He’s very wrong.
Airbnb is not allowable for the rent-a-room scheme.
It’s seen as income and subject to income tax.
His attitude that since the revenue haven’t contacted him he’s in the clear is dangerously naive.
Tell him to get his affairs in order ***before ***he gets the letter.
If you’re going down that route yourself, my advice would be to contact an accountant and see what you can offset against this rent to reduce your tax liability.
It may be a good way of financing any renovations and upgrades you may need to do.
But don’t ignore the tax implications.
Airbnb isn’t the problem.
It is a mere symptom of the problem.
Lack of supply is the problem.
You can have all the airbnb & normal tenancies you want without any adverse repurcushions, if supply is brought up to the levels of demand.
Blaming airbnb is only muddying the waters and allows those who are benefiting from this lack of supply to point the finger of blame elsewhere.
Of course supply is the issue.
However, existing rentals have shifted to airbnb in huge numbers across the world
Regulating this sector is required to ensure locals have a place to rent & live, and to allow those that pay enormous business rates (hotels, hostels) to compete.
Did a quick review of today’s daft. There are the 1299 properties listed as available to let in the whole of Dublin. Assuming someone single is either Homeless (entitled to €990 Special HAP rate) or working on minimum wage and entitled to standard HAP (i.e can afford to put 40% of monthly income (€600) + their HAP entitlement of €660 per month they can compete at a rent rate of €1250 per month-
what’s available under these examples currently advertised for 14 days or less (assuming all other properties are gone or are let agreed) There are :
30 Properties in reach of €1250 pcm:
13 old style studios in traditional bedsitland
8 Proper actual 1 beds that look half decent, half in the outer suburbs and half are very small one beds in D6 and D8
9 ‘sheds’, what i mean by that is converted garages/annexes/granny flats/outhouses either in the gardens or attached to the family home of the advertiser
15 of these Properties are to let at €1000 pcm or lower:
4 One bed apartments.
Assuming the owners of the sheds don’t take HAP (they don’t need to as they can use rent a room tax relief) there is effectively no supply at the entry level of the market…
What’s more worrying is that it can be assumed that similar properties that are now out of reach in the lower ends of the market are in either multiple room occupancy by lower income groups ( immigrants, students etc) or are gone over to Air BnB.
Very rough work I know but I cant help feel Air BnBs contribution to adult homeless rates don’t get the coverage it deserves with all the commentary on family homelessness
And to think AirBnB was start in California by people offering floor space on air mattresses for cash strapped developers to attend a conference after the financial crash. Did they ever envisage family homes would be encompassed as temporary lets?
€60 less taxes (assuming higher rate) is about €28, less the costs of linen, extra heating, higher insurance, wear and tear, any bit of food or drink he might have to make available, plus the hassle of keeping the place clean, maintaining the online listing, being nice to people etc. He’ll probably be netting less than a tenner once the tax starts being collected properly and a monetary value is put on abstract things like privacy, stress etc. Put it this way-if you came home to find a stranger sitting in your living room would you pay a tenner to get rid of them?
There’s bound to be constitutional challenges to this, or at least widespread ignoring of it
Landlords face new Airbnb ban from next June
-Landlords facing a new Airbnb ban from next summer
-Landlords will effectively be banned from renting properties on a short-term basis in Dublin and other areas of high housing demand
-Housing Minister called on to bring rules into place before June 2019 independent.ie/irish-news/l … 56385.html
I’m sure there’s a plenty of people out there who believe that they can do what they like (within safety/nuisance boundaries) with a property asset they own/bought and cannot be dictated to on the T’s & C’s by the Government of the day
I think you’ll find that there is a right (not sure if it’s constitutional or not) to the “enjoyment of your home” - so for the vast percentage of home owners who are not letting their homes on airbnb that right will supercede that of your airbnb letting neighbour to have people coming and going at all hours from the house next door.
The reason for putting this in legislation is to give people who live next to an airbnb a mechanism to a) make sure the length of time they are subject to the nuisance is reduced and b) allow them to complain about nuisance without having to take a civil case.
I think you’re right that someone will take a constitutional case - but it doesn’t have any chance of succeeding.
To be honest I think the legislation is sensible and clear. I would have preferred 50 days or less rather than 90. I hope Murphy has the guts to push this through. I would have preferred to see an end to builder handouts and a punitive tax on land hoarding before this but at least it is a step down the road and was easy to do as it it is pretty much of copy of legislation existing in other countries. I have a very poor view of Murphy so I’m pretty sure this wasn’t his idea and I’m sure the AirGombeen TDs will be round his office this evening barking at the door.
Airbnb cannot complain as it does not prevent the business model that they are supposedly supporting - part time sharing of unused space in peoples houses at low cost in a spirit of trust. House swaps existed long before Airbnb - the only difference is that now a big rapacious tech company takes a big slice of money out of the people who provide it and who use it, and then seem to be able to choose whether they pay any tax on the profits.