EU Moves Closer to Transparency in Short-term Rental Sector

The European Union moved one step closer to achieving more transparency in the short-term tourist rental services sector this week after the European Council under the Spanish presidency and parliament reached a provisional agreement on a draft regulation covering data collection and sharing.

The aim of the new rules on collection and data sharing on Airbnb-style rentals is to ensure a “responsible and transparent platform economy in the EU” and to help local authorities improve tourism services,” the Commission said in a statement.

Among others, the deal foresees common rules on registration and identification of hosts and their properties.

The provisional agreement must first be adopted by the Council and parliament before it becomes law. Once this procedure is completed EU states will have 24 months to adapt their registration systems and create the necessary IT infrastructure.

MEPs agreed on the following short-term rental rules:

– simpler registration via a free online registration procedure for short-term rental properties in those EU countries that require it. Once the procedure is completed, hosts will receive a registration number that will allow them to rent out their property. The authorities will know the identity of the host and be able to verify their information

– safer rental services: online platforms will have to ensure that a host’s registration number enables users to identify the property on the listing and that the information provided is reliable and complete. After random checks, competent authorities can suspend registration numbers, ask platforms to remove illegal listings, or impose penalties on non-compliant platforms or hosts

– transmission of data through a single digital entry point where data is received from platforms about host activity on a monthly basis. This data will be used to compile statistics and allow public authorities to better assess the situation on the ground and improve tourism services in their area.

“Everybody wins with today’s deal,” said Rosana Morillo Rodriguez, acting Spanish secretary of state for tourism.

According to Rodriguez, the new regulation creates a single and easy set of information rules for the platforms and facilitates registration procedures for hosts.

“More transparency will enhance trust for travelers and help authorities design better tourism policies, to ensure social and environmental sustainability, while helping to control illegal activity,” she said.