The short-term rental industry will officially be subject to new registration regulations in Europe.
European Union regulators announced Thursday that they have voted to adopt uniform requirements on how data related to STRs is collected and shared. The new rules aim to protect travelers from STR fraud while promoting what the European Parliament calls a “transparent and responsible platform economy in the EU.”
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Kim van Sparentag, a member of the European Parliament, cited the rise in illegal STRs as a problem facing cities across the continent and said the new rules should help alleviate the problem.
“This is making cities across Europe less livable and cheaper,” Van Sparentak said. “We will be able to better enforce regulations and make it easier for residents to access housing.” ‘
STRs currently account for a quarter of traveler accommodations in Europe, but the STR registration process has historically varied widely by region.
Madeline List, senior analyst at Focuslight, said regulatory harmonization could help alleviate the current STR industry challenges.
“Short-term rental regulations have proliferated as the sector expands, but enforcement remains a persistent challenge for local governments who need to identify, shut down and penalize illegal properties.” said List. “These laws are intended to create a more uniform standard of practice for destinations facing this issue.”
The decision followed the EU’s November agreement on a draft regulation on registration systems.
STR giant Airbnb responded to the ruling with enthusiasm.
“[European Union] This regulation marks the beginning of a new chapter for short-term rentals in Europe,” said Georgina Blause, Head of EU Policy at Airbnb. “For the first time, the rules of the road are clear and will benefit European tourism services for hosts, authorities and visitors. We will work together with Member States and their local authorities to ensure the rules are a success for everyone. We are ready to implement the rules.”
As part of the new rules, STR platforms must follow registration procedures and data sharing for listed properties in regions where registration processes are in place. The online registration process requires authorities to be able to identify hosts and their properties and verify their information.
STR platforms must also ensure that the information provided by hosts is accurate and complete, and that each listing has a visible registration number. Platforms will be required to perform “random information checks.” And as part of the rules, authorities have the right to suspend STR registration numbers, require STR platforms to remove illegal listings, and impose penalties on hosts and platforms that do not comply.
European Union member states will also create a “single digital entry point” for data from the platform on monthly host activity, including number of nights stayed, number of people staying, address, registration number, listing URL, etc. Data collection is done to monitor host registration compliance and give national authorities the ability to incorporate appropriate STR policies.
Once the Council adopts the Regulation, it will be published in the Official Journal of the EU. Thereafter, the STR industry must comply within 24 months.
