The Ministry of Consumer Affairs has opened an investigation into the large managers of tourist apartments for “possible deceptive practices” in the development of their activity. This is the third housing process initiated by Pablo Bustinduy’s department, in this case within the framework of the unfair competition law and the general law for the defense of consumers and users. In this case, the investigations focus on those apartments that, “even having a license, would be managed irregularly,” they indicate.
The investigation does not focus on a specific geographical point, but rather covers “companies that manage hundreds of tourist homes in different autonomous communities and that could be engaging in deceptive practices” with these properties. “There are thousands of families who live on the edge in our country because of housing, while a few get rich with business models that expel people from their homes,” said Bustinduy, who has focused both on real estate and on platforms and intermediation companies, within the framework of their powers and through the General Directorate of Consumer Affairs.
The unfair competition law details several “deceptive practices.” Among them, offering consumers rights granted by legislation “as if they were a distinctive characteristic of the offer”, falsifying reviews to simulate that they have been added by other users or fraudulently indicating that a businessman or professional does not act in the framework of their activity. Although Consumption does not mention it, this would include those large tourist housing managers who advertise on platforms as individuals, because the rule itself indicates that any conduct that contains false information or information that, even if true, is considered “unfair due to deception.” due to its content or presentation, it misleads or may mislead the recipients.”
According to the data platform Inside Airbnbin Madrid there are several private names that rent dozens or hundreds of apartments. Fran and Marta Isabel have 322; María Mercedes, 176 rooms; Francisco Andrés offers 130 properties; and Raúl and Rodrigo, 124 each. In Barcelona, Álvaro has published 37 apartments and 82 rooms on Airbnb; Ezequiel 78 apartments and Alba 74. The portal notes that “hosts with multiple listings are more likely to have a business, are unlikely to live on the property, and violate most short-term rental laws designed to protect residential housing.” ”.
Research published in April by The Confidential revealed that Fran and Marta Isabel—or Fran and Isabeleither Isabel and Frandepending on the profile, always with the same photo—they bill up to one million euros. The image shows a happy family, baby included. In 2018, SomosMalasaña already discovered that the companies that controlled Airbnb in Madrid used their own names, such as Claudia, Alberto, Leticia and Fer, in their ads. These practices are not harmless, since they allow these large managers to give a more user-friendly appearance and avoid the obligations to which those who act within the framework of the unfair competition law are subject, such as offering customer service services.
Precisely, in recent years, neighborhood organizations and organizations in defense of the right to housing have pointed out these practices. “Raquel is NOT the neighbor who rents her room to make ends meet, Raquel has 150 apartments on Airbnb. “Raquel is one of the figures of speculation and the increase in prices of the neighborhood, one of those who throw us out,” they indicated from the platform. ‘Lavapiés, where are you going?’.
This is the third investigation related to housing that Consumo has launched. In October, the department headed by Pablo Bustinduy announced the opening of a process against several real estate companies after detecting illegal practices, such as the charging of management commissions, unjustified temporary contracts and other abusive clauses. In June, it did the same with tourist rental platforms that publish homes without a license. The Ministry then contacted the Spanish Federation of Municipalities and Provinces (FEMP) to propose to the town councils that they join the investigation. Both processes continue their course normally, indicate ministerial sources.
The proliferation of tourist apartments has strained residential rentals to the extreme, mainly in large cities and metropolitan areas and those vacation destinations or attractions for international visitors. And in thousands of cases, these accommodations do not even have a license. In Alicante, for example, of the 4,108 homes for tourist use, 3,192 are in an irregular situation, because they do not have permits from the City Council. In Madrid, despite Mayor José Luis Martínez Almeida’s fine plan, these illegal apartments are multiplying: there are 2,559 more than six months ago. Only 197 could be closed, according to opposition data. In Barcelona, Mayor Jaume Collboni committed in the summer not to renew any of the more than 10,000 licenses in the city in 2028.
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