With housing becoming an uncomfortable hot potato, the Government has decided to address one of the rental market’s biggest pain points: “short-term rentals”, a label that groups apartments both rented and offered to tourists. by room or seasonally. The purpose of enforcement is to “pursue fraud” in these methods. And to do this, it will rely on three main pillars: a one-stop service, a code system to identify each rented property and, above all, platforms such as Booking, Airbnb, Fotocasa or Idealista that give them visibility.

They will play a very important role in the new system.

What happened? The government wants short-term rentals to stop serving as lucrative shortcuts to avoid the law. Or, in the words of Housing Minister Isabel Rodríguez, it means “pursuing fraud” in seasonal rentals and “putting an end to illegal tourist accommodation.” For this purpose, the Government has put in place the necessary mechanism to implement a Royal Decree that will accelerate its compliance with EU rules.

Why now? This is not a coincidence. Although the Government has previously made clear its wish that seasonal rentals cease to be a shortcut to circumvent certain obligations of the law, it now faces a delicate scenario. After 13-0, the drums were beating for a rent strike, a term not heard with such force in Spain since the 1930s, and the minister himself realized that housing was at the center of a “social emergency” that needed to be answered.

As Rodríguez explained on Tuesday, ensuring that seasonal rentals are truly seasonal rentals and combating illegal tourist apartments is a way to “prioritize” rentals for habitual residence. For now, the government has submitted to public hearing the draft decree, which can be viewed in full on the official website and will come into force in January 2025.

What does the government propose? Various problems. The first is to create a Digital Single Window for Rentals and streamline data collection and exchange on “short-term” rentals, which include both tourist-oriented apartments and seasonal or room rentals. In summary, create a record of rentals that are not intended for primary residence because they are dedicated to travelers, students, or patients, to name just three cases.

So how can we define these? Through a special code. Something similar to the license plate that vehicles have. Each short-term rental will have an “identification number,” which you will receive through One Window and must be renewed periodically. The government clarifies that landlords will be “obliged” to obtain this number, in addition to providing the necessary information to register or renew. To request this you need to go to the Registrars’ College.

Why is it important? For various reasons. To obtain the code, the owner must provide all information about the property, including the maximum number of tenants, tourist license or permit, and clarify the type of rental… The Property Registry will also certify that the house meets all requirements. Necessary conditions, including the absence of any obstacles in the charter of the neighborhood community. Additionally, the validity period of the code will be only 12 months.

After this period it can be renewed, but in lowercase letters. “In seasonal rentals, the reason for the need for non-permanent housing must be included in the list of signed contracts,” the government explains. In other words, it should be black and white as to what justifies this property being rented for short-term stays and not in the permanent residence market.

What does Fotocasa or Airbnb look like? Another leg of the system is online platforms such as Idealista, Enalquiler, Fotocasa or, in the case of tourist apartments, Booking or Airbnb. Landlords or landlords must inform themselves of the registration number they allocate to each rental house, but the portals themselves have an obligation to make these codes “visible” in advertisements. Moreover, Pioneer makes apps responsible for the inclusion of these “license plates” that are at risk of enforcement

“In case the registration number is withdrawn or suspended, Windows will instruct the platforms to eliminate possible advertising associated with this number,” the ministry said. This is an important measure because it will deprive the host of one of the main showcases in the industry – private websites.

So will this come at a cost? The government does not make this clear in its report on the Royal Decree, but Newspaper Indicates that the code will have a cost. To avoid clogging the market, homeowners automatically receive a temporary code when they request ID. It will be approved or rejected after about 15 days. The goal is the same: to ensure that the houses offered in the short-term rental market meet the requirements of being in this market, or, if not, to be able to switch to the traditional market.

“It can be foreseen that through this regulation houses currently offered irregularly will be taken off the market, which will allow for a greater supply of other rental formulas such as long-term rentals,” he admits.

Pictures | La Moncloa 1 and 2 by Lucas Camarero (Unsplash)

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