Landlords are earning "supernormal profits" by providing bed and breakfast for homeless people in Dublin, according to a draft report obtained by The Irish Times.
It says one landlord grossed an estimated €1.4 million last year for providing such accommodation.
The total paid to B&B owners in the city for housing homeless persons in 2002 was €18 million.
The review of the funding and standards of B&B accommodation in Dublin was compiled by a research consultant, Mr Emmet Bergin, for the Homeless Agency.
It notes that the landlord who earned over €1 million last year is the largest provider of accommodation for the homeless in Dublin. "He has a total of 167 beds in four sets of adjoining properties."
A survey last year found up to 1,500 households were homeless in Dublin, and with just 500 hostel beds in the city, B&Bs have been contracted to provide a further 1,800 emergency beds.
"The cost of providing this accommodation has increased from €7.5 million in 1999 to an estimated €18 million in 2002," the draft report says.
"The increase in cost is due mainly to the lengthening time a household stays in B&B accommodation, from 20 days in 1993 to three months in 1999 to approximately 18 months today."
The report says the high cost of B&B accommodation "relative to the quality of service provided" is of particular concern.
It continues: "As at October 1st, 2002, there are a total of 34 landlords managing 1,828 bed spaces in B&B accommodation. The lowest number of bed spaces for homeless people managed by a landlord is 16, and the highest number is 167."
While the cost of the B&Bs varied, the report said, one guesthouse charged up to €4,500 per couple per month.
"This means it costs more to house a couple in this guesthouse for two years than it does to build a three-bedroom house in Finglas," says the report.
Profit margins for landlords with high numbers of beds were greater than 50 per cent.
It says a concerted effort by Dublin City Council, which negotiates with the landlords, has meant the quality of B&B has improved in the last two years, with homeless residents now entitled to 24-hour access.
"A team of inspectors visit properties to monitor standards once monthly.
"However, there are still a number of deficiencies in the quality and monitoring of standards in B&Bs," the report says.
Ms Mary Higgins, director of the Homeless Agency, said that without B&Bs many people would have to sleep on the streets.
However, it was now felt the money spent on B&Bs should be spent on renting private homes for homeless people, given that the private rented accommodation section was opening up again.
She said an equal amount of money - €18 million - went to voluntary agencies providing services for the homeless last year.