Tórshavn calls for short-term rental regulations as Airbnb listings surge in Faroe Islands

The Municipality of Tórshavn is now calling on the government to grant it the authority to set conditions and regulations for short-term rentals, such as those listed on Airbnb. This request was unanimously approved by the city council last night.

According to the municipality, several properties in Tórshavn are registered without permanent residents, especially in certain areas of the city, including the old town. Many of these homes are being rented out for short durations, and new apartments are also being built and purchased for short-term rental purposes.

Unlike neighboring countries, there is currently no legislation or regulations governing short-term rentals in the Faroe Islands. The municipality suggests a few potential solutions to address the issue. For instance, they propose capping the number of guests or annual income for these rentals to prevent short-term rentals from being more profitable compared to long-term leases.

As of late August this year, there were 987 rental listings in the Faroe Islands on the Airbnb platform. This number is likely slightly higher during the summer months, according to the municipality. Over the past five years, short-term rental listings have grown rapidly; in 2017, there were only 306 listings, but by 2022, this figure had risen to 702.

The municipality points out that there is no existing legislation or regulations governing short-term rentals through platforms like Airbnb in the Faroe Islands. Additionally, local boards and owner associations do not enforce conditions for Airbnb or short-term rentals, even though this is common in other countries. However, it is stated that in accommodations for student housing managed by Bústøðum, rental or subletting of apartments on platforms like Airbnb is prohibited.