The short-term rental (STR) industry in Europe (and elsewhere) is facing a growing wave of regulations that demand the attention of all stakeholders. While these regulations may feel like roadblocks, they are, in fact, an inevitability that property managers cannot afford to ignore. Recent developments across multiple European cities, from Athens to Budapest, reveal a shifting landscape that will impact how managers operate. However, rather than being a cause for panic, these changes present an opportunity for involvement and influence.
Recent Regulatory Developments: The Writing on the Wall
Over the past few months, several key European markets have introduced new regulations that signal a clear trend: STR regulation is here to stay. For example:
- Greece has announced a ban on new short-term rental licenses in central Athens, set to take effect in January 2025. Additionally, taxes on rentals will significantly increase during peak seasons, further squeezing hosts. The government is also incentivizing long-term leases with tax exemptions for properties transitioning out of STRs.
- In Budapest’s Terézváros District, a referendum resulted in a ban on short-term rentals beginning in 2026, with more districts likely to follow suit. This is part of a broader conversation in Hungary about addressing housing shortages through stricter STR policies.
- UK is set to overhaul how STRs are regulated. Beyond ongoing discussions around licensing schemes, a significant change is the abolition of the Furnished Holiday Lettings (FHL) tax regime in April 2024. Previously, the FHL regime offered tax advantages for short-term rental operators compared to long-term residential landlords, allowing them to deduct certain expenses and qualify for capital gains tax relief. The scrapping of this scheme signals a shift toward creating a more level playing field between STR operators and traditional landlords, making it crucial for STR managers to rethink their financial strategies.
- Scotland has already been operating under a licensing scheme since 2022, and recent legal developments have forced local authorities like Edinburgh to reconsider how they issue suspension notices to operators who haven’t obtained proper planning permissions.
- Cities across Spain—from Pamplona to Barcelona—are tightening the noose on holiday rental permits, with some areas implementing outright bans on new licenses.
- Belgium, specifically in Bruges, has introduced strict limits on short-term rental permits in the city center. The UNESCO World Heritage Site is taking steps to control tourist influx and rising housing prices by also banning new hotel construction in the area.
- Czechia is preparing new STR regulations, with a national framework expected to go live in July 2025. Prague, in particular, will see hosts required to register their properties via a new platform, e-Turista, while caps on annual rental days and limits on tourist apartments in city centers are also on the horizon.
These regulatory actions are not isolated incidents. They are part of a broader, continent-wide shift that property managers must prepare for.
Regulations Are Inevitable – It’s Time to Get Involved
Regulations are no longer a hypothetical. They’re happening, and fast. As a short-term rental manager, ignoring these developments isn’t just risky—it’s a missed opportunity to influence policies that will directly impact your business. Rather than waiting to react, property managers need to get involved at the ground level.
By becoming a part of the conversation, you can ensure that your voice is heard when decisions that affect your business are made. Regulation does not have to mean the end of your ability to operate profitably, but it does require engagement. Whether it’s by working through local associations or collaborating with community groups, the message is clear: action now can prevent headaches later.
Big Brands Are Already Leading the Charge
The largest players in the short-term rental space, particularly Airbnb, have already recognized the importance of shaping the regulatory environment. Airbnb has been vocal and proactive in pushing back against stringent regulations, not only through media but also by emphasizing its contributions to local economies.
- Airbnb has been actively engaged in shaping the new EU-wide short-term rental rules. Throughout the regulatory discourse, the company has consistently published statements of support for balanced, thoughtful regulation that acknowledges the economic benefits of STRs while addressing community concerns. Airbnb has also provided recommendations to EU policymakers, advocating for clear, harmonized rules across member states, which they argue will help both hosts and communities thrive. Their participation in discussions on the EU Digital Services Act, which includes provisions affecting STRs, demonstrates their commitment to remaining an active stakeholder.
- Airbnb frequently publishes economic impact reports, such as its September 2024 report highlighting that short-term rentals generated $1.4 billion in Atlanta alone. Similar reports have been published across Canada, the US, and Europe, focusing on tourism contributions and local job creation.
- In New York, where Local Law 18 has placed heavy restrictions on short-term rentals, Airbnb has been active in sharing data to argue that the law hasn’t helped solve housing issues but has, instead, driven up prices for travelers.
- The company also established the Airbnb Housing Council in the US, aiming to address the root causes of the housing crisis while advocating for more balanced regulations.
Big brands like Airbnb understand that regulations are inevitable, but they also see the opportunity to shape these policies. While individual property managers may not have the resources for large-scale campaigns, there are still avenues to make a difference.
What Can You, as a Property Manager, Do?
The idea of participating in regulatory discussions may seem daunting for the average short-term rental manager, but it doesn’t have to be. You don’t need to mount a massive campaign; there are simple, effective ways to get involved at a local level.
- Join a Local Host Club: Airbnb’s Host Clubs are available in various regions, providing a platform for hosts to connect, exchange ideas, and stay informed about Airbnb news. These clubs often focus on community engagement and advocacy, making them a great entry point for those looking to be involved in policy discussions.
- Partner with Regional Associations: Many European countries have associations that represent short-term rental operators, such as the Association of Scotland’s Self-Caterers (ASSC), UK Short Term Accommodation Association (STAA), or the European Holiday Home Association (EHHA). These groups are already working to ensure fair, proportionate regulations and often have more direct communication channels with policymakers. By joining, you can contribute to advocacy efforts and benefit from the knowledge-sharing and networking opportunities they offer.
- Stay Informed: Knowledge is power. Staying updated on the latest regulations and understanding how they might impact your operations is crucial. Whether through newsletters, webinars, or local meetings, keeping a pulse on regulatory changes helps you stay prepared.
Conclusion: Ground-Level Advocacy Is the Key
The regulatory landscape for short-term rentals in Europe is evolving rapidly, and it’s clear that these changes are not going away. For property managers, the question is not whether to get involved, but how. By taking small, strategic steps—whether through local associations or host clubs—you can position yourself to navigate these challenges effectively.
