Florence, known for its rich art, history, and culture, has recently implemented significant changes in its approach to short-term holiday rentals. From June 2023, the city has taken a bold step by imposing an immediate ban on new listings, including those on platforms like Airbnb.

While this decision has caused concern among some travellers about their upcoming plans, the ban primarily targets pressing issues related to affordable housing for locals and the repercussions of mass tourism.

Addressing the Short-Term Rental Boom in Florence

Short-term holiday rentals, typically defined as properties rented out for 30 days or less, have proliferated in Florence over recent years. As one of Italy's iconic tourist destinations, the city centre began to resemble a mosaic of vacation rentals, leaving limited options for affordable housing for its residents.

The ban on new listings represents a significant stride toward reclaiming residential space and fostering a sense of community within the city.

Tackling Concentrated Rentals in the Historic Heart of Town

Data from the city council reveals a striking statistic: a staggering 75% of Florence's short-term holiday rentals are concentrated within a mere 5% of the municipal territory. This specific area happens to be the historic heart of Florence, known as the "centro storico," a cradle of the Renaissance and a UNESCO World Heritage site.

The newly enacted legislation is tailor-made to address this concentrated 5%, marking a significant step toward achieving a more balanced distribution of rentals across the city.

Preserving UNESCO-Protected Areas in Florence

The Florence authorities have clarified their intent not to target the approximately 8,000 existing short-term private rentals already operating within the city's historic centre. This area falls under the protective umbrella of UNESCO due to its historical significance, encompassing iconic sites such as the Uffizi galleries and the Ponte Vecchio.

Incentivizing Long-Term Residential Leases

To promote long-term residential contracts, property owners who choose to transform their Airbnb units into extended residential rentals will benefit from a complete exemption of property taxes on the building for a period of three years.

A Balancing Act: KeyNest's Perspective

Erika Rea De Falco, the KeyNest Country Manager Italy, shared her thoughts on the recent developments in Florence, highlighting their impact on tourism and the hospitality industry. She noted,

"While the ban on new short-term rentals is a positive move for the local community, it undoubtedly poses challenges for tourism in Florence and the broader hospitality sector. Short-term rentals have become an integral part of the travel experience, offering unique accommodations and personalised experiences. Tourists often prefer the flexibility and authenticity that these rentals provide."

Erika's comment underscores the complex interplay of interests in Florence's decision. On one hand, there's a need to preserve the city's character and housing affordability for its residents. On the other, there's a concern that these regulations may affect the vibrant tourism industry that has long been a pillar of Florence's economy.

Existing Rentals Unaffected

It's crucial to note that existing short-term rentals in Florence remain unaffected by the ban. Travellers with existing bookings need not worry about their upcoming visits. The immediate impact of the ban primarily affects potential new hosts who were planning to enter the short-term rental market in Florence.

A Global Trend: Regulating Short-Term Rentals

Florence's ban on new listings reflects a growing global trend as cities grapple with the challenges posed by short-term rentals. Authorities worldwide are striving to strike a balance between accommodating tourists and safeguarding the interests of local communities. This often leads to the introduction of stricter regulations to curb the proliferation of short-term rentals.

Global Examples of Short-Term Rental Regulations

New York City: Recently implemented regulations mandate that properties can only be registered for rentals lasting less than 30 days if the host resides in the property simultaneously with the guests, with a limit of no more than two guests.
Portugal: Introduced new housing laws this summer, creating uncertainty around the future of short-term rentals.
Amsterdam: Enforced restrictions allowing property owners to rent out their spaces for a maximum of 30 days per calendar year, accommodating a maximum of four guests at any given time.
Berlin: Permits the short-term rental of entire properties for a maximum of 90 days per year. These measures collectively reflect the increasing global effort to address the impact of short-term rentals on housing markets and communities.

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2023, Italy: Florence Cracks Down on Airbnbs & Short-Term Rentals