The short-term rental industry will officially be subject to new registration regulations in Europe.
The European Union regulators announced Thursday they voted to adopt uniform requirements on how data related to STRs is to be collected and shared. The new rules are meant to promote what the European Parliament calls a “transparent and responsible platform economy in the EU” while also protecting travelers from STR fraud.
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European Parliament member Kim Van Sparrentak pointed to a rise in illegal STRs as a problem facing cities across the continent and said the new rules should help mitigate the issue.
"This is making cities across Europe harder to live in and less affordable,” said Van Sparrentak. “This law requires platforms to share their data with local authorities, allowing them to better enforce rules for vacation rentals so housing remains accessible for residents.''
STRs make up one-quarter of traveler accommodations in Europe currently but registration processes for STRs have historically varied greatly across the region.
Phocuswright senior analyst Madeline List said regulation harmonization could help to mitigate current STR industry challenges.
“While there’s been a spike in short-term rental regulation as the segment has expanded, enforcement has been a persistent challenge for municipalities who need to identify, shut down or penalize illegal listings,” said List. “These laws aim to create more uniform standards of practice for destinations that struggle with this.”
The decision comes on the heels of the EU’s November agreement on draft regulations for a registration system.
STR giant Airbnb responded to the ruling with enthusiasm.
“[European Union] rules mark the beginning of a new chapter for short-term rentals in Europe,” said Georgina Browes, head of EU policy at Airbnb. “For the first time the rules of the road are clear, benefiting hosts, authorities and Europe’s tourism offer to visitors. We stand ready to work with member states and their local authorities on the implementation of the rules to ensure they are a success for everyone.”
As part of the new rules, STR platforms will have to follow registration procedures and data sharing for listed properties in areas with registration processes in place. The online registration process should give authorities the ability to identify the host, their property and to verify their information.
STR platforms will also need to make sure information provided by hosts is accurate and complete, with a visible registration number on each listing. Platforms will be required to perform “random information checks.” And as part of the rules, authorities have the right to suspend STR registration numbers, ask STR platforms to remove listings that are not legal or issue penalties to non-compliant hosts and platforms.
European Union member states will also create a “single digital entry point” for data from platforms regarding monthly host activity - including number of nights rented, number of guests staying, addresses, registration number and listing URL. The data collection will be made in an effort to monitor host registration compliance and give national authorities the ability to incorporate suitable STR policies.
Once the council has adopted the regulations, they will be published in the EU Official Journal. Then the STR industry has 24 months to comply.