When we talk about the short-term rental market, or Flexible AccommodationIn Spain, the sector is often visualised as large companies or investment funds. However, a detailed analysis of the Spanish reality reveals a very different composition: the real driving force of this sector is the individual and small-scale landlords and landlords.
The data speak for themselves. A recent study underlines that the overwhelming majority, more than 90% of the hosts on short term rental platforms in Spain, are landlords or small landlords managing between 1 and 5 properties. In fact, almost 80% of these hosts manage only one property. This atomisation of the market is a distinctive characteristic of the Flexible Accommodation in the country.
This composition is crucial to understanding the dynamics of the sector. The image of large holdings or corporate investors monopolising the supply of tourist accommodation does not correspond to the quantitative reality. They are mostly private individuals supplementing their income, or small entrepreneurs managing a limited number of units.
The implication of this market structure is profound, especially in the context of current and future regulations. Policies designed to "control" or "reduce" the Flexible Accommodation directly impact thousands of small economic actors, who may be forced to withdraw their properties from the market if conditions become unsustainable. This, in turn, could have a cascading effect on the local economy, affecting complementary services such as cleaning, maintenance and catering.
Moreover, this predominance of small landlords complicates the transition of these dwellings to long-term rentals. For a private individual who supplements his or her income with the Flexible AccommodationAs noted above, regulatory complexities, risks of non-payment or the lower profitability of traditional renting can be insurmountable barriers. As has been noted in the past, restrictive regulation could lead to these properties being priced out of both markets, rather than automatically moving to residential rental.
The study also suggests that the concentration of this type of property is mainly in areas of high tourist attraction, such as coastal areas or historic city centres, where short-term demand is constant and the profitability is more attractive than in residential rental.
