Brussels plans to regulate short-term rentals, with changes coming this year
For several months now, the media has reported on stricter regulation of short-term rentals. The European Commission wants to introduce new rules, supported by the Ministry for Regional Development, which is also working on its own legislation. Short-term rentals are a thorn in the side of some residents in tourist destinations across the Czech Republic. Prague city centre is most frequently mentioned, although other cities face similar issues. What changes will affect operators of these rentals?
One of the largest platforms brokering this type of accommodation, Airbnb, has also called for rental regulation to be introduced. It proposes, for example, an obligation to publish an identification number, which would contribute to greater transparency in the provision of accommodation services. The European Commission intends to go even further.
For example, accommodation providers are expected to share data with authorities and statisticians, such as the number of guests accommodated and the number of nights for which a property is rented. According to Brussels, hosts and their properties should be subject to registration, under which they would receive a registration number. However, the European Commission’s proposal also envisages platforms that broker listings carrying out random checks of the data; if discrepancies are uncovered, authorities would be able to suspend the validity of the registration. The number of people affected by the change would by no means be insignificant. In 2020 alone, 3.6 million overnight stays were booked through reservation portals in the Czech Republic. Short-term rentals account for approximately one quarter of all tourist accommodation in the EU, and this figure continues to grow. The number of bookings increased by 138 % in the first half of last year compared with the same period in 2021.
For landlords, the planned measures will primarily mean an obligation to be more transparent and devote more time to administration. However, if the planned legislation being prepared by the Ministry for Regional Development also comes into effect, accommodation providers could, for example, be supervised by towns and municipalities. Accommodation might not be permitted all year round, and properties would have to meet hygiene and fire-safety requirements similar to those applicable to hotels.
Property owners need not panic just yet. Entrusting a property to professional management is becoming increasingly common. Although this involves a commission, it frees owners from most concerns and obligations. Bohemian Estates, a Czech real estate company, also offers property management for short-term rentals. It is not turning a blind eye to the new legislation and is already proposing a solution. “The planned regulation will also affect communication with the owners’ association (SVJ), compliance with quiet hours and maintaining order in common areas. The property owner is responsible for all of this, even when operating a short-term rental. However, if the property is under our management, we not only ensure that it generates income, but we also communicate with all authorities and the owners’ association (SVJ). The property owner therefore has virtually no worries. We are monitoring the situation and will offer our clients a convenient solution,” concludes David Novotný on behalf of Bohemian Estates.