EU Regulation February 2023: Short-Term Rental Data Collection Law

This new regulation has been approved on 2 March 2023.

The European Union’s new regulation on short-term rental data collection, implemented in February 2023, has introduced significant changes for property managers across Europe, including those in the UK who list properties on EU-based platforms. This law aims to create a more transparent short-term rental market by requiring online rental platforms to share key data with authorities. For UK property managers, particularly those listing properties in European destinations, this new regulation could impact compliance requirements, data-sharing obligations, and reporting responsibilities. The law was introduced as part of the EU’s broader effort to regulate the growing short-term rental industry, balancing economic benefits with concerns about housing availability and tax compliance.

While the UK is no longer part of the EU, property managers engaging with EU-based platforms must adhere to these new rules. Failure to comply with the data collection mandates could result in penalties, restricted listings, or removal from major rental platforms. Understanding how this law works, who it affects, and what steps need to be taken for compliance is crucial for UK-based property managers operating in European markets.

This article provides an in-depth look at the key aspects of the regulation, its impact on UK property managers, and the necessary compliance measures. By staying informed and proactive, property managers can ensure continued success in the evolving landscape of short-term rentals within the EU.

Why Are The New Short-Term Regulations Needed In 2023?

The rise in popularity of online platforms for short-term rentals has created problems for some communities, as it now constitutes about 25% of all tourist accommodation in the EU. The European Economic and Social Committee (EESC) has urged national and local authorities to conduct impact assessments to evaluate the effects of these rentals on residents and businesses such as hotels.

While STRs have benefited some lesser-known regions and cities, hotels and communities in more popular tourist destinations such as Venice, Florence, and Barcelona are struggling with the competition from Airbnb and other platforms.

It’s currently impossible for the authorities to track the hosts’ activities and cross-posting between various booking platform, which leads to an inefficient tax collection.

What Will The New Proposed Short-Term Regulations Cover?

The new rule will make it a requirement for hosts to register their rental property in a system covering all EU countries. Once registered, the property will get a unique code, or “identifier” that can be used on different rental websites. The process is aimed at enhancing the tracking of multi-listings across multiple platforms.

1. Regulating The Cross-Posting Or Multi-Listing On Various Platforms

EU public authorities will have the ability to assign a distinctive ID for every rented accommodation that will allow for tracking across various platforms known as "multi-listing." These authorities can ask for supporting documents from the hosts, such as the authorization, in line with EU regulations. If the details provided seem suspicious, they can also request registration numbers. If the listings cannot provide satisfactory information, they may be taken down from the online platforms.

2. The Language Used And The Accessibility Of Rental Information

If any disagreements arise concerning the authorization process, hosts will likely have greater access to information, including potential mechanisms for resolving disputes that more effectively safeguard their rights.

Additionally, all EU member states will be required to clearly outline relevant information regarding short-term rental services within their respective territories. This will encompass details regarding the registration process and the requirements for accessing or listing short-term rental accommodations.

3. Single Digital Entry Points

The EU has recently introduced the Digital Services Act (DSA) to update the Electronic Commerce Directive 2000. From February 17, 2023, online platforms are expected to comply with the DSA, which requires them to root out illegal and harmful content. This is relevant to the short-term rental sector, as the DSA states that platforms should not be expected to monitor all content on their platforms.

To comply with the DSA, short-term rental platforms will be required to make reasonable efforts to carry out random checks through the use of functionalities offered by the single digital entry point. These single digital entry points will be mandatory in all EU countries as freely accessible, national, centralised systems. They will allow platforms to conduct random checks of hosts' registration numbers and will have their own representative in a wider EU coordination group. The coordination group will be set up to exchange best practices, promote inter-operability and standard formats, and conduct automated checks on listings and registration numbers.

The introduction of the single digital entry points is intended to allow booking platforms to introduce automated verification on their EU listings voluntarily, making the registration process simpler and more efficient.

4. Information On Rental Activity

National public authorities will require online booking platforms to regularly provide data on hosts' rental activities, which will comprise personal information such as the complete address of the rental property, the number of guests, registration numbers, and online listing URLs.

‘Competent authorities’

The EU has redefined the term 'competent authorities' to refer to those responsible for enforcing registration schemes, collecting short-term rental data, and ensuring effective application of rules in each country.

Public authorities responsible for monitoring compliance and enforcing laws will have access to rental information from booking platforms. This includes policymakers, researchers, and innovators, although in most cases, they will not be able to identify specific accommodation listings or access personal host information.

Additional details can be accessed on the official website of the European Council at this link.

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Neil Beltran 26 February 2025