The Generalitat Valenciana has introduced a new regulation through Decree Law 9/2024, imposing a strict 10 day rental rule limit on stays in tourist accommodations. This change has raised significant concerns among property owners, who fear the impact on their ability to operate and generate income. The regulation also introduces severe fines for violations, leaving owners with limited options for long-term rentals.

Key Aspects of Decree Law 9/2024 10 Day Rental Rule

According to the new law, a tourist accommodation can now only be rented to the same guest for a maximum of 10 consecutive days. Any rental exceeding this period will no longer fall under the tourist accommodation category, instead requiring a seasonal rental contract governed by the Urban Leasing Act (LAU). This change is meant to clearly differentiate between short-term tourist rentals and longer-term seasonal or residential leases.

Concerns from Property Owners with the 10 Day Rental Rule

Property owners are voicing strong opposition to this regulation, calling the 10-day limit arbitrary and without justification. Many question why the limit is set at 10 days instead of 15 or 30, especially considering that summer vacations typically last longer. In the peak tourism months of June, July, and August, stays of 15 to 30 days are common, and this restriction could severely impact revenue during these critical periods.

Owners also argue that this restriction may infringe on their constitutional property rights. By limiting their ability to rent out their properties, the government is seen as interfering with owners’ freedom to manage their assets as they see fit.

Consequences of Renting Beyond 10 Days

If a property is rented for more than 10 consecutive days, it no longer qualifies as a tourist accommodation. This means the rental must comply with the LAU’s regulations as a seasonal lease, requiring different contractual terms. The key implications include:

  • Seasonal Contract Requirement: A seasonal lease contract must be signed, clearly outlining the temporary nature of the rental.
  • Platform Restrictions: The property can no longer be advertised on platforms like Airbnb, Booking, or Rentalia for stays exceeding 10 days.
  • Loss of Tourist Protections: Owners lose the ability to enforce house rules or remove non-compliant guests as easily as they could with a tourist accommodation.
  • Travel Registry Compliance: Guest information cannot be uploaded to the mandatory Traveler Registry, and law enforcement support (e.g., from the Civil Guard) for guest-related incidents may no longer be available.

Fines and Penalties for Non-Compliance

Renting a tourist property for longer than 10 consecutive days could result in severe penalties. While the law does not specify the exact fine for exceeding this limit, violations may be categorized under minor infractions. According to Articles 91 to 93 of the law, minor infractions include any contract or agreement not in compliance with the new tourist regulations. The penalties for these infractions include:

  • Warning: For minor breaches, a warning may be issued.
  • Fines: Fines for minor infractions can reach up to €10,000.
  • Loss of Registration: For serious or repeated violations, the property may be removed from the Tourist Housing Registry, effectively preventing it from being rented as tourist accommodation in the future.

These fines could cause significant financial strain on property owners, especially if they rely heavily on long-term bookings during high-demand periods.

Risks of Circumventing the 10-Day Rule

Some owners may consider signing successive contracts to extend stays beyond the 10-day limit, such as booking under different family members’ names. However, this approach could be considered fraudulent and result in even harsher penalties. Government agencies can easily cross-check data to verify if a property has been rented to the same group for an extended period.

Any attempt to bypass the rule through successive contracts could lead to fines, the loss of the property’s tourist registration, or both.

Stricter Regulations Expected in the Future

There is concern that this new regulation may be just the beginning of tighter restrictions on tourist accommodations. Future regulations could potentially prohibit seasonal rentals for vacation purposes altogether, limiting them only to work, study, or medical reasons with documented proof. This could leave hotels and licensed hostels as the only legal options for longer stays, further squeezing the market for private property rentals.

Conclusion

The introduction of the 10 rental rule in the Valencian Community marks a significant shift in how tourist accommodations are regulated. Property owners must now carefully navigate these rules, as non-compliance could result in fines of up to €10,000 and removal from the Tourist Housing Registry. As the region moves toward stricter oversight, many owners worry about the long-term impact on their businesses and the tourism industry as a whole.

For more detailed advice or assistance with the new regulations, property owners are encouraged to consult with experts to ensure compliance and avoid penalties.

Posted by ReSales Online