The Hospitality Industry Act or its amendment arrived for public discussion this week. It will run until 6 April. Changes to the existing law are necessary mainly due to the interest in the renting of accommodation. Recently, Airbnb and glamping have been very popular. How does the Hospitality Industry Act regulate renting out the accommodation?
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How does the Hospitality Industry Act regulate renting out accommodation?
The current Hospitality Industry Act defines only the types of hospitality facilities. They include: hotels, motels, boarding houses, lodgings, inns, hotel and apartment settlements, mountain and other homes. They also include campsites, restaurants, inns, cafes, confectioneries, snack bars, bars, and food delivery.
The draft of the changes to the Act defines the types of catering establishments only as accommodation facilities, facilities for serving food and beverages, and facilities for occasional preparation and delivery of food. The executive act – Rules on the categorization of accommodation establishments, will determine the types of establishments in more detail.
Who can now deal with short-term rentals?
The new Hospitality Industry Act stipulates that the activity of short-term rental of accommodation to tourists in their own or rented apartments or holiday homes may be carried out by:
- natural person who registers to rent out property
- sole trader,
- society or
- legal enity
but only up to 30 days at a time in a unit with a maximum of 15 beds.
The new Hospitality Industry Act gives a bigger role to municipalities
Municipalities can include in their act the spatial and time frame for renting out real estate. This is the case for two- or multi-apartment buildings.
The contractor of short-term real estate rentals must obtain a permit from the municipality to perform this activity.
Consents in the case of renting property in a multi-apartment real estate
The new Hospitality Industry Act includes the obligation for the entity who rents out real estate to obtain the consent of apartment owners, namely:
- an entity who rents out a property for up to 90 days in total and offers up to 5 beds. They must obtain the 75% consent of the apartment owners of the building to perform the activity,
- an entity who rents out a property for more than 90 days (or less, but scattered over more than half a year) and offers more than 5 beds. They must obtain the 100% consent of the apartment owners to carry out the activity.
The new Hospitality Industry Act introduces the ID number of the accommodation
The Hospitality Industry Act newly introduces the ID number of the accommodation, which is rented out to tourists for short-term purposes. It needs it for the purposes of the real estate advertising. This number will not be made public. But you will have to include it when advertising the property. Also online platforms for booking the real estate will also have to display it.
The new Hospitality Industry Act introduces the mandatory access to drinking water
Hospitality facilities that use the the public water supply network will have to provide drinking water from the water supply network. This applies to both accommodation and food and beverage service facilities.
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