Renting second homes, or holiday homes, whilst they are not being used by the owner has become popular with both owners and tourists.
Whilst AirBnB is seen as the main outlet for this, the fact is that such practices and platforms were available long before AirBnB. These platforms simply did not have the marketing savvy of AirBnB, which for better or worst, has managed to make a cultural change in travellers attitudes.
Whether renting the property directly or via an agent, owners need to be very wary of the use of key-boxes, or self-check-in solutions, that provide access to their property. Whilst this method sounds convenient, and a low cost option, there are a number of issues owners need to consider.
What are key-boxes?
These are boxes that contain the keys to the property, and are opened using a code, or an App remotely.
They are usually fixed to the wall of the property and the guest is given the code to open the box, or they are smart locks that are controlled via an app that generate a new code for each guest, valid for the duration of the guests stay.
What’s the problem?
Sounds pretty smart, so what are the problems with using smart locks or key-boxes?
There are many problems that owners may only find out with hindsight, and they include:
1. Overcrowding
These boxes, or apps, cannot control the number of people that have access to the property during the reservation. Whilst the property may have been booked for 2 people, there is no way the owner, or the agent, can know how many people are using the property!
In Andalucia, vacation rental properties must be licensed, and the licence specifies the maximum number of people that can use the property at any given time. Exceeding these numbers can result in fines, as well as the property’s Public Liability insurance may become invalid, or the minimum age limit is not adhered to.
2. Public Liability
In Andalucia, properties must have railings with minimum of 1.2m height on all their terraces, and roof terraces, in order to accommodate children under the age of 12 years old. If the property does not meet this standard, property is prohibited from accommodating children under this age.
When using the self-check-in method such as smart lock Apps, or physical key-boxes, owners or agents have no control over the age of guests using the property. However, the owner remains responsible for any accidents, as Public Liability insurer will not cover such claims if the owner (or agent) has failed to take precautions to prevent use of the property by younger children.
3. Disturbance
One of the biggest causes of complaints by neighbours about vacation rental is people arriving late at night, or even early hours of morning. With the best will in the world, it is impossible for guests to arrive with luggage dragging behind them, in an unfamiliar location or building, and in the middle of the night and check-in without making any noise or disturbing the neighbours.
When using automated entries, or manual key-boxes, owners or agents have zero control over arrival times of guests.
A vacation rental licence can be cancelled if there are valid complaints lodged with the town hall, so lack of control of guest arrivals can prove to be the kiss of death to a vacation rental licence.
If there is too much disturbance to the community or the local area, communities and Town Halls under the new laws have the power to prohibit vacation rentals in specific buildings or zones.
4. Damage Claims
When guests leave the property there is no way of checking for damage until the cleaners arrive in order to prepare the property for the next guests. Most portals only accept a claim for damage if it is reported to them within 24 hours of the guest’s departure date.
Claims must include photos of the damage (dated), description, proof of purchase, and cost of replacement. If the owner, or their agent, do not report the damage before 48 hours of guest’s departure, portals will not pay out on any claims.
So checking guests in the property, and checking them out with a live person who can inspect the property is of paramount importance.
It is fair to assume that when guests know there is a check-out process, which includes an inspection with a real person, they are more likely to respect the property and treat it with more care than if they think they can just shut the door and leave everything behind.
5. Guest Registration
It is the responsibility of the owner to register every guest over the age of 16 with the Guardia Civil/Policia Nacional (or Ministry of Interior website from October 2024). This responsibility is passed on to the Agent, if the rental is managed by an Agent.
This process requires the full details of all occupants including Full Name, Nationality, Passport number/National ID number, Date of Issue, Date of Birth, Date of Arrival, etc. This means owners or their agent must have a copy of the document for each guest, and must store the data for 24 months whilst complying with GDPR.
Many people, understandably, are reluctant to email their ID, and rightly so given the pervasive identity theft worldwide. However, failure to obtain, submit, and store the ID of guests can lead to heavy fines by the authorities in Spain.
Summary
Whilst self-check-in concepts such as smart locks or key-boxes are very convenient and low cost, owners run a number of risks including damage to the property, overcrowding, neighbourhood disturbance, and inability to register guests, which can lead to restrictions on properties, fines, or loss of licence.
When choosing an agent ask them how they will prevent these issues from arising, if they are not meeting guests in person for check-in and checkout.
Contact us to check our property management services.