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Fighting Airbnb, Barcelona's vote that will change the market

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Fighting Airbnb, Barcelona's vote that will change the marketplace

The rental market has been disrupted by the wide spread of Airbnb and other short-term rental systems. [...]

Fighting Airbnb, Barcelona's vote that will change the market
by Luca Incoronato
February 11, 2021

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The rental market has been disrupted by the wide spread of Airbnb and other short-term rental systems. Barcelona is not the first major city to raise the issue, but it is certainly at the top of the list in Europe in terms of putting concrete action into practice. While the right of landlords to freely choose the most profitable rental arrangements must be guaranteed, at the same time it is not possible to see an entire real estate sector die.

In this article:

    Long-term rental options are becoming increasingly scarce, especially at affordable costs. Airbnb has generated a domino effect, leading to a general increase in prices but above all to the disappearance of ads dedicated to those who intend to live in Barcelona, either permanently or for long periods. All for the benefit of tourists and digital nomads.

    A vote is expected on the proposal aimed at limiting the overwhelming power of Airbnb (and other such platforms). This could change the rules of the game across Spain and many other major cities around the world.

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    Barcelona

    Barcelona's proposal

    Barcelona mayor's idea, Ada Colau, is to prevent the rental of a single room of one's primary home, in which one lives regularly, for short periods. The only possible way to grant tourists access to one's dwelling will be with a reservation of at least 30 days.

    This action plan was already implemented in August 2020 in order to somewhat contain the further spread of the Covid-19. It is now aimed at making it permanent. Voting is expected by April 2021.

    Restrictions on minimum rental time, up to this point, only concerned concessions of entire apartments, or dwellings of other kinds. No limits had been imposed on those wishing to rent a single room. However, it was felt that leaving this door ajar could give many people the opportunity to defraud the system. All that was needed was to designate one dwelling as primary and actually move elsewhere during the period of stay of the paying tourists.

    Forcing private individuals to grant 30-day minimum rents will go a long way toward tearing down an entire city market, necessarily bringing the housing status down to what it was a few years ago. A vote that could hit hard those who intend to add to their monthly earnings by renting out an unused room from time to time. Sort of like having an occasional roommate. Those who honestly operate in this way, effectively sharing their homes with strangers, will find themselves having to give up this legitimate practice for no other reason than the risk that others may circumvent the rules.

    However, there are those who question such an operation, which would come to fruition right after a disastrous year from the point of view of tourism. Indeed, it cannot be ruled out that many may decide to look elsewhere, rather than in Barcelona, taking into account possible high hotel costs and the impossibility of staying on site for an entire month.

    Barcelona - Spain

    Airbnb, what's happening in other metropolises

    Barcelona is not the only city to have declared war on Airbnb and the like. Los Angeles voted to considerably limit hosting options. It is only allowed to put primary residences on rent, either totally or partially. This is thus understood to mean a residence at which the host spends at least six months of the year. Each host is also required to pay a license fee. As for vacation homes, i.e., additional properties to be put up for rent, this is allowed only with a minimum reservation of 30 days.

    Tokyo, to take the example of another particularly tourist metropolis, requires the payment of a fee. A maximum number of nights per year in which a dwelling or single room can be rented is also imposed: 180.

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