New Short-Let Rules Spark Debate: Maltas Airbnb Crackdown Draws Mixed Reactions from Residents and Industry

November 13 2024 08:17:41 by PCLMedia

The Maltese government’s plan to require short-let accommodation licences only for those who have the support of their neighbors has sparked a mixed response. Announced by Malta Tourism Authority (MTA) CEO Carlo Micallef, the proposal aims to refuse short-let licenses to landlords who fail to obtain condominium approval from the majority of their neighbors in apartment blocks.

Sources close to the government indicated that these new rules would also require landlords to seek fresh approval from apartment neighbors every three years. The rules are intended to address ongoing complaints about issues such as noise, littering, and frequent guest turnover in residential areas.

Industry Concerns

Matthew Zammit, CEO of property management company 360 Estates, which manages numerous Airbnb properties, voiced concerns about the proposed changes. While he acknowledged the need for reform, Zammit argued that the plans do not account for the needs of investors and property owners.

“Around 80 percent of the owners we represent are individuals who invested in short lets to support their livelihood, not large-scale developers,” he said, warning that these changes could severely impact property values and income for those dependent on the short-let market. “This will hurt not just the industry, but house prices as a whole,” he added.

Local Government Support

Sliema Mayor John Pillow expressed cautious support for the proposal, saying that residents in his locality have long been frustrated by the disruptive impacts of short-let properties. He emphasized, however, that any new regulation should apply evenly, questioning whether owners with multiple units would have more say than single-property owners. “It’s important to find a balance,” he said.

Swieqi Mayor Noel Muscat, on the other hand, was more skeptical. He argued that the new rules would only address issues within individual buildings rather than across entire communities. Muscat warned that the measure could drive Airbnb operations into dense blocks built specifically for short lets, leading to “high-concentration” areas that could negatively impact residential cohesion.

The Broader European Context

Malta’s move mirrors similar regulatory measures seen across Europe, where countries have been grappling with the challenges posed by the rapid growth of short-term rentals.

In France, the government has set strict limits on short-term rentals in cities like Paris, where owners are limited to renting out their properties for no more than 120 days per year. Paris authorities have also enforced strict registration requirements and imposed heavy fines for non-compliance, particularly in densely populated neighborhoods.

Italy has also implemented measures, particularly in popular tourist areas such as Rome and Florence. In Florence, the mayor recently proposed a ban on new short-term rentals in the historic city center to preserve the residential character of the area. Meanwhile, Rome has regulations requiring registration and seeks to limit short-term rentals to protect the housing market and local communities.

In Spain, some cities have taken an even more stringent approach. Barcelona has essentially banned short-term rentals of private homes, with stringent checks and fines for unlicensed rentals. In 2019, the city launched a digital platform that allows residents to report illegal rentals, and authorities have stepped up enforcement to manage the influx of tourists.

Portugal has introduced a cap on short-term rental licenses in some neighborhoods of Lisbon, where demand from tourists has driven up housing costs. The government has also recently introduced tax incentives to encourage property owners to shift from short lets to long-term rentals, hoping to address the local housing crisis.

In Amsterdam, short-term rentals are heavily restricted to a maximum of 30 nights per year, with further requirements that landlords register their properties and obtain permission from neighbors. The city has prioritized preserving affordable housing for residents and maintaining neighborhood character.

Industry Reactions Across Europe

As in Malta, these restrictions have received mixed reactions from stakeholders across Europe. Property owners and managers often argue that these measures unfairly target small investors and hinder potential income. At the same time, local residents have largely supported stricter rules to address issues such as noise, garbage, and the availability of affordable housing.

Call for Broader Measures

In Malta, Malta Hotels and Restaurants Association (MHRA) president Tony Zahra argued that the focus should be on ensuring that all short-let properties are properly licensed. Zahra pointed out that there are over 4,000 unlicensed short-let apartments in Malta, which compete with licensed hotels that are subject to substantial regulatory costs. “We are not against competition; we just want a level playing field,” he said, calling for stronger government enforcement.

Zahra noted that the European Commission’s recent push for data-sharing on short-term rentals could aid national governments in tackling unlicensed rentals more effectively. He called on authorities to enforce licensing requirements as a way to ensure fair competition in the tourism sector.

Public Reaction

Online, the public response has been polarized. Many social media users have praised the proposed changes as overdue, with one commenter calling it a “good move” to curb disruptive short lets in residential areas. Others, however, expressed frustration, with some arguing that the regulations infringe on property rights and could stifle investment. One user argued that enforcement of existing rules would be more effective than introducing new restrictions, which he deemed unnecessary.

As Malta navigates its next steps, the government will need to consider the interests of homeowners, residents, and the tourism industry to achieve a balanced approach. As shown by other European cities, striking this balance is key to managing the impacts of short-term rentals while preserving both community welfare and economic vitality.