Europe is working on a proposal on a regulation on data collection and sharing relating to short-term accommodation rental services.

The regulation will apply to all types of short-term letting of short-term letting of furnished accommodation, provided for remuneration, whether on a professional or non-professional basis. The rules will not apply to hotels etcetera, “as data for these types of accommodation are usually available and well-documented“, neither to campsites and caravan parks.

Reason for the new duties
According to the newest draft proposal the data collection and sharing duties are necessary for public authorities to manage the consequences of short-term accommodation rental services:

While short-term accommodation rental services create many opportunities for guests, hosts and the entire tourism ecosystem, their rapid growth has also triggered concerns and challenges, in particular for local communities and public authorities. One of the main challenges is the lack of reliable information about short-term accommodation rental services, such as the identity of the host, the location where those services are being offered, and their duration, making it difficult for authorities to assess the actual impact of short-term accommodation rental services and develop and enforce appropriate and proportionate policy responses. (…)

Public authorities at national, regional and local level are increasingly taking measures to obtain information from hosts and online short-term rental platforms, by imposing registration schemes and other transparency requirements, including on online short-term rental platforms.

Though the registration and data collection is not intended to serve tax purposes, it will be useful for that too.

Some member state-authorities will collect information about hosts’ activities and obtain activity data from online platforms on a regular basis. The data will also be collected for the compilation of official statistics and other governmental uses. Europe shows itself to be a true data-driven government.

Of course enforcement is not forgotten. Penalties should be “effective, proportionate and dissuasive“, as the European mantra goes. The Commission should be empowered to adopt direct enforcement measures with regard to very large online platforms.

Information to be provided
According the proposal the following information should be provided by the hosts:

(11) Hosts should provide information regarding themselves, the units they offer for short-term accommodation rental services and other necessary information so that the competent authorities know the identity of the host and their contact details, as well as the location, the detailed address (e.g. flat number or land registry), the type (e.g. house, apartment, room, shared room, or relevant category provided in national law) and characteristics of the unit. Where relevant, hosts can also be required to indicate whether they have obtained an authorisation to provide the service as referred to in Article 9 of Directive 2006/123 from the relevant authorities, provided such authorisation requirement is line with Union law. (…) The description of the unit’s characteristics should include an indication of whether the unit is offered in whole or part and whether the host uses the unit for residential purposes as a primary or secondary residence or for other purposes. Hosts should also provide information on the maximum number of bed places that the unit is capable of accommodating.

(12) It should be possible for Member States to require hosts to submit additional information and documentation attesting compliance with requirements established by national law, such as health and safety and consumer protection requirements or other requirements, such as information as to whether the host has obtained the owner’s permission when this is relevant, without preventing the issue of a registration number. Member States can, in particular, in order to ensure equal access and inclusion, require hosts to provide information concerning the accessibility for persons with disabilities of the units offered for short-term accommodation rental services in relation to national or local accessibility requirements. (…)

The competent authorities in the member states may collect additional information:

(18) Competent authorities in Member States which have imposed a requirement on online s term rental platforms to transmit data about hosts’ activities and have registration systems in place should be able to obtain activity data from online platforms on a regular basis. The type of data that may be obtained should be fully harmonised and include information on the number of nights for which a registered unit has been rented, the number of guests the unit was rented for per night, their country of residence, the detailed address of the unit, the registration number and the URL of the listing of the unit. (…) Only online platforms that have effectively facilitated the conclusion of direct transactions between hosts and guests are covered by the obligation to provide the activity data, the registration number and the URL of the listing of the unit, as only those platforms are in a position to collect data, such as on the number of nights for which a unit is rented and the number of guests the unit was rented for per night. (…)

European digital infrastructure will play a role (the Single Digital Entry Point and the Once Only Technical System [*]).

Platforms
The proposal also regulates the position of platforms allowing consumers to conclude distance contracts with traders. Online short-term rental platforms should ensure that services are not offered where no registration number has been provided, in cases where a host declares that such a registration number applies.

Final remark
Europe interferes in detail with this type of activity, raising the question of why the rules – which are quite detailed – also apply to small-scale activities. I would find it more logical if only the large platforms and their hosts were regulated.
 

[*] In preamble (33) of the proposal the Once Only Technical System as established by Commission Implementing Regulation (EU) 2022/1463 is mentioned. This regulation is setting out technical and operational specifications of the technical system for the cross-border automated exchange of evidence and application of the ‘once-only’ principle in accordance with Regulation (EU) 2018/1724.

More information:

• Announcement by the Council of 2 March:

Council of the EU – Press release 2 March 2023

Council agrees position on data collection and sharing for short-term accommodation rentals

Ministers for competitiveness agreed today on a negotiating mandate (general approach) for the regulation on data collection and sharing for short-term accommodation rental services, as part of the ongoing efforts to promote a balanced tourism ecosystem within the EU.

This regulation will benefit players of the short-term accommodation rental segment alike: hosts will have an easy registration procedure, platforms will have a single set of rules for the information they have to provide, travellers will be better protected against fraud and authorities will be able to regulate based on accurate and reliable data.
Ebba Busch, Swedish Minister for Energy, Business and Industry and Deputy Prime Minister

Data from online platforms that operate in the short-term accommodation rental market are not currently standardised due to a diversity of rules and different methods established by member states. The Council supports the creation of a data collection and sharing framework at EU level while also including provisions to better take into account the registration systems that are already in place in the member states.

Easier and harmonised system for data collection
Under the new rules, member states that require data from platforms will have to set up a national “single digital entry point” for the transmission of data between online short-term rental platforms and the public authorities.

Every house, apartment or room offered for rent for a limited number of days per year will have a registration number, so that the competent authorities can know the identity of the “host”, i.e. the person that wants to rent the dwelling. The online platforms will have to make reasonable efforts to undertake regular random checks to verify that there are no incorrect declarations of hosts or invalid registration numbers. The treatment of all the information will have to be compliant with European data protection rules.

This will reduce red tape and costs for hosts and platforms while giving authorities the data they need to regulate the activity. This will also create a level playing field with other actors of the tourism sector (such as hotels, hostels or aparthotels) and help combat fraud.

Member states will have to provide the necessary information to allow public authorities, online platforms, hosts and citizens to understand the laws and requirements relating to the provision of short-term accommodation rental services within their territory. Those include registration procedures and requirements concerning access to, and provision of, these services.

Next steps
The general approach agreed today provides the Council presidency with a mandate for starting negotiations with the European Parliament once the latter has established its position.

Background
The rental of apartments, houses, or rooms for short periods of time has become a common form of accommodation for tourists and travellers. Online platforms have boosted the use of these services, which currently amount to nearly one quarter of the total tourist accommodation in the EU. Some member states have implemented different systems of registration that differ in scope, requirements (to be submitted by the hosts or the online platforms), and the level of administration at which the registers are managed (national, regional, or local).
On 5 March 2020, the Commission signed a voluntary agreement with the biggest online platforms for short-time accommodation rental services on data sharing. This has allowed Eurostat to collect data on this activity, but the agreement was not relevant for enforcement.
On 13 July 2022, a coalition for touristic cities, known as the “European cities alliance on short-term holiday rentals”, called on the Commission to propose legislation on registration and data sharing to better control the activities of platforms and hosts at local level.
Finally, on 7 November 2022, the Commission published its proposed regulation on accommodation services. The proposal, for which the Council has today adopted its general approach, is limited to the creation of an easy-to-use registration system with common provisions for establishing registration procedures and is not intended to regulate access to the market.

• Proposal for a Regulation – General approach
• Commission’s proposal

Visit the meeting page

• Proposal for a Regulation – General approach, Council, 20 February 2023.
• Commission’s proposal, 14 November 2022.

Information to be provided by hosts, article 5 of the proposal:

1. When registering pursuant to a registration procedure referred to in Article 4, a host shall submit the following information by way of declaration:

(a) for each unit:
(1) a detailed address of the unit;
(2) the type of unit;
(3) whether the unit is offered as a part or whole of the host’s primary or secondary residence, or for other purposes;
(4) the maximum number of available bed places that the unit accommodates;
(5) whether the unit is subject to, and if so, whether the host has obtained an authorisation to offer short-term rental accommodation services from the relevant authorities, where such authorisation requirement is line with Union law;

(b) where the hosts are natural persons:
(1) their name;
(2) a national identification number or other information allowing the identification of the person(s);
(3) their address(es);
(4) their contact telephone number;
(5) the electronic mail address that the competent authority can use for written communication;

(c) where the hosts are legal persons:
(1) their name;
(2) the national business registration number;
(3) the name of a legal representative;
(4) the registered address of the host that is a legal person;
(5) a contact telephone number of a representative of that legal person;
(6) an electronic mail address that the competent authority can use for written communication.

2. Member States may require that the information submitted pursuant to points 1 to 4 of subparagraph (a) and in subparagraphs (b) and (c) of paragraph 1 is accompanied by appropriate supporting documentation. With respect to the information referred to in point 5 of subparagraph (a) of paragraph 1, where the host declares that the unit is subject to authorisation, or where the other information referred to in paragraph 1 allows an automatic determination that an authorisation requirement applies, Member States may request a copy of, or reference to, the authorisation.

3. Where a Member State requires hosts to submit further information and documentation, including information and documentation about the compliance with national, regional or local rules referred to in Article 2.2(a), the submission of that information and documentation is without prejudice to the issuance of the registration number in accordance with Article 4(2), point (b). (…)

Duties of platforms, articles 7 and 9 of the proposal:

Article 7 Compliance by design

1. Online short-term rental platforms shall:

(a) design and organise their online interface in a way that requires hosts to self-declare whether the unit offered for short-term accommodation rental services is located in an area where a registration procedure has been established or applies;
(b) where the host declares that the unit offered for short-term accommodation rental services is located in an area where a registration procedure has been established or applies, design and organise their online interface in a way that enables hosts to let users identify the unit through a registration number, and to ensure that hosts have provided a registration number prior to allowing the offering of the short-term accommodation rental services with respect to that unit;
(c) make reasonable efforts to randomly check, including with reasonable regularity, declarations of the hosts concerning the existence or not of a registration procedure, taking into account the list made available pursuant to Article 13(1), point (a), and, where such a procedure exists, the validity of the registration number provided by the host, through the use of the functionalities offered by the Single Digital Entry Points referred to in Article 10(2), point (b), after allowing the offering of the short-term accommodation rental services by the host.

2. Online short-term rental platforms shall inform without undue delay the competent authorities and the hosts of the results of the random checks referred to in paragraph 1, point (c), concerning incorrect declarations of hosts or invalid registration numbers.

3. Online short-term rental platforms shall include, in a specific section of the online interface that is directly and easily accessible, a reference to the information to be made available by Member States pursuant to Article 17(1). (…)

Article 9 Obligation on online short-term rental platforms to transmit activity data and registration numbers

1. When a listing concerns a unit located in an area included in the list referred to in Article 13(1), point (b), providers of online short-term rental platforms shall collect and, on a monthly basis, transmit to the Single Digital Entry Point of the Member State where the unit is located, activity data per unit, together with the corresponding registration number as provided by the host, the detailed address of the unit and the URL of the listing. That transmission shall take place by machine-to-machine communication means. In case of a technical problem affecting the transmission of data by the online short-term rental platforms, the competent authority shall be able to request the online short-term rental platform to resubmit the data in its possession.

2. By way of derogation from paragraph 1, small or micro online short-term rental platforms that did not, in the previous quarter, reach a monthly average of 2 500 or more listings shall transmit the activity data per unit, together with the corresponding registration number, the detailed address of the unit and the URL of the listing, at the end of the quarter, by machineto-machine communication means or manually in accordance with national law, to the Single Digital Entry Point of the Member State where the unit is located.