'We had to get out': How short-term lets impacted the rental market
Daft.ie had just five properties available for renting in Kinsale at the time of writing, with an average price of more than €4,500 per month. On Airbnb, there were 181 properties available in Kinsale.
After three years living in a house near Kinsale, James Leonard (66) received a letter no renter wants to receive. The landlord wanted to convert the garage into a short-term holiday rental, and move into the property themselves. Six months and then he’s out. Gone.
His story is reminiscent of that in many towns in Ireland, with tourist hotspots particularly affected. The number of properties available to rent has reached record lows nationally. While not the only consideration, short-term letting is a considerable factor in this.
Mr Leonard said: “You can’t really find a place to rent anymore, and the rents have gone up significantly.”
The architect and author had lived in Kinsale with his wife and three children, and struggled to find an affordable alternative. Turning up to house viewings alongside hundreds of competing families took its toll. After months of searching, they decided Ireland was too expensive and settled on moving to Annecy in south-eastern France.
“We had to get out,” he said.
Both Mr Leonard and his wife’s business struggled with the move, and financially it hasn’t been worth it, he said, but they “had no choice”.
Daft.ie had just five properties available for renting in Kinsale at the time of writing, with an average price of more than €4,500 per month. On Airbnb, there were 181 properties available in Kinsale. Most stays are available for around €100-€300 per night, but range widely between €50 for basic rooms through to more than €2,000 per night for more lavish houses.
According to the latest Daft.ie rental price report for spring 2022, the average rent nationally is €1,567 per month and has increased by 11.7% in the last 12 months. There were just 932 properties available to rent at the time of writing on the website.
Airbnb’s website shows thousands of listings in Ireland and a spokesperson said it could not release the exact number of listings on the website as the figure is “commercially sensitive”.
“The majority of hosts in Ireland are everyday families who share their primary home for just three nights a month on average,” the spokesperson said.
“Around one-in-three hosts say the additional income helps them afford the rising cost of living and to make ends meet. Such listings are not comparable to long-term rentals and would not otherwise be on the long-term rental market."
Mr Leonard’s story, however, is becoming increasingly common as private landlords exit the rental market en masse, and Minister of Housing Darragh O'Brien has said he is “particularly concerned” about the trend.
Notice to quit statistics collected by the Residential Tenancies Board (RTB) indicate a steady increase in landlords leaving the market. In the first three months of 2022, 1,132 landlords terminated tenancies.
“It is essential that we keep the small-scale landlords in the sector,” said Threshold policy officer Ann-Marie O'Reilly at the recent launch of the organisation’s tenant sentiment survey.
“They’re a vital part of the private rental sector and Threshold advisors assist people every day of the week who are being evicted because the landlord is selling the home.”
But not all is lost if a tenant receives that dreaded letter from their landlord. Pawel Koziel has lived in a three-bed apartment in Lucan, Co Dublin, for more than 15 years with his brother and more recently with his wife and two children.
They received a notice to quit from their landlord’s management agency as the landlord’s son wanted to move into the property. Mr Koziel and his family had just over seven months to find alternative accommodation, and in the face of Dublin’s burgeoning housing crisis, they decided to fight it.
After initiating proceedings through the RTB, Mr Koziel’s rent increased for the first time in years. Undeterred by this move from the landlord, he made his case to the board. Threshold assisted Mr Koziel during proceedings with the RTB and the landlord’s representative.
After hearing the details of his case, the board ruled in Mr Koziel’s favour and permitted him to stay.
“I don’t know what would have happened if we had to leave,” he said.
“I was worried that the police would come in and throw us out. We were lucky. Many people I know were in very similar situations. The only reason we won the case is because we were there for so many years. For others, the landlord can just throw you out.”
The Government has taken steps to cushion renters from this exodus of landlords. Recently, legislation was passed that granted renters a substantial increase in the notice period landlords must give prior to terminating a tenancy.
Previously, renters were given 28 days to vacate a property where the landlord opted to terminate the tenancy if it lasted less than six months, and 35 days if it lasted up to a year. The new legislation provides renters with 90 days and 152 days respectively, granting more time to find alternative accommodation in a housing market increasingly bereft of supply.
Additionally, the Government has approved moves to strengthen regulatory controls on the short-term rental market. From September 1, online platforms will not be able to advertise properties in rent pressure zones unless they have the required planning permission.
Non-compliance would be an offence for both the property owner and the online platform. These regulatory controls are set to be in place for a period of six months initially, during which time the Department of Tourism and Fáilte Ireland will establish a new register for short-term lets.
In a statement, Airbnb's General Manager for Northern Europe, Amanda Cupples said that "Airbnb has long backed new rules for short-term rentals in Ireland".
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