Airbnb investing is illegal / no planning permission?

Graham

Eric Cartman wrote: »

AirBnB being banned / restricted / licenced won't do a tap to put any properties back on the dublin rental market, firstly because it tends to be higher end rentals that were 2000+ a month for a 2 bed - which were never going to go to social / homeless / low income people anyway.

It's not just renters at the lower-price end of the market that are struggling to find accommodation.

Eric Cartman wrote: »

Secondly - the reason landlords are investing in AirBnB is purely because the government have made it so hard to make any money as a landlord, with excess costs and regulation , banning AirBnB will just cause landlords to withdraw properties completely.

I really don't see many landlords just locking up 300k/400k/500k properties if AirBnB type lettings are restricted. The properties will (mostly) return to the market as residential lettings or be put up for sale.

Eric Cartman wrote: »

Realistically building houses is the only solution, however I do not believe we should be building any social housing inside the M50 and I most certainly will not support any increase in tax to fund the building of houses, it must come from a reallocation of funds.

Increased housing output is definitely the answer, but it's far from being a solely social-housing issue.

Sharktopus

Sharktopus wrote: »

, I think the expectation that all costs can be covered by rent up front is ludicrous. We need more long term players in the market.

I totally disagree, it's ludicrous to be in the game if you aren't covering all costs with rent and in reality the aim should be to clear profit every month never mind cover costs.

What sane business person operates their business below cost, it's madness to even suggest. Now I'm not saying it doesn't happen especially in times of recession but a anyone going into the business with "the long game" in mind and not 100% aiming to cover all costs and make profit should stay out of it imo.

Sharktopus

Cristian Loud Bankroll wrote: »

I totally disagree, it's ludicrous to be in the game if you aren't covering all costs with rent and in reality the aim should be to clear profit every month never mind cover costs.

What sane business person operates their business below cost, it's madness to even suggest. Now I'm not saying it doesn't happen especially in times of recession but a anyone going into the business with "the long game" in mind and not 100% aiming to cover all costs and make profit should stay out of it imo.

If you play the long game you see greater profits over time. Not this fast buck mentality that is rife in our housing market.
The rental game is best played by building up equity as quickly as possible in order to maximise long term profits. To do this you need to think in terms of years not months. I can understand how landlords with 30 year mortgages want to see light at the end of each month, but they shouldnt have been in the market in the first place if they took on those kind of mortgages.

Robin from Teen Titans explained it in this video: https://www.youtube.com/watch?v=SFgs18qh1Yg

@mods - I know we are off topic slightly, but I think this is a good way to illustrate the short-termism that exists in the Irish property market and why Airbnb has become so attractive even if it invalidates insurance policies, breaks planning permission, and causes a general social nuisance to neighbours in apartment blocks.

Mrs Shuttleworth

Sharktopus wrote: »

If these high end apartments were made to go back on the market, then that would free up units where those displaced by Airbnb have moved.

Not necessarily - the market for the high end €2k plus a month units has always been limited. Those units won't go to the middle rung renter looking for a standard 2 bed in Dublin 8 / Dublin 15 etc. If Airbnb goes as a viable option the high end units are likely to be the subject of corporate lets or tenancies with a company acting as tenant to avoid the landlord being bound by the RTA legislation.

Graham

The majority of AirBnB rentals aren’t particularly high-end.

__..__

Cristian Loud Bankroll wrote: »

I totally disagree, it's ludicrous to be in the game if you aren't covering all costs with rent and in reality the aim should be to clear profit every month never mind cover costs.

What sane business person operates their business below cost, it's madness to even suggest. Now I'm not saying it doesn't happen especially in times of recession but a anyone going into the business with "the long game" in mind and not 100% aiming to cover all costs and make profit should stay out of it imo.

Normally when a company is making g a loss during times of recession they can look forward to making a profit when out of recession if they manage to tough out the loss making years.

That is not an option now with property investment. Once you are in the hole the government have made damned sure you aren't getting out of it when the recession is over.

Mrs Shuttleworth

__..__ wrote: »

Normally when a company is making g a loss during times of recession they can look forward to making a profit when out of recession if they manage to tough out the loss making years.

That is not an option now with property investment. Once you are in the hole the government have made damned sure you aren't getting out of it when the recession is over.

Criminalised for wanting to let your property out on your own terms and de facto criminalised and at the risk of a CPO for leaving it unoccupied.

Strikes me that this is a top down assault to usurp and transfer as much property as possible into the hands of the State and a few large private entities who will then have an oligopoly on the rental market.

davindub

__..__ wrote: »

Cristian Loud Bankroll wrote: »

I totally disagree, it's ludicrous to be in the game if you aren't covering all costs with rent and in reality the aim should be to clear profit every month never mind cover costs.

What sane business person operates their business below cost, it's madness to even suggest. Now I'm not saying it doesn't happen especially in times of recession but a anyone going into the business with "the long game" in mind and not 100% aiming to cover all costs and make profit should stay out of it imo.

Normally when a company is making g a loss during times of recession they can look forward to making a profit when out of recession if they manage to tough out the loss making years.

That is not an option now with property investment. Once you are in the hole the government have made damned sure you aren't getting out of it when the recession is over.

Of course those that run businesses understand capital repayments are excluded from profit calculation.

__..__

Mrs Shuttleworth wrote: »

Criminalised for wanting to let your property out on your own terms and de facto criminalised and at the risk of a CPO for leaving it unoccupied.

Strikes me that this is a top down assault to usurp and transfer as much property as possible into the hands of the State and a few large private entities who will then have an oligopoly on the rental market.

That is exactly what it is.
It's to save the state the expense of social housing. And they can make a profit off this new fangled social housing too while they are at it.

McTigs

Cristian Loud Bankroll wrote: »

I totally disagree, it's ludicrous to be in the game if you aren't covering all costs with rent and in reality the aim should be to clear profit every month never mind cover costs.

What sane business person operates their business below cost, it's madness to even suggest. Now I'm not saying it doesn't happen especially in times of recession but a anyone going into the business with "the long game" in mind and not 100% aiming to cover all costs and make profit should stay out of it imo.

Capital repayment is not a "cost" in any business.... as any sane business person (or agent of the revenue commisioners for that matter) will tell you