Bill on short-term rentals could spark a resurgence of bed-and-breakfast hostels

Expert: “Not everyone was against hostels in residential buildings”

The State Duma of the Russian Federation adopted in the first reading a bill on amendments to the Housing Code of the Russian Federation. The amendments were developed by the Ministry of Construction of the Russian Federation. We are talking about allowing short-term rental of premises in residential buildings, if this does not cause inconvenience for other residents, and also if this does not entail an obvious increase in the intensity of use of common areas in an apartment building. A concern immediately arises: will hostels come back under the guise of short-term rentals?

Here is what is said in the explanatory note to the bill: “the owner of a residential premises has the right to provide possession and (or) use of residential premises belonging to him by right of ownership to a citizen on the basis of a rental agreement (including short-term rental), an agreement for free use or other on a legal basis, as well as to a legal entity on the basis of a lease agreement or on another legal basis… subject to ensuring respect for the rights and legitimate interests of neighbors.”

The bill implies that short-term rental of premises will be allowed – and this, according to many experts, including Deputy of the State Duma of the Russian Federation Galina Khovanskaya, will be tantamount to the return of hostels. In addition, you will need to understand how to distinguish the rental business from the hotel business. Meanwhile, hostels in residential buildings are a topic that has been troubling the whole country for a long time. When they were officially banned, hospitality players were left at a disadvantage, although homeowners breathed a sigh of relief.

The president of the Russian Hotel Association spoke about this in a conversation with an MK correspondent Gennady Lamshin:

– When the law was passed banning the provision of hotel services in residential buildings, this was a serious change in the market. To return everything back, a number of conditions must be satisfied: both residents and business must be satisfied. We have always been in favor of allowing this. The main thing is to set up all the conditions correctly and write down the rules of work. Renting a room is not at all the same as a hostel. I think these are tricks. We need to pass a normal law that will suit everyone. You can understand the residents when a real hangout opens under the guise of a hostel: noise, din, drunkenness and brawls. This must be avoided. This requires strict requirements. By the way, in St. Petersburg, mini-hotels in residential buildings are now in the “gray” zone – many have remained and continue to operate under the guise of renting out housing.

The expert added that the bill still needs to be worked out and finalized so that the by-laws regulate all the nuances. The bill has so far provoked disagreements within the State Duma: 57 people pressed the “no” button and 23 abstained. As a result, the bill passed the first reading with 293 votes in favor.