• Why the new law will affect your rentals

10 Jan 2017

Why the new law will affect your rentals

Tags: information, tourism,

Proposed draft law for the modification of Law 8/2012, of 19 July, on tourism in the Balearic Islands

The Balearic Government has recently made public the draft of the preliminary law amending Law 8/2012, of July 19, on tourism in the Balearic Islands, regarding the commercialization of tourist stays for public exhibition and sent a copy of the same to the main associations of the sector.
While the Hotel Business Federation of Mallorca  (FEHM) has considered insufficient the documentation received to issue its assessment, from the association of tourist apartments (Aptur Baleares) have already qualified the regulation as very improved.

It is a text in the preparatory phase that is open to debate, which implies that, until it is ratified as a law, it may be modified. Even so, it offers an overview of the guidelines that the Government of the Balearic Islands intends to implement in this regard.

It’s unquestionable that the regulation of the offer of holiday rental in any of its forms and variants is totally necessary. It is an activity that has grown in an extraordinary way in a few years stimulated by the great demand produced of this form of tourism. The tourist rental attracts a type of visitor who usually has a purchasing power above average and more predisposed to integration in the reality that has chosen Mallorca to rest. This is also important not to neglect it and also give legal protection.

The main objectives to be achieved with the new regulation are basically three:

 1) Avoid the tourist saturation, establishing a real roof of tourist beds.

 2) Regulate tourist rental in multi-family buildings and improve current regulations.

3) Ensuring access to housing, trying to solve the problem of reducing the supply of rental apartments for residents as well as rising rents.

What's new in the new proposal of law:

-          The exceptions are deleted in the exchange of places that had so far, everyone who wants to open a tourist establishment or commercialize tourist stays in a home must purchase the places in the corresponding insular bag, provided there are available.

-          In the case of multi-family housing, tourist places will be acquired for a term of 5 years renewable, provided the residential area in question is considered suitable for the marketing of tourist stays.

-          New commercialization of tourist stays in houses located on rustic land will be prohibited.

-          The web pages that commercialize tourist stays can only announce those houses that are registered legally.

-          Constructions, both single-family and multi-family, must have a minimum age of 10 years.

What does the main entities involved say about it?

The Hotel Business Federation of Mallorca: The FEHM president emphasizes the importance of the regulation of holiday rental proposed by the Government, while it has asked the Ministry of Tourism to conclude and provide the entities involved with the study of regulatory impact.

Association of Apartments and Houses for Holiday Rental of the Balearic Islands, Aptur: From this association consider a serious mistake that the Govern Balear bets to maintain the ceiling of squares that currently exists in the draft +of the Law of Tourism relative to the commercialization of the tourist houses. They consider that this measure does not give an answer to the reality of the tourist market, by leaving out of the legality about 50% of the current offer of holiday rental.
Among the positive aspects also presented by the draft Law, Aptur Baleares emphasizes Article 19, which will oblige the tenants to inform in writing about the basic rules of coexistence, and the proper use of services in the case of multi-family properties.
In the same way, the association supports the need to incorporate the tourist registration number of the dwelling in any publicity that takes place of this one. They also support the requirement that any home can be used for holiday purposes until I have done ten years, as it may be thus possible to combat property speculation.

In this last week, Palma City Council, together with the University of the Balearic Islands (UIB), are carrying out different studies in order to determine the areas where tourist rental will be allowed in multi-family homes and in which they won’t be.
It’s intended to have the first conclusions of these studies in the middle of next January, when it is anticipated to carry out a first working table in order to analyze different aspects of the autonomic regulation that leaves in the hands of the City Council zoning of the city to effects of holiday rental.

Given the data presented, it remains to wait for modifications and ratings of the law to meet objectives and final regulations.

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