Short-term rentals, min. 2 nights' stay and TIN obligation: changes for landlords

The Italian government is changing course on short-term rentals. The new regulations on the rental of private houses to tourists will not be included in the bill, but must be adopted by means of a decree-law.

On the evening of Thursday, September 21, an interim draft of the measure was circulated, which contains urgent measures to regulate the short-term rental market: a sector that continues to gain importance and compete with hotels (within tourism) and long-term rentals in the real estate market. According to rumors, the text could be discussed already at the ministerial meeting on Monday, September 25.

The draft currently confirms the two main measures already discussed during the summer period: a minimum stay of two nights and a national identification code (Cin).

The latest version of the text confirms the two main measures already discussed during the summer period: a minimum stay of two nights and a national identification code (Cin).

The latest version of the text specifies: 'A rental contract for tourism purposes relating to one or more dwellings in metropolitan capitals may not be for less than two consecutive nights, except in the case where the tenant is a family with at least three children'. The measure was proposed by the ministry to support the hotel sector, which has complained of "unfair" competition, especially from online platforms such as Airbnb and Booking.com. For a one-night stay, traditional hotel accommodation would be the only option. The exemption was initially denied, but is now allowed again for large families consisting of at least one parent and three children.

The limit on the number of apartments that the same owner can make available for short-term rentals (one to 30 nights) is currently two. This means that starting with three apartments, renting is considered an economic activity and the owner must open an individual tax number.

The Cin, the national identification code, is also confirmed. In order to ensure the protection of competition, the security of the territory and to counteract illegal forms of hospitality - the draft says - the Ministry of Tourism shall assign, through a special automated procedure, a national identification code - Cin to each dwelling unit intended for short-term rental, upon electronic application by the landlord, even if it already has a regional identification code - Cir - issued by the relevant regional authority. The code is associated with a rental dwelling unit for tourist purposes, without indicating whether it can be requested by the owner or manager to give free choice. It can be issued directly by the regions, while municipalities will be obliged to check that it is correctly labeled by the hosts on all promotion channels, from social platforms to the very door of the apartment (and even the building).

In addition, agreeing to Federalberghi's requests, the draft stipulates that apartments must comply with the same rules as hotels: they must be equipped with carbon monoxide detection devices and meet hygiene, sanitation and systems safety requirements.

The measure has drawn criticism since it was announced, and it resumed with the news of the executive order. The real estate and tourism associations (Abbav, Aigab, Breve, Confassociazioni real estate, Confedilizia, Fare, Fiaip, Host+host, Host Italia, Myguestfriend, Ospitami, Prolocatur, Property managers Italia, Rescasa Lombardia) reject the latest version of the text and have forwarded their comments to the Ministry of Tourism, considering it to be clearly aimed, without any reasonable grounds (the purpose stated in article 1, paragraph 1, says nothing), at discouraging residential rentals. This is done by imposing an unreasonable number of prohibitions, restrictions, requirements and obligations, some of which are impossible to fulfill. They also claim that it is a text that deeply violates property rights, is highly illegitimate and in many of its aspects contradicts constitutional principles.

Italian Brothers MP Gianluca Caramanna, national head of the party's tourism department, responded to the criticism by saying that the decree-law will be ready in the coming days. "It's not true that the short-term rental ordinance has been repealed," he said. "As far as I know, the text will be ready in the coming days. This is a very important order to regulate a sector that has been completely lawless all these years. We also appreciate that this is not an order restricting the sector, as is the case in other cities around the world, but setting rules to protect owners and tourists who will be able to enjoy a normal apartment equipped with all the necessary requirements stipulated by law. The document, intended for 12 metropolitan areas, will help fight illegality with a national identification code. Thanks to the Brothers of Italy, tourists and members of the tourism industry will be able to be protected by appropriate safeguards. Our tireless work to revitalize an important sector of the country's economy like tourism continues. "