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Short-term accommodation rentals developing fast, due to platforms like Airbnb, Booking and Expedia
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The aim is to promote a responsible and transparent platform economy in the EU
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Common rules on registration and identification of hosts and their properties
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Quality data will lead to better enforcement and fewer illegal listings
EU Parliament and Council negotiators agreed on new rules on collection and data sharing on short-term rentals to help local authorities improve tourism services.
On Wednesday night, MEPs and the Spanish Presidency of the Council reached a provisional agreement on the regulation on data collection and sharing related to short-term accommodation rental services (STRs). This initiative aims to promote a transparent and responsible platform economy in the EU and to inform effective local policies.
Commenting the deal, rapporteur Kim Van Sparrentak (Greens/EFA, NL) said: “Cities are struggling with an explosion of illegal holiday rentals. This puts the liveability and affordability of cities across Europe under pressure. Until now, rental platforms have refused to share data, making it difficult to enforce local regulations. Fortunately, this law puts an end to that and returns more control to the cities. We are demonstrating that it is not large tech companies, but the cities themselves, that determine the rules”.
The agreed measures
Simpler registration: the agreed text sets up a free (or at a proportionate cost) online registration procedure for short-term rental properties in those EU countries that require it. Once the procedure is completed, hosts will receive a registration number that will allow them to rent out their property. The relevant authorities will know the identity of the host and be able to verify their information.
Safer rental services: online platforms will have to ensure that a host’s registration number enables users to identify the property on the listing and that the information provided is reliable and complete. Platforms will have to make “reasonable efforts” to conduct random checks on this information. Competent authorities can suspend registration numbers, ask platforms to remove illegal listings, or impose penalties on non-compliant platforms or hosts.
Transmission of data: Under the agreement, member states will set up a single digital entry point to receive data from platforms about host activity (e.g. specific address, corresponding registration number, URL of the listing) on a monthly basis. A less burdensome regime is set up for micro and small platforms with an average of 4,250 listings or less. This data will be used to compile statistics and allow public authorities to better assess the situation on the ground and improve tourism services in their area.
Next steps
The informal agreement will need to be adopted by Council and Parliament before it becomes law. After its entry into force, member states will have 24 months to adapt their registration systems and create the necessary IT infrastructure.
Background
The market for short-term rentals has increased rapidly in recent years, mainly due to the emergence and expansion of hundreds of online platforms such as Airbnb, Booking, Expedia and TripAdvisor. This type of accommodation comprises about one quarter of total tourist accommodation in the EU and this proportion is expected to increase. While such rentals create benefits for hosts, tourists and many regions, some researchers argue that the lack of appropriate rules also contributes to problems like higher housing prices, permanent residents being displaced and disturbed, over-tourism, and unfair competition.
Further information
EU Council version of transparency to short-term accommodation rentals
16 November 2023, 02:45
As part of the ongoing efforts to promote a balanced tourism ecosystem within the EU, the Council and the European Parliament today reached a provisional agreement on a draft regulation on data collection and sharing for short-term accommodation rental services.
Everybody wins with today’s deal. The new regulation creates a single and easy set of information rules for the platforms and facilitates registration procedures for hosts. More transparency will enhance trust for travellers and help authorities design better tourism policies, to ensure social and environmental sustainability, while helping to control illegal activity.
Rosana Morillo Rodriguez, acting Spanish Secretary of State for Tourism
Simpler, harmonised system of data collection
The proposal for a regulation aims at enhancing transparency in the field of short-term accommodation rentals and helping public authorities regulate this increasingly important part of the tourism sector. The development of online services and the cooperative economy has boosted rentals of rooms and residences for short periods of time, often via online platforms. While short-term accommodation bookings offer benefits for hosts and tourists alike, they can be a cause for concern for some local communities struggling with a lack of affordable housing, for example.
The new rules introduce harmonised registration requirements for hosts and short-term rental properties, including the granting of a unique registration number to be displayed on property websites, aimed at improving the collection and sharing of data from hosts and online platforms. The data generated will be shared between public administrations across the EU, feeding into tourism statistics and allowing administrations to fight against illegal offer. Overall, this will contribute to a more sustainable tourism ecosystem which supports its digital transition.
Main elements of the compromise
The provisional agreement supports the main objectives of the regulation but introduces a number of improvements. The co-legislators have agreed to align the new regulation with the relevant provisions of the Digital Services Act and the Services Directive.
Platforms will be required to transmit activity data to the public authorities on a monthly basis. Small and micro online short-term rental platforms will transmit the activity every three months.
Member states will create Single Digital Entry Points for the seamless collection and exchange of information. They will be interoperable and will guarantee data protection.
The new regulation should apply 24 months after its entry into force.
Next steps
The provisional agreement reached with the European Parliament now needs to be endorsed and formally adopted by both institutions.
Background
The rental of apartments, houses or rooms for short periods of time has become a common form of accommodation for tourists and travellers. Online platforms have boosted the use of these services, which currently amount to nearly one quarter of total tourist accommodation in the EU. Some member states have implemented systems of registration that differ in scope, the requirements to be submitted by the hosts or the online platforms, and the level of administration at which registration is managed (national, regional or local).
On 7 November 2022, the Commission published its proposed regulation on short-term accommodation rental services. The proposal, for which the Council and the European Parliament have today reached an agreement in principle, is limited to the creation of an easy-to-use registration system with common provisions for establishing registration procedures and is not intended to regulate access to the market on these activities.