Airbnb and other companies that offer the possibility for individuals to rent out their apartments during the holidays seem to offer a perfect solution: tourists can explore the city and have a place to stay, while the owner can make some money. However, this new way of renting has a big downfall. First of all, research has shown that vacation apartment rentals can drastically increase housing prices. And secondly, it decreases the accumulation of affordable houses for long-term tenants.
The city of Berlin has decided to respond to these vacation apartment rentals. The city has a shortage of (affordable) apartments and sees how short-term rentals has damaged its housing market. This because landlords generally prefer to take in short-term guests, who they can charge more than searching for a long-term tenant. Unfortunately, this makes it harder for the city’s inhabitants to find a new home. Therefore, Berlin decided to change its law and will start charging a €100.000 fine to everyone who illegally rents out their apartment as of May. A few exceptions are allowed, although the rent cannot be any more than the average of that area. The change of law seems to have an effect even before it has been enacted; the number of Airbnb listings already dropped by 40 percent.
Read the full article here and read more about tourism in the city below.