Gardaí have said they told protesters at a house in Leixlip, Co Kildare, that it was not going to be used to accommodate people seeking international protection, but they were not believed.
A forensic examination is continuing at the house, which was burned out in an arson attack in the early hours of yesterday morning.
An attempt had also been made to set it on fire last week
Superintendent Georgina Gray said gardaí were aware of the misinformation and false rumours that were being circulated and said local officers engaged with the protesters to try to dispel the rumours.
She said they carried out daily patrols after the first attack and spoke to the protesters at the house but does not know why they did not believe gardaí.
The Superintendent said gardaí also spoke to the owner of the house and gave him security advice which he was in the process of implementing when the house was burned out.
Supt Gray appealed to anyone with information in relation to the arson attack to contact gardaí and also said that anyone with concerns about property use in the area can contact gardaí for accurate information.
Honeywood, a seven-bed dormer bungalow in Leixlip, was badly damaged in the blaze.
The Department of Integration has confirmed that the property was not under consideration for use.
It said "it condemns all acts of intimidation and criminality committed by the small minority who want to sow division in our society".
"Arson is a very serious crime which carries heavy prison sentences. No one has the right to cause damage to property, to cause fear, or to threaten public order. There can never be justification for such acts, regardless of circumstances or alleged motivation."
Social Democrats councillor for Leixlip Nuala Killeen said the local community is outraged by the attack on the building.
Speaking on RTÉ's Morning Ireland, she said rumours were spread on social media that the house was earmarked to house International Protection applicants, however this was not the case.
She said leaflets were distributed with misinformation about the house and another in the area and "people were invited to protest", but said "it's a very, very, very small amount of people".
Ms Killeen said locals are "outraged at this criminal attack and we refuse to be held ransom by a very small number of people seeking to weaponise our community".
She said Honeywood is a residential home and so was not highlighted for use as accommodation for asylums seekers.
Last night, Tánaiste Micheál Martin said gardaí will be fully resourced to crack down on what he called "an organised campaign of arson and criminality" against properties that may be used to house refugees and asylum seekers.
Speaking in Washington, he said the Government will "review the situation to see if tougher measures are required, if greater deterrence is required to stop this activity."
No one was in the building in Leixlip at the time of the blaze and no one was injured. The scene has been preserved for a forensic examination.
It is the second such attack this week after a vacant nursing home was burned out in Crooksling, Co Dublin last Sunday.
