Property administrators urge Madrid to regulate holiday rentals

Prime property in Madrid with communal facilities that are affected by holiday rentals.

Prime property in Madrid with communal facilities that are affected by holiday rentals.

The Madrid regional government is preparing new regulations for tourist apartments and holiday let properties, which already represent 12% of all homes in Madrid city – according to a report commissioned by Madrid City Council.

The association of property administrators (CAFMadrid in Spanish) say that they are looking forward to seeing how the regional government plans to deal with this new social and economic phenomenon.

Concern over the expansion of the holiday rental sector is high, and inquiries for this type of accommodation reaching property administrators have gone up by 120% over the last few months. “This is why we are urging the regional authorities to publish new regulations that clarify and provide answers for the requirements identified in the use of these properties,” said Manuela Julia Martínez, president of CAFMadrid.

To come up with regulations that solve the problems of tourism in the city, “they must include a change in the community of owners law (Ley de Propiedad Horizontal/LPH in Spanish) because it’s a known fact that almost 60% of people who advertise holiday lets are managing multiple properties,” said Martínez. This harms the interests of individual owners.

CAFMadrid believes that one of the main changes that the LPH should deal with is the possibility of charging owners of holiday lets more for increased use of communal services (lifts, sports areas, etc.). The same would apply to those with business concerns (medical centres, dentists, hostels, law firms, etc.) in the building. Another possibility is to limit holiday accommodation (including private homes and hostels) to a maximum of two per building.

The possibility of prohibiting holiday lets in communities whose regulations specifically say so is always an option, as the regional government points out. “However, we don’t think this is appropriate if new obligations are introduced for owners who let holiday accommodation,” says Martínez.

Among the new obligations, she highlights that the property should have “a certificate stating that it complies with certain conditions for holiday accommodation”. Or clearly set out occupants’ rights and obligations with particular emphasis on following basic ground rules”.

About SPI News Feed

SPI News Feed provides general news about the Spanish property market and related articles translated from the Spanish press. For more in depth news, analysis, and opinion, see Mark Stücklin's blog.

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