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AIRBNB

AirBnB in talks on Copenhagen rental cap

Copenhagen city politicians have begun talks with room-rental app AirBnb to impose a cap on the number of days residents can rent out their rooms or apartments.

AirBnB in talks on Copenhagen rental cap
AirBnb has been blamed for making Copenhagen accomodation tighter. Photo: Wikimedia Commons/Scythian
Copenhagen’s lord mayor Frank Jensen in January called for a 60-day limit, arguing that this was needed prevent room and apartment rentals made through the app degenerating into “illegal hotel operations”. 
 
Copenhagen residents have complained that AirBnB’s arrival has led to a rental shortage in the city, because it is so much more profitable to rent rooms out on a daily basis on AirBnb. 
 
If a deal is reached, Copenhagen will follow in the footsteps of London and Amsterdam, where the start-up has already imposed rental limits of 90 and 60 days respectively. 
 
Ninna Thomsen, Copenhagen’s mayor for health and social care told Denmark’s Ritzau newswire that politicians from the Social Democrats, Socialist Left party and Red-Green alliance, had met with AirBnB representatives on Monday. 
 
“Talks have been initiated over an agreement,” she said. 
 
The meeting, she said, had been positive although the Silicon valley  company had floated the idea of striking a deal with Denmark’s central government.  

RENTING

Local authorities in France get power to crack down on Airbnb rentals

Authorities in Paris and other French towns will be able to regulate local businesses who wish to rent property on Airbnb, according to a decree published by the French government. 

Local authorities in France get power to crack down on Airbnb rentals
This illustration picture taken on July 24, 2019 in Paris shows the logo of the US online booking homes application Airbnb on the screen of a tablet. (Photo by Martin BUREAU / AFP)

The news was welcomed by authorities in Paris, who have long battled to keep a check on Airbnb and its impact on the rental market. 

On Sunday, the French government published a decree that allows the City of Paris to subject the renting of local businesses to prior authorisation. 

This decree applies to all types of offices, stores or medical offices who may be turned in holiday rentals. 

It aims to allow towns to limit the growth of rentals on Airbnb, “protect the urban environment and preserve the balance between employment, housing, businesses and services on their territory,” says the decree. 

The news was welcomed by authorities in Paris, which has been witnessing “the multiplication of ground floor business premises being transformed into holiday rentals,” said deputy mayor Ian Brossat, who is in charge of housing, in a press release

This decree which comes into effect on July 1st, “will prevent local businesses from being turned into holiday rentals,” Brossat added on Twitter.

The conditions businesses will have to meet in order to get an authorisation still have to be defined said Brossat, according to Le Figaro. But Paris aims to draft these regulations and get them voted by the end of 2021, so they can come into force at the beginning of 2022. 

Other towns allowed to apply the decree are those who have put into effect “the procedure of a registration number for furnished holiday apartments, owners and, subject to contractual stipulations, tenants of local businesses who wish to rent them as furnished holiday apartments.” 

In recent years, Paris city authorities have made tax registration obligatory for apartment owners and have restricted those renting out their primary residence to a maximum of 120 days a year.

Now if owners want to rent a furnished property for less than a year to holidaymakers, they must apply to local authorities for permission to change the registered use of the space.

They are then required to buy a commercial property of an equivalent or bigger size and convert it into housing as compensation. 

Until then, these onerous and time-consuming tasks did not apply to local businesses who only had to fill out a declaration.  

In February, France’s highest court, the Court of Cassation, ruled that regulations introduced to counter the effects of Airbnb and other short-term rental sites on the local property market were “proportionate” and in line with European law.

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