Monday, March 3, 2014

7 in 10 tourist rentals in Catalonia are illegal

7 in 10 tourist rentals in Catalonia are illegal, according to new reports, as officials begin to clamp down on landlords who are not registered.
Today’s other Property Investment news:
Majority of landlords and tenants confused about US rentals 
Catalonia's regional government, The Generalitat, has started legal proceedings against over one thousand rental properties that do not comply with official regulations. 

The number of tourist rentals is on the up, as holiday homes become an increasingly popular option among investors. Indeed, there were 27,000 beds registered at the start of 2013, reports Spanish Property Insight; that number has now soared to 150,000. Owners have to register with their local town hall for a tourist lettings permit and are then issued a registration number.

Despite the growth in official rental properties, though, The Generalitat estimates that private rentals in the area account for 500,000 beds, which means that 70 per cent are not registered and are therefore illegal.

Authorities are now reportedly checking websites advertising tourist rentals and require all owners to include their registration number in adverts. 75 companies are already being investigated, while The Generalitat is now turning to landlords, with legal proceedings reportedly started against the owners of 1,347  properties. Fines for illegal rents start at €3,000 and can go up to €30,000.

Majority of landlords and tenants confused about US rentals
Confusion is rife in the US private rented sector, according to a new survey by Zillow and Ipsus, which shows that despite high demand for rented accommodation, the majority of tenants and landlords do not understand basic rental laws.

82 per cent of renters and 76 per cent of landlords lack understanding of laws concerning security deposits, credit, and background checks, found Zillow, while 77 per cent of renters and 69 per cent of landlords lack understanding of privacy and access rights.

The survey included those who rent the home they live in (“renters”) and those who own the home they live in and own one or more additional homes, which they rent to a tenant (“landlords”).

“It’s concerning that so many renters and landlords are signing a legal contract without fully understanding their basic rights," said Carey Armstrong, Zillow director of rentals.

"In doing so, landlords and renters could be setting themselves up for future disputes and legal costs. While rental laws vary by state and local jurisdiction, there are some important rules that affect just about everybody. Every landlord and renter should take time to research and understand their rights.”

No comments:

Post a Comment