Homeowners’ Associations and VFT Holiday Accommodation

Hello and welcome to a new post on our blog. Today we’ll be discussing holiday accommodation, or VFT, which has become a successful economic activity in Málaga.

This type of economic activity is always seen as a problem within owners’ associations, but there are various ways of reaching an understanding.

In Southern We believe this would be a good time for local communities to regulate this relationship, and for these holiday lettings to be subject to clearer rules within residents’ associations.

What is a tourist accommodation or VFT?

We thought we’d start by clarifying the concept of Tourist Accommodation (VFT) and some of its characteristics.

Not all properties are eligible to be converted into a holiday let (VFT). We will take a closer look at the legal and tax requirements they must meet. We will also examine other aspects without which they could not be considered either holiday lets or lawful properties.

It is the Decree 28/2016 of the Regional Government of Andalusia the one that defines holiday accommodation in its Article 3.

This section explains what is meant by a property used for tourism or holiday purposes. It therefore specifies that these properties must be situated on what is normally referred to as “residential land” (land designated for housing). Another important aspect is that there must be a financial consideration for the service between the person renting out the property and the person receiving the service.

Frequently asked questions about VFTs

• What role do homeowners’ associations play in this economic activity?
• What can they do to regulate its use within the community?
• Can the community impose restrictions on this type of housing?

Furthermore, this decree assumes that the property being let is being offered on a regular basis. This may be done via rental platforms such as Airbnb, HomeAway, Wimdu or Booking, or through advertisements in magazines or any other advertising channel.

An important feature is that they must provide a source of income for the person who rents out this property from time to time. All this without having to engage in this type of activity on a professional basis.

Another restriction set out in the decree is that a person may only own two holiday homes within a radius of 1,000 metres.

Holiday homes, or VFT (the full name being ‘Viviendas con Fines Turísticos’), are often a source of conflict, but the reality is that this activity cannot be banned within residents’ associations. What can be done, however, is to regulate certain aspects of these holiday homes within residents’ associations in Málaga.

The rise in this type of tourist activity has caused some unease amongst local communities. This is due to the disturbances it often brings with it: noise during quiet hours, misuse of communal facilities, behaviour that shows little respect for other residents, increased litter, and a number of other issues.

There are many uncertainties about what to do or what steps to take, and proof of this is the number of enquiries we receive every month at our office. Here are a few examples.

What do homeowners’ associations have to say about the operation of holiday lettings?

A community cannot prevent an economic activity; what it can do is regulate it.

This is undoubtedly the underlying problem that ultimately found its way into the Royal Decree-Law 7/2019. In this regard, it effectively states that owners’ associations may restrict or impose conditions on the use of this type of property for tourist purposes, by drawing up specific ad hoc clauses or rules to this effect, which must be set out in the association’s articles of association.

How are these provisions adopted?

In order to implement this type of specific regulation, it is essential to secure the votes of ⅗ of all owners, who must also represent ⅗ of the shareholdings.

With the backing of this majority, special fees could now be introduced or, for example, an increase of up to 20% in the standard fees for tourist accommodation operating in that region.

Another matter on which a owners’ association may decide is whether these activities will only be permitted at certain times of the year.

Regulations may also be introduced to stipulate whether a person carrying out this activity is required to take out the most comprehensive insurance possible to cover any damage that may arise during the course of this activity.

What requirements does the Andalusian Regional Government impose on us in order for our home to be classified as a VFT?

Legal requirements

Firstly, there are the legal requirements. As we have already mentioned, holiday accommodation must be situated on land zoned for residential use. It can be a flat, an apartment, a house, a villa, etc., and, of course, you must always receive payment for the stay.

Requirements for holiday accommodation

There are also certain requirements that apply to the holiday accommodation itself. The essential ones would be, for example, holding an occupancy licence, and ensuring that the rooms have direct ventilation to the street or a courtyard. They must also have a system for darkening the windows, be adequately furnished, have properly functioning electrical appliances and a first-aid kit. It is also compulsory to provide tourist information in the VFT, as well as complaint and claim forms.

The start of VFT operations

The activity may commence once the form has been completed and submitted “Affidavit for the commencement or carrying out of the activity” to the Regional Government of Andalusia. This document must state, amongst other things, that the applicant is aware of and complies with all the regulations laid down by the administration.

Requirements

There are certain prerequisites that must be included in the tenancy agreement for VFT properties, such as: that a clean will be carried out when each guest arrives and departs; details of the bed linen and household items provided for their stay; a customer service telephone number; information on where all the instruction manuals for the electrical appliances and other equipment in the property are kept; and, of course, a very clear document setting out the VFT’s internal rules and the residents’ association regulations.

There are several categories of maximum capacity that you should be aware of. In the case of an entire property, this must not exceed 15 guests. In the case of a property rented out by the room, the total number of guests must never exceed 6, and, finally, no more than 4 guests are permitted per room.

A maximum duration is set for stays in VFT accommodation, which may never exceed two consecutive months for any one person.

Nor is it compulsory for the owner to run the business directly. The day-to-day running of the business can be transferred to another individual or legal entity, who will then manage it on the owner’s behalf. In such cases, you do not need to deal with any of the administrative matters. It is best to set this out in a contract for your own peace of mind.

Can local authorities impose penalties on holiday lettings that do not comply with the regulations?

It is true that there is a common issue throughout our region concerning the restrictions and penalties that owners’ associations may impose on holiday lettings operating in their buildings. The nature of such measures is unclear, leaving it up to the owners’ associations and their articles of association to act as regulators.

What the community can do, however, is to be very vigilant regarding permits for minor building works – which are usually carried out to bring homes up to standard – as well as applications for business licences, registration with the tax authorities, extended insurance cover, fire safety installations, etc.

It is equally true that national and regional legislation does little to clarify other aspects affecting VFT accommodation – ranging from contractual arrangements to compliance with town planning regulations and the system of penalties under the law governing tourist accommodation – but for the time being, this is the framework within which we must operate.

We hope we have given you some guidance on how to resolve these disputes in accordance with the law and common sense.

If you need more detailed advice on holiday homes (VFT), please do not hesitate to call us. We’d be delighted to help you. In this link you will be able to contact us quickly.