Although the new rental law came into effect in May this year, it has so far failed to gain widespread popularity with foreigners owning property at the Costa del Sol. Many are ignoring the new regulations governing their holiday rental business – privately rented out tourist accommodation is now coming under close scrutiny of governmental web crawlers, who will search all the big holiday websites for landlords advertising properties that have not been registered.
What changes came into effect in May 2016?
The changes in legislation now state that owners who rent their properties to tourists must register their property with the Andalucian Tourist Registry. According to estimates made by the Junta de Andalucia's own specialists, some 80,000 private homes are being let out to tourists every year. This equates to around 400,000 beds, income that is lost to the hotel sector and the practice is therefore deemed unfair competition. The new legislation aims to put an end to this inequality and to ensure that all holiday accommodation is satisfactory for the end user.
What are the objections to the law?
All living rooms and bedrooms must now have direct exterior ventilation, air-conditioning and heating. This is a cost many owners claim they simply cannot afford. Private landlords of holiday lets must also provide either paper or electronic brochures detailing where tourists can find the nearest amenities such as parking spaces, bars and restaurants, attractions, shopping centres and medical treatment facilities. Details on timetables of buses and trains, a map of the area and general tourist information must also be provided, according to the new regulations.
Tourists will benefit for sure, but many landlords who have for many years reaped the benefit of a strong tourism sector at the Costa del Sol are complaining about the high costs of implementing the new regulations.
While the hotel sector has generally welcomed the new holiday rentals laws, some property owners have taken issue with the fine print: they claim that they are forced to withdraw their properties from the holiday rentals market, because paying for costly refurbishments means short-term rentals are no longer a viable business.
Ignoring the new legislation will be costlier still: anyone found guilty of not registering their property as a holiday accommodation business or not complying with all the new regulations can look forward to fines of up to 150,000 Euros. Those that have registered but not adhered to all of the new regulations may also be struck off the register in addition to being fined.
Once a property owner has registered their property, they can expect to receive a call from an inspector, who will go through the holiday accommodation to make sure all is as stated in the registration. When the thumbs-up has been given, the property can be listed on as many holiday websites as the owner wishes.
If you are thinking of investing in a rental property at the Costa del Sol, perhaps in Marbella, Estepona or Fuengirola, study the new law thoroughly before buying a property. Installing heating, additional windows and air-conditioning, upgrading furnishings and décor, not to mention arranging for reliable cleaning services after ever change of tourist, are start-up and maintenance costs that must be taken into consideration before buying, otherwise your investment could turn out to be a financial millstone around your neck. Spain is still a buyers' market, with thousands of newly built properties sitting empty, so selling a rental property that has turned out to be a costly mistake could take quite some time.