Investing in a holiday home: it’s complicated

Some rural and coastal areas feel like ghost towns in the winter months. Then as the temperatures rise, people flock to stay in the short-term lets. Until recently, this has made buy-to-Airbnb a viable investment strategy.  
In February 2025, there were more than 20,000 homes advertised as short-term lets across Ireland, but just 2,300 available in the private rental market. 

This is a vast number of ‘holiday homes’ – and policymakers regard them as key to solving the housing shortage. With short-term lets in the crosshairs, the decision to invest in a holiday home is increasingly complex. 

The end of the short-term rental bonanza? 
New letting rules will restrict homeowners from renting out their property for more than 90 days a year, if they live in an area with a population greater than 10,000 . Owners will need to sign up to the short-term lettings register and apply for planning permission, which isn’t a given. 
The viability of short-term lets is even worse for properties in rent pressure zones – areas where there is a limited housing supply and high rent inflation. Planning permission for short-term lets is unlikely to be granted in these areas, which includes many major towns and cities, as well as popular tourist areas such as Killarney, Westport, and Connemara .

Holiday homes are likely to become exactly that: proceed with caution
A holiday home still holds many attractions for those who can afford one: holidaying with family and friends, and the possibility of working from a more picturesque location, to name just a couple. But buying a rural or coastal home requires an extra degree of caution. 
To avoid falling foul of the law, holiday homes are likely to be unoccupied much more so than before. For your clients, insurance helps to manage some of the challenges associated with owning a holiday home. 
DUAL provides comprehensive insurance for holiday homes in Ireland and the European Union. When your client insures their main home through our Private Client policy, we can extend the same benefits to their holiday home. So your client can relax knowing that they’re protected – both home and away.
Furnished holiday homes are full of valuable items all year around, from televisions to appliances. DUAL’s worldwide contents coverage has high single-article limits to help keep these items secure. We also offer wide-ranging accidental damage coverage for holiday homes – both for the building and its contents.

Escape of water claims are likely to be more severe
Water leaks are most common during winter, often due to frozen pipes. Unfortunately, this is also when the home is least likely to be occupied, risking a slower, more costly, response. 
The critical window for minimising water damage is 24 hours. Every additional day increases the severity. After seven days of untreated water exposure, the damage could be critical: this includes the loss of structural integrity, electrical failures, and water contamination . 
Remote central heating, which allows you to maintain a stable temperature when you’re not there, is one way of managing the risk. But insurance also has an important role to play. 
At DUAL, we provide extensive protection against leaks, helping clients fix the problem at source. DUAL also helps to prevent future leaks: under DUAL’s Private Client Home policy, we will pay towards the installation of a water leak detection system for any water leak claim exceeding €10,000.

Unnoticed problems can escalate quickly
Boundary disputes are another potential problem, as the comedian Peter Kay has discovered: he faces being unable to access the driveway of his Tipperary bolthole due to his neighbour claiming ownership of the narrow strip of land . 
Similarly, essential services – such as the septic tank and running water – could be on the property of a not-necessarily-friendly neighbour. Without your neighbour’s acquiescence, you will find it hard to enjoy your home – and even harder to sell in the future.  
Right of way can be won through the courts. But it’s an expensive process and there’s no guarantee of success. 

Septic tanks need to be a consideration 
Rural properties often have their own septic tanks, making waste management the responsibility of the homeowner. Septic tanks are regulated and inspected by the local authority to ensure compliance and proper maintenance. An adverse inspection could find you liable to upgrade or replace the tank – a bill which may run into the tens of thousands . DUAL can cover damage to septic tanks, helping homeowners to avoid costly unplanned repairs. 
Holiday homes need quality protection

For quality household insurance, speak to DUAL. 

Article references:

https://threshold.ie/threshold-calls-for-action-as-almost-8000-entire-homes-are-listed-for-short-term-letting/
https://www.irishexaminer.com/news/arid-41605648.html
https://www.breakingnews.ie/ireland/rent-pressure-zones-what-are-they-and-why-are-there-calls-for-reform-1770715.html

https://www.servpro.com/resources/how-fast-can-water-cause-damage-property
https://www.dailymail.co.uk/news/article-14350757/Peter-Kay-boundary-row-neighbour-Tipperary.html
https://sepcon.ie/septic-tank-upgrading/?v=ef6667f9a249