Valencia & Costa Blanca | New Renting Law - Spanish Real Estate forum - Spanish property

Homefinder · 07-27-2008, 05:04 PM

I recently posted a poll about the most necessary elements in a rental property.
I was trying to find out what members really thought because, according to a new law regulating rental property, certain items (coffee-maker, food-mixer, washing machine and safe) are included as obligatory. Meanwhile other elements vital to health and safety (smoke alarms, fire extinguishers, emergency lights and swimming pool maintenance by a qualified technician) have been left out completely.
Prior to the law passing to the Valencia Court for ratification, protests were permitted and it has been recommended that there items were included. We have to see now what happens.

Costa Blanca Villa & Apartment Holidays | Health, Safety & Convenience

Another aspect was compliance with the registration procedure. The previous law (1995) was set up in such a way that regulation and compliance was virtually impossible because an illegal rental (unregistered property) had to be proved to have taken place and that meant that inspectors had to travel to the scene and collect the necessary evidence.
Additionally, because the inspectors could not have gone "knocking on doors" to get the evidence, the only successful prosecutions were where a complaint was made by the tenant to the Local Tourist Office and the inspectors were able to obtain the evidence from a cooperative complainer.
As there were only a handful of inspectors and whole process required the best part of a day's work, the law was un-enforceable and of no effect, except as far as professional rental agencies were concerned - who were (and still are) thoroughly "clobbered" because they were vulnerable with public offices.
The net result was around 90% non-compliance.

The new law, if it gets passed as stated by the draft, is a different matter. Property owners who let to friends, family etc. by word of mouth will not have to register. Anyone who "commercializes" their rental has to register the property and quote the registration details. By "commercialize" they mean advertise it for rental or arrange to promote the rental by a 3rd party and that covers most advertising media - newspapers, magazines and the Internet.
Consequently there will no longer be any need to prove that the rental has actually taken place, merely that the rental of the property has been commercialized and the registration details not published.
This will also mean that inspectors will be able to enforce the law without even leaving their desks.

My personal feelings are that the previous law was unfair and discriminatory because it was mostly enforced against the professionals. A bit like prosecuting all commercial vehicles for speeding and letting private cars get away with it.

Homefinder

Homefinder · 12-01-2008, 01:49 PM

Latest Update on the New Costa Blanca Renting Regulations

News is starting to appear in the press on on the Internet.
In an article at PropertyWire.com: Sergio Gambi, president of the Costa Blanca Tourist Apartments Association sad -

Quote:

Gambi confirmed that the Costa Blanca tourist apartments association will monitor adverts and report owners or rental agencies that fail to comply with the new regulations.

According to Sr Gambi 80% of Costa Blanca rental properties are unregistered.
The Full Article: Rental bookings in Spain are down as fines are introduced for the non-regsitered

Mark Stucklin of SpanishPropertyInsight.com commented -

Quote:

The new regulations may also make it easier for the government to clamp down on tax evasion, as many people who rent out their properties to tourists do not declare the rental income. If their activity is registered with the authorities, they may feel more pressure to do so.

The Full Article: New regulations announced for holiday rentals in the Valencia Region

Homefinder

sanchia · 12-01-2008, 02:07 PM

Dear Homefinder
I respect the fact that you have your finger on the pulse as far as the Costa Blanca is concerned but I also have rental properties all over Spain.
Personally I don't think anything will change. Valencia introduced "new rental regulations" over 10 years ago but it did not make a scrap of difference and everyone carried on as before.
Sanchia

Homefinder · 12-01-2008, 04:05 PM

Dearest Sanchia
I am sorry but, with respect, I think you are wrong.
The situation is very different this time around. I think that they realise that they made a mistake last time because they introduced a law that was not enforceable. Now the Tourist Authority in the Balearics has showed them they way.

Additionally, the recession has to be considered. In just a few months the huge taxes-collected-against-government-spending surplus has been completely wiped out and Spain, like every other country, is having to borrow huge sums to inject into the economy. Now they want to collect every cent in taxes that they can.

Finally, with the Spanish tourism wind-down the Hotels owners are hurting and they have a powerful lobby. All we are seeing now really only amount to minor changes to the 1996 law.
I think that they will eventually introduce quotas in order to reduce the number of beds on offer in villas and apartments.

My advice is that you start listing the registration number on all your villa descriptions. I would also advise all property owners who rent to register as well.

Homefinder

John97 · 12-10-2008, 09:24 PM

Thanks for the post, Homefinder. As a property owner this is all news to me.
What are the registration procedures? Does it cost anything? What are the penalties for non-registration? Any information gladly received.

Homefinder · 12-11-2008, 12:36 AM

Hi John97
I know that you don't have to worry about this because you villa IS registered. To see the registration just go to VillaServers Online Booking Service with you username and password, click <General Conditions> on the left-hand menu and all the registration details of all properties are there.
At the present time the law has not even come into force, so you have time.
However, good advice would be to upload it to your website within the next few months. During the next few months, there will be more and more attention from the press and lots of advertised properties will show the details and I am not sure what potential renting clients will be thinking about this.
Anyhow you are registered, so what is the point in non-compliance?

I should explain to other members that John97 is a client of mine!

For the benefit of anyone who is interested: The registration procedure is very easy right now, if your property is in the Valencia area, because the old law still applies.
It is just a question of completing and signing the form, which can be obtained from any Municipal Tourist Office.
It is obviously all in Spanish but the tourist office staff should help you fill it in.
The form is in triplicate and you get a copy back, through the post, with the registration details on it.

Homefinder