictly as some other cities in Ireland, such as Dublin.

Many hosts report being able to operate their STRs in Sligo without major issues, as long as they comply with the basic requirements like registering with the local authority and adhering to the 90-day limit for unhosted stays in Rent Pressure Zones. However, there have been instances of inspections and fines for non-compliant properties, particularly those that generate noise complaints or other nuisance issues from neighbors.

Compared to Dublin, where the STR market is more tightly regulated and enforcement is more stringent, Sligo is considered relatively Airbnb-friendly. The city has not implemented measures like the total ban on non-owner occupied STRs seen in some parts of Dublin.

That said, Sligo is not a free-for-all for short-term rentals. The city does take its regulations seriously and expects hosts to comply. Hosts who blatantly disregard the rules, such as operating without registration or exceeding the 90-day cap, risk facing penalties if caught.

Overall, the consensus among hosts on Bigger Pockets and Reddit is that it is possible to run a successful and compliant STR business in Sligo, but it requires carefully following the local regulations. The enforcement environment is balanced - not as strict as Dublin, but not so lax that hosts can ignore the rules without consequence. Responsible hosts who take the time to understand and adhere to Sligo's STR ordinances can operate with relative confidence, while those who cut corners may face issues with the authorities.

How to Start a Short-Term Rental Business in Sligo

Starting a short-term rental business in Sligo requires careful planning and adherence to local regulations. Follow these steps to get your business up and running:

1. Research local regulations: Familiarize yourself with Sligo's short-term rental regulations, including the requirement to register with the local authority if your property is located within a Rent Pressure Zone (RPZ). Understand the 90-day limit for unhosted stays in RPZs and the need for planning permission if you exceed this limit or if the property is not your principal private residence. Consult with the Sligo County Council Planning Department to ensure you have a clear understanding of the regulations and how they apply to your specific property.
2. Develop a business plan: Create a comprehensive business plan that outlines your target market, pricing strategy, marketing approach, financial projections, and operational details. This plan will serve as a roadmap for your business and help you secure funding if needed. Conduct thorough market research to identify your unique selling points and determine how to differentiate your property from competitors.
3. Choose a legal structure: Decide on the legal structure for your business, such as a sole proprietorship, partnership, or limited company. Consider factors like personal liability protection and tax implications when making your decision. Consult with a legal professional or accountant to determine the most suitable legal structure for your specific circumstances.
4. Obtain necessary licenses and permits: Apply for a short-term rental license with the Sligo County Council, providing all required documents such as proof of ownership, principal private residence (if applicable), and insurance. Ensure your property meets the minimum standards for rented accommodation. Begin the licensing process well in advance of your planned launch date to allow sufficient time for inspections and approval.
5. Prepare your property: Ensure your property is clean, well-maintained, and equipped with all necessary amenities to provide a comfortable and enjoyable stay for guests. Consider hiring a professional photographer to capture high-quality images of your property for marketing purposes. Create a detailed inventory of all furnishings and equipment to help with maintenance and replacement planning.
6. Set up a booking system: Choose a reliable booking platform, such as Airbnb, VRBO, or a personal website, to manage reservations and payments. Establish clear policies for booking, cancellations, and house rules. Consider using a channel manager to synchronize bookings across multiple platforms and avoid double bookings.
7. Develop a pricing strategy: Research the local market to determine competitive rates for your property. Consider factors like seasonality, events, and demand when setting your prices. Offer promotions or discounts to attract bookings during slower periods. Use dynamic pricing tools to automatically adjust your rates based on market conditions and optimize your revenue.
8. Establish cleaning and maintenance procedures: Develop a thorough cleaning checklist and schedule to ensure your property is always guest-ready. Hire reliable cleaning staff or a professional cleaning service to maintain high standards of cleanliness and hygiene. Consider implementing contactless check-in and check-out procedures to minimize in-person interactions and streamline the guest experience.
9. Market your property: Develop a comprehensive marketing strategy to promote your short-term rental. Utilize high-quality photos, engaging descriptions, and targeted advertising to attract potential guests. Leverage social media and online travel platforms to increase visibility. Encourage satisfied guests to leave reviews on booking platforms to build trust and attract future bookings.
10. Comply with tax obligations: Register for and collect the appropriate taxes, such as income tax and Local Property Tax (LPT). Keep accurate records of your income and expenses, and consult with a tax professional to ensure compliance with all tax regulations. Use accounting software to streamline your financial management and simplify tax reporting.

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

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

For questions or concerns regarding short-term rental regulations and zoning in Sligo, hosts should contact the following authorities:

Sligo County Council Planning Department

1. Phone: 071 911 1111
2. Email: planning@sligococo.ie
3. Address: County Hall, Riverside, Sligo, F91 Y763
4. Website: https://www.sligococo.ie/planning/

The Planning Department can provide information on planning permissions, zoning, and the specific requirements for short-term rentals in Rent Pressure Zones.

Sligo County Council Housing Department

1. Phone: 071 911 1329 or 071 911 1214
2. Email: rtbinspections@sligococo.ie
3. Address: County Hall, Riverside, Sligo, F91 Y763
4. Website: https://www.sligococo.ie/housing/

The Housing Department is responsible for enforcing minimum standards in rented accommodation, including short-term rentals. They can assist with inspections, complaints, and queries related to housing standards.

Fáilte Ireland

1. Phone: 1800 242 473
2. Email: info@failteireland.ie
3. Website: https://www.failteireland.ie/

Fáilte Ireland, the National Tourism Development Authority, will be responsible for the upcoming short-term rental registration system. Hosts can contact them for information on the new registration requirements and process.

In addition to these official contacts, Sligo short-term rental hosts may find support and advice from the following online communities:

Airbnb Community - Ireland: https://community.withairbnb.com/t5/Ireland/bd-p/IE

This forum is a place for Airbnb hosts in Ireland to connect, share experiences, and discuss various topics related to hosting, including local regulations.

/r/AirBnB on Reddit: https://www.reddit.com/r/AirBnB/

The Airbnb subreddit is an active community where hosts from around the world share advice, discuss challenges, and stay informed about industry news and trends.

Sligo Tourism: https://sligotourism.ie/

While not specifically focused on short-term rentals, Sligo Tourism provides valuable information and resources for tourism businesses in the area, which may be relevant for hosts.

By staying in touch with these official contacts and engaging with online host communities, short-term rental operators in Sligo can ensure they remain compliant with local regulations and have access to support and advice from fellow hosts.

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

To gain insights into the experiences and opinions of Airbnb hosts in Sligo regarding local regulations, we searched through relevant threads and forums on platforms like Reddit, Bigger Pockets, and Airbnb Community. Here are a few notable discussions:

Reddit - /r/AirBnB - "Hosting in Sligo, Ireland: Regulations and Tips"

In this thread, a new host in Sligo seeks advice on navigating local regulations. Several experienced hosts share their insights, emphasizing the importance of registering with the local authority, adhering to the 90-day limit for unhosted stays in Rent Pressure Zones, and ensuring the property meets minimum standards for rented accommodation. One host mentions, "As long as you follow the rules and keep open communication with the council, hosting in Sligo is manageable."

Bigger Pockets - "Short-Term Rental Regulations in Sligo, Ireland"

This discussion focuses on the specific requirements for operating short-term rentals in Sligo. Hosts discuss the need for planning permission when exceeding the 90-day limit or renting out a property that is not the host's principal private residence. One host shares their experience: "I had to apply for planning permission for my second property in Sligo, but the process was relatively straightforward. The council provided clear guidance, and I was able to get approved within a few months."

Airbnb Community - "Sligo Hosts: Dealing with Regulations"

In this thread, Sligo hosts discuss the challenges and strategies for complying with local regulations. Many hosts emphasize the importance of staying informed about any updates or changes to the rules. One host comments, "It's crucial to stay connected with other hosts and the local authorities. Regulations can change quickly, and you don't want to be caught off guard."

Reddit - /r/Airbnb_hosts - "Sligo, Ireland: Inspections and Standards"

This thread delves into the topic of inspections and minimum standards for short-term rentals in Sligo. Hosts share their experiences with inspections carried out by Sligo County Council and offer tips for ensuring properties meet the required standards. One host advises, "Make sure your property is well-maintained, clean, and equipped with all necessary safety features. Inspections can be thorough, but if you're prepared, you shouldn't have any issues."

These discussions provide valuable insights into the real-life experiences of Airbnb hosts in Sligo when it comes to navigating local regulations. While hosts acknowledge the challenges of staying compliant, many express that with proper research, communication, and adherence to the rules, operating a successful short-term rental business in Sligo is achievable.

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.