FAO Tenerife apartment owners : 1995 letting laws in laymans terms

Loaded · 22nd August 2008, 11:23

this is Marcos Cabreras take on the 95 letting laws , a must read for all owners of apartments in Tenerife

PeterRayner · 22nd August 2008, 12:02

Yes we are clients of Marcos Cabrera and studied this advice carefully.

I would point out several issues.

1. This advice is now 12 years old and was given based on the understanding of the situation at that time.

2. It only makes reference to the situation pertaining to renting allowed on sites with a touristic licence and the requirements of managment companies operating on such sites.

3. It refers to the situation regarding "tourists" which by legal definition are those who travel with commercial tour operators. Private individuals who travel independently are not defined as tourists under the law.

4. There is no reference to the later Royal Decree (published 1997 IIRC) which subsequently allowed short term lettings to family and friends by private apartment owners and which was necessary to comply with the legal rights of individual owners both under the superior laws of the Spanish Consitutuion and European Human Rights.

KirstyJay · 22nd August 2008, 12:11

Is this the law that is still valid, as it's from 1995, or has it been updated since?

PeterRayner · 22nd August 2008, 12:25

Quote:

Originally Posted by KirstyJay

Is this the law that is still valid, as it's from 1995, or has it been updated since?

Law 7/1995 Ley de Tourismo was published in 1995 but not offically enacted until March 2001 during which time the crucial concession by Royal Decree was included which allows lettings to Family and Friends by private owners.

This would appear to apply to owners on Residential sites.

Owners on Touristic sites are governed by the principles of Clause 38 Law7/1995 which may require the use of a sole letting agency for commercial lettings to tourists.

Loaded · 22nd August 2008, 12:28

This law is still valid and applies to all complexes.

Don't talk about laws unless you're going to post a link to a source cos that's how everyone gets confused in first place.

Quote:

Originally Posted by PeterRayner

Private individuals who travel independently are not defined as tourists under the law.

So anyone doing a DIY holiday is not a tourist according to that logic?

KirstyJay · 22nd August 2008, 13:58

Quote:

Originally Posted by PeterRayner

Law 7/1995 Ley de Tourismo was published in 1995 but not offically enacted until March 2001 during which time the crucial concession by Royal Decree was included which allows lettings to Family and Friends by private owners.

This would appear to apply to owners on Residential sites.

Owners on Touristic sites are governed by the principles of Clause 38 Law7/1995 which may require the use of a sole letting agency for commercial lettings to tourists.

Quote:

Originally Posted by Loaded

This law is still valid and applies to all complexes.

Don't talk about laws unless you're going to post a link to a source cos that's how everyone gets confused in first place.

So anyone doing a DIY holiday is not a tourist according to that logic?

Before this turns into a heated debate

I'd like to say one or two things.

Firstly, thanks for posting this, Loaded, as it is invaluable information for the members of the forum and I'm sure it will help many people. It's info like this that makes the forum the great resource that it is.

However... as Peter pointed out, it is 12 years old, so it would also be useful to gain more info about whether anything has changed since its initial publication.

We are all aware that Peter has interests in Dinastia, being an owner there and a regular poster, so therefore he is bound to have views and info about the 'friends & family' rules of 'residential' complexes, however I also believe that Peter has a gestor that deals with all his financial obligations in Spain (perhaps Peter could confirm this?) so it would be fair to assume that regarding the law of renting to 'friends & family' on 'residential' complexes, his gestor would make sure his business interest are conforming to current laws and are legal and above board.

However, I think that any owners renting to 'friends & family' on 'residential' complexes, as well as owners on touristic complexes would be equally interested in clarifying all the ins & outs of the law involved, and it would be extremely beneficial to have this current information freely available in a public thread such as this for future reference.

Peter, as Loaded pointed out, with this in mind it would also be very useful to clarify any information you have about the laws regarding renting on residential complexes by posting links or documents to back up any information you have.

Thanks both for your contributions. I look forward to seeing more interesting developments that will ultimately help all owners on all complexes.

PeterRayner · 22nd August 2008, 14:47

Quote:

Originally Posted by Loaded

This law is still valid and applies to all complexes.

Which law are you refering to ?? if its Law 7 / 1995 Ley de Tourismo then I am advised that this applies soley to Touristic Sites and to the managment of short term lettings on such sites.

Here are the facts as I understand them together with references as requested. I have taken advice on this matter and I am satisfied that I am acting fully within the requirements.

If anyone disagrees thats fine I am not asking anyone to accept my views...but I am entitled to them and I believe to post them here.

1. Touristic Sites.

If you own on a Touristic complex (Licensed with the Dept of Tourism) then Canarian Law: Ley 7 / 1995 Law of Turismo Clause 38 is applicable (http://www.gobcan.es/libroazul/pdf/20134.pdf) and there must be a sole agency who runs all the letting on the site. This can either be the community itself or an outside agency. Either way the sole agency must have 50% +1 of the properties under its control in order to operate as the sole agency. The site must be licensed by the Dept of Tourism and owners can only rent out through the sole agents. If there is no sole agency because they cannot achieve 50% +1 then NO ONE is allowed to rent.

2. Residential Sites.

If you own on a Residential complex then Spanish Law: Ley 49 / 1960 Law of Horizontal Division is applicable (http://noticias.juridicas.com/base_d...ivado/lph.html) and takes precedent and there are no restrictions within these laws applicable to individual owners of private properties renting out to family and friends providing they agree the terms directly with their guests.

Indeed I have raised this formally with the complex Administrators at an AGM and it is minuted that they have confirmed this is correct.

.................................................. ...

What you cannot do on a Residential Complex is run holiday lettings as a "commercial venture" which as I understand it would involve say owning multiple units on the same site or using an outside agency or 3rd party to secure bookings from persons who you have no contact with directly or are indeed tourists travelling on a package deal.

Quote:

Originally Posted by Loaded

So anyone doing a DIY holiday is not a tourist according to that logic?

Not by any current legal definition I am aware of...unless you can provide a reference that shows otherwise ????

...it would be impossible to prove. They could be "visiting" for a whole raft of reasons and the burden of proof would always be on the prosecution.

If I travel to Tenerife independently and stay in my own private apartent I would not consider myself a "tourist" ...and therefore nor would anyone who is an invited guest staying in my own private property. We may all well be having a holiday or not ......but we arent "tourists"

Loaded · 22nd August 2008, 16:53

I agree with point 1 - 100% correct.

Point 2- Can you give me a more specific part of that law to read so I'm not reading the whole thing please?

PeterRayner · 22nd August 2008, 17:04

Quote:

Originally Posted by Loaded

I agree with point 1 - 100% correct.

Point 2- Can you give me a more specific part of that lawto read so I'm not reading the whole thing please?

That would be difficult because I am pointing out that the Law of Horizontal Division as written doesnt include any references to the letting of private apartments on a Residential complex.

I think I can find an English translation if it would help... I bought one and the original Spanish version along with a legal commentary.......

or you can take it as read that there is no reference to renting in this law.

Believe me I have studied it fully and taken advice from many quarters including as I said previously our Complex Administrators who have confirmed in writing that renting to family and friends is fully permissable.

I think this is what creates the confusion added to that the fact that there have been no legal precedents to date that can define what these terms mean.

and therein lies the problem. Clearly "family" is legally definable but who can legislate as to what is a "friend" or who can or cannot be your friend.

It would appear to me that providing you know these people directly and you yourself arrange all the terms of their stay then it falls within the latter and it would impossible IMHO to legislate against this.

.................................................. .................................................. ..............

There are still some "other" legal and moral niceties to be observed and I thought it worth listing them......

1. We ALWAYS insist that there is a responsible adult over the age of 21 present during anyone's stay in our apartment

2. We will NOT take bookings from anyone under 18 nor from single sex groups, stag or hen parties.

3. We provide a 24 hour emergency telephone contact for all guests.

4. We insist on a substantial Security Bond as a deposit against good behaviour and compliance with the Community rules at all times.

5. We carry public liability and 3rd party insurance as part of our buildings and contents cover.

6. We employ a Gestor and pay all tax and other liabilities.

Loaded · 24th August 2008, 10:16

Quote:

Originally Posted by PeterRayner

If you own on a Residential complex then Spanish Law: Ley 49 / 1960 Law of Horizontal Division is applicable (Ley 49/1960, de 21 de julio, sobre Propiedad Horizontal.) and takes precedent and there are no restrictions within these laws applicable to individual owners of private properties renting out to family and friends providing they agree the terms directly with their guests.

But where in any law does it say that these laws are applicable and the 95 laws not?