Law & Politics
Berlin vacation rentals 2016
Short term rental ban in Berlin: Airbnb drops hosts as vacation apartment numbers fall sharply
Ahead of the 1 May 2016 deadline, Airbnb is terminating numerous Berlin hosts. The number of fully rented apartments fell from 11,000 to 6,700. Fines rise to up to EUR 100,000.
Peter Guthmann
Shortly before 1 May 2016, Airbnb is terminating its relationship with numerous Berlin hosts. In emails obtained by "Die Zeit," the company cites "automated systems." The background is Berlin's tightened ban on the misuse of residential space.
The numbers: Supply shrinks significantly
According to the portal "airbnbvsberlin," the number of fully rented apartments in Berlin dropped from around 11,000 in February 2016 to roughly 6,700 in March. Hosts with more than one listing were hit hardest: their number halved from over 2,000 to under 1,000. The share of potentially commercial apartments fell from 21 to 15 percent. In May 2014, it had still been at 30 percent.
What changes from 1 May
A two year transition period ends on 1 May. Without a permit from the local borough office, renting out an apartment on a short term basis (under three months) as a vacation rental becomes illegal. A legislative amendment from 17 March 2016 clarifies that second homes also fall under the ban.
Fines have been raised from EUR 50,000 to up to EUR 100,000. The Senate Department has set up an online form for citizens to report violations. Enforcement responsibility lies with the borough offices, especially in tourist heavy areas like Mitte.
Political background
In April, Airbnb representative Christopher Lehane met with State Secretary Engelbert Luetke Daldrup. After the meeting, it was clear: Berlin would not soften the ban. Daldrup demanded that Airbnb inform hosts about the permit requirement and the penalties. The Senate Department wants to compel platforms to hand over host data to pursue illegal listings more effectively. Whether this can be enforced against foreign platforms remains open.
Impact on owners
The short term rental business model is becoming risky in Berlin. Returning thousands of vacation apartments to the regular rental market could temporarily increase the supply of rental apartments. What effect this will have on market development and rental prices will become clear in the coming months.