Short stay apartment rental under consideration

Short stay apartment rental under consideration

Authorities are further looking into solutions for the troubled rental marked in Reykjavik, including reducing the short-term rental apartments to tourists, for example through booking agents such as Airbnb, according to Karl Petur Jonsson, with the Ministry of Social Affairs and Housing. This measure is among those being deliberated in a team assembled by four ministries to respond to the situation in the housing and renting marked.

The team’s suggestions are to be introduced in April. According to Jonsson some 20 suggestions have formulated, those will be concentrated to ten. “I can confirm that one of the things we are looking into is imposing further limitations on Airbnb, although I cant go into any details at this point” Jonson told Frettabladid’s reporter.

A survey organized by Frettabladid, Channel 2 and Visir shows seven of ten individuals inclined to limit rentals of apartments to tourists. One third how ever is against limitations. A recent report made by Islandsbanki shows that last year had a new record of 2000 active short stay rentals on Airbnb, double the amount from the year before. The demand for short stay rentals is expected to rise and with it the price of renting in general.

Parliament already passed a law on 1 January aimed at controlling short-term rentals. For example if a person rents out an apartment with out the proper registration and licence they can expect to be fined for up to one million IKR.

Based on a report first published in Frettabladid.