There have been many changes in legislation in recent years that regulate rentals in the Valencia region, where we find popular areas such as Torrevieja, Orihuela Costa, Benidorm and Alicante. In this article, we take a look at what has changed and what requirements are now imposed on rental properties.

Why were there legislative changes for rental?

On June 7, 2018, the Valencia region adopted a number of restrictions on the rental of homes for short periods of time, what we popularly call tourist rentals. This happened because there was a growing problem with illegal tourist homes that did not pay taxes and did not meet the requirements for a rental property. Increased dissatisfaction among the local population in vulnerable areas also weighed heavily, but many believe the decisive factor was pressure from the hotel industry.

The law was drafted and passed in a very short space of time and many properties were required to apply for registration in the landlord register, where they had to meet a wide range of requirements. Huge fines were threatened to both private and professional landlords, but due to the number of privately owned tourist homes and the lack of inspectors, the authorities concentrated on the large portals.

Since then, the law has been updated on January 22, 2021 and now most recently on August 2, 2024. Here we will concentrate on the latest version of the law.

How do you apply for entry in the landlord register?

We help all our customers who wish to do so to apply for a rental license. We know which municipalities and areas have restrictions, and if letting is important to you, you can rest assured that our brokers will not offer you homes where this is not possible.

Applying for inclusion in the tourist register is a lengthy process and, depending on the municipality, can take well over a year to be approved. As of today, December 2024, there are very few municipalities that allow new applications. The vast majority of municipalities have frozen this for 2 years after the new law came into force, to work out how to deal with this. We know which municipalities, ask your real estate agent

The 10 most important changes in the law on uteie

1. It is only possible to rent out a maximum of 10 days to the same tenant for short-term rentals.

The entire group is regarded as one tenant, and you must register everyone who is in the property regardless. It will then not be possible to extend the rental period by signing two rental contracts with two different people in the same group.

The new decree considers properties that are rented out in their entirety for a period of less than or equal to 10 consecutive days as tourist accommodation. It is not possible to rent out rooms and you cannot rent out only parts of the property.

Homes that have been reserved for 11 days or more before the decision came into force can maintain the contract.

2. You must have approval from the condominium to rent out

For several years, there has been uncertainty as to whether condominiums have the authority to ban tourist rentals, since Act 7/2019 gave condominiums the power to restrict tourist rentals. This left room for interpretation as to whether restricting also means banning, and in many condominiums where they used this law to ban tourist rentals, they met resistance from landlords who refused to comply. Here, a recent ruling in the Supreme Court of Spain, on October 3, 2024, states that condominiums have the opportunity to prohibit rentals if a minimum of 60% of the neighbors vote for this and then the case was put to an end.

In order to register your property in the landlord register, you must now have a certificate from the condominium stating that your property can be used for this type of rental.

3. You must renew your entry in the landlord register every five years

All tourist homes must be registered in the landlord register and have a registration number. This registration must now be renewed every 5 years. It is not clear exactly how this should be done, but it can be assumed that re-registration is not as extensive as a new registration.

In addition to renewing the registration every five years, this must also be done when there is a new owner of the property.

If you rent out your property for more than 10 days during the periods defined by the authorities as possible for tourist rentals, you may lose your registration in the landlord register.

4. You must obtain a certificate of residence every five years

Within 1 month before your registration expires, you must update your certificate of residence. This can be ordered from an architect. After the certificate of residence has been updated, rental of the property must start within 2 months.

5. Exact location and registration number in all advertising

All advertising of the property must clearly state the exact location of the property and the registration number in the landlord register. Failure to state this is considered a serious breach.

Furthermore, the plaque with the registration number must be clearly visible either outside or inside the front door.

6. Prohibition of key safes on public roads

It is now forbidden to hand out keys to tenants using key safes in public roads. This means that if your home has its front door facing a public road, this cannot be installed here.

7. You must sign a contract for laundry, linen change and home maintenance

The property must have a contract for cleaning service and linen change and regular service and maintenance. It is not enough to simply state a person or company that realizes this.

8. The home must be clearly marked with rules for the condominium

The rules of the condominium must be clearly visible in the home. This applies to the rules of the condominium, the use of installations and whether the condominium allows pets.

These rules must be accepted and followed by tenants, and the landlord is responsible for ensuring that they know the rules and comply with them.

9. 24-hour telephone service and emergency instructions

Tourist accommodation must meet requirements for size, ventilation and lighting. They must also have an evacuation plan, emergency instructions in several languages, a list of telephone numbers for emergency services and a 24-hour telephone service.

10. Fines and liability

The decree gives rise to fines of up to 600,000 euros. Renting out only parts of the property or overselling the number of places is considered a very serious violation.

Furthermore, it will be considered very serious not to disclose the property’s registration number in advertising or the property’s exact location.

Conclusion

The new law regulates tourist apartments more precisely than before, but it also allows you to rent out e.g. for 2 weeks without having to register the property in the landlord register. If you are considering buying a property in the province of Alicante and you want to know more about how to rent out legally, this is something we at Soleada Eiendom can help you with.