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Upcoming changes in Local Lodging legislation – Part II

Last week we looked at recent legislative reforms which have created tighter rules for operators of Local Lodging establishments. Under the new regulations, Councils will have a say in setting occupancy quotas within their municipalities. Condominiums can launch complaints regarding “AL” based disturbances and misuse in their buildings.

Here are the last three newly approved regulations that will on impact operators from major investors to individual owners.

  1. Complaints from neighbours may lead to closings

When agreed by more than half of the owners, condominiums will be able to challenge Local Lodgings operators, particularly in the events of acts that disturb the regular use of the building.  Such opposition shall be referred to the City Council, who are responsible for the final decision regarding licensing suspension.

  1. Quotas by Council Parishes

City Councils will be able to create ‘containment zones’ with limits to the installation of new local lodging establishments in areas where there is a more significant burden on long-term rental housing. Following a decision by the municipal assembly, local authorities will have one year to create these regulations. They can also adopt preventive measures and suspend “AL” establishments in these containment zones.

  1. Inform Airbnb when closing an “AL” activity

The holder of a Local Lodging registration must communicate to the Tax Authority the closure of “AL” activity within ten days after the occurrence. Also, Owners must notify electronic reservation platforms, such as Airbnb or Booking, of the activity change.

Dennis Swing Greene

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