The head of Paypal Ireland says the rental crisis is so bad here the company is now asking staff to offer rooms to new employees.

Writing in today's Irish Independent, Louise Phelan has warned that new recruits cannot find accommodation due to the shortage of rental properties.

She says the company is paying up to €2,000 extra for new employees coming to Ireland for hotels when they arrive.

Paypal, which employs 2,400 people in Dublin and Dundalk, says Ireland will lose foreign direct investment unless something is done to improve the rental market.