EU Tightens Short-term Rental Rules, Airbnb Welcomes the News

Accounting for one quarter of total tourist accommodation in the EU and set to increase in the coming years, short-term rental activity is the focus of a new set of rules announced this week by the European Parliament’s Internal Market and Consumer Protection (IMCO) Committee.

According to the IMCO, the rules are aimed at increasing transparency and curbing illegal listings. “Policies should foster short-term rental services, while respecting local communities. Divergent local rules lead to fragmentation of the internal market,” said the Committee.

Tuesday’s proposal was adopted by majority vote and will be finalized by Parliament in October.

“The expansive growth of short-term rental accommodation has led to less available housing on the market for inhabitants, driven up rents and housing prices and also impacted the livability of neighborhoods,” said Rapporteur Kim Van Sparrentak.

EU IMCO Rapporteur Kim Van Sparrentak. Photo source: European Parliament/ Genevieve Engel.

“The rules adopted today make sure that cities have access to the necessary data to enforce local rules. Platforms are getting more responsibility in supporting the removal of illegal listings in line with the Digital Services Act (DSA). I am confident we can close negotiations with the Council still this year,” she added.

Under the new rules:

– EU states must set up a single digital entry point to receive data from platforms about the hosts’ activity (eg specific address, corresponding registration number, URL of the listing), on a monthly basis

– the launch of a simple, online registration procedure for short-term rental properties in member states that require it

– public access to information will be enhanced and to allow authorities, online platforms, hosts and citizens to better understand the new rules

– online platforms will have to ensure that the information provided by the hosts is reliable and complete and that their registration number is clearly visible in the listing.

Member states will have 18 months to adapt their registration systems and create the relevant IT infrastructure

Airbnb welcomes the news

One of the world’s leading short-term rental providers Airbnb welcomed the news. “Airbnb wants to help make new EU rules a success for everyone and earlier this month, we launched a roadshow to meet with local and national policy makers, business groups and Hosts to discuss EU-wide short-term rental rules and how they can support a sustainable tourism industry in their communities,” it said.

According to the home-sharing platform, the EU is home to more hosts than any region in the world. The typical EU Airbnb host earned just under 4,000 euros in 2022.