The effects of "illegal" renting.

[Rosie34]

I have been in touch with the letting agent who has spoken to the owner in France who says there will not be a problem - I am not 100%sure that they understood the implications of the situation as I tried to explain but it's either go and take a risk or cancel and lose money and flights etc. So we will take the risk this year as next year we may not get the choice!

But when you think of the number of people visiting and the relatively low number of hotels, and there must be lots like us who do not want to stay in an hotel with all the restrictions etc, then it does look as if they are shooting themselves in the foot. Either there won't be enough hotel accommodation or people will just not visit. So even more restaurants and bars will lose out or close, especially if hotels offer AI or HB. So jobs will be lost and then there will be even more unemployment in the area. Surely, if an area relies on tourism as its main source of income, then visitors should be made welcome.

Or am I just being over simplistic? Or is it because of tourists renting short term accommodation that is causing lack of homes to local people?

And if this goes ahead, nobody will want to buy in the area, and I very much doubt that local people will be able to afford the sort of apartment that is offered for holiday lets, so will there be loads of empty 'for sale' apartments which locals cannot afford and visitors cannot rent?

I just cannot see the logic

 

[Disorderly]

I know this is going to sound really selfish, but I retire in February and hope to buy a property in PP solely for the use of my family......I have no desire to rent the property out at all. Unless I'm being very naive, I suspect that there may be plenty of properties to choose from and some deals to be done. Fingers crossed!

 

[pips]

I am so confused, do I rent next year or not. Am I right that if the rental is over 30 days it's not tourist? but it also states the landlord has to prove the renters are not tourists or travelers? Why else would you stay in 1 place for only 30 days if you were not traveling. Are beach front apartments considered tourist or for locals to rent? Can't see many locals wanting to face the sea, storms and rain full on in winter. I can understand they don't want apartments in blocks where locals live full time being used for tourists, my son stayed in one of these several years ago and it was a bit awkward meeting the permanent residents.
You'd think they'd have worked out the zones before passing the law so suitable apartments would still be available legally. Hotels are too expensive for the length of time we stay, so don't know what to do now.

 

[lollipop]

What I read today confirms that only apartments in blocks designated as tourist and with a key grade ( as hotels get *) can be rented and advertised. They will not firm up the law until the end of the 12month moratorium on the issue of licences. In that time I am sure that the Pollenca council will be continuing their fight for some legislation to allow apartments to be licenced as they depend on private rentals due to the low number of hotel beds.

 

[favie]

I know this is going to sound really selfish, but I retire in February and hope to buy a property in PP solely for the use of my family......I have no desire to rent the property out at all. Unless I'm being very naive, I suspect that there may be plenty of properties to choose from and some deals to be done. Fingers crossed!

Well my fingers are definitely crossed....that that nightmare doesn't ever happen! In saying that I wish you luck in your purchase.

 

[Sparky]

Andrew Ede has posted his thoughts on his blog, here :- alcudiapollensa.

 

[El Gordo]

Where is this...

................ Can't see many locals wanting to face the sea, storms and rain full on in winter.....................

Ha Ha its lovely in winter

 

[Papillon]

Podemos

It's interesting that whilst we focus on private apartment rental we are missing the the underlying sea change in the political map with the arrival of Podemos, a new political party which in essence is an amalgamation of ultra left wing groups that have previously stood under the banner of "Anti Capitalism." Its success has been remarkable with its anti austerity policies and its slogan of "Ordinary People Just Like You" gaining so much support with the young and unemployed.

The recent radical change in the law has been driven by their uncompromising approach to " Massification" on the islands with its focus on the lack of accommodation for seasonal workers due to the popularity of AirBnB as a source of income for local families and to the reduction of "beds" available to tourists.

Private apartment rentals are the the easy target of course, nobody believes that AirBnB or the websites like HomeAway will take this lying down but will appeal the European Court of Justice to reverse any decision restricting their right to free trade. Unfortunately the owners who bought apartments in good faith expecting to subsidise their investment with a regular summer income are denied this route due to the crippling cost of such an appeal.

The irony of course is that it appears that this extreme left wing anti capitalist party seems to be hand in glove with the hotel lobby that allegedly demonstrate the worst aspects of capitalism with its protectionism and anti competition policy.

Welcome to the new world politics.

Just my personal opinion of course.

 

[pips]

Wish we'd flights from anywhere in Ireland to go in winter ��

 

[pips]

"a.Rights and obligations:
For stays of under three months: the only requirement for Union citizens is that they possess a valid identity document or passport. The host Member State may require the persons concerned to register their presence in the country."

Found this on the European Parliament fact sheet. Does this mean the new legislation is breaching EU freedom of movement and residency laws? even for short stays, less than 3 months. I suppose we'll find out if the big companies decide to challenge the law possibly using this. Hopefully if they do, it will be sooner rather than later so we know where we stand.

 

[Tommo]

Andrew Ede has posted his thoughts on his blog, here :- alcudiapollensa.

Blimey. After reading the article I feel like a criminal, if only a unwitting one.
I seriously don't know what to do about our annual trip. We absolutely adore PP and we've been coming most years since 1992. I feel a little bit lost.
Coincidentally as I write this I'm listening to an article on radio fours You and Yours regarding the new law. The situation is baffling, in as much that if we come to Pp are we fueling an already bad situation and if we stay away are we denying the tourist industry our cash, which could lead to the closure of our favourite restaurants, bars and the unemployment of the lovely waiters and staff.��

 

[Papillon]

This is so sad and smacks of unnecessary vindictiveness against innocent tourists who not only lose their holidays at this late stage but will be unable to recover their flight costs should they not travel. When the UK press finally report the true story it will have a devastating effect on the islands.

Whatever the rights and wrongs of the new legislation, applying it from May 2018 would at least show they are not victimising this years visitors but focussing on the owners.


https://majorcadailybulletin.com/ne...s-start-cancel-apartment-rental-bookings.html

The law on rentals for tourists is already having an impact. Owners of apartments are starting to cancel bookings, fearing the fines of between 20,000 and 40,000 euros. Adverts for apartment accommodation on websites are being removed for the same reason. The Aptur holiday rentals association has advised its members to take down any advert which is for an illegal apartment and to do this immediately.


Owners are not the only ones who are worried and who are also uncertain of the situation. Their clients - tourists - share their worries and uncertainties. Aptur notes that clients will have paid for airline tickets and, in the majority of cases, also paid a deposit.

At this time of the summer, Aptur adds, it is difficult for tourists to find alternative accommodation. If it is a licensed rental, such as a villa or stand-alone house, it will cost much more than an apartment, assuming one is even available. For the moment, it doesn't seem as if the hoteliers are necessarily gaining extra business. The Majorca Hoteliers Federation says that it is too early to assess the impact of the legislation.

Aptur notes that it has been inundated with calls from owners who have apartments on websites such as Airbnb or HomeAway. The government now treats any property advertised on these sites and others as "tourist". As apartments do not have a tourism ministry licence for tourist rental (and never have had), they are automatically deemed to be illegal.

Overwhelmingly, it is apartments that are causing the anxieties. Any type of property that is advertised as a holiday rental without the appropriate licence is liable for a fine, which has always been the case. But apartments are the real target of the legislation. Under the 1999 tourism law they were excluded from categories of property which could be licensed. The 2012 tourism law reinforced this by prohibiting apartments from being marketed with terminology saying they were for tourists: adverts could not, therefore, include terms such as "tourist", "holiday" or "vacation".

A way round this was the Ley de Arrendamientos Urbanos, usually referred to in English as the tenancy act. A national law, it sets no minimum period on the length of a let. Perfectly legitimately, owners were using this law for apartment rentals. So long as they were not advertised as being "holiday", no services were being provided, and a lease contract was drawn up, they were within the law. In effect, the Balearic government's legislation, which considers any rental of fewer than 30 days to be for tourism purposes, has ended this. It will be very difficult for an owner to prove that a rental of less than a month is not touristic. And it is down to the owner to prove this.

Aptur's legal services are saying that although the tenancy act is a national law and doesn't define a minimum period, this does not prevent the Balearic government from fining a let that is for less than a month.

 

[allanglens]

This is so sad and smacks of unnecessary vindictiveness against innocent tourists who not only lose their holidays at this late stage but will be unable to recover their flight costs should they not travel. When the UK press finally report the true story it will have a devastating effect on the islands.

Whatever the rights and wrongs of the new legislation, applying it from May 2018 would at least show they are not victimising this years visitors but focussing on the owners.


https://majorcadailybulletin.com/ne...s-start-cancel-apartment-rental-bookings.html

I wonder whether owners and renters could agree a formal let for a month, but also a renunciation after one, two, or three weeks as necessary? Might take a bit of adjustment to adverts, etc., but might work in part.

 

[eleanor]

From what I have heard from a legal channel all loopholes have been thought about. Ok there might be one that slips through but who would want to challenge it with the risks of huge fines?

I am just so pleased we applied for our licence and have a number. Having said that I do wonder if already people are thinking with their feet as my villa isn't booked after 19th. One agent told me yesterday that they are cancelling accommodation booked in properties without a licence as they will not take the chance of the fine. Where does that leave people expecting to arrive soon for their holiday?

As for the property market - who knows! Villas with licences may go sky high especially with the rental potential while apartments may feel the effect. Whatever it is a minefield at the moment. I feel sorry for those who were led to believe that they could rent to cover their mortgage. Many won't be able to sit it out to see what happens. I suppose long term rentals over 30 days may be their answer. The 'joke' is that it has been said that one reason for this is to make accommodation more obtainable to the workers. What they fail to remember is that most workers in some way are connected to the tourist industry. No jobs then no homes needed as the workers will not be here! Crazy!

 

[Gommar Goffer]

allanglens - I would think that it would be almost impossible to try to do that as presumably there would be back to back bookings which would prove to be holiday lets or an apartment would have to sit empty for 50% of the time which would impact on the cost.

I think they should have legalised almost everything with sensible licence fees and minimum standards of safety etc. That would bring rental costs down through competition and give access to more property for seasonal workers etc and make it far easier and more attractive for taxes to be collected.

 

[sws97sdg]

I think this 31 day point is misleading, if you rent over 31 days you will still need a bond and a legal contract in place to show you are renting, so this would be too costly for tourists to do, I think the law doesn't say tourists can rent for 31 days legally, the law says that if you rent for less than 30 days without the bond and legal contracts it is illegal.!! If that makes sense!

 

[Gommar Goffer]

guilty until proved innocent

 

[pips]

I emailed the owner of the apartment we rent, they said it was ok as they don't advertise through an agent, or online, only directly with the renters. I think they're panicking as well as the mortgage was mentioned. We rent for 23 days so if the apartment was available we'd go for the 30 days no problem. The other thing is I don't want to fall out with the owner and cancel, no money has been paid, as hopefully it will be sorted after the 12 months review and certain areas will be deemed tourist for apartments, or is that just wishful thinking. Remaining desperately confused.

 

[Mark]

I emailed the owner of the apartment we rent, they said it was ok as they don't advertise through an agent, or online, only directly with the renters..

The law is sure to apply to all apartments not just those that are advertised on airbnb and ownersdirect websites etc.

Think about next year, there will be many apartments with shutters closed up as no one is there, then there will be some with shutters open and towels hanging on the balcony.
How easy is that for a tourist inspector to meet his or her targets

 

[Papillon]

It's not the inspectors that you have to worry about but the neighbours who have been harbouring a grudge against you for years because you are an "illegal renter" and now have an email address to make your life a nightmare.