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Holiday Rental: The New Law

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The latest news about the Holiday Rentals or Touristic Properties Law is currently making a lot of noise and causing some panic among holiday property owners in Andalusia. It could be very much true that the hotels were the ones who have been campaigning for such a law, especially because they saw themselves hugely affected by the open market and the big competition from holiday apartments, that they wanted them regulated and taxed in the same way. Obviously, the private rental market is huge in this area, and we are talking billions of euros and a growth of around 6% over the last couple of years. It is indeed a MASSIVE MARKET! The main aim from this new legislation is to regulate the holiday rental market, ensure quality and professionalism and avoid misconducts. The Holiday Rental Law in Andalusia has been approved on February the 2nd, 2016 and is due to come in force in May 2016 with a 3 months grace.

Here are the main guidlines:

What is considered a holiday rental property?

• A property that is being advertised by means of publicity, whether online, through a travel agency or similar type business.
• When the service is provided on many occasions during one year, for a period exceeding one month in total.

The holiday rental properties will be required to have:

• 1st occupancy licence.
• Cleaning service between changeovers.
• Air conditioning and heating (if rented between October and April).
• Free internet service.
• Keys and passes necessary for the use of the facilities.
• Fire extinguisher and first aid kit.
• User manuals and instructions for all the appliances.
• Information about local services and facilities such as transport, doctors, tourist attractions, etc.
• Information about the owner and/or property manager, the registration number, dates of check in/out.
• Maintenance service.

Prices and reservations: 

• Prices will be set per night and will include electricity, water, heating and cleaning charges.
• Owners can ask for up to 30% down payment.
• Owners can ask for a deposit against any damages to the apartment or its contents.
• Proof of payments of the down payment and the deposit should be provided to the tenants.

Registration:

The registration of the property with the Junta de Andalucía will be free and straight forward, during which the owner will have to provide the necessary details regarding the property, him/herself and the operating company.

Here are the exclusions that should be noted:

• Properties rented out for free.
• Long term rentals (more than 3 months) regulated by a different law: Ley de Arrendamientos Urbanos.
• Rural homes (covered by the law of Viviendas Rurales).
• If the owner has 3 or more properties in the same building or block.

Even though this legislation might sound like another bureaucratic hurdle, it definitely has a bright side to it as it will put an end to clandestine rentals (fined anywhere between 18,000 and 150,000 euros) and many misconducts, giving advantage to those properties that have their licences in place and of course a bigger cut.

The draft legislation in Spanish: http://www.foe.es/upload/estudios_informes/25701borrador%20viviendas%20uso%20turistico.pdf

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