City of Tel Aviv Passes First Resolution to Regulate Short Term Tourism Rentals
In a decision passed last week (Monday, January 14), the Tel Aviv- Yafo City Council adopted a resolution to begin the process of raising property taxes for apartments that are used for short-term rentals for over 90 days per year. The bill aims to balance between the demand for accessible tourist accommodation and the need to maintain as many apartments as possible for long-term rentals for residents.
The new city policy creates a differentiation between apartments that have been completely taken off the long-term rental market and used solely for tourism accommodation, and those which occasionally double as vacation rentals. By capping the amount of days during which apartments can be rented for short-term and be eligible for reduced resident property tax rates, the Municipality aims to ensure a diverse mix of tourists and residents within high-demand areas that preserve the unique character of the city’s neighborhoods.
The new policy was devised in light of the growing number of short-term listings in the city. Tel Aviv is amongst the cities with the highest amount of short-term listings per resident. Between May 2017 and May 2018, over 17,000 Tel Aviv listings were available and approximately 4,000-6,000 listings are rented for at least one night every month. Half of these listings are located in the heart of Tel Aviv, and most particularly near the city's world-famous beaches.
Ron Huldai, Mayor of Tel Aviv-Yafo: “Tel Aviv believes in the sharing economy and we encourage the occasional short-term rentals for tourists. The new policy aims to regulate the growing number of apartments that are turned into full-time vacation rental businesses, a phenomenon that in the long term increases rent prices for young people in the city and the overall housing costs.”
Eytan Schwartz, CEO of Tel Aviv Global & Tourism: “Tel Avivians love tourists, and we want to keep it that way. We have been following major cities in which short-term rentals went out of control, and alienated the local residents. We want to avoid that, and are thus seeking ways to balance between the demand for hospitality – and the long-term interests of our residents.”
Head of International Press
Tel Aviv-Yafo Municipality