New regulations Tourist Rent – Valencia. August 2024

New regulation of registration and activity of Housing for Tourist Use in the Valencian Community

August 2, 2024, the Government of the Generalitat Valenciana came to approve a Decree that has meant a very important change in the regulation of Housing for Tourist Use in
the Valencian Community.

These are the arguments:

Why the new Valencian Tourist license normative?

The government of the Valencian Community justifies the entry of this law for the following reasons:

•  Tourism is a strategic sector in the Valencian Community , which represents 16% of the Gross Domestic Product in 2023, being the autonomous community that is leading the growth of tourism income in 2024.
• Enormous importance of attending to its orderly development, due to its direct impact on the rest of the economic sectors and due to its relevant repercussions in the social, labor and environmental spheres.
• The beginning of 2024 has witnessed new growth in tourism, and in housing for tourist use, in the main Spanish tourist destinations (the increase in beds in the 25 main cities is 19.7%, reaching 376,000 beds) exceeding pre-pandemic levels.
•  The Tourism Registry of the Valencian Community exceeds the figure of 100,000 (July 2024), which has meant an increase of 160.40% (period 2015-2023), figures that in 2024 reveal very significant increases in such a short space of time. since more than 9,000 homes for tourist use have been registered in this period.
• Record numbers of arrivals of foreign tourists, 10.4 million in 2023 to the Valencian Community. 
• Constant media exposure of the consequences of the phenomenon, which requires the adoption of urgent measures that limit the different interests at stake.
• The increase in homes that operate illegally for tourist use contributes significantly to the underground economy.
• These undeclared properties not only evade taxes and regulations, but also distort the real estate market, affecting the tourism sector in general that operates in the market following current regulations.
• Furthermore, the increase in illegal tourist housing can cause coexistence conflicts with local residents.

And for what?      

• It is considered necessary to adopt urgent measures, with the aim of organizing the activity of housing for tourist use through extraordinary measures that balance the activity with the rest of the tourist accommodation sector, acting to ensure a balanced, sustainable and quality offer.
• Search for tourism sustainability in its economic, social and environmental aspects, and provide greater legal security to owners, managers, tourist users and citizens.
• Put a stop to the unfair competition exercised by those who market their homes illegally, thereby harming the regulated tourism sector and escaping the control that the competent authorities can carry out.
• Define conditions of design, quality, safety and accessibility that provide the homes made available to tourists with minimum quality standards that guarantee minimum standards consistent with quality tourism.

Does not affect accommodation in tourist apartment blocks and complexes

It should be considered that this regulation does not affect accommodation in blocks and complexes of tourist apartments, which has its specific regulation in other sections of the regulations, but it does directly affect the relevant professional sector of the management companies of housing for tourist use, a key agent in the marketing in our autonomous community.

What is subject to the law? – art. 1

Homes for tourist use located in the territory of the Valencian Community will be subject to the provisions of this Decree Law.

Likewise, the holders, owners and users of these homes, as well as the rest of the administrations and public entities that hold concurrent powers in the matter, will be subject to what is applicable to them.

Power of the rest of the administrations to regulate the activity of VUT – art.2

Homes for tourist use and other tourist accommodation will be subject to the requirements  of tourist, civil, commercial, health, urban planning and environmental
regulations, emanating from the European Union, State Administration, the Valencian Community and local entities in the area. framework of their respective competencies.

Power of City Councils to regulate, limit and condition the activity – art.2

In particular, City Councils, for compelling reasons of general interest, and through the exercise of their urban planning powers, may establish proportionate limitations, with regard to the maximum number of homes for tourist use per building, sector,  or area. These limitations must obey clear, unequivocal and objective criteria, which have been given due publicity prior to their application.

What is meant by “Housing for Tourist Use” – VUT? – art.3

1. Homes for tourist use are complete properties, whatever their type, that are transferred for a price, under conditions of immediate availability, for tourist purposes, for a period of less than or equal to 10 days, computed continuously for the same tenant, and that they have a municipal report of urban compatibility for favorable tourist use, or equivalent document that is determined by regulation, as well as, where appropriate, the municipal enabling titles required for said use or activity.

The homes for tourist use are transferred in their entirety, and the rent of rooms is not permitted.

From this definition we deduce that:

• These are “complete” properties – Therefore, the rental of individual rooms is prohibited.
• That they are transferred through “price” – That is, there must be economic compensation, in cash or in kind, and it must be a commercial activity.
• In conditions of “immediate availability” – It is required that the home be rented in such conditions that allow its immediate use (cleaning, maintenance, etc. ).
• For a period of less than or equal to 10 days computed continuously for the same owner. This represents a very important novelty in the legislation. Essential. There has always been doubt in the Valencian Community about the length of time for which a home could be considered for tourist use. Some communities or regions, such as Andalusia, spoke of periods of one month . However, Valencian legislation had never determined a temporal condition to define what a Housing for Tourist Use was.

Therefore, now, through this new law, it is clear that only those homes whose rent is less than or equal to 10 days can be considered as Homes for Tourist Use.

Therefore, it can be deduced that those homes that are rented for a period of more than 10 days are not subject to the tourist rental regulations, and must be subject to the seasonal rental regime.

This necessarily implies that if the home has been used for more than 10 days, it will not be able to benefit from the marketing and promotion possibilities on online platforms, which are allowed for VUTs.

• With “tourist purposes” – It is understood that the rental use activity is carried out for tourist purposes when:

1.       When it is transferred for tourist use by housing management companies for tourist use.
2.       When it is made available to tourist users by its owners or holders for this purpose,
   whether or not they provide services typical of the hotel industry.
3.       When tourism marketing channels are used. Tourism marketing is considered to exist when it is carried out through tour operators or any other tourism sales or promotion channel, including the Internet, or other new technology systems.
4.       When it comes to “tourism marketing channels”, we understand
   that these are those portals, websites, platforms, or rental operators that
   promote tourist rentals. Therefore, hosting or promoting homes on these portals will suggest that it is a rental for tourist purposes.

On the contrary, we must understand that when a home is advertised for rent, and it is done on portals or platforms for the rental or sale of properties that are not related or have anything to do with tourist rentals, in these cases it is not considered that there is a “tourist purpose”, and the homes will not be considered as Homes for Tourist Use, and consequently, they will be considered as general rental homes.

In conclusion, the same law declares that the following will not be considered Tourist Use Homes:

1. a) Homes that are rented for a period equal to or greater than 11 days computed continuously to the same tenant.
2. b) The tourist rental of rooms, which is expressly prohibited.
3. c) The rental of rooms for tourist use on boats, caravans or similar, with the exception of the regulatory framework of campsites.

Obligation to report the cadastral reference of the property

The obligation to report the cadastral reference of the property in the following documents is established:

• Responsible declarations to register for the activity
• Contracts for transfer of use that are signed with clients or users of the property

The validity of the activity will be for 5 years

Registration of housing for tourist use in the Tourism Registry of the Valencian Community will be valid for 5 years (art. 2.4).

This means that, once 5 years have passed since their registration, the owners must open an administrative process to renew their tourist licenses. At those times, they will be required to provide the administration with all the necessary documents, requirements and conditions so that, at the time of renewal, the revalidation of the license is obtained.

This implies that, if after 5 years, the home does not meet these requirements, the license will not be renewed, leaving the home outside the rental activity for tourist use.

This also implies that, if at the time of renewal, the administration or the City Council have limited or suspended the granting of licenses, the right to renew the license is lost.

What quality, design, safety and hygiene requirements must be met by Tourist Use Homes?

This new law does not define the aspects of quality, design, safety and hygiene that Tourist Homes must comply withIt is limited to considering that “regulatoryly” these aspects will be defined. This means that in the future a regulation will be created that will define these aspects.

We have missed that the law does not regulate aspects so essential for the development of this activity.

Therefore, we interpret that , until the regulation that specifies the aspects of quality, design, habitability, etc. , is approved , these are the ones that must be met for the use of “residential housing” that is, those necessary to obtain the “occupancy license” or “occupancy certificate”, as well as those defined in Annex III of this law.

ANNEX III

Minimum requirements for housing for tourist use

Without prejudice to the conditions established in article 49 of this regulation, the following minimum requirements will apply to homes for tourist use:

1. ACCESS AND COMMUNICATIONS

– Building evacuation plan on the door of the homes or, failing that, emergency instructions in several languages.

– Elevator (from number of floors Ground Floor + 4) (1)

– Entry of clients, in the case of homes located on ground floors.

– 24-hour telephone service.

(1) It should be understood that ground floor + 4 is exempt from an elevator.

2. FACILITIES AND SERVICES

– Power outlets in all rooms with voltage indicator (1).

– Hot water.

– Evacuation plan located at the door of the home.

– List of emergency and interest telephone numbers located in a visible place.

– Refrigeration (2) at least in the living room-dining room or living room-dining room-kitchen.

– Heating (2) at least in the living room-dining room or living room-dining room-kitchen.

– Internet connection, unless the home is located in a geographical area without coverage.

– First aid kit.

– Detailed information about the nearest medical center.

– List of emergency and interest telephone numbers.

– Reception service. The delivery of keys through boxes located on public roads is prohibited.

– Cleaning service (3)

– Change of lingerie (3)

– Repairs and maintenance (3)

(1) The voltage indicator next to the power outlets may be replaced by a general voltage indication of the entire accommodation, located in a clearly visible place.

(2) Always with the possibility of achieving a temperature in accordance with current legislation on energy savings.

(3) The provision of cleaning and laundry services, change of linen, repairs, maintenance and garbage collection will be governed by the provisions of the contract entered into for the occupation of the accommodation unit. The person responsible for the provision of these services will be the owner or owner of the activity, and must channel the requests of the clientele, being able to offer it directly or through third parties, without the mere indication of a professional or company that provides it being possible. the service.

The homes must be delivered in proper cleaning and maintenance conditions.

3. MINIMUM DIMENSIONS OF THE HOMES AND THEIR ROOMS:

The minimum dimensions of the homes must be subject to those established by the regulations corresponding to their residential use.

4. EQUIPMENT OF HOUSING FOR TOURIST USE:

In general, the homes will be equipped with the furniture, cutlery, kitchenware, linens and other utensils and accessories necessary to meet the needs of clients according to their capacity.

All bedrooms will be equipped with a closet, inside or outside of it.

The homes will be equipped with an internet connection, except in areas without coverage, and a television.

The home will contain an automatic washing machine, unless it is located in a block, or similar structure, that has a common laundry that includes washing machines and dryers available to clients in the premises itself.

The kitchen will be equipped with at least the following elements:

– Refrigerator

– Electric iron

– Oven/microwave

– Smoke extractor, hood, etc.

– Minimum two electric stoves when the home does not exceed 4 places. From 5 seats, it must have three burners or more.

The registration in the Tourism Registry of the Valencian Community will be canceled or deregistered in the following cases:

a) Declaration of the cessation of the activity, by who appears as the owner in the Registry.

b) The inaccuracy, falsehood or omission, of an essential nature, of any data, statement or document that is accompanied or incorporated into a responsible communication or statement.

c) The modification or disappearance of the circumstances and requirements that gave rise to the registration in the Registry.

That is to say, it may happen that the home has lost conditions of safety, habitability , etc. , and this may lead to its deregistration.

But it may also happen that at the time of registration of the home in the Registry there was no agreement of the Community of Owners to prohibit tourist rentals in the homes, and that said prohibition agreement does exist on the date of renewal. of it . With which it is inferred that if the Community of Owners approved the prohibition after obtaining the registration of the Housing as Tourist Use, this prevents the renewal after the 5 years of validity.

d) When the activity or service has not started, two months have elapsed since the presentation of the mandatory responsible declaration.

This is an important topic. In the event that the registration of the home is obtained, and two months have elapsed since the presentation of the Responsible Declaration the activity has not started, the registration will be invalidated.

e) Certification issued by the competent administration of the final administrative resolution that determines the lack of the required authorizations or licenses for the exercise of the activity, after processing the corresponding file.

f) When the cessation of tourist activity for more than 1 year is confirmed by the tourism inspection.

g) In the case of housing for tourist use, in addition to the above, when the cadastral reference of the property provided for in the second transitional provision of Decree 10/2021 has not been communicated before December 31, 2024.

This implies the obligation of all those cases in which the VUT registry has been managed without providing the cadastral data of the homes, must contact the Registry and provide this data urgently before December 31, 2024. Otherwise, said licenses will be invalidated by the administration.

h) In the case of housing for tourist use, in addition to the above, the failure to present a new Responsible Declaration for renewal after the five-year period established for the validity of the registration has elapsed, in the manner and within the deadlines established by regulation.

i) In the case of housing for tourist use, in addition to the above, the certification by the city council corresponding to the address of the housing of the final administrative resolution of a file for the restoration of urban planning legality that orders the cessation of the activity.

j) In the case of housing for tourist use, in addition to the previous ones when it is confirmed that the accommodation is being used in the period declared as tourist for rental as housing or seasonal in the terms established by Law 29/1994, of 24 November, Urban Leases.

What this requirement implies is that, although a mixed “residential-tourist” use is authorized, that is, the residential or private use of the home can be combined with the tourist use, the same does not occur between the use of tourist rentals. and the rest of rentals such as seasonal or long-term rentals.

Therefore, when the owner of the property for tourist use  it for other types of rentals, the tourist rental license for the property may be invalidated.

Responsibility of homeowners

In the event that there is a penalty or liability for illegal acts or activity of the VUT, the owners may be subsidiary liable in the event that they do not identify the holders of the tourist licenses.

Responsibilities for non-compliance

In addition to those listed in the previous Law 15/2018 regulating Tourism, Leisure and Hospitality of the Valencian Community , this new Decree incorporates the following:

Serious causes of liability – Penalties of 10,000 EUR-100.00 EUR

1. Do not indicate in any media in which the home is advertised the exact location and registration number of the home in the Tourism Registry of the Valencian Community .
2. – The lack of communication in a regulatory manner of the change of owner. That is, when there is a change of license holder, said change must be communicated to the Tourism Registry of the Valencian Community.
3. The refusal of the owners of tourist establishments, including homes for tourist use, to provide the identity and contact information of the owners of the tourist activity, as well as the contract or enabling title necessary to carry out the activities. that activity, or any other document appropriate for these purposes.

Serious causes of liability – 100,000 EUR – 600,000 EUR

1. Exercise, market, offer, lend or advertise tourist rentals for rooms in registered tourist homes.
2. The overselling of places and non-compliance with the provisions relating to the reservation regime or its cancellation, when accommodation is not provided to the affected user.

Modification of the content of the Responsible Declaration – Model to request registration in the Registry of Tourist Homes of the Valencian Community

The responsible declaration will contain:

1.- Identification of the person or entity responsible for the activity, including telephone number and email for the purposes of notifications of availability of electronic notifications,

2.- Identification of the person who owns the property, if different from the person or entity that owns the activity.

3.- Identification data of the home – Address, location, and cadastral reference

4.- Other information:

a) That shows the availability of the home or homes for its dedication to tourist use and the documentation that accredits it as the case may be (deed of ownership of the property, lease contract, authorization for management between the owner and the company, or other title valid for these purposes).

b) That the home or homes have the requirements demanded by the regulations for their registration in the Registry with the reported capacity, and that such requirements will be maintained during the validity of the activity.

c) That it has the municipal report of urban compatibility for favorable tourist use, or equivalent document provided for in this regulation.

d) That the registered cadastral reference is unique and individualized and responds to the current physical, economic and legal reality of the property or, failing that, the unique registration code of the property is recorded provisionally until it is obtained, in less than one year, of the corresponding unique and individualized cadastral reference.

e) That it has a license for the first or second occupation of the home or the equivalent enabling title, as well as, where applicable, the municipal enabling title required for its destination for the use of tourist accommodation, when in accordance with municipal planning the use tourist housing is residential. Exceptionally, in cases of proven impossibility, an equivalent municipal report will be accepted.

f) That in the tourist housing the conditions of design, quality, accessibility and safety established in this Decree are met, and that it has the licenses, authorizations, enabling titles or any other instruments of urban planning, environmental or municipal opening intervention required to its destination for tourist use, when in accordance with municipal planning, tourist housing use is considered tertiary.

g) That it has civil liability insurance or another equivalent guarantee to cover damages and losses that may be caused in the development of the activity.

h) That the home has the licenses, certificates or authorizations required by other departments or public administrations, especially urban, environmental, community of owners, health and opening, if required, and that it complies with all the applicable sector regulations.

i) If the establishment is located on common non-developable land, that the declaration of community interest that attributes the corresponding tourist use and exploitation has been obtained or, where applicable, that its exemption has been processed in accordance with current urban planning legislation.

j) Period of provision of the activity in the home. The period of activity provision must be declared for each home, and it may be marketed for tourism only in the indicated periods.

That is, you must indicate the months, weeks or days of the year in which the home is going to be dedicated to tourist rental use. Once these are established in the Responsible Declaration, the rental can only be carried out on the days and within the deadlines indicated therein.

k) That it complies with the legal provisions relating to fiscal, tax, social security obligations and, in the case of having employees in charge, that are governed by the collective agreement that is applicable, corresponding to this economic activity.

l) That it has a registry certification that proves that neither the constitutive title or the statutes of the community of owners, or any agreement thereof, enforceable against third parties, determine the impossibility of use for purposes other than those of housing as habitual residence, or which has a certificate issued by the administration of the community of owners in the same sense.

m) That the obligations of Royal Decree 933/2021, of October 26, which establishes the obligations of documentary registration and information of natural or legal persons who carry out lodging and rental activities of motor vehicles or regulations, are complied with. to replace it.

n) In the case of holding the rural specialty, which complies with the requirements set forth in article 68 of this decree.

o) That it has the energy certificate of the property.

p) In the case of housing for tourist use that is implemented in premises for tertiary use of existing buildings, the descriptive technical report included in article 49.3 of this decree is available.

VUT registration validity

1.- VUT regime requested from the entry into force of this law

a) Validity

The registration of housing for tourist use in the tourism registry of the Valencian Community will be valid for five years, with the exceptions established in the Law and in this decree.

b) When the five-year period begins to count

The responsible declaration enables the exercise of the activity for a period of five years from its presentation and this must be stated in the corresponding registration.

c) Renewal

To renew the registration for a new period of five years and continue with the exercise of the activity, the owner of the activity, within the month prior to the end of each period, must present a new responsible declaration of renewal, and must have the express permission of the owner of the property.

This responsible renewal declaration must be accompanied by a new, updated municipal report of urban compatibility for favorable tourist use, or equivalent document provided for in this regulation.

The new responsible renewal declaration will expressly include that it complies with all the legal and regulatory requirements in force at the time of renewal, including the obligation to provide a document indicating that it has the approval or non-prohibition of the community of owners.

2.- Regime of VUTs already registered prior to the entry into force of the law.

– Immediately, they must meet the habitability andb safety requirements set out in Annex III of this law. Therefore, they are required to carry out a study and verification of their homes, either by themselves or by a competent architect, to verify that their homes comply with the regulations.

– And, once five years have passed since the date of the Responsible Declaration initially presented, it is required that a new responsible renewal declaration be provided with all the requirements listed in the previous section, but it is expressly excluded that the community certificate or document be provided. of owners in which the use of VUT on the property is authorized or not prohibited.

That is, all VUTs that are registered on the date of entry into force of this law must have their registration renewed even if there is an agreement from the community of owners prohibiting said activity with a date after the registration of the activity.

Control of the activity by the Community of owners

The law distinguishes two cases:

1.- For those homes that are registered after the law comes into force:

          – Registration: A document will be required that proves the authorization or
non-prohibition of the community of owners of the use of VUT.

          – Renovation: A document that certifies the authorization or non-prohibition of the community of owners of the use of VUT will also be required .

This implies that if after five years of validity, renewal is requested and the community of neighbors has approved the prohibition of the use of VUT, this home will not be able to obtain the renewal of the license.

2.- For those homes that are already registered on the date of approval of this law,

and that their five-year validity period has expired, and that request their renewal, they will not be required to present documentation that proves the authorization, or no prohibition of the community of owners of the use of VUT.

New responsible declaration

A new responsible declaration must be submitted with the data and requirements established in this law, incorporating a new Certificate of Urban Compatibility, in the following cases:

–  That there has been a change in the property. Such as, for example, a renovation, or a new construction in it.

–  That there is a new owner: In cases of sale, donation, inheritance, etc.

Publication and compliance with internal regulations

In the case of housing for tourist use, there must be a regulation of internal rules that will include, for example:

–  The rules of coexistence of the community in which it is located (use of common areas, swimming pool, garden, quiet hours, etc.)

–  The conditions of use of the services and facilities and the admission regime for domestic animals, etc.

This regime will be mandatory for users of the accommodation. To this end, the owners of the homes for tourist use or the owner of the activity must provide users, prior to accommodation, with an information form on said rules, which must be
expressly accepted by the latter.

In case of non-compliance, the owner or owner of the activity will require the user to stop non-compliance or, in case of seriousness, to leave the home.

If this request is not met, it will report to the Police or the competent authority.

In the event of eviction, the user will lose all amounts paid for their reservation, if this has been stated.

TLACORP SLP

2024

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