Andorra Housing Minister Flags Room Rental Gaps, Defends Rent Decontrol

Andorra's Housing Minister Flags Gaps in Room Rental Regulation Amid Surge in Online Platforms

Housing Minister Conxita Marsol has raised concerns that room rental activities in Andorra lack adequate oversight, particularly as platforms like Habitacions.ad and Habitacio.ad gain traction amid the country's housing shortage. Speaking at a press conference on Monday to discuss a bill on inactive companies, Marsol described the practice as potentially equivalent to operating a traditional guesthouse, requiring specific commercial permits that she believes are not being issued.

"No recent authorisations for room rental activities have come to my attention," Marsol stated, noting that current tenancy laws mandate landlord approval for subletting, a condition she said is "very probably not met in all cases." She announced plans for increased inspections, triggered by public complaints and media advertisements, to ensure compliance. The government will also conduct a review—potentially comparing Andorra's rules to those in university cities abroad—to determine if new measures are needed, such as treating bulk room rentals as commercial operations.

The platforms, which list rooms at €600-900 per month, went offline shortly after Marsol's comments. Habitacions.ad cited a two-week maintenance period to enhance transparency and verify landlord consents, while Habitacio.ad mentioned a month-long review of its branding and structure to align with regulations. Both affirmed their commitment to legal standards.

Government Defends Rent Decontrol Law Amid Tenant Worries

In the same briefing, Marsol defended the ongoing rent decontrol bill, arguing that further extensions of old leases would prolong the housing crisis. "If we extended rents again, we'd continue with the illness," she said, emphasising that price hikes will be capped for five years, with extensions running to 2030. The measure affects around 7,000 pre-2012 contracts out of 20,000 total, prioritising sitting tenants and limiting increases to set amounts.

Queried on notices sent to renters in buildings on Avinguda Mitjavila in Andorra la Vella and Avinguda del Fener in Escaldes-Engordany—some sold for owner-occupancy—Marsol clarified that new owners inherit existing terms. She acknowledged potential loopholes, like the "son trick" to evict tenants, but stressed the law's tenant protections, strict sanctions for breaches, and ongoing probes into irregularities. Tenants can seek details from the Housing Institute, and more information will follow in Thursday's parliamentary session.

Marsol reiterated the government's deep concern for vulnerable renters, noting the bill—developed over months with stakeholders—balances owner and tenant rights despite yielding no political gain. Jordi Marticella, president of the Property Owners Association, highlighted how sales of long-term rental blocks exacerbate supply shortages, with new owners often reclaiming units for personal use under existing laws.