Rental Property CRACKDOWN in Benalmadena « Euro Weekly News

Are Expat and Spanish property owners facing a major crackdown?

Benalmadena Identifies Key Areas with “High Tourist Housing Pressure”: Turmoil, as Potential Consequences for Property Owners and Expatriates Loom on the Horizon.  

Expoxed: Benalmadena Holiday Rental Crackdown Looms.

There have been furious calls for action from both expat and local tenants all over Spain after rental price increases have hit hard in recent years. The Costa del Sol has seen one of the starkest price hikes, with prices increasing by up to 40% in some areas since the pandemic, and many Malaga residents reporting that they spend up to 50% of their income on rent.  

When the local council analysed where property rentals are around Benalamdena, they found that the centres of Arroyo de la Miel and Benalmádena Pueblo have a density of holiday rentals below 10%, and in some areas even under 5%. However, potential regulations could have significant implications for property owners and the expatriate community.

The Mayor of Benalmadena – Juan Antonio Lara, together with Councillor Jose Luis Bergillos – shared on September 26 the findings of a study conducted over several months by the Urban Planning and Housing departments. What they found was not surprising, but it’s the beginning of something that could affect expat and Spanish residents in the near future.

“The town now has a detailed map showing that areas like Arroyo de la Miel and Benalmádena Pueblo have a density of holiday rentals that do not exceed 10% and 5% in some zones. In contrast, the Marina and Costa, especially the Benalbeach complex, have a much higher concentration,” Juan Antonio Lara explained.

Both the Urban Planning and Housing departments, led by Councillors Presi Aguilera and José Luis Bergillos, respectively, have been analysing the situation since the start of the current administration, with the new local government strongly committed to creating a saturation map for holiday rentals. The number of properties registered with the Junta de Andalucía was compared to the total number of properties in each urban planning area of Benalmádena, the mayor explained. The detailed map shows that Benalmádena has a total of 49,500 properties, of which around 7,542 are used for tourism.

“We’ve identified that the highest concentration of tourist properties is in Benalmádena Costa, particularly in the Marina area, the Benalbeach development, and some buildings on Avenida Gamonal. All of these are designed for short-term stays, residential tourism, and holiday lets,” added Councillor Bergillos.

These findings, however, could lead to new regulations on holiday rentals, which may impact both property owners and expatriates living in Benalmadena. Any new regulations are likely to help tenants, but they will likely mean restrictions and more red tape for landlords. Depending on which side of the fence you sit on, it may affect you one way or the other.

Rental Property CRACKDOWN in Benalmadena

Areas with high tourist rental density, such as the Costa and Marina, may see restrictions on short-term lets, potentially affecting those who rely on holiday rentals for income. Tenants could see a boost in long-term rental options and perhaps more stable prices if restrictions on holiday lets are introduced.

However, what will this do to short-term rentals?

Will there be a shortage of accommodation for tourists? Will prices skyrocket?

Is this the beginning of the end for cheap mass tourism in the area?

Now, Juan Antonio Lara is committed to comparing the data with those of other similar towns to assess the real market pressure from tourist properties in the area. To do this, Benalmadena will collaborate with the University of Malaga to establish the restrictions that will be introduced in the near future.

“The university is also identifying illegal properties, as well as ‘dormant’ ones, which are those registered but not actively listed on rental platforms.” Bergillos clarified.

Property owners who fail to comply with these new rules may face penalties, particularly if their properties are found to be operating illegally.

In addition, much of this data is being cross-referenced with other departments, such as Public Safety. “Through the Local Police, we can cross-check everything properly and assess the impact these properties have on municipal services like waste collection, recycling, security issues, noise complaints from neighbours and communities, or water consumption,” he added.

This increased scrutiny could result in additional fees or taxes for property owners whose holiday lets place extra pressure on local services, and residents may also notice changes in local regulations affecting their daily lives.

“We are finalising all the data, and the proposed actions will be presented to the Housing Sector Council, which will be convened shortly,” Bergillos announced. “The goal of this local government is to follow the data, so decisions reflect reality and address problems that are not easy to regulate.”

Food for Thought:

A small but vocal political fringe in Spain have jumped on the issue of holiday rentals, pointing the finger at tourists and property owners in an effort to push their agenda.

• The fringe groups have not specifically targeted British tourists for being British, as far as can be seen. Of course, the media have picked up on this, reporting claims of unrest tied to holiday lets. But have parts of the UK media also weaponised the story, using it to shift tourists from Spain back to the UK?
• Now, with the issue heating up, the Spanish government has been forced to step in, scrambling for a solution before the unrest grows further. Could this be the start of a bigger battle, or will calm prevail?
• How will this affect local house prices on the Costa del Sol?