Seasonal Rental Crackdown in Spain: New Regulations on the Horizon

The Spanish government is moving quickly to introduce new regulations aimed at curbing the surge in seasonal rentals, which have proliferated following the implementation of the country's new Housing Law. The rapid growth of these rentals has further exacerbated the ongoing housing crisis.

Background

In 2023, Spain's coalition government, led by the Socialist party and supported by left-wing groups like Sumar, enacted a Housing Law that imposed substantial costs and restrictions on long-term rental landlords. This legislation led many property owners to shift towards seasonal or mid-term rentals, known locally as alquiler de temporada, which contributed to worsening the housing shortage.

A previous attempt by the government to regulate the seasonal rental market was blocked in parliament by opposition parties. However, the administration is now gearing up to reintroduce measures aimed at tightening control over this segment, where many landlords have sought refuge from the restrictive 2023 law.

New Regulatory Proposals

The latest plans to regulate seasonal rentals, as reported in Spanish media, include several key measures:

1. Mandatory Registration and Unique Identification

The government plans to establish a "Single Digital Rental Window" where all short-term and seasonal rental properties must be registered and assigned a unique identification number. This requirement will apply to rentals lasting less than a year, covering not only seasonal rentals but also tourist accommodations and room rentals.

2. Enforcing Compliance Through Platforms

Advertising platforms such as Idealista, Fotocasa, Airbnb, and Booking will be held responsible for ensuring that listed properties display their registration numbers. These portals will be required to conduct random checks to verify compliance, inform landlords of the new procedures, and submit monthly data to the Digital Rental Window. Non-compliance will result in penalties, which will be enforced under consumer protection laws.

3. Justification for Seasonal Rental Agreements

Landlords will need to provide a valid reason for offering seasonal rental contracts, citing purposes like holidays, tourism, work, studies, or medical treatment. The new registry will cross-check the property details with regional regulations to ensure landlords meet all requirements.

4. Regional Coordination and Tenant Rights

The national registry will enable regional governments to oversee compliance with their local short-term rental regulations. Additionally, the system will account for the rules set by Communities of Owners that prohibit short-term rentals in residential buildings.

5. Aiming to Curb Rental Price Hikes and Fraud

By regulating seasonal rentals, the government aims to prevent landlords from using them to sidestep rent control measures under the Housing Law. The administration hopes these steps will help stabilise the rental market, lower rental prices, and make more long-term rental properties available.

A government representative stated that the new regulation's goal is to "combat the fraud that many citizens face and ultimately contribute to reducing rental prices."

Political Considerations

The government is also engaging in discussions with various political parties, including Catalonia's left-wing separatist group ERC, to craft solutions that honour regional autonomy while achieving the goal of regulating the rental market. Although there is general consensus on the need for such regulations, there are differing viewpoints on the best approach, which has led to some resistance and previously rejected proposals.

Timeline

The Real Decreto (Royal Decree) outlining these new regulations is expected to be finalised by the end of 2024, with implementation slated for January 2025. If enacted, Spain will become the first EU country to enforce the upcoming EU regulation on short-term rentals.

With these proposed changes, the Spanish government seeks to strike a balance between addressing the housing crisis and ensuring landlords operate within a fair and regulated framework. Whether these measures will succeed in easing the pressure on the rental market remains to be seen, but the intent is clear: to bring order to a rapidly expanding segment that has so far eluded regulation.