Stama memorandum to the Prime Minister

Stama has sent a memorandum to the Prime Minister and the government’s economic staff regarding the upcoming measures for the short-term rental market. In the memorandum, Stama analyzes the general picture of the market and also makes specific proposals regarding the measures announced at the TIF.

In particular, Stama states in the memorandum:

1. General overview from stama

The new ban on the short-term rental market needs special attention and should not be limited to a simple and horizontal ban on the issuance of new Property Registration Numbers (PRNs), as has been announced. If the ban is implemented in this way, there will be significant market disruption as much of the existing property market will not be able to function. These restrictions will prevent the continuation of rentals and will force many owners and managers to cease operations, harming both the economy and government tax revenues.

A more focused and targeted approach is needed to allow the smooth operation of properties already operating in the short-term rental sector, while ensuring transparency and order in the market.

2. Reasons why management companies should be exempt

Α. The measure constitutes a direct interference with the free market and the rules of entrepreneurship.

Β. Because the termination of a rental contract of a property from the owner to the manager requires a change of A.M.A, with the restrictions that will be imposed this cannot be done and as a result this property will be “taken out” of the short-term rental market, while significant investments will have been made by both parties.

C. In the case of a takeover of a company by another company or by an investment fund there will have to be a change in the A.M.A. which cannot happen.

D. Property management companies do not have the option of business development in areas of interest which makes entrepreneurship prohibitive. It is something that is against free market rules.

Ε. The A.M.A should be directly linked to the ATAC and there should be provision for its continuation.

For property owners

Α. Property owners are likely to find themselves trapped in partnerships with which they are not satisfied, because a change of manager means a new lease, and consequently a new A.M.A, which cannot be issued.

Β. It will be more difficult for investors – buyers who will not be able to issue a new A.M.A if they want to continue to have their investment (property) in the short-term rental market.
In these illustrative cases all parties, property owner, manager, investor and the state (taxes) will have lost.

Proposal: The A.M.A should be unique and follow the property regardless of the manager or owner and should not have a time limit. This approach will solve practical problems, ensure continuity in leases and provide more transparency in the market.

Particular emphasis should be placed on exempting legal entities from the restrictions, as they already face significant tax burdens and are struggling to cope with increased obligations. This exemption will allow them to continue to invest and contribute to the development of the short-term rental market.

3. Exclusion of commercial premises from the ban on new ADRs

Commercial spaces such as old offices, workshops, etc. that are renovated and operated as short-term rentals should be exempt.

These spaces are not intended for permanent housing (they never will be) and permanent housing is not removed from the stock. It is far better that they be renovated and have life than letting them fall into disrepair and becoming obsolete.

Proposal: Exclude commercial space from the measure

4. Application by postal code (PC)

The implementation of the measure by district includes neighborhoods in need of upgrading. This upgrading can only be achieved through short-term rentals, as has been done in other cities.

We all know the “other Athens” under Omonia and in Metaxourgeio. Allowing ONLY management companies to issue A.M.As in these areas will enhance them and the mix of neighborhoods for the benefit of all. At the same time, by using short-term rentals as a vehicle, we will unfortunately be directing many visitors to areas of Athens that are unsafe and unattractive.

Proposal: there should be co-operation and a study on which postal codes the ban on A.M.A should be applied to for the common good.

We quote a Dutch court decision that says: “A total ban on short-term rentals in certain districts is a far-reaching measure. It can only be done if there are serious reasons related to the purpose and scope of the housing legislation. The City Council should have first considered whether less drastic measures could have been taken to achieve the intended goal.” Link to the decision HERE

5. Publication of active PMOs by the Hellenic Public Revenue Service

Any decisions and applications should be made on factual data and not on speculation and flimsy data. It is now necessary and imperative that the DACA should and must provide the public debate with the actual data on the PMAs. Now is the time for transparency.

Proposal: that the active AMLs should be made public by the DPA for proper implementation of the measures.