The Spanish Ministry of Tourism is in the process of drafting a new decree on tourist flat establishments (AT) and tourist accommodation (VFT).
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What you need to know about new regulations on short-term rentals: New decree on tourist establishment (not in force yet).
The main new feature in the regulations on short term rentals in Andalucía is that an owner will only be able to operate two tourist accommodation units (VFT), either directly or through management companies. These companies will be subject to the same limitation of operating a maximum of two dwellings per owner, with the same objective of preventing property speculation and large economic operators from using this type of accommodation through third parties.
These companies will have to file “declaración responsable”, which will be registered in the Andalusian Tourism Register. In this way, the figure of VFT management companies will be regulated as owners of the operation of several of these accommodations. This figure will professionalize the operation of the dwellings and facilitate relationships with the tourism administration.
In addition to new regulations on short term rentals, there would be a series of requirements that were not mandatory to date. For example, when the entire dwelling is rented out, it may not have more than 15 beds, and in the case of room rentals it may not exceed six beds in total, and in both types, it may not exceed four beds per room, of which two must be in beds that are not bunk beds. Two convertible places in the living room are allowed in the dwellings.
The Association of Professionals of Tourist Homes and Apartments of Andalucía (AVVAPro) is now preparing allegations to the decree to be submitted before the 12th of May. This sector alleges that it criminalizes the sector and goes against private property.
The order was made in February 2022 by Cordoba’s court in Andalucía stating that communities of owners cannot prohibit short-term rentals.
Another side of the new regulations on short term rentals is that the head of Cordoba’s Court number seven concluded that a community of owners can regulate coexistence to reduce nuisance but does not have the power to prohibit a property from being rented for tourist purposes, as the right to private property and freedom of enterprise are fundamental rights and cannot be restricted.
Therefore, he considers that tourist rentals do not constitute at first a nuisance activity, but an irregular use of the tourist flat by the tenants can indeed become a nuisance for the rest of the neighbors. Because of this, the judge assures that the solution lies in the Horizontal Property Law itself, which in article 7.2 contemplates the possibility of depriving the owner of the use of the property for up to three years when there is noise or nuisance of a certain amount.
The judge stated that nuisance cannot be presumed, being necessary waiting for it to occur and if it is accredited, they will serve to prohibit tourist uses in specific cases but otherwise, short rental licenses cannot be prohibited by the community.
It is important to stress that these regulations are not in force yet but if they will they can put a certain restraint on rental investments. Investors might need to organize their portfolios in S L companies or have a clear and defined strategy for their future investments. Contact Franke & de la Fuente to discuss this further. And don’t forget to follow us on social media: Facebook, Linkedin, and Instagram
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