How Prague Is Going to Regulate Airbnb

Now is the time to book an Airbnb in Prague because a new law could regulate this online marketplace and hospitality unit.

Airbnb is reducing the amount of available housing for Prague residents and is creating unfair competition for hotels. Many find that Airbnb changes the character and charm of neighborhoods with tourists flocking to the areas built for long-term living. 

Last year, guests booked 1.79 million overnight passes through Airbnb in Prague, so one of the main complaints with Airbnb is the increase in population in the city.  

They plan to regulate Airbnb through a decree where each municipality would set the rules according to their needs. This document would limit the number of days a year a home could be rented out to guests and even prohibiting reservations in certain areas. They could even set a maximum number of occupants in a property. 

The city finds the shared accommodation feature that Airbnb revolves around as a security threat. Prague leaders want to make sure local fees are properly paid, so they want the information of participating offices and houses to be turned in to them. Prague Officials are also in favor of the Local Fees Act, which would allow these collection fees to be handed in directly to the intermediary, who is using companies like Airbnb, on the basis of a contract with the municipality.

Since 2009, Airbnb has been operating in the Czech Republic and grew 61 percent from 2016 to 2017. According to expert analyzes, Airbnb’s services in Prague have already balanced the volume of trade in classic accommodation facilities like hotels. 

Airbnb is not the only home sharing application functioning in Prague. FlipKey, HomeAway, House Trip, Vacation Rentals, and Vrbo also compete in the arena.

Author: Meredith Hessel

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