Property Owners Support Group

[Papillon]

Recent posting on the forum have highlighted the precarious state of the private property rental market in the Port.

Eleanor’s last paragraph says it all:

“The knock on of this is just crazy! None of us who love PP should have a smile on our faces as we will all be hit by this in my opinion. Plus of course how much will our property be worth if this is not challenged? I really feel this is a worry to all whether you rent with or without a licence! Do we want PP to become tired and run down? of course we don't - what the heck can we do about this? ”

I believe there is so much we can do if we stick together as a group, encourage others to join and keep each other informed on the latest developments.

First of all I would like to make my position clear; I want to compete with the hotels on an even playing field and wish to pay the appropriate registration fee to obtain a rental permit, I also want to contribute my fair share of tax to help the Spanish economy. To some extent I could be doing this now as with 16 weeks of rental I could generate at least €500 per week to the local economy with client spending plus the additional revenue created by supporting the local infrastructure with use of laundry, cleaning and maintenance facilities. Multiply that by the number of apartments in Mallorca and we see the vast contribution property owners make to the island's economy.

So where do we go from here. I think we need to fully understand the problem and the following links will give some background.

seemallorca.com/property/letting.

seemallorca.com/property/letting/new-reform-on-the-tenancy-act-in-mallorca.

Spain to clamp down on private holiday rentals - Telegraph

This last article seems to add some perspective to the situation.

propertywire.com/news/europe/spain-property-holiday-lets.


Please feel free to add further historical links that may add to the understanding of the problem.

This whole problem is taking on “Ratner” proportions when a solution is within easy reach. Issuing property owners with a 2 year temporary permit with renewal requirement to show proof of income and tax paid would be a simple way to resolve the situation.

I am sure there are many other ways to stop this fiscal suicide, there just needs to be some sensible lobbying to clarify the law and help Spain back on its feet.

If you wish to join or just show support for this initiative please just click “like” and we will see what develops.




PS I have been a forum member for at least 6 years but forgot my log in details, so have reregistered.

 

[eleanor]

Really good to read your post Papillon and I am going to work my way through your links. Thank you.

I had thought of posting in this section but when I looked I noticed that not many members had signed up to the property owners group. It worried me therefore that this situation might not be seen by many which would mean they may not be aware.

I worried too that holiday makers - renters would see my post and be worried that they might receive hassle on holiday and be put off. I then thought that the renters too are affected by this as many book private property because they don't want hotel accomodation. Why should they have the choice taken away from them? Also they come to PP for what it is now - a beautiful place offering much to everyone. This might very well change with the closure of restaurants, shops, empty apartments and other business. They have a right to know what is what too.

I hope that others see your post and decide to 'like'. I wonder if a reminder of property owners support group should be added to the thread?

 

[eleanor]

Sorry I think I have this wrong! I thought the owners support group was a closed group to owners which I believed Zelda set up a while back? I must be thinking of something else? Sorry

 

[Belladonna]

Eleanor, there is a closed thread for owners.

 

[Sparky]

Here is the link to the Owners thread http://www.forum.puertopollensa.com/pp-com-rental-advertisers/.

I would remind everyone that this website/forum does not allow direct links to other commercial websites, please do not post them as they will be removed.

 

[eleanor]

Thanks Sparky. Is this owners thread only open to those owners who advertise on this site? I do but some might not.

As this is such an important subject would it be possible for Papillon to give the details of the information again but without the dirrect links please?

 

[Papillon]

Apologies Sparky, can I cut and paste articles and how do I go about joining the closed thread.

 

[Sparky]

Yes it is Eleanor.

I have removed Papillon's links but the names of the websites are still there for people who want to Google search them.

I am sorry to have to do this but the T&Cs of membership clearly state that no direct links to commercial websites are allowed.

 

[Belladonna]

Papillon, just private message Pollensa and she will regulate your access I believe.

 

[eleanor]

If the closed thread is only for those who advertise on this site then it isn't possibly the right place for this info and perhaps it needs to stay where it is then so as many owners can see as possible?
Just my thoughts of course.

 

[Sparky]

Apologies Sparky, can I cut and paste articles and how do I go about joining the closed thread.

Papillon, I have PMd you.
Please do not copy/paste articles as this could breach copyright. As I have said the names are still there so people can Google search if they wish to read them.

Only members who advertise with us can join the closed group.

 

[Papillon]

If any property owner wishes further information please pm me.

 

[Sparky]

Maybe a ray of hope, this from the DDM La Cámara exige al Govern que no bloquee el alquiler turístico de pisos - Diario de Mallorca, Google translation.

The House requires the Government not to block tourist rental of flats.

The president of the Chamber of Commerce, Joan Gual de Torrella, has sent a letter to the Minister of Tourism, Carlos Delgado, in which he claims that do not block tourist rental multi-family housing, considering that this measure may suffer defects unconstitutional and restrict the rights of "ownership". In addition, it warns of the risk of causing a leak of visitors to other destinations competitors and alarm that this measure is causing among large business sectors and among the mayors of many towns in the islands.
's concern regarding this issue has unleashed after the law was changed Tenancies state, leaving the issue of tourist rentals in the hands of each region. In Islands, the tourism law contemplates that are registered for this type of holiday villas, townhouses and some rural properties, but leaves out the apartments in multifamily buildings.
In his letter, Joan Gual recalls that the Government has agreed to regulate new forms of marketing, such as all-inclusive or shared accommodations, arguing to avoid losing competitiveness compared to other areas, and as totally antagonistic to this line of action to leave out the possibility of using apartments rent to tourists.
In this regard, President of the Chamber stresses the importance of residential tourism has at this time to the islands, and recalls that the Regional Ministry of Tourism has been estimated at 30% the rate of visitors that includes, as that the body chaired by Gual this estimate rises to 45%.
In cu letter to Delgado, President cameral remember the wealth generated by the residential tourism, either directly for owners who rent their properties, and indirectly for businesses , catering business, car rental companies and other groups, to turn these visitors to their services.
According to Joan Gual, "this type of residential customer is an existing market that we can not allow it to escape from the island to other territories competitors, as even these effects may be other regions, like Catalonia or Valencia. should be made ​​clear that the product is valid and legally admitted ".
Finally, cameral President stated in his letter that "there is virtual unanimity from all sectors of society Balearic favorably interested in solving this issue, and trust the political judgment of the government team ", so that the Minister Delgado claimed that this issue will be resolved as quickly as possible.

 

[eleanor]

Thanks for posting Sparky.

A little sense at last! We wait to see the outcome no doubt!

 

[JMD40]

An amazing situation and difficult to keep up with the real stories, the exagerated stories and the truth. The point is that damage is already being done to the market with visitors and property owners already nervous about advertising their properties or making bookings for 2014 in case the apartment is banned from renting. An urgent and legal solution is required to this and owners must be willing to declare and pay tax on their income. Fingers crossed and I would very much like to be a member of a support group although I am not an owner of a property I do represent several owners, both spanish and british who have real concerns about what it means to Puerto Pollensa.

 

[Sparky]

Andrew makes some very valid points in his blog today.

Here is the link :- alcudiapollensa

 

[lollipop]

As you say Sparky,some interesting points.

 

[eleanor]

A friend has just forwarded me a copy of an email she received from a well know PP estate agent. This same agent was selling property based on it's rental income not so long ago. Infact my friend bought from this agent who produced a month by month summary of expected rented revenue. How the tide has turned! My point made earlier is the same. If these agents sold apartments based on revenue expectations and a few years back, cheap mortgages then to me it is obvious the outcome. As Bella said in a previous post some may have known and took the risk but in my view many many had no idea at all. It is easy to be tricked when sales commissions of 5% are involved! I wonder how many properties these agents will have on their books now?

Good afternoon,

Sorry for not answering before.

The new lawer about rental is saying –

Apartments you can rent out for long terms-

6 month or one year.

Holiday rentals 2 weeks or 3 weeks are finished.

My accountant told me there are already inspections

In Alcudia.The fine is supposed to be very high.

This happened all because the hotels have been half

Empty.

If you are owner of a chalet or a Finca there is no

Problem for rental.

For further questions you can contact me at any time.

With kind regards

I haven't included the name of the agency or the agent as this email was sent to my friend and not to me.

 

[Sparky]

This from the MDB here :- Majorca Daily Bulletin . Grupo Serra Newspaper . Daily Press . News in English . Online Digital Information . Palma of Majorca Balearic Islands Spain. majorca daily bulletin. grupo serra newspaper . daily press . news in english . online digital info

HOTELIERS SLAM REGULATION OF HOLIDAY HOMES
Palma.—Over the past few weeks the Majorcan Chamber of Commerce and the island’s two main restaurant associations have called on the Balearic government to quickly regulate the residential tourism sector now that Madrid has given the autonomous regions the powers to do so.
It is estimated that three billion euros from rental incomes goes undeclared every year in Spain the government should be looking to recoup that while here in Majorca, the Chamber of Commerce claims that residential tourism accounts for 45 percent of the holiday market that it generates a serious amount of money for the local economy and creates jobs.

The Chamber of Commerce is also concerned that the Balearic Ministry Tourism’s slow reaction to the shake up in the law is hampering the region’s ability to compete with destinations like France and Italy where residential tourism is booming and encouraged by the authorities.

But, needless to say, the hoteliers are furious.
Yesterday, the President of the Majorcan Hotel federation, Aurelio Vazquez, branded the regulation of the residential tourism sector as a “momentous error”.

He explained that while he is not opposed to residential tourism, it should be considered as a complimentary offer to hotel accommodation. But what he is concerned about now is that “any property can be used for residential tourism.” Hoteliers have been lobbying hard to block any shake up in the residential tourism market but appear to have lost out, although what the Balearic Minister for Tourism actually does remains to be seen, he may well buckle under the weight of the hoteliers.

 

[eleanor]

A really ridiculous situation! I'm sure many tourists for next year are already voting with their feet!

A question I would ask is why it is felt that tourists would go to hotels if the choice of private rental is taken away from them? It does not follow at all. I'm sure they will not all being queuing for AI - my feeling is they will be queuing for apartments in other places such as Turkey or elsewhere. Then who will lose out?