Starting an Airbnb in the midlands

greenbamboo

hi, just looking for a bit of advice . I recently took ownership of my parents house who are now deceased . I’m looking to do some airB&B at weekends. The property is in Longford so not in a rent pressure zone and it is not my principal private residence . Do I need to contact the county council about planning permission or registering the property before putting it on the airB&B website ? Would really appreciate advice , thanks

geographica

check the insurance on it

HeidiHeidi

You might need to check your facts

greenbamboo

Ah thanks for that, i hadnt realised that the whole country was a RPZ now. Not much information online about which council forms to fill in but I'm guessing its the full planning permission forms.

arctictree

As far as I know you won't get planning for short term let in an RPZ. So, legally you can't do airbnb with the house.

Mrs OBumble

Are you living in the house?

MakersMark

You might approach the Council about PP for a Bed n Breakfast, but its not likely in these times

MakersMark

https://www.boards.ie/discussion/comment/123836161#Comment_123836161

Stated in the initial post, for all to see.

JVince

Insurance - no issue, just notify them.

Planning - no issues either as it's likely you will be renting for less than 90 days.

Where you may have an issue is tax ( all income is taxable and Airbnb will request your tax details) and another issue is Airbnb is a total pain in the ass and little return for a lot of work unless it's something you can devote time to

Market is strong - I'd sell it and then get financial advice on how to maximise pension whilst drip feeding a tax free inheritance into everyday budget.

Eg, if you are high rate tax, put as much as possible into pension. If that leaves a shortfall in day to day income, fill that shortfall with funds from the inheritance.

It's a phenomenally safe high return option due to the tax relief on pension contributions

dennyk

Planning - no issues either as it's likely you will be renting for less than 90 days.

The exemption is only for a PPR that is rented out on a short-term basis for less than 90 days a year. It doesn't apply to a property that isn't your PPR; such a property in an RPZ (meaning anywhere in Ireland now) will require change of use planning permission to make it a short-term rental property no matter how many days a year it's rented out.

Also, the OP would need to consider that even if they were to successfully obtain a change of use planning permission to make it a short-term "holiday home", that permission would likely come with the condition that it could no longer be used for long-term residence, which will make selling it more difficult and reduce the eventual sale price when that time comes.

Idbatterim

Hang on, surely you can airbnb if you live in the property?

arctictree

https://www.boards.ie/discussion/comment/123844415#Comment_123844415

+1. We have a property like this. It only has planning for short term let. We tried to get the council to remove this restriction but it was refused.

L1011

https://www.boards.ie/discussion/comment/123844421#Comment_123844421

The 90 days is for full rentals of your PPR

Operating an actual live in B&B has different rules.

Idbatterim

https://www.boards.ie/discussion/comment/123849465#Comment_123849465

Hang on, isn't the whole purpose to move away from short term let's?

tom1ie

https://www.boards.ie/discussion/comment/123836341#Comment_123836341

Market is strong - I'd sell it and then get financial advice on how to maximise pension whilst drip feeding a tax free inheritance into everyday budget.

Eg, if you are high rate tax, put as much as possible into pension. If that leaves a shortfall in day to day income, fill that shortfall with funds from the inheritance.

So how do you go about drip feeding a tax free inheritance into your bank?
Assuming the OP sells the house.

Mrs OBumble

https://www.boards.ie/discussion/comment/123855046#Comment_123855046

Some properties that are suitable for holiday let's do not have what is needed for long term, eg heating.

arctictree

https://www.boards.ie/discussion/comment/123855046#Comment_123855046

What do you mean by 'the whole purpose' ?

JVince

https://www.boards.ie/discussion/comment/123855075#Comment_123855075

Put it into a separate interest bearing account, credit Union, or similar. It will earn very little. But it becomes a feeder account into your day to day account to make up the drop in earned income when you maximize pension contribution.

If for example that by maximising pension contribution means a drop in disposable income of €1500 a month (That's a circa €2500 pension contribution), have a monthly transfer of €1500 from the account holding the inheritance into your current account.

So you end up having the same disposable income, but the €1500 transfer has, via the pension contribution, a pension fund value of €2500.

That then grows compoundly until required in retirement and can be a very lucrative risk free move.

Idbatterim

https://www.boards.ie/discussion/comment/123855265#Comment_123855265

They don't want airbnb etc any more, they want long term let's. Due to their failure with housing...

greenbamboo

Thanks for all the responses so far, really appreciated. The local council confirmed that i will need planning permission to set up an Airbnb as its not my PPR. The reason I'm not renting it fully is that family members still come to visit every month so the airbnb option would be great to keep the house in use and not let dampness set in with cold weather while other family members is not there. Its would also be a great benefit to the tourism in the local area helping local restaurants and pubs with visitors coming to the area now that there is lots of walkways and greenways available in rural Ireland

arctictree

https://www.boards.ie/discussion/comment/123863545#Comment_123863545

Have a look at the Airbnbs in your area and then look at their planning status. I think you will be surprised!

Pat734

greenbamboo,

Apart from having someone in the property, what sort of money do you think it will generate FOR YOU? Insurance, laundry, cleaning, rubbish, general maintenance, tax and associated costs, damage etc . Unless you're on top of this business, able to oversee the rental and all it entails, air b/b's can be a real headache.