The fine line between short-term rentals and misappropriation of living space

Home sharing – how Airbnb & Co. are changing travel

The sharing economy aims at more efficient use of resources. At its core, this is about people sharing goods and services with each other instead of owning them. In this way, each individual should contribute to greater economic, social and ecological sustainability and at the same time benefit from more flexibility. This concept has become increasingly important in recent years, especially when it comes to real estate.

The development is primarily due to players such as Airbnb, HomeToGo and Booking.com. They have created an infrastructure that allows individuals to use unused spaces such as guest rooms, vacation rentals and even Tiny Houses to offer temporary accommodation for travelers. These in turn enjoy unique and particularly personal hotel alternatives.

The platforms act as intermediaries between hosts and guests and offer a range of services such as booking functions, payment processing, rating systems and customer support. An important aspect of the concept is the idea of ​​the “peer-to-peer” model, in which people interact directly with each other to exchange services without having to use traditional middlemen such as hotels or travel agencies. This not only creates new income opportunities for hosts, but also promotes social exchange and contributes to the creation of a global community.

Tourism with personality – reasons for the popularity of short-term rentals

Short-term rental platforms offer an amazing range of accommodations that go far beyond traditional hotel rooms. From cozy private rooms in city centers to luxurious beach villas and unconventional accommodation options such as treehouses and historic castles, there is something to suit every taste and budget. This diversity allows travelers to choose their accommodation based on individual preferences and needs, while also providing hosts the opportunity to offer their unique accommodations to a global audience.

At the same time, short-term rentals are having a transformative impact on tourism by enabling travelers to have more authentic local experiences. By staying in residential neighborhoods rather than tourist centers, travelers can experience local life up close, visit local markets, dine at family-run restaurants and gain real insight into the destination's culture and everyday life. These personal experiences often go beyond what traditional hotels can offer, helping to promote more sustainable and deeper tourism that enriches both travelers and local communities.

Misappropriation of living space and limits on private providers

In many German cities, especially in metropolitan areas with a tight housing market such as Berlin, Hamburg and Munich, strict bans on misuse apply. These laws regulate under what circumstances and for how long short-term rental of living space is permitted. For example, they define how many days per year an accommodation can be rented out short-term and under what conditions exceptions can be granted.

Hosts must carefully research local regulations and ensure that their rental complies with legal requirements. If the ban on misuse is violated, fines can be imposed and in cases of illegal holiday apartments, the authority can even issue a prohibition order that completely prohibits short-term rentals.

In Berlin, for example, private providers are allowed to rent out their main apartment to tourists for short periods of time, but no longer than 90 days per year. This regulation applies to private apartments that are not permanently used for short-term rentals and in which the host is registered. This regulation prevents private providers from using their apartments exclusively as holiday apartments and contributing to the shortage of living space. This means that those looking for accommodation should continue to be able to find suitable accommodation within their means in the future Properties to rent.

Short-term rentals and tax office – tax aspects

When it comes to short-term rentals in Germany, tax aspects must also be taken into account. Income from renting out holiday apartments or rooms usually has to be taxed. This applies to both occasional rentals and regular income from short-term rentals.

Relevant here are, among other things, income tax on the rental income generated and possibly sales tax if the rental is classified as a commercial activity. It is important that private providers understand their tax obligations and declare their income correctly to avoid legal consequences and ensure proper taxation.

Information on changes of use and commercial short-term rentals

Short-term rentals and their implications can also be viewed as a change of use, particularly when housing that was originally intended for long-term rentals is rented to tourists or guests on a short-term basis. In some cases, short-term rentals may be classified as commercial use

In contrast to purely private use, specific tax and legal requirements apply to commercial short-term rentals. If the short-term rental is carried out regularly and with the intention of making a profit, it is usually classified as a commercial activity. This can be the case, for example, if several accommodations are offered or rentals serve as the main source of income. In such cases, hosts must pay sales tax on their rental income in addition to income tax. In addition, additional commercial and building regulations may apply that must be observed.

Conclusion

Short-term rentals are increasingly establishing themselves as an important part of the modern travel industry and a lucrative source of income for hosts. At the same time, the growth of this sector faces numerous challenges such as legal uncertainties, safety concerns, the regulation of bans on misuse and the impact on the local housing market. It remains to be seen how the industry will develop and what measures will be taken by governments and platforms to make short-term rentals sustainable and responsible.