OUR REAL estate expert, Mathew Wood of Hola Properties – headquartered in Lanjarón – gives his latest update on the fast-moving legal situation regarding holiday rentals…
The holiday rental market in Andalucía has seen significant changes recently, with the introduction of Decree 31/2024, which entered into force on August 22, 2024. It stipulates yet more rules that all property owners involved in short-term rentals must follow, especially those who own rural properties or plan to buy or sell a property with a tourist license. So, what does this really mean?
Key changes in the regulations
The crackdown on illegal holiday rentals in Spain has prompted stricter regulations across Andalucía. The decree addresses various aspects of holiday letting, introducing detailed requirements that property owners must meet. Here are some key highlights:
- Rural properties with AFOs: Properties with an AFO (Asimilado Fuera de Ordenación), particularly those without all necessary building permits, may no longer qualify for a new tourist license. This affects rural properties where the legalisation process wasn’t fully completed.
- Specific property standards: The decree introduces new standards based on property size and occupancy:
- Properties with five beds must have at least two fully functioning bathrooms.
- Properties with eight beds need three bathrooms.
- Additional requirements, include designated parking spaces for guests, which could be problematic for older properties lacking such facilities.
- 24/7 contact requirement: Property owners must provide a 24/7 contact number for guests, ensuring that they can reach someone in case of emergency.
- Heating and cooling standards: Properties must offer both hot and cold air conditioning. Gas burners or other traditional heating options are no longer considered sufficient. This may require upgrades in older homes. There is also the consideration of the running costs of such devices.
- Ventilation requirements: All rooms must have adequate ventilation, either through windows that open to the exterior or on to a patio. Interior rooms without direct outdoor access may no longer meet the standards for holiday rentals.
Implications for property sales
One of the most impactful changes relates to the transferability of holiday licenses. Previously, a property’s existing holiday rental license could be transferred to a new owner when sold. Under the new decree, this may no longer be possible. New owners must reapply for a license and comply with the latest regulations, which could be more stringent than when the original license was granted. This could significantly affect buyers and sellers – particularly in popular tourist areas.
Compliance and enforcement
For those currently operating without a proper tourist license, this is a wake-up call. Enforcement is tightening, and a dedicated team has been established to identify illegal rentals. Any property advertised for short-term letting must include its tourist license number, or it risks hefty penalties. This applies across all advertising platforms, including social media sites like Facebook. The days of flying under the radar are numbered, and non-compliance will likely bring legal action.
What should I do next?
If you own or are thiking of purchasing a property as a holiday rental, it’s essential to understand how these regulations affect you. The new standards are comprehensive, and it’s important to ensure your property complies fully to avoid issues down the road.
You should:
- Review your current license: If you already have a tourist license, check whether your property meets the updated standards. Even minor non-compliance could lead to fines or revocation of the license.
- Get legal advice: Given the complexity of the new regulations, consulting a property lawyer is a smart move. They can help you navigate the specifics of the decree and advise whether your property meets the criteria for a tourist license.
- Plan for necessary upgrades: If your property doesn’t meet the heating, cooling, or ventilation requirements, now is the time to plan for necessary improvements. While this may involve some upfront costs, it’s crucial to remain compliant and protect your investment.
- Be cautious when buying: If you’re considering buying a property with an existing holiday license, be aware that the license may not transfer. Ensure that you understand the new criteria and assess whether the property is likely to qualify under the current rules.
Final thoughts
The new regulations mark a significant shift in how holiday rentals are managed in Andalucía. While they are aimed at improving the quality and safety of tourist accommodations, they also introduce new challenges for property owners and investors. Staying informed and proactive is key to navigating these changes successfully.
Hola Properties can help you understand and adapt to these new regulations – whether you’re a current owner looking to comply or a potential buyer assessing your options. We can provide the full list of requirement, guide you through the compliance process, and keep you updated on any further developments in this ever-evolving saga.