The significant negative impact of short-term rentals on Greek society, the economy and tourism, highlights a study by Grant Thornton, on behalf of the Hellenic Chamber of Hotels, which was presented today at a press conference, during which the President of the Hellenic Chamber of Hotels, Alexandros Vasilikos, presented the Chamber’s initiative “TALK FOR OUR LIVES”.
At the same time, Mr. Vassilikos stressed that the hotel industry expects the announcement of specific measures for the regulation of the short-term rental market by the Prime Minister next weekend at the International Exhibition of Thessaloniki, which he summarized as follows:
-Universal application of operational specifications, equivalent to those of hotels
-Prohibition of the operation of entire buildings – apartment blocks as short-term rental accommodation
-Establishment of spatial and temporal restrictions on leases.
Specifically, for a rational and fair regulation of short term leases of real estate, Hellenic Chamber of Hotels calls for:
Α. TIME AND SPACE RESTRICTIONS
A maximum limit of 90 days per year for the whole country; this limit should be reduced in the following cases:
60 days on islands with less than 10 000-5 000 inhabitants
30 days in islands with less than 5 000 inhabitants
Provision of an institutional possibility for municipal authorities to decide on the basis of the protection of the dwelling the following:
Prohibition of registration in the Register of Short-Term Residence Properties of new properties located in specific municipal units or in the whole municipality.
Reduction of the maximum time limits for making properties available for short-term rentals within the boundaries of the municipality.
Provide in the land use legislation that short-term leases are not permitted in pure residential areas.
Β. RESTRICTIONS ON THE NUMBER OF PROPERTIES
A maximum of two (2 ) properties per lessor, who is a natural person and one of these properties must be declared as the main residence of the lessor.
In cases where at least 60% of the apartments in a block of flats or a residential complex are available for short-term rental, then such block of flats or complex may not be used for short-term rental. If it meets the terms and conditions for inclusion in the existing categories of tourist accommodation referred to in Article 2(2)(a), the lease may not be rented out for a period of more than five years. 1 of Law 4276/2014,as in force and follows the licensing regime, as amended by the notification provisions of Law 4442/2016, otherwise it is sealed and an independent administrative fine is imposed.
When within a short-term rental property operates a catering establishment for full and pre-lunch or a leisure business, the disposal of the property for short-term rental is prohibited.
Γ. PROVISION OF SERVICES
If any form of services are provided within the accommodation, then the property must be considered as tourist accommodation and must have the relevant licensing (E.S.L. or notification) and the specifications of the form of tourist accommodation of article 2 paragraph 1 of Law 4276/2014.
D. TECHNICAL AND OPERATIONAL SPECIFICATIONS
The property is leased in its entirety.
It is only allowed to rent a room in the main residence of the lessor, where he is present.
Minimum property area of 12 m² for the room and 25 m² for the apartment or house
Have natural lighting, ventilation and air conditioning – heating
Prohibition of basements – semi-basements
Maximum number of rooms: 8 rooms per property and maximum number of persons the property can accommodate depending on the available sleeping space (2 beds per bedroom).
Hygiene and fire safety certification by an engineer in accordance with his professional rights (annual).
Civil liability insurance.
In addition, for apartments in apartment buildings, a lift certification for professional use is required.
E. TAXATION
Imposition of an administrative fee for registration in the Register of Short-Term Properties depending on the size of the property.
Imposition of VAT on all properties made available for short term rentals without exceptions.
Lighting and cleaning charges for the benefit of the local authorities
Higher personal income tax on income from short term rental than long term rental.
Obligation to submit the short-term residence declaration on the first day of the start of each lease.
Obligation for property managers of short term rentals to keep a record of the details of the residents for any checks by the competent police authority.
According to Grant Thornton’s estimates, the turnover of the short-term rental market in Greece is around €3.5 billion and involves more than 200,000 properties, according to the most minimalist approaches.
In more detail, a new initiative entitled “TALKING ABOUT OUR LIVES” is being launched and will last for the next two months, as announced today by the president of Hellenic Chamber of Hotels Mr. Alexandros Vassilikos.
The initiative focuses on highlighting the serious social problems caused by the uncontrolled expansion of short-term rentals. It includes public media interventions, a social media campaign and institutional meetings with policy makers. Citizens speak out about the social impact of short-term rentals and the need for fair regulation.
A key feature of the initiative is that the citizens themselves discuss in order to describe their personal experiences, anxieties and concerns about the uncontrolled expansion of the phenomenon.
The title of the initiative “TALK FOR OUR LIVES” has been shaped accordingly and is used as the hashtag #Milame_gia_ti_zoi_ mas, accompanying every reference to its content and actions.
The special website milamegiatizoimas.gr also serves as an online information hub for all the actions of the initiative.
The central message that emerges from all the actions and tools of the initiative is that fair regulation of the short-term rentals phenomenon is a prerequisite for sustainable development and social cohesion.
The research
During the press conference, an updated study by Grant Thornton on the main trends and socio-economic impact of short-term rentals was presented, which is the kick-off of the initiative.
THE FULL REPORT HERE
According to the study:
- Overnight stays in short-term rental accommodation grow at an annual rate of around 28% over the period 2019 – 2023″.
- Within the five-year period (2019-2023), short-term rental beds will increase by 100%, when hotel beds will increase by only 3.5%.
- The average price of short-term leases is 200% to 900% higher than long-term leases.
- Reduced availability of long-term rental properties and displacement of long-term tenants. The limited stock of long-term rental properties implies an increase in housing costs.
- Challenge noise and safety problems. Overuse and strain on local infrastructure. Disruption of sense of community, transformation of neighbourhoods.
- Development of short-term rentals results in a higher volume of waste generated per guest (+20%) compared to long-term tenants.
- 40% lower utilisation of recycling solutions in short-term rentals compared to hotel accommodation.
- The majority of the country’s residential properties (66.8%) are of old type and of reduced energy efficiency. In contrast, >70% of the country’s hotel stock consists of high energy class properties.
In a statement, the President of Hellenic Chamber of Hotels Mr. Alexandros Vasilikos stresses: “Modern entrepreneurship must work for a positive social footprint in the society in which it operates. The hotel industry has proven this through its actions and timeless contribution. This is why, when the debate on ‘overtourism’ as it is currently being conducted can end up in anti-tourism, we are obliged to put things in their proper place. We are taking the initiative “WE SPEAK FOR OUR LIVES”, giving a voice to the citizens themselves, not to oppose short-term rentals but to demonstrate the need for a fair regulation so that tourism can continue its great contribution, supporting sustainable development and social cohesion.
