Courtesy of Mish.
In the name of “Protecting Tourists” Madrid Prohibits Vacation Rental Homes. Via Mish-modified translation from El Economista …
Proposed rules would effectively prohibit homeowners from renting their homes. Rental licenses will be only given to properties for primary uses (hotels, offices, etc.), not to individuals for temporary use.
The Community of Madrid seeks “to establish minimum requirements designed to “protect the rights of tourists” and to “end unfair competition.”
News follows rent laws published in June in which prime minister Mariano Rajoy allowed each of the 17 regions to legislate rentals on their own.
If approved, individuals will find it almost impossible to temporarily rent their home through internet sales as it will be very difficult to obtain a license to conduct such activity. According to the Hoteliers Association of Madrid (AEHM), there are currently about 8,000 community accommodations.
Clearly, the proposal seeks to eliminate competition to the unfair advantage of hotels. If hotels cannot compete against homeowners, they are charging too much for what they offer.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
