People who are continuing to conduct illegal holiday rentals face another hurdle as new measures are announced to combat the illegal holiday rental issue.
This has become one of the hottest topics in Spain at the moment and is gathering momentum with more and more towns and cities implementing extra measures to combat it.
Seville is one of the leaders of this change and is currently conducting a review of illegal rentals, it has been estimated that between 5,000 and 7,000 holiday lets in Seville are operating illegally, whilst around 8,000 comply with the regulations. It has also found over 700 properties that have not complied with the updated regulations from 2022 and whilst they have a licence they are not complying with the current regulations and therefore operating illegally again.,
A further measure being brought in to prevent the illegal holiday rentals is that the state run water company will be asked to cut off the water supply to these properties. This is believed to be a simple measure that will have a large impact on the owners of illegal rentals and prevent them from being used until they comply.
How This Affects Property Owners and Investors
For current property owners who rely on holiday lets for income, these changes could be challenging. If your property is in a targeted area, you might face stricter rules, making it harder to legally rent out your home to tourists. For those considering purchasing a property for short-term rental purposes, these developments should be a key factor in your decision-making process. Investing in a property that may not be eligible for a rental licence could severely limit your return on investment.
It’s not all bad news, though. Properties located in less restricted areas may actually see a boost in value as demand for legal holiday rentals remains high while supply decreases. Additionally, if you’re open to traditional long-term rentals, there’s still strong demand in most areas of Southern Spain, providing a stable and consistent income stream.
What to Expect Next
The debate around short-term holiday rentals in Spain is far from over, and further restrictions are likely. Municipalities are exploring options like capping the number of days a property can be rented out each year or increasing taxes on short-term lets. For property owners, staying updated on these changes is crucial. The market is shifting rapidly, and what works as a profitable investment today might become a liability in the near future.
If you’re considering buying, selling, or renting out property in Southern Spain, it’s more important than ever to work with a knowledgeable real estate agent. At Hola Properties, we keep our clients informed about the latest market trends and regulatory changes so that you can make the best decisions for your investment. Whether you’re looking at the Lecrin Valley, the Costa Tropical, or the charming towns of Orgiva, Lanjarón, and Velez de Benaudalla, we can guide you through the complexities of the current market.
For more updates and advice tailored to the Southern Spain property market, reach out to us at Hola Properties. We’re here to help you make the most of your property investments, no matter what challenges lie ahead.
