All You Need to Know to Stay Compliant: Short-Term Rentals and How to Avoid Fines of up to 8,000 Euros
The popularity of short-term rentals, facilitated by platforms like Airbnb and Booking.com, has skyrocketed in recent years. With the rise of the sharing economy, more and more people are choosing to rent out their properties for short periods of time, either to supplement their income or as a full-time business venture.
While this can be a lucrative opportunity for property owners, it also comes with a set of rules and regulations that must be followed. Failure to comply with these regulations can result in hefty fines, which can range from a few hundred to several thousand euros. In this article, we will outline everything you need to know to ensure that you are in compliance with the law and avoid any potential fines.
First and foremost, it is important to understand the legal framework surrounding short-term rentals. In Italy, the main law governing this type of activity is the “Codice del Turismo” (Tourism Code), which was updated in 2017 to include regulations specifically for short-term rentals. These regulations apply to any property that is rented out for a period of less than 30 days, including apartments, villas, and rooms in B&Bs.
One of the most important requirements for short-term rentals is the need for a “sentore” (Segnalazione Certificata di avvio Attività), or a certified notification of activity. This is a document that must be submitted to the local municipality, along with a copy of the property’s cadastral plan and floor plan, and a declaration of conformity with safety and hygiene regulations. The sentore must be submitted at least 30 days before the start of the rental activity, and it is valid for five years.
In addition to the sentore, there are other regulations that must be followed in order to stay in compliance. For example, the property must have a specific type of insurance, known as “polizza RC turismo”, which covers any damages that may occur during a rental period. The property must also have a “catalogo ospiti” (guest register), where all guests must be registered and their personal information must be kept on file for at least 12 months.
Another important aspect to consider is taxation. Short-term rentals are subject to a 21% VAT, which must be paid on the rental income. This can be done through a “nota elettronica” (electronic invoice) or through a simplified tax regime for small businesses. It is important to keep track of all rental income and expenses in order to accurately report and pay taxes.
In addition to these regulations, there are also specific rules that vary depending on the region or city where the property is located. Some municipalities may require a specific type of license or permit, or may have restrictions on the number of days a property can be rented out per year. It is crucial to research and understand the regulations in your specific area in order to avoid any potential fines.
Now that you have a better understanding of the legal requirements for short-term rentals, let’s discuss some tips on how to avoid fines and ensure a successful rental business. First and foremost, make sure to always have all the necessary documents and permits in order before starting your rental activity. This will not only prevent fines but also give you peace of mind and allow you to focus on providing a great experience for your guests.
Another important aspect is to keep detailed records of all rental activity, including guest information, rental income, and expenses. This will not only help with tax reporting but also serve as proof of compliance in case of any inspections or disputes.
It is also crucial to maintain a good relationship with your neighbors and the local community. Short-term rentals can sometimes cause disturbances and noise complaints, which can result in fines or even the revocation of your sentore. Be respectful of your neighbors and make sure to communicate with them if any issues arise.
Lastly, consider hiring a property management company to help you with the administrative and legal aspects of your rental business. They can assist with obtaining permits, managing bookings and guest communication, and ensuring compliance with all regulations. This can be especially helpful for those who do not have the time or resources to handle these tasks on their own.
In conclusion, short-term rentals can be a great opportunity for property owners, but it is important to understand and follow all the regulations in order to avoid fines and