Opposition parties propose rules for Faroese short-term rentals

Opposition parties Tjóðveldi and Framsókn have submitted a bill to regulate short-term rentals in the Faroe Islands, KVF reports.

The Faroe Islands currently have no legislation governing short-term rentals. The parties say rentals to foreign tourists reduce people’s chances of finding permanent housing and may distort competition for hotels.

Under the proposal, municipalities would set the rules for short-term rentals. Municipalities would not be allowed to restrict rentals in a home where the landlord lives. Any restrictions would therefore apply only to separate residential units.

The bill defines short-term rental as a rental lasting no more than three months.

Tjóðveldi and Framsókn do not state how much the proposal would cost municipalities. They say its financial consequences are difficult to assess precisely.

The bill is the same proposal that the previous governing coalition, which included Tjóðveldi and Framsókn, was preparing to submit to parliament in the spring. The election took place before it was presented.