Spain’s Ministry of Consumer Affairs has launched investigations into tourist apartment companies accused of misleading customers through deceptive practices, such as the ‘fake landlord’ scam. This move aims to protect consumers from fraudulent listings and ensure transparency in the booming tourist rental market.

What Is the ‘Fake Landlord’ Scam?

One of the most common deceptive practices involves companies posing as private landlords. These businesses list tourist apartments as if rented by individuals when, in fact, they are managed by large firms. This tactic can mislead customers into believing they are getting a more authentic or affordable experience.

Legal Action Against Tourist Apartment Companies

The Ministry has opened sanctioning procedures against several tourist rental companies across Spain. These companies are accused of providing false or misleading information that could influence consumer decisions, violating the Unfair Competition Law. Penalties for such practices can reach up to €100,000, or even higher, up to six times the illegal profits earned.

Expanding Investigations Across the Sector

This crackdown isn’t limited to tourist apartments. The Ministry has also targeted platforms like Airbnb for hosting misleading ads and investigated real estate agencies for abusive practices, such as forcing tenants to pay illegal fees or signing unjustified temporary contracts.

Protecting Consumer Rights

The Ministry of Consumer Affairs, led by Pablo Bustinduy, aims to safeguard consumer interests and ensure fair practices in Spain’s housing market. Ongoing investigations will help create a more transparent and trustworthy environment for both tourists and local renters.

What Tourists Should Watch Out For

• Verify if the rental is managed by an individual or a company.
• Be cautious of deals that seem too good to be true.
• Check for clear and accurate descriptions in listings.

As Spain continues to tighten regulations on tourist apartments, tourists can expect safer and more reliable rental experiences.

Main image: Shutterstock/Boyloso