Restrictions on short- term lettings in towns with a population of more than 10,000 have been approved by Government.
However, people in these areas would still be able to rent out their "primary residence" for up to 90 days each year.
The changes are expected to take effect in May next year when a Fáilte Ireland register for short-term lettings will be up and running.
The move will effectively ban planning permissions for commercial short-term lettings in cities and many towns around the country.
Tourism Minister Peter Burke has indicated that up to 10,000 homes could return to the long-term rental market once the changes have been introduced.
Sinn Féin's Eoin Ó Broin said that there is no reason or rationale for the proposed 10,000 population threshold.
"This proposal is arbitrary and will not allow planning authorities to ensure that outside RPZs the operation of legal short-term lets does not negatively impact long-term residential supply.
"We also believe that government must accompany any short-term letting register with a new power for local authorities to apply administrative fines to platforms and estate agents who advertise short term lets without the appropriate planning exemption or permission," he said.
