More and more governments are getting serious about defusing the tense situation on the housing market in many large cities. Something is also happening in Brussels.
The authorities in Mallorca are now bringing out the heavy artillery in the hunt for illegal holiday rental companies: as part of an “action plan” worth 700,000 euros, not only has the number of inspectors been increased from 15 to 20, they are also to resort to extraordinary means in the future. According to media reports, they now have credit cards so that they can quickly book suspicious objects on the relevant websites in order to get to the exact address of the apartment in question, just as if they were tourists. In addition, checks are now also carried out in the evenings and on weekends. Many landlords of holiday properties only put their ads online when they are sure that the inspectors have finished work. Now it is over. The tourism department head Andreu Serra says they are determined to fight the illegal offer.
“The The city belongs to its residents, not the tourists,” reads this protest poster in Palma's old town
Holiday rentals in Mallorca, as in many other popular holiday destinations, are an extremely controversial topic. The effects on the rental market in particular are drastic. While the range of holiday apartments on Internet platforms such as Airbnb is constantly growing, the prices for normal rental apartments in many places are skyrocketing so that locals can hardly find anything affordable. In Mallorca's capital Palma, for example, there are practically no rental offers for less than 900 euros – and that with an average salary of 1600 euros. Gross, mind you.
Tourists with trolley cases are part of everyday life
In view of the worsening situation, the local city administration declared holiday rentals in apartment buildings illegal in 2018. Actually, there should hardly be any offers anymore, only in detached apartment buildings. But the reality is different. Tourists with wheeled suitcases are also part of everyday life in purely residential areas. When the Balearic government imposed a hefty fine on Airbnb some time ago, a court declared this illegal: the internet platform only acts as an intermediary. So now stricter controls should help.
In Portugal, there are repeated demonstrations because of the tense situation the real estate market, like here in Lisbon in early April
In Portugal, too, the government now wants to take up the issue, after there had been repeated public protests there recently due to the tense situation on the real estate market. A package of measures now presented affects, among other things, the holiday rental sector. At least in large cities, no new licenses should be issued. In Italy, too, the topic is still on the agenda. Tourism Minister Daniela Santanchè recently criticized the “Wild West methods” on the holiday rental market in a newspaper interview and demanded: “We need real regulation.”
More transparency through new EU regulation
This has meanwhile also been recognized in the EU. A new regulation, which will probably come into force next year, is intended to ensure uniform rules and more transparency. Among other things, a registration obligation for providers of holiday homes is provided, which must control the online platforms. In addition, data exchange with the authorities is to be improved. As a result, the EU Commission expects “a reduced number of illegal offers” and “better opportunities for authorities to assess and mitigate the adverse external effects of short-term rentals of accommodation”.
Gerry Woop, Berlin State Secretary for Europe and member of the Committee of the Regions in Brussels, largely agrees with the plans. The proposal seems “practicable,” he says: “We are confident that we will be able to control and sanction the letting process more effectively.” A survey in 2019 showed that 26,500 residential units in Berlin were offered via Airbnb alone. “The number has certainly increased since then,” says Woop, which further exacerbates the situation on the housing market. Strict rules have been in force for holiday rentals in Berlin for some time. However, it is difficult to check whether the regulations are being complied with. “So far we haven't had any sanction options,” says Woop.
Barcelona counts more than 21 million overnight stays every year – not counting those in illegal holiday homes
Hopes are also placed in the new EU regulation in Barcelona. The city administration there has been trying in vain for years to get the problem of illegal vacation rentals under control. The ordinance is a first step in the right direction, says Janet Sanz, the head of department in the Catalan capital's city hall. However, it is hoped that improvements will be made so that providers such as Airbnb can be held more accountable in the future so that they can take action against illegal offers themselves. The Balearic Tourism Minister Iago Negueruela, who recently made representations in Brussels for this purpose, also demands this. “It is incomprehensible that Internet platforms such as Airbnb are still publishing apartment ads that are illegal,” he says.
Fines of up to 400,000 euros
At least the tightened controls on Mallorca are now brought first successes. The Island Council reports that 337 holiday homes were inspected in the first three months of the year. A fine procedure was initiated in 45 cases. Maybe that's enough of a deterrent. The impending penalties are steep: Anyone offering a property in Mallorca without a license for vacation rentals must expect a fine of between 40,000 and 400,000 euros.