The Cyprus Tourism Business Association (STEK) issued a warning on Thursday of the dangers posed by short-term rentals, saying the rapid expansion of such practices in Cyprus must be addressed by a number of practical solutions.
“Given growing pressures to regulate the trend of short-term rentals, in the manner of Airbnb type, at a pan-European level, the Cyprus Tourism Business Association would like to express its serious concerns about this and make specific recommendations in order to better manage it”, specifies the association in a press release.
Additionally, the association said insufficient regulation of properties used in this way has created a number of obvious chain issues.
“As a result, it is necessary to institute additional provisions beyond those provided for in the current legislation”, explained the association.
The association noted that in many European cities, especially cities with significant tourist activities and international visitors, local municipalities have proceeded to implement their own strict regulations.
“For example, in Paris short-term rental is allowed for 120 days per year, in London and Reykjavík property rental is allowed for 90 days, while in Amsterdam short-term rental is only allowed. allowed only for a maximum of 30 days, while in some parts of the city this practice is completely prohibited,” STEK said.
STEK also mentioned that in Glasgow, Scotland, it is only allowed for someone to rent a room in a flat in a building with a common entrance. In addition, in Barcelona, no new permits are granted for short-term rentals, while short-term rentals are completely prohibited in residential areas of Palma de Mallorca.
“The rapid spread of short-term rentals has led to skyrocketing rents in several areas, making them prohibitively expensive for permanent residents or making it extremely difficult for local citizens to find permanent accommodation,” says the association.
“In addition, serious nuisance problems are often created for permanent residents by the temporary tenants of these dwellings”, he added.
The association went on to say that local authorities end up suffering significant revenue losses by not taxing short-term rental properties.
It also highlighted the issue of unfair competition with hotels and other regulated accommodation units that must comply with numerous regulatory standards, labor agreements, and other rules and regulations.
“STEK considers it unacceptable that there is a further extension of the grace period for the registration of specific accommodation units in the corresponding register, and that no further extension is granted for illegal practices and tax evasion”, says the association.
To this end, the association has recommended a number of measures to facilitate effective regulation of short-term leases.
First, the association noted, renting a property should only be allowed for a specific period of time, which does not exceed 90 days on an annual basis.
The association further said that in certain areas or even cities where permanent residents find it difficult to find houses or flats for long-term rent, the government should consider banning short-term rentals altogether. .
“Relevant estimates speak of the uncontrolled operation of approximately between 80,000 and 100,000 beds in short-term rental properties, about as many as the legal hotel industry,” STEK said.
“Of these beds, only 15,000 were registered in the relevant register until recently, so with the implementation of the relevant legislation from February 2023, the authorities will have to carry out permanent checks in order to crack down on illegality” , he added.
Additionally, the association also said the government should consider making the payment of an overnight fee mandatory.
Finally, he called on the government to require such properties to adopt safety and health rules, in the same way that hotels and other regulated properties must.
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