04.11.2022
The Cyprus Tourism Enterprises Association (STEK) issued a warning on Thursday about the dangers of short-term rentals, saying the rapid spread of the practice in Cyprus needs to be combated with a range of practical solutions.
“In view of the mounting pressure to regulate the Airbnb-style short-term rental trend at a pan-European level, the Cyprus Tourism Enterprises Association expresses serious concern about this issue and makes specific recommendations to better manage it,” the association said in a statement.
Moreover, the association stated that the lack of regulation of properties that are used in the right way has created a number of obvious problems.
“In this regard, it is necessary to introduce additional provisions in excess of those provided for by the current legislation,” the association explained.
The association noted that in many European cities, especially those with significant tourist activity and international visitors, local municipalities have begun to introduce their own strict regulations.
“For example, in Paris, short-term rentals are allowed for 120 days a year, in London and Reykjavik, rentals are allowed for 90 days, and in Amsterdam, short-term rentals are allowed for a maximum of 30 days, and in some cities this practice is completely prohibited,” said in STEC.
STEC also mentioned that in Glasgow (Scotland) it is only allowed to rent a room in an apartment located in a building with a common entrance. In addition, no new short-term rental permits are being issued in Barcelona, and in residential areas of Palma de Mallorca, short-term rentals are completely prohibited.
“The rapid spread of short-term rentals has caused rents to skyrocket in several areas, making them prohibitive for permanent residents or making it extremely difficult for locals to find permanent housing,” the association said in a statement.
“In addition, temporary tenants of these premises often create serious inconvenience for permanent, local residents,” the department added.
The association went on to say that local authorities are actually suffering a significant loss in income by not taxing short-term rental properties.
He also highlighted the issue of unfair competition with hotels and other regulated accommodations, which must comply with numerous regulatory standards, labor agreements, and other rules and regulations.
“STEC considers it unacceptable to further extend the grace period for registering specific housing units in the relevant register, as well as to further extend illegal activities and tax evasion,” the association said.
To this end, the association has recommended a number of measures to facilitate the effective regulation of short-term rentals.
First, the association noted, the rental of real estate should be allowed only for a certain period of time, which does not exceed 90 days per year.
The association also said that in some areas or even cities where it is difficult for permanent residents to find homes or apartments for long-term rentals, the government should consider a complete ban on short-term rentals.
“Relevant estimates indicate the uncontrolled exploitation of approximately 80,000 to 100,000 short-term rental beds, which is about the same as in the legal hotel industry,” STEK said in a statement.
“Until recently, only 15,000 of these apartments were registered in the relevant register, therefore, with the introduction of the relevant legislation from February 2023, the authorities will have to conduct ongoing checks to stop lawlessness,” the department added.
In addition, the association also said that the government should consider making it mandatory to pay an overnight stay.
Finally, he urged the government to force such facilities to adopt occupational health and safety regulations, similar to how hotels and other regulated facilities do.
