“Regulations increase market transparency, but at the same time they favour professional companies specialising in rental services,” says Łukasz Szykuć, president of the West Pomeranian branch of the Polish Association of Developers. A debate is underway over what changes to short-term rental rules should look like in order to reconcile social and economic expectations. “Changes are necessary, but we are concerned about a decline in the availability of rental properties in large cities and tourist resorts. For Western Pomerania, this is a very important issue,” says Hanna Mojsiuk, president of the Northern Chamber of Commerce in Szczecin.
Good solutions mixed with controversial ones
The EU regulation introduces mandatory registration of properties in the Central Register of Accommodation Facilities, with unique registration numbers assigned to each property. Ongoing parliamentary work on national regulations — including, among other measures, the consent of housing communities, rental limits of up to 120 days per year in municipal zones and the possibility for local governments to introduce restricted zones — points to a further tightening of the rules. According to business representatives, the changes will limit the freedom of both institutional and individual investors, who have so far driven the apartment segment aimed mainly at booking platforms.
“Short-term rental should be regulated. We are aware of how significantly the scale of this type of activity has changed. A register of apartments used for short-term rental should be introduced, and entities operating commercially in this area should pay all related dues and act in a way that does not violate the principles of social coexistence. Rental activity should be conducted in such a way that bad incidents do not affect the image of the entire sector. However, it should be noted that entrepreneurs often have no influence over who rents an apartment under a short-term rental arrangement,” says Hanna Mojsiuk, president of the Northern Chamber of Commerce in Szczecin.
“The law should serve as an ordering measure, but in the spirit of deregulation we also recognise the arguments of short-term rental entrepreneurs. They point out, for example, that the obligation to obtain consent from housing communities and building owners for commercial activity through apartment rentals could lead to hundreds of apartments disappearing from the market in large cities and tourist resorts. This would cause a sharp rise in prices, including hotel prices, and would have a major impact on tourism,” Mojsiuk adds.
Price increases in tourist facilities and hotels are almost certain
The regulations increase transparency in the rental market, particularly for tax authorities. In the opinion of entrepreneurs, good solutions have been mixed with measures that may generate negative consequences, including for tourism.
“The draft law on short-term rental is probably needed to reduce the inconvenience experienced by residents who live permanently in the same location. However, we must not forget that short-term rental is often the only reasonably priced alternative for Polish families planning to spend their holidays in Poland. Construction is a driving force of our economy and, both directly and indirectly, a source of jobs for millions of people. We must act in a thoughtful and logical manner so as not to suppress this segment of construction and, as a result, force domestic investors to buy rental properties abroad. It is partly because of the difficulty of predicting real estate regulations that many of them are already deciding to invest capital in markets in other countries,” says Łukasz Szykuć, president of the West Pomeranian branch of the Polish Association of Developers.
“I have no doubt that introducing restrictions will lead to price increases in tourist facilities, including hotels. Demand for seaside tourism, as well as tourism in large cities such as Wrocław and Kraków, is enormous, while the supply of apartments for rent may decrease significantly,” says real estate market expert Mirosław Król.
“We should look for good solutions that improve the comfort of life for permanent residents of buildings where short-term rental is conducted, but we should not throw the baby out with the bathwater. I can imagine that the introduction of such regulations will cause many apartments from the secondary market to return to the market as properties for sale,” Król says.
