The effects of "illegal" renting.

[Sparky]

The latest news from the MDB is :-

Holiday rentals' bill approved but apartments are still in limbo.

The Balearic parliament has approved the government's holiday rentals' legislation, but the last-minute interventions of Podemos have meant that apartments are, by and large, still subject to the 2012 tourism law.
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However, the legislation does make provision for the holiday rental of an "habitual dwelling" for a maximum of sixty days a year. This applies to apartments and indeed to houses. But these habitual dwellings would still be subject to the zoning. If they fall outside a zone, then the provision won't apply.

Tourism minister Biel Barceló said that there is now a twelve-month moratorium on new licences for holiday rentals. Essentially, the island councils and town halls have been given four more months to determine the zones than had been previously envisaged.
**************
Owners of holiday rentals (villas, houses) which are already licensed will be unaffected by the legislation, and they will include owners with properties which might eventually not be in zones for holiday rental.

The approval yesterday is certainly not the last word. There will now be "developments" of the legislation. An example is the age of a property that can be rented. Podemos want this to be increased to ten years; the government has stipulated five. There is also the possibility of something more definite emerging regarding apartments. Speaking after the debate and vote, Barceló alluded to there being later regulatory development.

The full story can be read here :- https://majorcadailybulletin.com/ne...-approved-but-apartments-are-still-limbo.html

 

[El Gordo]

The latest news from the MDB is :-

Holiday rentals' bill approved but apartments are still in limbo.

The Balearic parliament has approved the government's holiday rentals' legislation, but the last-minute interventions of Podemos have meant that apartments are, by and large, still subject to the 2012 tourism law.
**************
However, the legislation does make provision for the holiday rental of an "habitual dwelling" for a maximum of sixty days a year. This applies to apartments and indeed to houses. But these habitual dwellings would still be subject to the zoning. If they fall outside a zone, then the provision won't apply.

Tourism minister Biel Barceló said that there is now a twelve-month moratorium on new licences for holiday rentals. Essentially, the island councils and town halls have been given four more months to determine the zones than had been previously envisaged.
**************
Owners of holiday rentals (villas, houses) which are already licensed will be unaffected by the legislation, and they will include owners with properties which might eventually not be in zones for holiday rental.

The approval yesterday is certainly not the last word. There will now be "developments" of the legislation. An example is the age of a property that can be rented. Podemos want this to be increased to ten years; the government has stipulated five. There is also the possibility of something more definite emerging regarding apartments. Speaking after the debate and vote, Barceló alluded to there being later regulatory development.


The full story can be read here :- https://majorcadailybulletin.com/ne...-approved-but-apartments-are-still-limbo.html

Well...That's Sorted!! Clear as mud

 

[Sparky]

Well...That's Sorted!! Clear as mud

Yes, exactly what i thought .

 

[Tomir]

Found this posted on a facebook group. Sounds serious.

I think this is what we should be turning our attention to....very serious and damaging for Puerto Pollensa in particular. (copy of part of an email). I posted some information yesterday on my webpage in spanish but this is the bottom line folks! And at the moment all tourist licences have been put on hold for 12 months I understand.
Yesterday the regional government of the Balearic Islands passed a law affecting holiday rentals offered in apartments.
There is some confusion regarding the scope and application of the law, but it seems that the law establishes that it will not be allowed to publish apartments in tourist channels without tourist license. The fines for renting without tourist license can amount to 40,000 euros for owners and up to 400,000 euros for Agencies and portals such as Airbnb.

 

[alcanadakid]

Has anyone thought of the effect of this on property prices? It could be catastrophic, as a lot of people buy property using rental income as a subsidy.

No rental, no purchase and a plunge in property prices.

It could be serious for existing owners.

 

[Gommar Goffer]

Yes - those unlicenced owners who rely on the income to cover mortgages will possibly have to sell which will cause a glut of properties on the market (good for the estate agents) pushing values down in the short term.

Also think about the effects on local economies, etc...

 

[eleanor]

This is such a ridiculous situation and as said the whole of the island depends on the holiday maker. I wonder if guests might be fined for staying in a property without a licence? How the heck is this going to be policed? I think many an apartment will come on the market for sale but Pollensa and indeed Mallorca generally is a place many wish to holiday. I don't think that will change. I also think that buyers will continue to buy for all the same reasons as before but will look at villas where a licence will hopefully be easier to obtain. I did hear somewhere though that they will not entertain new applications for the next 12 months. Thank goodness we have one in application.

 

[alcanadakid]

I think it might deter potential buyers too, pushing prices down.

 

[El Gordo]

.............
...........The fines for renting without tourist license can amount to 40,000 euros for owners..................

This is not new, the actual fines that I am aware of have been negotiated down below 5000euros!! Maybe they will be stricter in the future

.............
...........The fines for renting without tourist license can amount to ....................400,000 euros for Agencies and portals such as Airbnb.

This is NEW and will be a huge concern for those smaller sites who cannot afford to fight the authorities!!

Lets wait and see...

 

[lollipop]

El Gordo, I agree with your advice to "wait and See". They have apparently got the wording wrong in the new law and so need to rewrite and then re vote. Pollensa council will also have a say. I think this battle is far from over.

 

[arturo22]

a quote from MDB

Another resort area - the bays of Alcudia and Pollensa - is apparently not considered to be saturated. However, there is a great deal of unlicensed holiday rental activity, especially in Puerto Pollensa. For the moment, it's unclear how the Council (and government) will treat this area, but the Council's view appears to be that most of what is not currently licensed will remain unlicensed.

The full story can be seen here :- https://majorcadailybulletin.com/ne...modation-places-six-resort-areas-majorca.html

 

[favie]

Devastated tonight ....I wondered that one day this business of "Illegal Renting" would affect me and now it has! Booked private rentals for years now in PP as I love living like a local every year, shopping in the supermarkets, butchers, patisseries , takeaways and of course eating at the many restaurants. Don't mind a hotel for a short stay but one room for two or more weeks does not appeal to me personally.
Started looking for late summer in PP next year, late summer as we have a family wedding in Ibiza mid summer, never been but quite excited to see another Balearic Island! (In a beautiful area!) Searched for weeks looking for the "right" apartment before making the deposit about 6 weeks ago...only to receive a call tonight from the owner explaining that she cannot continue with any more bookings and will have to cancel the bookings she has taken for next year. She had been renting for years with many wonderful reviews...but no more, she and many of her friends, after much discussion with lawyers etc are selling up. Won't repeat her exact words about the situation but she is devastated too! Another apartment I previously enquired about, the lady said "sorry, don't know if we will be taken bookings for next year"
It sort of puts you off searching and booking all over again in PP or any Balearic Island. Maybe Hotels is the only way to go now! Sad but I understand (from some past posts) that some think it is the correct way to go but I worry for businesses and jobs if everyone is in hotels!
Maybe I have just been unlucky and this is not a sign of things to come!

 

[Papillon]

I am thinking about selling my apartment and was looking on Zoopla to see the prices and was surprised to see so many stating "ideal for renting." An estate agent in PP told me he had a sale cancelled recently when the buyer realised it was not possible to rent.

One feels in future years we look back and see how the hotel lobby totally screwed the holiday industry with their "all inclusive" packages and desire to see a healthy private rental market destroyed so they can increase their rates by eradicating the competition.

Out of interest Bernard Hamilton built a block of flats in Llenaire opposite mine about 7 years ago but went bust just after they were completed. They became almost derelict over the next few years with rusty lifts, a pool full off algae and weed. Last year they had clearly been bought and were being renovated to a very impressive standard. It turns out they are now being rented through Booking.Com from €1500 to €2100 for the high season. It's quite extraordinary how a Spanish company based in mainland Spain managed to get a licence when they have no reception area and access is purely by key safe outside each apartment.

Perhaps there is a simple explanation?

 

[Tommo]

Devastated tonight ....I wondered that one day this business of "Illegal Renting" would affect me and now it has! Booked private rentals for years now in PP as I love living like a local every year, shopping in the supermarkets, butchers, patisseries , takeaways and of course eating at the many restaurants. Don't mind a hotel for a short stay but one room for two or more weeks does not appeal to me personally.
Started looking for late summer in PP next year, late summer as we have a family wedding in Ibiza mid summer, never been but quite excited to see another Balearic Island! (In a beautiful area!) Searched for weeks looking for the "right" apartment before making the deposit about 6 weeks ago...only to receive a call tonight from the owner explaining that she cannot continue with any more bookings and will have to cancel the bookings she has taken for next year. She had been renting for years with many wonderful reviews...but no more, she and many of her friends, after much discussion with lawyers etc are selling up. Won't repeat her exact words about the situation but she is devastated too! Another apartment I previously enquired about, the lady said "sorry, don't know if we will be taken bookings for next year"
It sort of puts you off searching and booking all over again in PP or any Balearic Island. Maybe Hotels is the only way to go now! Sad but I understand (from some past posts) that some think it is the correct way to go but I worry for businesses and jobs if everyone is in hotels!
Maybe I have just been unlucky and this is not a sign of things to come!

We are currently looking to book our annual trip to PP but are totally confused. We always self cater however, we are very wary of booking an apartment given the private rental situation. The scenario could be, apartment booked flights booked and paid for, then apartment owner cancels. Which.leaves us out of pocket and worst of all no holiday in our favourite place.
Any info or suggestions please.

 

[El Gordo]

We are currently looking to book our annual trip to PP but are totally confused. We always self cater however, we are very wary of booking an apartment given the private rental situation. The scenario could be, apartment booked flights booked and paid for, then apartment owner cancels. Which.leaves us out of pocket and worst of all no holiday in our favourite place.
Any info or suggestions please.

Those that come to PP and hire apartments need to get a petition going, protesting about the lack of accommodation available legally to rent, to present to the Pollensa Authorities, as they have the power to grant licences to apartments in their area.

What are the views of the airlines that rely on private rentals for most of their passengers outside of the main holiday weeks??

Where are the views of the Bar and Restaurant owners?? Surely it is in their interests to voice there concerns? They need to activate themselves NOW!

Maybe, "Wait and See" is not the answer, We don't rent but are worried about the effect the lack of accommodation will have on all the bars and restaurants in PP and on the visitors we are used to meeting every year.

Good luck to all those risking renting in this terrible situation.

 

[eleanor]

I totally understand the frustration of those who rent apartments and those who have purchased with the view to rent to the holiday market. The fact that a licence is necessary is i'm afraid nothing new! We sold our apartment to purchase our villa 14 years ago and the question of a rental licence with the apartment raised it's head then. Thankfully we have a rental licence in application for the villa and so we are legally ok to rent. Apartments are a different matter altogether. What is concerning is so many were encouraged to buy apartments to rent out by estate agents many not telling the exact story. This is very much a worry to those who purchased with the view to renting to cover the mortgage. It being highly unlikely that apartments will be issued with a licence. This is old news but news which was either hidden or played down on purchase.

As for the Barnard Hamilton block in Llenaire. I'm afraid that agent wrote its own rules! You are quite right that they went bust. Many a tale could be told regarding their way of working! We would need a whole forum to even start! Suffice it to say they are no longer operating - well not in PP anyway!

From the renters point of view, they do still have a choice as they can rent a designated tourist apartment such as Habitat as an example or rent a private villa which has a rental licence.

It is worth noting that a licence is not cheap. We paid over 500 euros. The property is also inspected as well as taxes paid etc. So it is good to know when renting a property to obtain a licence the property must meet certain criteria including fire precautions etc.

We have our villa on the market to sell and thank goodness we applied for the licence before the supposed deadline of 1st July! There are many a story regarding renting and licences it is had to know which to believe. The one thing in common are the horrendous fines for renting without a licence to those who do so and it seems the sites which advertise them.

Choice is still available it is not a case of a hotel or nothing.

 

[copper]

How do you know if the apartment you are trying to rent has a license ? I cant imagine that the majority of people who rent are going to ask that question as they wouldnt really know one is needed

We prefer apartments too If we had too we would rent in one of the licensed blocks Habitat etc but prefer the independent ones we use now We definately contribute to the economy while we are there Eat out every day use the beach beds etc

Certainly wouldnt come if all we could only stay in a Hotel as just prefer them for short breaks

It certainly seems a mess if buyers are being misled by estate agents too

 

[eleanor]

Copper it is impossible for most apartments to be licenced. The difference between say Habitat and most blocks is that Habitat provide the necessary services as required to obtain a licence. The most simple explanation might be that they have a reception area. I believe it to be more complicated than that and others would probably be able to answer better than I.

You are probably correct that the average person might not even be aware of the requirements. It isn't just a Mallorca thing though but all the Spanish Islands and mainland. Much has been in the media regarding the licence situation.

 

[Lorenzo]

I was wondering how some of the local estate agents in Puerto Pollensa were covering themselves with regards to renting out apartments in the area.

I spotted this 'disclaimer' on one of their websites for each apartment on their books:-
"This rental is regulated as seasonal dwelling according to art. 3 and art. 4 and other articles of Tenancies Act, Law 29/1994 of 24 November (BOE. 282, November 25) and in his absence by the Civil Code.
TOURIST SERVICES ARE NOT PROVIDED.
THIS PROPERTY IS NOT MARKETED ON TOURIST CHANNELS."

Whether this terminology will protect them or not, who know!

 

[eleanor]

I was wondering how some of the local estate agents in Puerto Pollensa were covering themselves with regards to renting out apartments in the area.

I spotted this 'disclaimer' on one of their websites for each apartment on their books:-
"This rental is regulated as seasonal dwelling according to art. 3 and art. 4 and other articles of Tenancies Act, Law 29/1994 of 24 November (BOE. 282, November 25) and in his absence by the Civil Code.
TOURIST SERVICES ARE NOT PROVIDED.
THIS PROPERTY IS NOT MARKETED ON TOURIST CHANNELS."

Whether this terminology will protect them or not, who know!

Interesting! I did hear that any agent or site which advertised a property as a holiday rental were leaving themselves open to huge fines. Many of the usual rental sites are now requesting licence numbers before they will advertise a property. I rent our villa through a couple of agents in Pollensa. Both have now emailed me to request a rental licence number. Seems they may be running scared and covering their backs. I wonder what may happen to these sites and agents as I would suspect that much of their business is from property without the licence.