Florence, a jewel in Italy’s crown, celebrated for its Renaissance art and architecture, has become the latest city to address an issue that’s more present-day: the boom of short-term rental platforms, like Airbnb. As a move to prioritize local residents over tourists in its iconic historic centre, the city has put a halt on new short-term rentals. This decision has wide-reaching implications for property investors and tourists alike.
A Decisive Action for Locals
In a bid to ensure that the local residents don’t get squeezed out by the surge of short-term lets, Florence’s local authority has passed new regulations prohibiting any new short-term residential listings within its historic centre on platforms like Airbnb. This move has been driven by a desire to make more homes available to the local populace.
Additionally, to sweeten the deal and encourage a shift in landlord behaviours, the city is offering tax breaks for a period of three years to those who convert their existing short-term rentals into regular, long-term leases.
The Numbers Speak
Florence’s Mayor, Dario Nardella, laid out some striking numbers to underline the city’s decision. He highlighted that from 2016 to the present, listings on Airbnb shot up from just shy of 6,000 to a staggering 14,378. This rapid growth in short-term rentals coincided with a 42% surge in the average cost of standard monthly residential rents. In just this year, there’s been a 15.1% hike in prices.
In the words of Mayor Nardella, many of Florence’s 40,000 central residents now feel they’re surrounded more by ‘apartment-hotels’ than by homes.
A Wider Perspective
Florence’s recent move is set against a backdrop of broader housing concerns in Italy and across Europe. Several factors, including low salaries, scarcity of property, the boom in short-term holiday rentals, and climbing inflation rates, have brewed a housing storm in the country. This has especially impacted those with lower earnings and students searching for affordable living spaces.
Other global cities, like New York, are also grappling with the impacts of short-term rentals, introducing stricter regulations in response.
Mixed Reactions to the Move
As is often the case with such decisions, reactions have been mixed. While Nardella, a member of the centre-left Democratic party, and his party applaud the change, not everyone agrees.
Marco Stella from the Forza Italia party, a segment of the rightwing coalition ruling at a national level, expressed intentions to challenge Florence’s decision in the administrative court. Lorenzo Fagnoni, who heads Property Managers Italia (representing tourist rental entrepreneurs), criticised the rules, asserting that they defy market liberalism.
Airbnb, one of the major players in this debate, has yet to comment on Florence’s new regulations.
A Glimpse into the Future
Italy’s central government is reportedly drafting a bill that would introduce further regulations on short-term rentals. If the media reports are accurate, there would be a minimum two-night stay for properties in historic city hubs and in areas densely packed with tourists.
An interesting feature of this proposed legislation is the introduction of a unique identification code for each residential property listed for tourists. This would aid in more effectively tracking and regulating these lettings. Non-compliance could lead to penalties, rumoured to be as steep as €5,000 (£4,340).
Conclusion
As cities globally grapple with the balance between promoting tourism and safeguarding local housing needs, Florence’s bold move might be a precursor to similar actions in other tourist hotspots. For potential property investors, understanding these shifting sands is crucial to making informed decisions in the evolving landscape of short-term rentals.