Stricter EU Rules for Airbnb-style Rentals to Ensure Transparency, Affordable Housing

EU lawmakers this week agreed by majority vote to a set of rules that aim to protect consumers from fraudulent short-term rental (STR) offers and at the same time promote a transparent and responsible platform economy, according to an announcement by the European Parliament.

Under the regulation, short-term rental platforms will be required to share their data with local authorities as part of efforts to enforce rules and tackle illegal listings. Additionally, the legislation aims to reveal the impact of short-term rental services on communities and destinations and enable local authorities to develop appropriate policies.

After approval by the European Council and publication in the EU Official Journal, the regulation will become applicable in 24 months.

According to the statement, Airbnb-style rentals account for 25 percent of total tourist accommodation in the EU. Differing local rules have led to a fragmentation of the market.

Online platforms will be required to comply with obligations regarding registration procedures and data sharing for the properties they list.

Authorities can suspend registration numbers, ask platforms to remove illegal listings, or impose penalties on non-compliant platforms or hosts.

Online platforms will have to ensure that the information provided by hosts is reliable and complete and that the registration number is clearly visible on the corresponding listing. They will also have to conduct random information checks.

Additionally, EU member states will be required to set up a single digital entry point to receive data from platforms about host activity on a monthly basis (eg number of nights the unit was rented out, number of guests, specific address, registration number, URL of the listing).

“Cities are experiencing a spike in illegal short-term holiday rentals. This is making cities across Europe harder to live in and less affordable. This law requires platforms to share their data with local authorities, allowing them to better enforce rules for vacation rentals so housing remains accessible for residents,” said Rapporteur Kim Van Sparrentak.