The Valencian Community’s regional government is tightening up the regulations on tourist rentals with much bigger fines for infractions.
The Generalitat Valenciana (regional government of the Valencian Community) has passed a new Decree Law that beefs up holiday rental regulations, and punishments for infractions, while giving local councils more say over the tourist rental space at the local level.
“The proliferation of this type of accommodation necessitates the adoption of urgent measures to curb a phenomenon that can generate problems which may worsen exponentially,” explains a communiqué from the Generalitat that you can read (in Spanish) here.
All owners of tourist rentals have until the end of the month to renew their license by communicating the property’s cadastral reference number to the local tourist rental register. Failure to do so will result in licenses being cancelled even if they were not due to expire under the previous regulations.
The Generalitat explains the main characteristics of the Decree-Law as follows:
This new normative text completes the definition of what constitutes a tourist-use dwelling, distinguishing between tourist use, seasonal use, and residential use. This ensures that the rental of tourist dwellings does not cover rentals that should not be considered tourist-related but should instead be regulated by the Urban Leases Law (LAU)
Additionally, the current regulations are modified to curb unfair competition from those who illegally market dwellings, thereby harming the regulated tourism sector and evading control by the competent authorities.
Moreover, minimum habitability conditions are established to ensure that dwellings available to tourists meet quality standards comparable to residential dwellings. The requirements and habitability standards, conditioning, or common services should lead to higher service quality and user protection.
Bigger penalties
The Generalitat says the new regulation “also strengthens the sanctioning regime with a redefinition of infraction types and the aggravation of infringing behaviors, such as the mandatory inclusion of the registration number in all accommodation advertisements.”
New technology will make inspections easier and owners will be made “responsible for the activities carried out in their properties.”
Categories of minor, serious, and very serious infractions are clarified with fines of up to €600,000 for very serious infractions like illegal room rentals.
Two new infractions are incorporated: one serious (property owners refusing to provide the identity of owners or documentation) and one very serious (room rentals) with fines up to €600,000.
The degree of two infractions is increased: a minor infraction becomes serious (failure to communicate change of ownership in a regulatory manner), and a serious infraction becomes very serious (overbooking and non-compliance with reservation or cancellation policies).
Additionally, property owners of tourist use homes will be held subsidiarily liable for any infractions committed. Currently, only the person marketing the property is responsible, which is not always the owner.
All properties marketed must comply with current habitability and building codes and will be required to include some additional elements to improve the quality of service provided to tourists.
Other novelties:
Owners wishing to register a tourist rental have to complete a ‘Declaration of Responsibility’ confirming that tourist rentals are allowed by the Community of Owners (where applicable). This can be done online.
License renewal will be linked to the property owner rather than the property itself, purportedly to ‘avoid speculation’ with licenses.
Owners have to identify individuals staying in tourist use properties and can evict guests who violate the property rules without the right to a refund.
Properties registered for tourist use before 01/07/2018 maintain their registration under the same terms they obtained it.
Properties registered between 01/07/2018 and the approval of this new Decree-Law in August 2024 maintain their registration but have five years to adapt to quality service requirements and will need to renew the responsible declaration in 2030 with the approval of a new urban compatibility report.
New registrations going forward will be subject to the new regime and will also have to renew their responsible declaration every five years with the approval of the urban compatibility report and a current certificate from their community of property owners.
Source: SPI
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