Portugal Lifts Major Short-Term Rental Restrictions
- Portugal’s short-term rental sector, known as Alojamento Local (AL), is set for a major shift as Decree-Law 76/2024 takes effect on November 1.
- This decree reverses restrictions from the previous “Mais Habitação” (More Housing) policy, giving local municipalities back their control over rental registrations and license renewals.
- Portugal’s new government, led by Prime Minister Luís Montenegro, has undone the restrictive policies of former PM António Costa, aiming to bring stability and local oversight back to the AL sector.
- The reversal eliminates several key restrictions, such as automatic expiration for inactive licenses, mandatory license renewals, and the authority of condominiums to block licenses without justification.
- The Associação do Alojamento Local em Portugal (ALEP), the local short-term rental association, has praised this change as a “long-awaited correction” for the industry.
- The new policy brings greater certainty for property owners and managers, who can now plan without the looming restrictions of the past administration.
Snigdha’s View
- With municipalities regaining control, property managers in Portugal should strengthen ties with local authorities by joining tourism boards or forums for policy insights and regulatory goodwill.
- This rollback shows that policy can be reversed with advocacy, offering a model for managers globally to push back on restrictive rules through local coalitions.
- The eased regulations reduce risk for foreign investors, likely boosting new developments and acquisitions.
- However, a surge in property registrations may increase housing pressures and local backlash.
- To address these concerns, managers should prioritize sustainable, community-friendly practices, build partnerships, and educate guests to align with local values and navigate future regulatory changes smoothly.
Host & Stay Sets Sights on UK and Overseas Expansion with Fresh Funding and Key Acquisitions
- Host & Stay, a UK-based holiday let management company, has just acquired two short-term rental operators, Guest Homes, and Hartland Property Management, adding over 400 properties to its portfolio.
- With this expansion, Host & Stay now manages over 1,500 properties across the UK.
- This acquisition wave is the latest step in Host & Stay’s bold plan to expand in the UK and overseas, powered by the recent £10.5 million investment from Growth Partner.
- These acquisitions follow a series of strategic buys this year by Host & Stay in Liverpool, Canterbury, Norfolk, and Brighton.
- Guest Homes in Worcester, managing around 140 properties in prime UK holiday spots, and Hartland Property Management in Milton Keynes, overseeing 40+ properties, both bring solid experience in the UK holiday rental market.
- Now, as part of Host & Stay, these companies aim to expand their services and reach even further while adding local expertise to Host & Stay’s national ambitions.
About Host & Stay
Host & Stay is a UK-based company offering a hands-free, end-to-end vacation rental management service, including cleaning, maintenance, marketing, and guest relations.
Snigdha’s View
- Host & Stay’s acquisition strategy highlights the benefits of scaling through mergers, giving property managers access to better resources, technology, and marketing.
- Managers looking to grow might consider partnering with or positioning themselves for acquisition by larger players. Building a solid track record in guest satisfaction, operational efficiency, and market performance can make a company more attractive for future acquisitions.
- Taking inspiration from Host & Stay’s high-standard, full-service model, managers should emphasize unique strengths, like local connections, tailored guest experiences, and sustainability, where they can, differentiate.
- Smaller operators should also consider adopting full-service offerings, partnering with vendors to provide cleaning, support, and maintenance for greater appeal to property owners seeking hassle-free management.
Spain Cracks Down on Short-term Rentals with Mandatory National Registration Codes
- Spain is stepping up regulations for short-term rentals (STR) with a new royal decree that will enforce a centralized national registration system starting January 2, 2025.
- This new law mandates that all short-term rental properties obtain a unique registration code, which platforms like Airbnb, Vrbo, and Booking.com must display in listings.
- This decree was signed by President Pedro Sánchez and backed by the Spanish Council of Ministers.
- Spain’s government cites illegal renting and over-tourism as key drivers for the new regulations.
- This decree is part of a broader effort to control Spain’s housing crisis.
- This nationwide registration will be handled by Spain’s Colegio de Registradores (Professional Body for Property Registrars).
- The regulation will impact all STRs across Spain, including regions like Madrid, Barcelona, Malaga, and Seville where separate local restrictions are also tightening in the wake of protests.
Snigdha’s View
- Spain’s new decree cements its status as one of Europe’s strictest short-term rental (STR) markets, adding to local restrictions like Barcelona’s ban on new tourist rentals by 2028 and Valencia’s allowance for homeowners’ associations to ban STRs and cut water to illegal rentals.
- Property managers must quickly adapt to secure registration codes and align with homeowners to avoid penalties.
- On the other hand, the centralized system offers legitimacy, appealing to travelers seeking trustworthy and regulated accommodations.
- Managers should start building processes to ensure compliance with registration. Partnering with technology providers to manage guest data may ease the administrative burden
- By participating in compliance and data-sharing efforts, professional managers also have an opportunity to advocate for practical policies and influence regulatory discussions.
- By engaging with industry associations and councils, they can shape balanced policies and use data to advocate for responsible tourism.