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The city council of Prague has launched two new online sites (shared-accommodation.praha.eu and sdileneubytovani.praha.eu) for investors renting out apartments for tourists in Prague who utilize online services such as Airbnb, Roomorama, Trivago, VRBO and iBooking. The sites are intended for both apartment owners and renters, and currently provide information in English, Czech, German and French.
The Mayor of Prague claims that the sites benefits both parties: “The tourists in Prague can find recommendations on those sites, and important rules, such as regarding the leasing laws, the requirement to maintain quiet during the night hours between 06:00 and 22:00 and additional useful information”. “Furthermore, these sites provide apartment owners with vital information regarding their due taxes, their business liability, and the need to inform the tourist police regarding guests in their apartment and so forth.”
The Prague Municipal Government claims that most apartment owners who rent out their apartments via internet sites do not pay what the law requires them to pay, namely 15 Czech Korunas a day for every guest, which has resulted in the loss of millions of Koruna’s to the municipal revenues. The new sites detail when and how they must pay this sum to the municipality as well as additional information, such as the need to maintain a business license and the need to register guests.
The sites remind those renting out their apartments that at the end of each month they must report to the relevant quarter data of various sorts, such as the number of days guests have spent in their apartment, from which the total toll is derived. The sites further remind those renting out their apartments that nonpayment of the fee may result in a fine. Furthermore, the tourist police must be notified within 3 business days of the tourist lease regarding the hosting of a tourist.
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THE ADVANTAGES OF THE NEW INFORMATION SITES
These demands from apartment owners who rent out their apartments to tourists are to their benefit for one primary reason – in the event of an inspection they are covered by presenting the registration of the current guests, a registration which includes their personal details. The sites claim that lack of knowledge of the law does is no protection from being penalized by it, and that each individual renting out his apartment is obligated to perform his duties.
It is true that as of now many of the homeowners seem to rely on the fact that it is difficult to supervise tourist hosting. The Prague Council Member Jan Wolf makes two claims: on the one hand, many apartment owners are not aware of their legal obligations, and on the other hand, the information is not always accessible. He claims that making the information accessible is a first step in ensuring that the apartment owners fulfill their obligations.
One thing that the internet sites remind their readers is that even though they are providing short term hosting services, they must not forget that the apartment is located in an area where local residents live. The intent is to direct the apartment owner’s attention towards the fact that not all apartments are suitable for being rented out, for example, in terms of safety and security and neighbors complaint.
There are already frequent complaints by neighbors to short term rented apartments, primarily regarding noise, but not only. Some of the complaints claim that short term rentals change the character of the neighborhoods, and raise rent and apartment prices, making residence in the neighborhoods where short term tourist rentals takes place more economically difficult, even impossible, for long time residents.
THE RESULTS
Various cities around the world have limited the possibilities of performing short term tourist rentals. For example, in Berlin only those living in the apartment are permitted to rent it out and high fines are levied on violators of this prohibition. In New York and Amsterdam the number of days an apartment can be rented out during the year is limited and in Vienna there is mandatory registration of short term tourist rental apartment owners, which increased the amount of taxes collected by 50%.
WHAT ABOUT PRAGUE?
We believe that the regulation of the issue is indicative of the intention of the Prague Municipal Government to regulate affairs, not prohibit short term tourist oriented apartment rentals. Accordingly, the future of the short term tourist apartment rentals looks bright. In any event, a management company specializing in the management of tourist apartments in Prague will be aware of the local laws and usually uphold them. So accept a heartfelt recommendation from us- utilize the services of an experienced management company and do not settle for a recently established company or one which is not considered 100% reliable.
Should you require any assistance in purchasing or managing tourist oriented apartments we will be happy to assist you or direct you. Just contact us.
