# Airbnb Pros and Cons



## Kilmainham Apt (10 Apr 2017)

Hi Everyone

Usual story, bought apt in boom, then had family, rent doesn't nearly cover mortgage and expenses so its nearly crippled me carrying this apartment for the last 10 years and I'm still in negative equity. I haven't put the rent up in 5 years as I had good tenants so was feeling guilty and now I can't get more then 4% more even if I rent it privately again, so it seems you get punished for not being a greedy landlord. BTW tenants moving out of own accord so not leaving them homeless.

So am thinking of going the Airbnb route as having researched it looks like I'll make a nice profit on it if I manage it myself, but I'm wondering should I tell the management company?  I've no idea if anyone else in the complex rents short term.  Also does anyone have any advice on insurance for short term letting.  I know there's lots of stuff in the press about Bord Pleanala etc and just wondering is it now too difficult with all the obstacles to even try Airbnb?    Any advice from people who went down this route much appreciated, just wondering if this area is going to be completely over saturated now.


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## dereko1969 (10 Apr 2017)

Dublin City Council apparently have brought in new rules (or simply enforcing existing rules) stating that if it's rented out all the time in short-term lets then it needs planning permission. If you're in Kilmainham then this will effect your decision. Sorry don't have a link to it.


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## Sarenco (10 Apr 2017)

Similar tale in today's Irish Times.
http://www.irishtimes.com/life-and-...mtime-apartment-that-still-traps-us-1.3042753

In addition to the planning issue, running a short-term letting business may well breach a covenant in the head lease with your OMC.


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## Kilmainham Apt (10 Apr 2017)

Thanks yes I've read such articles but if there's 6,000 Airbnb's listed in Dublin presumably it's doable as most listed are apts in city centre. If the management company can stop me what can they do exactly. Hopefully someone can answer who is an apartment owner.


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## Sarenco (10 Apr 2017)

Kilmainham Apt said:


> If the management company can stop me what can they do exactly.



Well, they could sue you for breach of covenant or simply report you to the planning authority.

Bear in mind that you are a member of your OMC - it's probably unwise to adopt an adversarial attitude.


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## Bronte (11 Apr 2017)

Kilmainham Apt said:


> Thanks yes I've read such articles but if there's 6,000 Airbnb's listed in Dublin presumably it's doable as most listed are apts in city centre. If the management company can stop me what can they do exactly. Hopefully someone can answer who is an apartment owner.



Well if it were me I'd take my chances.   I imagine going down the planning route is torteous and costly.  As for the management company, what are they likely to do to you and how long will it take them. 

There's another consideration.  If you do this for say a year or two.  Would you then be allowed to rent it at market rents.  If yes I'd definitely do it.  You have my sympathies stuggling for 10 years now. 

You also need to think the AirB&B thru.  It's much more hands on.  Ideal if you're living close by.


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## Kilmainham Apt (11 Apr 2017)

To be honest if I don't do the Airbnb I can't keep going, I have a massive tax bill as all my spare cash goes to apt so yes if I can do it for a year or two I can get on top of debts otherwise I could lose apartment which would be annoying when its probably only 50K in negative equity now, so I'm trying to hang in on there, letting agent said I can earn 6-7K per month May to November and 3-4K pm off season. So you can see why I'm tempted to try.  Although I will manage it myself so I don't pay them the 25% and yes live 10mins away.  Would still love to hear from people who are doing it if there's any here


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## PaddyBloggit (11 Apr 2017)

RTÉ last night ... the property programme on after the news featured (amongst others) a guy living abroad who purchased an apartment in Dublin with the sole intention of letting it out on airbnb. He was hoping to make between €5k and €6k per month.


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## Kilmainham Apt (11 Apr 2017)

And it seems the Airbnb blanket host insurance will cover me, details on the website

If the government taxed landlords fairly, accidental landlords wouldn't be turning their apts into Airbnb lets making the rental crisis worse.


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## PGF2016 (11 Apr 2017)

Kilmainham Apt said:


> And it seems the Airbnb blanket host insurance will cover me, details on the website
> 
> If the government taxed landlords fairly, accidental landlords wouldn't be turning their apts into Airbnb lets making the rental crisis worse.


Yes, the government are a joke but, playing the devils advocate, have you done anything to reduce the negative equity on the apartment? Did you ever overpay the mortgage?


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## SirMille (11 Apr 2017)

Didn't he say all his spare cash goes to the apartment?


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## PGF2016 (11 Apr 2017)

SirMille said:


> Didn't he say all his spare cash goes to the apartment?


That's the current position but not necessarily the position for the last 10 years.


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## Bronte (11 Apr 2017)

Kilmainham Apt said:


> To be honest if I don't do the Airbnb I can't keep going, I have a massive tax bill as all my spare cash goes to apt so yes if I can do it for a year or two I can get on top of debts otherwise I could lose apartment which would be annoying when its probably only 50K in negative equity now, so I'm trying to hang in on there, letting agent said I can earn 6-7K per month May to November and 3-4K pm off season. So you can see why I'm tempted to try.  Although I will manage it myself so I don't pay them the 25% and yes live 10mins away.  Would still love to hear from people who are doing it if there's any here



So you just need to do it for two years so I'd just go for it.  I think it's very important you live close by.  My OH was in Paris and used AirB&B and had to call the guy as he couldn't figure out the locks late at night.  Make sure you give clear instructions and your mobile etc.  I think myself I'd prefer to stay in a place run like a hotel that other people weren't living in.  Everything was clearly pictured on the web and it was owned by a female but oddly he dealt with a man.  Personally as a female I'm not sure I'd have liked that myself.  I'd like a lock on the inside that nobody from outside can get in.


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## Kilmainham Apt (11 Apr 2017)

Ha overpay the mortgage I barely paid the mortgage! Besides if I had any spare cash I'd be overpaying mortgage on family home not on rental, the less interest on rental property I pay, the less I can offset on tax bill so would make no sense to overpay


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## Gordon Gekko (12 Apr 2017)

Kilmainham Apt said:


> If the government taxed landlords fairly, accidental landlords wouldn't be turning their apts into Airbnb lets making the rental crisis worse.



Surely landlords turn to Airbnb because they can make more money, not because of the tax rules?


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## Sarenco (28 Nov 2017)

_Dublin City Council is cracking down on the proliferation of short-term Airbnb-type lettings in the city, as it steps up its enforcement activity on landlords targeting the tourism market without appropriate planning permission.

According to a spokeswoman for the council, about 100 apartment owners are under investigation for inappropriate use as short-term lets. _

https://www.irishtimes.com/business...cking-down-on-airbnb-style-lettings-1.3307541


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