Dear Sir,
My good friend is an "accidental landlord".
He has joined Airbnb recently, in desperation to achieve a decent income. The government take 50 per cent of all " unearned" rental income from small people like him, and nothing from vulture funds who are now dictating the high prices in the long-term rental market.
Before letting out his family home, short-term, on Airbnb; he and his wife were surviving on an old age contributory pension. Of 405 Euros weekly
He left the workplace 22 years ago because of the enormous stress of running a small business; after winning a sizable cash windfall.
H survived on this ‘lottery money” until recently.
Before leaving the workforce, he had been told that all things remaining equal- He would qualify for a full, contributory old-age pension.
However, his pension was reduced by 20% when it commenced 9 years ago.!
He was informed by Social Welfare that, because the same year he was entitled to collect it; the rules about having enough stamps/ contributions were amended, and thus he failed to qualify for a full pension.
One rule for the private sector, as the government struggle to pay the insatiable demands of the public sector unions, and their fantastic pension entitlements
Irish governments, in recent decades, have not provided proper social housing, nor affordable, long-term accommodation’ or insisted on rezoned land (such as John Bruton's large farm in Dunboyne) being used for housing after re-zoning.
With no tax relief for small landlords, almost none of them want to accept HAP payments.
Only illegal migrants get priority for social housing nowadays.
I understand this coalition they are bringing in new laws, shortly, regarding Airbnb, which will, without the shadow of a doubt, be Draconian; and worsen the accommodation crisis they themselves have created; making short-term lettings for tourists as scarce as the long-term lettings which are soaring in price every month.
The Vulture funds who own most of the lettings nowadays can charge what they like for blocks of new apartments bought off the plans from developers. They can afford to leave them empty until they get their price.
They are currently advertising studio and one-bed apartments for 2500 Euros monthly, and 3000 Euros for two-bedroom apartments.
Recently, he commenced hosting desperate tourists from all over the world, on short-term lettings in his home.
He feels that he is doing a heroic service for the Irish tourist industry because the groups he hosts have been quoted twice to three times his fee, by Dublin Hoteliers who are gouging visitors for short-term rooms, because many of them have a guaranteed income from the state by housing would be “refugees”.
This policy is on course to destroy the tourist industry in Ireland.
These people who are being skinned by hoteliers will not be back for a long time, if ever.
An analogy
A metaphor from Dunkirk and the second world war:
If the “Irish Tourist Industry” was an “Island” being threatened with destruction by the dire shortage of hotel accommodation due to the massive influx of uncontrolled, illegal migrants; then the BnB members who have risen to the occasion to accommodate so many of them, are the “small boats” who have saved the “army” of tourists arriving weekly, to spend money in local businesses around the country.
For the first time since retirement, my friend says he is earning enough money on which to live more than a "hand-to-mouth" existence.
Now the State want to reduce the lowest income/pension earners to St Vincent De Paul beggars, once more, because they had the temerity to use their home, in the big cities, in order to supplement their miserable pensions, by becoming hosts to tourists.
Meanwhile, Hoteliers are receiving government funding (our taxes) to expand, and like most of the big business and vulture property fund landlords; they are paying no taxes on their extortionate stranglehold on the letting market- long or short term.
This proposed Legislation is egregious and unconscionable. In fact, it warrants Constitutional
scrutiny. Is an Irish citizen's home no longer to be his own to use as he sees fit, and earn a living income, in an era when the cost of living for old age pensioners is driving them to beggary and the St Vincent de Paul Society for “alms”
It reminds me of the story of the restaurant lobster tank which contained a mix of fat (political) Lobsters and many smaller ones (the common people)
When the fat Lobsters saw the little ones trying to scramble up the wall of the tank to avoid their unhappy fate; the fat ones pulled them back down into the tank.
To continue with this analogy, the fat Lobsters then brought in new laws and outrageous fines to punish any little lobster who would, ever again, dare to consider escaping from his misery.
A footnote: my friend told me he will go to jail before paying any fines and he will never become a gilly for our politician chieftains who are cramming down every citizen who lives in a region where their failed “overlordship” of the housing crisis is criminal, and they are now trying to force house owner to dispense with this extra income, which can mean the difference between penury and paying a private health insurance policy to ensure they get timely treatment if they fall ill.
Yours etc, John Mcdermott
