The Tourist Department of the Balearic Council, under the current leadership of Biel Barcelo, are set to implement new rules to curb the rental of private, unlicensed properties to tourists in the Balearic Islands. The news was announced recently in the Periodico de Ibiza (use Google Translate to read the original report) with fines from €20,000 – €40,000 for those found providing illegal tourist rentals.
Huge fines
The article reports that council officials are now “analysing to the last millimetre’ the ads that appear on popular tourist rental sites such as Airbnb, Homeaway and Booking.com. If holiday rentals are found that do not display the proper registration number (see this article for further information on these license numbers) then the huge, new fines will be imposed, ‘without concession or delay,’ said the report. Furthermore, a special phone number has been issued to enable disgruntled neighbours to report on illegal tourist rentals in their area.
Housing crisis
Few realise that renting an unlicensed room, apartment, house or villa without the proper tourist rental licences is illegal in the Balearic Islands. Anyone renting out tourist accommodation must have the proper licenses. It’s said that the spread of huge websites that facilitate such rentals, such as the aforementioned Airbnb, HomeAway and Booking.com, is helping to create a grave housing crisis in tourist-saturated areas, particularly noted in Mallorca and Ibiza.
Why is the license important?
Quite simply, the license guarantees
- A decent standard of accommodation
- The property has been vetted by the council
- The property is safe
- Taxes are being paid to support island infrastructure
- The owner is above board
The issues
Locations such as Ibiza, where the tourist season is short and intense, need thousands of extra workers during the summer months, to make everyone’s holiday fantastic. The waiters, bartenders, taxi drivers, cleaners and shop staff for example, without whom the island would cease to function.
Problem is, there’s nowhere affordable for them to live. Why? Because residential properties and spare rooms, instead of being offered to residents and workers on long-term leases, are now being offered as short-term holiday rentals, for much more money. And often, with no license and no regulation. By renting unlicensed accommodation, visitors are unwittingly adding to this serious problem.
In fact, rental prices for residents and workers have spiraled out of control so much, that the housing crisis is now threatening to turn into an employment shortage crisis as residents find themselves priced out of the accommodation market and can no longer afford to stay on the island.
Why should I care?
These illegal tourist rentals have at least one serious implication for you, the innocent holidaymaker looking for a good deal. Namely, that the owner of the property will almost certainly not have public liability insurance, so if anything goes wrong and you’re injured under their roof, they won’t have any insurance to cover you.
We say stay informed, stay legal and stay safe. More information about Ibiza villa scams and how to avoid them right here.
Words | Jane C Image | Jane C
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