The Rise of Short-Term Rentals and the Need for Regulation
Short-term rentals have become a significant issue in many of Europe’s most visited cities. As these platforms grow, they have led to challenges such as increased housing costs, displacement of long-term residents, and overcrowding in residential areas. To address these concerns, the European Parliament has introduced new EU-wide regulations aimed at managing short-term rental activities more effectively.
The press release from the European Parliament highlights that unregulated short-term rentals contribute to several problems, including higher housing prices, over-tourism, and unfair competition. While these rentals provide travelers with convenient options, they often come at the expense of local communities who find it harder to afford housing.
Existing Regulations and New EU Measures
Several countries and cities have already implemented their own rules regarding short-term rentals before the broader EU regulations take effect. For example, Italy introduced a ban on Airbnb’s self-check-in boxes in 2024, while Berlin has had restrictions on renting out more than 50% of an apartment’s floor space since 2016. In 2024, the EU passed a regulation focused on data collection related to short-term rentals, which will be effective in 2026.
Although not as strict as some of the localized regulations, this broad EU measure aims to tackle the growing issue of illegal short-term rentals. European Parliament member Kim Van Sparrentak explained that the law requires platforms to share their data with local authorities, enabling better enforcement of vacation rental rules and ensuring housing remains accessible for residents.
Impact on Booking Platforms and Hosts
The platforms involved in this regulation include Airbnb, Expedia, Booking.com, and Tripadvisor. These platforms are now required to share rental data with public authorities, mandate rental registrations, and eventually reduce illegal listings. This shift places more responsibility on the platforms and hosts to ensure compliance with rental laws.
Travelers may not need to change much when booking accommodations, as the new EU regulation focuses on holding platforms and hosts accountable. However, there could be fewer options available in the coming years due to the regulations curbing noncompliant listings. On the positive side, the remaining options are likely to be legitimate and less burdensome to local communities.
Changes in Booking Rules and Restrictions
Depending on the city, travelers might encounter stricter rules on how and when they can book short-term rentals. For instance, digital nomads may find that short-term rentals are limited to 90 days in cities like Berlin, Dublin, and Madrid, and even shorter periods (30 days) in Amsterdam. Some cities also restrict short-term rentals in historic or preserved districts.
Barcelona plans to phase out all short-term rentals in its historic center starting in 2026, and Vienna is considering a similar ban for its city center. These changes aim to preserve the cultural and historical aspects of these areas while managing the impact of tourism.
Potential Effects on Prices and Travel Experience
With tighter regulations, it’s possible that rental prices will increase in the coming years. However, these price hikes could help prevent cultural erosion in popular travel destinations. Travel expert Rick Steves has previously urged travelers to avoid booking Airbnbs, as they can turn historic neighborhoods into crowded and expensive tourist spots.
While short-term rentals are not being banned entirely, these regulations act as a buffer to protect the charm and character of travel destinations. Travelers may pay more, but the experience of visiting these cities could be enhanced by these measures.
What to Expect When Traveling in Europe
As these new regulations take effect, travelers should be prepared for changes in availability and pricing. However, the overall goal is to create a more balanced approach that benefits both tourists and local residents. By enforcing stricter rules, the EU aims to ensure that short-term rentals do not negatively impact the quality of life for those living in these cities.
For those looking to explore Europe, staying informed about these changes and adapting accordingly can lead to a more enjoyable and responsible travel experience. Whether you’re booking through traditional platforms or alternative rental services, understanding the evolving landscape of short-term rentals is essential for a smooth and fulfilling trip.