Denmark’s government has sent a bill to public consultation that would sharply raise fines for illegal Airbnb rentals and give authorities new powers to demand data from booking platforms.
DR reports that the bill went out for consultation on the morning of Wednesday, September 16. Minister for cities, rural districts and transport Signe Munk of SF describes it as markedly tougher legislation. According to Munk, the hammer must fall harder on those who break the rules.
Fines for exceeding the legal rental limit would rise under the proposal. A company that breaks the rules could face a fine of up to 100,000 kroner per dwelling. The level varies depending on how many days the limit is exceeded.
As a general rule, a home may be rented out short term for no more than 70 days a year. The bill would also let authorities require platforms such as Airbnb and Booking.com to hand over information on how much a home has been rented. Munk says authorities cannot demand that today, which makes supervision difficult and slow.
As reported by DR, authorities would also gain stronger practical tools. Platforms could be ordered to block further bookings or remove listings when rules are found to be broken. The rules are expected to take effect next summer.
Shadow hotels in Aarhus and Copenhagen
The bill was sent for consultation as DR’s program Kontant reported on the company Nest Collection. The company rents apartments through Booking.com and Airbnb and has expanded to Aarhus. Seven of its apartments there were approved as student housing in the municipal building permit.
Nest Collection denies breaking the rules. Jyllands-Posten has previously documented more than 170 apartments in Copenhagen tied to what it called the country’s largest illegal Airbnb network. Such operations are known as shadow hotels.
Munk calls it head-shaking that new shadow hotel cases keep surfacing. Per the minister, homes in Danish cities should be used by the people who live there, not for rental speculation.
The proposal implements a political agreement reached in January. It was presented by then minister for cities and rural districts Morten Dahlin of Venstre, and a long list of parties supported it.
Horesta, the trade organization for hotels and restaurants, is concerned the measures fall short. The organization has proposed requiring booking platforms to report systematically how much each home is rented out. Munk says a registration system would take time to develop, and that data access is a central place to start.
Munk says she is certain the legislation will have a noticeable effect. Booking.com told DR that clear legislation and an enforceable registration system are the best way to ensure a level playing field. DR states that Airbnb had not responded to its questions about the bill.
