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The EU government wants to change the rules for short-term rentals

February 20, 2023

The European Union plans to revise the rules for short-term rentals

The European Union government plans to introduce new rules for short-term rentals. It is primarily about online platforms like Airbnb. The authorities want such services to provide information on users who book accommodation. This exchange must take place automatically, the data should be provided on the number of people who want to rent an apartment and for how many nights.
The European Commission proposes that such services of short-term rentals once a month provide information about users. At the same time, the relevant authorities will monitor compliance with the rules, and in case of non-compliance – impose fines on online platforms.
The reason for the revision of existing norms for short-term rentals was the worsening shortage of offers in popular tourist destinations, including Paris, Barcelona, and Venice. Airbnb and other accommodation booking services have been blamed for the fact that many apartment owners prefer to rent their apartments for a few nights, while long-term rentals are in crisis. However, online platforms are useful for renters in small towns or rural areas. At the same time, the home base of such services occupies a share of 25% of the entire stock of real estate for tourists in the EU.

rules for short-term rentals

While the government is working on new rules. In this case, it is important to think through the mechanisms that will regulate the platforms, while at the same time taking into account the interests of tenants from remote and rural areas, as well as small towns. The European Parliament hopes that the changes will help make the activities of landlords more transparent and controllable. In this way, the level of tenant protection also increases.
It should be noted that last summer was quite successful for the sector of short-term rentals in Europe. Over the season, the number of tourist bookings in various EU cities increased by almost 34% compared to 2021. In total, travelers spent about 39 million nights, which is still 1.7% less than in the pre-pandemic period. However, already in the autumn, the dynamics in the market slowed down, and experts call the global economic downturn the reason for this. People began to feel the effects of inflation and the energy crisis more and more. As a result, many put off traveling, trying to save money.
At the same time, the level of occupancy for short-term rentals in European cities remains high. However, the number of offers available for booking is also growing. As for destinations, France remains the leader among tourists, followed by Austria. Demand for winter bookings has also slowed slightly, but it is still higher than it was in 2021, but almost 16% lower than before the impact of the pandemic. Meanwhile, demand for winter season bookings in Austria, France, and Finland has outpaced 2019.