The effects of "illegal" renting.

[Papillon]

Pleased to see you finally got your licence eleanor. It seems that many of my friends no longer advertise their apartments for rental however they do offer previous guests the opportunity to become "friends and family" and stay for a "modest" contribution to the upkeep of the property. Each guest is given a letter stating this just in case there is a knock on the door!

 

[eleanor]

Pleased to see you finally got your licence eleanor. It seems that many of my friends no longer advertise their apartments for rental however they do offer previous guests the opportunity to become "friends and family" and stay for a "modest" contribution to the upkeep of the property. Each guest is given a letter stating this just in case there is a knock on the door!

Thank you Papillon. I'm so pleased we did! We decided on hearing the horror tales and that there was a possibility of them putting a stop on applications for a year that we had better get on with it. We were told the deadline was 1st July and after the 12 month period of stopping it would be much more complicated and difficult to obtain and they would need to be renewed after 5 years. OK as I said before you hear so many stories but the bottom line being if we needed one we better get on and get one which we did. We also thought it would not only be needed to rent but would be a selling point.

I think your idea of adding to your friends and family list is a good one and one that many owners will decide to do. A little like Facebook - before you know where you are you have hundreds of new friends! Good luck - what a minefield!

 

[Gommar Goffer]

does anyone what to be my friend?

 

[mike_dublin]

does anyone what to be my friend?

Count me in

 

[sws97sdg]

Pleased to see you finally got your licence eleanor. It seems that many of my friends no longer advertise their apartments for rental however they do offer previous guests the opportunity to become "friends and family" and stay for a "modest" contribution to the upkeep of the property. Each guest is given a letter stating this just in case there is a knock on the door!

IMHO. This is a very good point about the way renting splits into two areas, the first is people who rent out their apartments through an agency or the various webpages, and those who let their friends and family use theirs.
It is clear that the first option will cease for owners who do not have licenses as it will be so simple for the authorities to identify unlicensed properties. This is where the large fines could be for agency who continue advertise unlicensed properties.
I know there are a lot of people who do not advertise their properties and relay on lending their apartments out to previous users, friends, friends of friends and family, I can see this carrying on as it Is not truly renting although some money may change hands and would be very difficult in a court of law to prove renting is taking place.
We are luckily in this second category as we have been using the same apartment for years and I hope we have become part of the friends group, we never complete a rental form, and haven’t for 10 years I guess in other apartments as well, we just book, exchange the keys and money and that’s it!
The only thing that may change the second option is the location, it is clear that part of this new move is to do with trying to ensure that there are affordable places for locals and others to rent in holiday areas. If people are renting out apartments that are clearly residential properties in residential areas, as in Palma, and here in some areas of the port for a few months of the year, it is stopping others from renting out long-term, especially with the inflated holiday rental rate. If on the other hand the apartments are purpose built holiday home like in el Pineret or along the front where they have no heating or aircon, many owned by the locals who themselves only use them 6 months of the year, this will certainly not be targeted in the first instance.
There have also been scare stories on FB and other places suggesting that they may well go after people who are renting apartments, I think that this would never be the case.
Of course the ideal solution, and one that won’t happen for at least 12 month as they have said, is to licence all apartments that are designed for holiday use in holiday areas, problem solved.

 

[eleanor]

Some good points SWS . One thing also to mention is you refered to Pinaret. Many of the apartments were McCallum apartments. We had friends in a couple of blocks one being near what was Pollensa Park Gotmar - now Fergus that had a real problem as it was written in to their contract when buying that renting was not allowed in the block. Foolishly they thought they might get round that clause and purchased regardless to find that the clause was upheld as others in the block did not wish for it to be used by what they classed as outsiders. One friend eventually sold as he found himself in trouble with the committee as he had so many friends!! So it's not only the lack of licence for apartment owners but whats written into their contract /deeds too! Seems winning with this is a difficult one!

 

[copper]

We will just keep our fingers crossed abut the one we have been renting We tried a few other ones after one we had rented for years was sold but this one is a winner for us

Time will tell

 

[Papillon]

From MDB 02/08/17. Original article here :- DiDhttps://majorcadailybulletin.com/ne...orium-holiday-rentals-licences-now-force.html

The moratorium on the issuing of new licences for holiday rentals came into effect yesterday. The Balearic legislation on rentals, approved by parliament on 18 July, was published on the Official Bulletin, at which point laws become effective.

There is now a period of twelve months during which licences will not be issued for any type of property. The island councils and town halls will use this period to determine zones for additional holiday rentals' places.

The government says that in addition to regulating the commercialisation of tourist accommodation, a genuine ceiling will be placed on the number of places available in all accommodation. A "balanced solution" has been sought between addressing housing needs and coexistence between residents and tourists.

According to the government, the ceiling on places, established for the first time, will tackle "the unlimited growth" of tourist accommodation places.

The legislation also creates the means for prosecuting illegal supply, establishes a clear definition of the channels through which tourist accommodation is offered, and demands that a tourism ministry licence registration number is included with property advertisements. If there is no number, the property is deemed to be illegal, leaving websites and owners liable to heavy fines - a maximum on 400,000 euros for websites and 40,000 euros for owners.

I thought this was just a rumour but it seems that fining the websites for advertising unlicensed properties is the new solution. Could be a very quiet year in 2018 and licensed properties may demand premium payments.
Hopefully this may remove the threat of a knock on the door to those who just allow "friends and family" to stay.

 

[alcanadakid]

Imposing a fine on a non Spanish website won't be so easy

 

[rebel]

Imposing a fine on a non Spanish website won't be so easy

Totally agree, but the authorities will know from the website the iligal properties being advertised and they will go after them.

 

[Rob19Lee]

I don't think this situation will last long. People will eventually start to go back to Tunisia, Egypt et al. Also, the shoddy way that we are treated at the airport and the increase in the tourist tax will reduce the numbers. Panic will then set in again and the legislation will be dropped.

 

[Gommar Goffer]

What it may well do is increase the quality (i.e. the amount of money being spent) of the visitors as supply of properties dries up and prices increase which I guess is what the island wants - fewer tourists spending more.

 

[Mark]

The legislation also creates the means for prosecuting illegal supply, establishes a clear definition of the channels through which tourist accommodation is offered, and demands that a tourism ministry licence registration number is included with property advertisements. If there is no number, the property is deemed to be illegal, leaving websites and owners liable to heavy fines - a maximum on 400,000 euros for websites and 40,000 euros for owners.

A great idea to include licence numbers but I cant find any official government website where licence numbers can be verified as genuine and valid.

Also there doesn't appear to be any way for a member of the public to search by address to see if a property has a valid license.

I think this might be the tourism ministry website ( not sure though),
Home page - Turismo - Ministry of Energy, Tourism and the Digital Agenda
I cant see how to check licenses.

The press office news on that site is about 36 million tourists in the first half of the year and a 14.8% increase in tourist spending, how ironic lets wait and see what next years figures are as people don't spend much on all inclusive package holidays do they

If someone has a link to a site that allows checking of licenses I would like to try a few addresses to check.

As tourists become more desperate to find a licensed property to book I predict an increase in fake scam websites that will list fake license numbers to trick tourists into thinking it is genuine because a license number is on the advert when it might just be a random licence number or some other properties licence number as potential customers cannot easily check.

In the UK for example if I want to check a car has a valid MOT certificate before I buy it I can go here and check and see the MOT history of that vehicle.
https://www.gov.uk/check-mot-status

There should be a similar Spanish government site for tourist licenses so that tourists and concerned neighbours/competitors can check and see the results of property licence inspections etc.

There is an ideal opportunity to clean up the rental market so it is fair and honest for property owners and tourists.

 

[alcanadakid]

What it may well do is increase the quality (i.e. the amount of money being spent) of the visitors as supply of properties dries up and prices increase which I guess is what the island wants - fewer tourists spending more.

The supply of licenced property may well reduce, but this may increase the number of properties for sale, as owners will not have rental income to part fund their property. This could drive down property prices.It may also deter future property sales deepening the property market further. Since property prices are often the backbone of a country's economy it could affect the economy. It doesn't seem to have been thought through, as it has the capability to have a massive detrimental effect, especially to existing property owners, licenced or not.

 

[copper]

Only a visitor so do locals feel there are too many visitors in PP ?? Beach doesent seem overcrowded ( Have to have my daily webcam fix!)

In Palma from what I have read people are complaining about too many tourisits We felt there were when we stayed there last but that was only when the cruise ships were in town !

I have never rented through AirBnB but they rent out rooms individually in apartments or houses I believe as well A friend was trying to sort out a place in Dubrovnik and one place she was offered ( she was after an apartment ) she would have to share kitchen with owners mother ! another share shower with another apartment but all advertised as apartments Is this sort of thing causing the problems in Palma ?

I do agree we should be able to check online if the place we are renting has a licence as people could be told lies and there have been enough online swindles already !

 

[Gommar Goffer]

The supply of licenced property may well reduce, but this may increase the number of properties for sale, as owners will not have rental income to part fund their property. This could drive down property prices.It may also deter future property sales deepening the property market further. Since property prices are often the backbone of a country's economy it could affect the economy. It doesn't seem to have been thought through, as it has the capability to have a massive detrimental effect, especially to existing property owners, licenced or not.

Alcanadakid - I think I did allude to property values potentially dropping in an earlier post but I would expect those with licences will become more desirable and therefore more valuable.

 

[Papillon]

Some interesting comments below this article in the MDB today.

https://majorcadailybulletin.com/ne...ing-further-anti-tourist-attacks-majorca.html

 

[Mark]

Also:
MAJORCA ATTACKS: Antifa backlash at tourists spreads to British holiday hotspot | World | News | Express.co.uk

Majorca is hit by anti-tourism protesters days after Barca | Daily Mail Online

https://www.thetimes.co.uk/article/anti-tourist-anarchist-group-arran-strikes-in-majorca-0czfrdcks

Madness

 

[Papillon]

Seems like the door has finally closed on the advertising of apartments for Touristic or short term Domestic Rental.

https://majorcadailybulletin.com/ne...es-decree-for-holiday-rentals-apartments.html
4th Aug 17

The regional government yesterday approved the decree that amends the recent holiday rentals' legislation. The decree was necessary in order to deal with the legal limbo created by the opposition of Podemos to a specific article in the legislation: the commercialisation of apartments as tourist rental could neither be authorised nor prohibited.

The government has accepted the inclusion of the concept of housing emergency in the legislation. Podemos had insisted on this. In effect, it enables the total ban of apartment holiday rentals in Palma and on the island of Ibiza (with one small exception).

There may well be such a ban in Ibiza. In Palma, however, and despite the town hall itself having approved a ban that was called for by the federation of residents associations, it is possible that the town hall will follow the example of Amsterdam. This is that there can be the tourist rental of an "habitual residence" up to a maximum of sixty days per year.

The decree has to now gain parliament's ratification, which will be next month. Once there is verification, another obstacle created by the Podemos opposition will be overcome. Because of the legal limbo, it would have been very difficult for the government to issues fines for both owners and websites advertising unlicensed holiday rental accommodation.

The legislation also includes a requirement for all holiday rental accommodation advertised on the internet to include the appropriate licence registration number. If it doesn't, it will be considered to be illegal. In addition, any property to be let for under thirty days will be deemed to be a holiday rental and therefore subject to all the relevant provisions in the legislation. This is the government's way of closing the tenancy act loophole on short-term rentals that are in fact for holiday purposes.

 

[P&C@29]

IMHO I believe that unless you prepared to stay in a hotel or a purpose built holiday block you are not welcome in Mallorca. My wife and I have rented apartments in PP for over 30 years and dearly love the place, but we don't like staying in hotels or holiday block complexes. We have booked for 4weeks in September/ October 17 and again April/May 18 but I fear that that will be the end of a long love affair with PP, feeling very sad and nostalgic.