New tourist apartments to require homeowners association approval

by Else BeekmanElse Beekman
tourist apartments

 

The Spanish Socialist Workers’ Party (PSOE) is set to present a proposal in Congress to amend the Law on Horizontal Property, aiming to curb the proliferation of tourist rentals. The proposed change would require new tourist apartments to obtain approval from the majority of their homeowners association (HOA).

Under the new legislation, any property owner wishing to convert their apartment into a tourist rental must secure approval from three-fifths of the building’s owners. This initiative empowers local communities to have a say in the matter. Moreover, it will potentially reduce conflicts arising from the increase in holiday rentals. If approval is not granted, the president of the HOA, acting on their own initiative or upon request from any neighbour, can demand an immediate cessation of the rental activity, backed by legal action if necessary.

Strengthening existing regulations

The reform will reinforce the ability of HOA’s, granted since 2019, to veto tourist rentals within their buildings. This requires a clear agreement, achieved through a vote by three-fifths of the neighbours, to approve, limit, condition, or prohibit such rentals. The same terms apply to the individual permissions that new tourist apartments must obtain. Should an apartment be rented out without this permission, the president of the community must issue a cease and desist order, acting independently or following a request from any owner or tenant.

No retroactive effect

The new rules will not apply retroactively, ensuring that existing tourist apartments can continue to operate under the regulations that were in place when they were established. However, local governments, like that of Barcelona, may still pursue other avenues to regulate or eliminate current tourist rentals based on local and regional laws.

Addressing undesirable effects

The amendment justifies the need for new regulations by highlighting the negative impacts of the rise in tourist apartments. These include disturbances in residential communities, a reduction in housing available for long-term rental, increased rental prices for permanent residences, and the gentrification of various neighbourhoods.

Support for local governments

The proposal aims to support measures already being implemented by other local and regional administrations. The Ministry of Housing has been collaborating with communities and municipalities to address the impact of tourist rentals on housing prices and availability. One outcome of these discussions is the development of a unified registry for homes rented through digital platforms for periods shorter than one year, expected to be operational by the end of 2025. This registry will help identify and regulate illegal rentals.

Broader government measures

An inter-ministerial group, including representatives from the Ministry of Tourism, was formed last December to explore further actions within the government’s remit. The proposed amendment to the Law on Horizontal Property is one of the first steps, alongside potential fiscal measures still under consideration. The amendment seeks to enhance the enforcement capabilities of local authorities and to facilitate the detection and reporting of unlicensed tourist apartments.

Growing number of tourist apartments

According to the latest data from the National Statistics Institute (INE), as of February this year, Spain had over 350,000 tourist apartments. These figures reflect the active listings on platforms like Airbnb, which often do not correspond with the number of officially licensed properties. For instance, Madrid City Council reported fewer than 300 authorised tourist apartments last year, compared to the 16,000 active listings recorded by the statistical institute. This disparity highlights the challenge of regulating the sector and the need for enhanced enforcement mechanisms, which the new legislative proposal aims to address.

Also read: Dramatic prediction about the effects of the new Housing Act in Spain becomes a fact

You may also like