The effects of "illegal" renting.

[arturo22]

a quote from MDB

Another resort area - the bays of Alcudia and Pollensa - is apparently not considered to be saturated. However, there is a great deal of unlicensed holiday rental activity, especially in Puerto Pollensa. For the moment, it's unclear how the Council (and government) will treat this area, but the Council's view appears to be that most of what is not currently licensed will remain unlicensed.

The full story can be seen here :- https://majorcadailybulletin.com/new...s-majorca.html

[favie]

Devastated tonight ....I wondered that one day this business of "Illegal Renting" would affect me and now it has! Booked private rentals for years now in PP as I love living like a local every year, shopping in the supermarkets, butchers, patisseries , takeaways and of course eating at the many restaurants. Don't mind a hotel for a short stay but one room for two or more weeks does not appeal to me personally.
Started looking for late summer in PP next year, late summer as we have a family wedding in Ibiza mid summer, never been but quite excited to see another Balearic Island! (In a beautiful area!) Searched for weeks looking for the "right" apartment before making the deposit about 6 weeks ago...only to receive a call tonight from the owner explaining that she cannot continue with any more bookings and will have to cancel the bookings she has taken for next year. She had been renting for years with many wonderful reviews...but no more, she and many of her friends, after much discussion with lawyers etc are selling up. Won't repeat her exact words about the situation but she is devastated too! Another apartment I previously enquired about, the lady said "sorry, don't know if we will be taken bookings for next year"
It sort of puts you off searching and booking all over again in PP or any Balearic Island. Maybe Hotels is the only way to go now! Sad but I understand (from some past posts) that some think it is the correct way to go but I worry for businesses and jobs if everyone is in hotels!
Maybe I have just been unlucky and this is not a sign of things to come!

[Papillon]

I am thinking about selling my apartment and was looking on Zoopla to see the prices and was surprised to see so many stating "ideal for renting." An estate agent in PP told me he had a sale cancelled recently when the buyer realised it was not possible to rent.

One feels in future years we look back and see how the hotel lobby totally screwed the holiday industry with their "all inclusive" packages and desire to see a healthy private rental market destroyed so they can increase their rates by eradicating the competition.

Out of interest Bernard Hamilton built a block of flats in Llenaire opposite mine about 7 years ago but went bust just after they were completed. They became almost derelict over the next few years with rusty lifts, a pool full off algae and weed. Last year they had clearly been bought and were being renovated to a very impressive standard. It turns out they are now being rented through Booking.Com from €1500 to €2100 for the high season. It's quite extraordinary how a Spanish company based in mainland Spain managed to get a licence when they have no reception area and access is purely by key safe outside each apartment.

Perhaps there is a simple explanation?

[Tommo]

Originally Posted by favie

Devastated tonight ....I wondered that one day this business of "Illegal Renting" would affect me and now it has! Booked private rentals for years now in PP as I love living like a local every year, shopping in the supermarkets, butchers, patisseries , takeaways and of course eating at the many restaurants. Don't mind a hotel for a short stay but one room for two or more weeks does not appeal to me personally.
Started looking for late summer in PP next year, late summer as we have a family wedding in Ibiza mid summer, never been but quite excited to see another Balearic Island! (In a beautiful area!) Searched for weeks looking for the "right" apartment before making the deposit about 6 weeks ago...only to receive a call tonight from the owner explaining that she cannot continue with any more bookings and will have to cancel the bookings she has taken for next year. She had been renting for years with many wonderful reviews...but no more, she and many of her friends, after much discussion with lawyers etc are selling up. Won't repeat her exact words about the situation but she is devastated too! Another apartment I previously enquired about, the lady said "sorry, don't know if we will be taken bookings for next year"
It sort of puts you off searching and booking all over again in PP or any Balearic Island. Maybe Hotels is the only way to go now! Sad but I understand (from some past posts) that some think it is the correct way to go but I worry for businesses and jobs if everyone is in hotels!
Maybe I have just been unlucky and this is not a sign of things to come!

We are currently looking to book our annual trip to PP but are totally confused. We always self cater however, we are very wary of booking an apartment given the private rental situation. The scenario could be, apartment booked flights booked and paid for, then apartment owner cancels. Which.leaves us out of pocket and worst of all no holiday in our favourite place.
Any info or suggestions please.

[El Gordo]

Originally Posted by Tommo

We are currently looking to book our annual trip to PP but are totally confused. We always self cater however, we are very wary of booking an apartment given the private rental situation. The scenario could be, apartment booked flights booked and paid for, then apartment owner cancels. Which.leaves us out of pocket and worst of all no holiday in our favourite place.
Any info or suggestions please.

Those that come to PP and hire apartments need to get a petition going, protesting about the lack of accommodation available legally to rent, to present to the Pollensa Authorities, as they have the power to grant licences to apartments in their area.

What are the views of the airlines that rely on private rentals for most of their passengers outside of the main holiday weeks??

Where are the views of the Bar and Restaurant owners?? Surely it is in their interests to voice there concerns? They need to activate themselves NOW!

Maybe, "Wait and See" is not the answer, We don't rent but are worried about the effect the lack of accommodation will have on all the bars and restaurants in PP and on the visitors we are used to meeting every year.

Good luck to all those risking renting in this terrible situation.

[eleanor]

I totally understand the frustration of those who rent apartments and those who have purchased with the view to rent to the holiday market. The fact that a licence is necessary is i'm afraid nothing new! We sold our apartment to purchase our villa 14 years ago and the question of a rental licence with the apartment raised it's head then. Thankfully we have a rental licence in application for the villa and so we are legally ok to rent. Apartments are a different matter altogether. What is concerning is so many were encouraged to buy apartments to rent out by estate agents many not telling the exact story. This is very much a worry to those who purchased with the view to renting to cover the mortgage. It being highly unlikely that apartments will be issued with a licence. This is old news but news which was either hidden or played down on purchase.

As for the Barnard Hamilton block in Llenaire. I'm afraid that agent wrote its own rules! You are quite right that they went bust. Many a tale could be told regarding their way of working! We would need a whole forum to even start! Suffice it to say they are no longer operating - well not in PP anyway!

From the renters point of view, they do still have a choice as they can rent a designated tourist apartment such as Habitat as an example or rent a private villa which has a rental licence.

It is worth noting that a licence is not cheap. We paid over 500 euros. The property is also inspected as well as taxes paid etc. So it is good to know when renting a property to obtain a licence the property must meet certain criteria including fire precautions etc.

We have our villa on the market to sell and thank goodness we applied for the licence before the supposed deadline of 1st July! There are many a story regarding renting and licences it is had to know which to believe. The one thing in common are the horrendous fines for renting without a licence to those who do so and it seems the sites which advertise them.

Choice is still available it is not a case of a hotel or nothing.

[copper]

How do you know if the apartment you are trying to rent has a license ? I cant imagine that the majority of people who rent are going to ask that question as they wouldnt really know one is needed

We prefer apartments too If we had too we would rent in one of the licensed blocks Habitat etc but prefer the independent ones we use now We definately contribute to the economy while we are there Eat out every day use the beach beds etc

Certainly wouldnt come if all we could only stay in a Hotel as just prefer them for short breaks

It certainly seems a mess if buyers are being misled by estate agents too

[eleanor]

Copper it is impossible for most apartments to be licenced. The difference between say Habitat and most blocks is that Habitat provide the necessary services as required to obtain a licence. The most simple explanation might be that they have a reception area. I believe it to be more complicated than that and others would probably be able to answer better than I.

You are probably correct that the average person might not even be aware of the requirements. It isn't just a Mallorca thing though but all the Spanish Islands and mainland. Much has been in the media regarding the licence situation.

[Lorenzo]

I was wondering how some of the local estate agents in Puerto Pollensa were covering themselves with regards to renting out apartments in the area.

I spotted this 'disclaimer' on one of their websites for each apartment on their books:-
"This rental is regulated as seasonal dwelling according to art. 3 and art. 4 and other articles of Tenancies Act, Law 29/1994 of 24 November (BOE. 282, November 25) and in his absence by the Civil Code.
TOURIST SERVICES ARE NOT PROVIDED.
THIS PROPERTY IS NOT MARKETED ON TOURIST CHANNELS."

Whether this terminology will protect them or not, who know!

[eleanor]

Originally Posted by Lorenzo

I was wondering how some of the local estate agents in Puerto Pollensa were covering themselves with regards to renting out apartments in the area.

I spotted this 'disclaimer' on one of their websites for each apartment on their books:-
"This rental is regulated as seasonal dwelling according to art. 3 and art. 4 and other articles of Tenancies Act, Law 29/1994 of 24 November (BOE. 282, November 25) and in his absence by the Civil Code.
TOURIST SERVICES ARE NOT PROVIDED.
THIS PROPERTY IS NOT MARKETED ON TOURIST CHANNELS."

Whether this terminology will protect them or not, who know!

Interesting! I did hear that any agent or site which advertised a property as a holiday rental were leaving themselves open to huge fines. Many of the usual rental sites are now requesting licence numbers before they will advertise a property. I rent our villa through a couple of agents in Pollensa. Both have now emailed me to request a rental licence number. Seems they may be running scared and covering their backs. I wonder what may happen to these sites and agents as I would suspect that much of their business is from property without the licence.

[Papillon]

Pleased to see you finally got your licence eleanor. It seems that many of my friends no longer advertise their apartments for rental however they do offer previous guests the opportunity to become "friends and family" and stay for a "modest" contribution to the upkeep of the property. Each guest is given a letter stating this just in case there is a knock on the door!

[eleanor]

Originally Posted by Papillon

Pleased to see you finally got your licence eleanor. It seems that many of my friends no longer advertise their apartments for rental however they do offer previous guests the opportunity to become "friends and family" and stay for a "modest" contribution to the upkeep of the property. Each guest is given a letter stating this just in case there is a knock on the door!

Thank you Papillon. I'm so pleased we did! We decided on hearing the horror tales and that there was a possibility of them putting a stop on applications for a year that we had better get on with it. We were told the deadline was 1st July and after the 12 month period of stopping it would be much more complicated and difficult to obtain and they would need to be renewed after 5 years. OK as I said before you hear so many stories but the bottom line being if we needed one we better get on and get one which we did. We also thought it would not only be needed to rent but would be a selling point.

I think your idea of adding to your friends and family list is a good one and one that many owners will decide to do. A little like Facebook - before you know where you are you have hundreds of new friends! Good luck - what a minefield!

[Gommar Goffer]

does anyone what to be my friend?

[mike_dublin]

Originally Posted by Gommar Goffer

does anyone what to be my friend?

Count me in

[sws97sdg]

Originally Posted by Papillon

Pleased to see you finally got your licence eleanor. It seems that many of my friends no longer advertise their apartments for rental however they do offer previous guests the opportunity to become "friends and family" and stay for a "modest" contribution to the upkeep of the property. Each guest is given a letter stating this just in case there is a knock on the door!

IMHO. This is a very good point about the way renting splits into two areas, the first is people who rent out their apartments through an agency or the various webpages, and those who let their friends and family use theirs.
It is clear that the first option will cease for owners who do not have licenses as it will be so simple for the authorities to identify unlicensed properties. This is where the large fines could be for agency who continue advertise unlicensed properties.
I know there are a lot of people who do not advertise their properties and relay on lending their apartments out to previous users, friends, friends of friends and family, I can see this carrying on as it Is not truly renting although some money may change hands and would be very difficult in a court of law to prove renting is taking place.
We are luckily in this second category as we have been using the same apartment for years and I hope we have become part of the friends group, we never complete a rental form, and haven’t for 10 years I guess in other apartments as well, we just book, exchange the keys and money and that’s it!
The only thing that may change the second option is the location, it is clear that part of this new move is to do with trying to ensure that there are affordable places for locals and others to rent in holiday areas. If people are renting out apartments that are clearly residential properties in residential areas, as in Palma, and here in some areas of the port for a few months of the year, it is stopping others from renting out long-term, especially with the inflated holiday rental rate. If on the other hand the apartments are purpose built holiday home like in el Pineret or along the front where they have no heating or aircon, many owned by the locals who themselves only use them 6 months of the year, this will certainly not be targeted in the first instance.
There have also been scare stories on FB and other places suggesting that they may well go after people who are renting apartments, I think that this would never be the case.
Of course the ideal solution, and one that won’t happen for at least 12 month as they have said, is to licence all apartments that are designed for holiday use in holiday areas, problem solved.