Earthquake in short-term rentals in Prague. Apartments on Airbnb must be approved as hostels
The Building Authority of Prague 1 issued an opinion on the basis of an inspection which it proved in February 2020 in Růžová Street.
“According to the local Association of Unit Owners (SVJ), the apartment was like a government as a hostel. Based on the SVJ’s announcement, the building authority called on the owner (Sterch, sro) to arrange a remedy and to terminate the unauthorized use of the housing unit by 31 July 2020, “we present the City District of Prague 1 in a press release.
As the owner did not change the building approval or stop using them for short-term leases, the office initiated infringement proceedings at the beginning of November 2020.
The owner disagrees with the Office’s arguments and stated in the proceedings that there is no difference between short-term and long-term leases.
However, the Department of Building Regulations of the City of Prague rejected the owner’s appeal and stood up for the interpretation of the city district. The owner cannot appeal against the decision of this department. Subsequently, the authorities imposed a fine of 20 thousand on the owner.
Prague expects major changes in the area of short-term leases as a result of the decision.
It therefore launches free legal aid for apartment owners, associations of owners and residents of Prague, who solve problems due to the provision of short-term accommodation services in apartments and apartment buildings.
The counseling center will operate in the building of the City Hall. of Prague in the Škoda Palace in Jungmannova Street from October 11, every Monday and in the middle from 2 pm to 4 pm.
Current developments in Prague disturb Aleš Rod, the director of the Center for Economic and Market Analysis (CETA), which has long been dealing with the topic of the shared economy.
“Politicians have made Airbnb a so-called false trail (argumentative foul distracting attention – note. Red.) in the search for the real causes of rising real estate prices in Prague, “said Novinek when asked.
“Nevertheless, they have objective economic (high demand, low interest rates, inflation), regulatory (lengthy bureaucracy, slow construction), demographic (urbanization and migration to Prague, increasing life expectancy) and historical explanations (transformations of flats into non-residential premises in 90 years, regulated rent), “said Rod.
Z For these reasons, the hunt for Airbnb does not come to me as an effective signal, as the enforceability of sanctions regulated on the basis of prohibitio ordinem (prohibition by force – note. Red.) will be limited. When they are already regulating, I personally see an effective way in allowing short-term accommodation in real estate for so-called night hats, “Rod explained.
“This is a precisely determined number of nights a year, which may vary according to the property owner (natural person vs. limited liability company) and seek to reduce negative externalities, which – and I know from experience – far from generating only short-term guests, i when they are often the usual suspects, “Rod explained.
“From an economic point of view, the pressure for a special method of approval or equipment is completely meaningless, when on the third floor of an apartment building in Prague, parents with an infant lie down in the apartment and a couple of tourists from Mexico lie down on the fourth floor of an identical apartment, certainly their comfort and safety cannot measure forms and stamps on the shelf of the apartment on the fourth floor, “concluded the economist.