Today, the European Parliament gave the green light to better regulate the online short-term rental market.
Online short-term rental platforms represent a quarter of all accommodation bookings in the EU. While this sector has greatly contributed to local economies, it is also reducing the offer of long-term rentals, leading to price inflation and the displacement of residents. The poor reliability and lack of information coming from hosts on these platforms (i.e., the location where those services are being offered, their duration, etc.) pose obstacles to public authorities in terms of regulation.
The Socialists and Democrats in the European Parliament successfully pushed to make sure that hosts need a registration number – given free-of-cost – to rent out their property, while online platforms need to assess if the information provided by the host is reliable and complete, and conduct checks on a regular basis.
Brando Benifei, S&D MEP and negotiator on the ‘Data collection and sharing relating to short-term accommodation rental services’ report, said:
“Today we voted to improve transparency on short-term rentals. It’s time to give public authorities the necessary tools to regulate a sector that continues to boom!
“Online short-term rental platforms have boosted the tourism sector, but have also led to the so-called ‘touristification’ of cities, negatively affecting the housing affordability and liveability. This problem also affects workers and families struggling with an out-of-control real estate market. Today, some platforms do not respect existing obligations and member states are moving randomly: the legislative vacuum regarding short-term rentals is a real problem across Europe.
“For the Socialists and Democrats in the European Parliament, it is clear that the responsibility should be shared among the hosts, online platforms and public authorities. With this regulation, we aim at harmonising registration procedures via the collection and sharing of data between hosts, online platforms, and competent authorities. This is not the definitive solution to the problem, but certainly a first step to give the 27 member states the necessary tools to legislate at the national level.
“I am proud that all our priorities have been confirmed: hosts will receive a registration number, online platforms will have to ensure that the information provided by hosts is correct and, ultimately, the authorities will be able to take action in case of fraudulent use of the platforms.”
