What are the first things that come to mind when one asks: “What do you need to become a host?” Space, time and will. These are the three basic and fairly simple conditions for becoming a host. Of course, you still need to fill out some documents and visit a few offices, but this is paperwork that you can’t do without. Below, we explain and list the steps that are necessary for legal regulation and obtaining the title of host.
The rules and laws do not differ significantly if it comes to renting out rooms or if it comes to renting out the entire property. If you want to be a successful host, you must familiarize yourself with the specifics in any case. Without them, you can find yourself in legal trouble.
Online portals such as Airbnb or Booking do not require you to prove that you operate in accordance with the law before publishing on the portal. You will have to show and prove this when the inspector visits (Spirit, Podjetniški portal 2018).
So, what do you need to become a host? You can read in this article which laws must be followed and how, if you want to become a host as a natural person.
In any case, Polna hiška is still here for you, having been in the room rental/hosting business for several years and having successfully led all of its clients to open their own room rental businesses. You can see what Polna hiška’s services include here.
But first things first, or rather, let’s go in order. Let’s start by explaining who a host is and what this title encompasses.
LEGAL FORM OF HOSTING
Natural person – host (a host can rent rooms for a maximum of 150 days (i.e. 5 months), others can rent rooms for the whole year); legal entities (d.o.o.); sole proprietor (s.p.); association; farmer – holder of supplementary activity.
WHO CAN BE A HOST?
Anyone who:
- is (co)owner or tenant of real estate (including a retiree or student),
- carries out the activity only occasionally, for a total of no more than five months in a calendar year (150 days), offers guests up to 15 beds,
- is registered in the Business register of Slovenia,
- in the case of standard taxation, does not exceed the annual turnover of EUR 60,000.
A host is a natural person who rents out private rooms to guests only occasionally (no more than five months in total in a calendar year) and offers up to 15 beds to guests and is registered in the Business Register of Slovenia. The days when you actually have guests are counted. If you are open but have no guests, the day is not counted.
The question often arises: “Does a retiree who is a host keep his pension?”
Yes, a retiree who is a host keeps his pension if he is engaged in the activity as a natural person who, in accordance with the regulations governing the hospitality industry, only occasionally, for a maximum of five months in a calendar year, rents out private rooms to guests and offers up to 15 beds.
What do you need to ensure if you want to legally rent out rooms?
To become a host as an individual (not a company or association), you must comply with 19 laws that regulate the rental of rooms. The registration process itself, to arrange everything necessary, takes from 60 to 75 days. It depends on how much time you have to obtain all the paperwork and on your computer skills.
IT IS IMPORTANT TO KNOW THE LAWS
The activity of accommodating guests, which is carried out by hosts – natural persons, is defined under the ZGos as a catering activity, which includes the preparation and serving of food and drinks and the accommodation of guests, therefore the income of natural persons, hosts under the ZDoh-2, is treated as income from activities and not as income from renting out property.
What laws and regulations regulate this field? It is good to know which laws we need to know if we want to become a host. The 19 laws listed below regulate everything necessary for the legal rental of accommodation (Spirit, Podjetniški portal 2018).
- Hospitality Act – ZGos
- Regulations on the minimum technical conditions and scope of services for performing hospitality activities
- Regulations on the categorization of accommodation facilities
- Personal Income Tax Act – ZDoh-2
- Tax Procedure Act – ZDavP-2
- Value Added Tax Act – ZDDV-1
- Regulations on the implementation of the Value Added Tax Act
- Regulations on business books and other tax records for natural persons carrying out activities
- Companies Act – ZGD-1
- Pension and Disability Insurance Act – ZPIZ-2
- Health Care and Health Insurance Act – ZZVZZ
- Tax Certification of Invoices Act – ZDavPR
- Business Register of Slovenia Act – ZPRS-1
- Regulations on the method of registering room owners in the Business Register of Slovenia
- Building Construction Act – ZGO-1
- Housing Act – SZ-1
- Act on Registration of Residence – ZPPreb
- Act on Parental Care and Family Benefits
- ZSDP-1 – Act on Regulation of the Labor Market – ZUTD
Once we’ve gone through all the laws and regulations, we have a basic idea of what we need to legally regulate hosting. Don’t forget – if you decide to work with Polna hiška, we’ll be by your side and help you throughout the entire process of regulating your hosting.
First steps towards legal regulation of hosting
It is necessary to arrange documentation and register the facility. This includes the following steps:
- Obtaining proof of ownership or disposal right
- Obtaining a use permit
- Obtaining consent from owners (if there are several)
- Arranging the apartment in accordance with the categorization of the premises
- Ensuring general minimum conditions (fire regulations, etc.)
- Registration as a host (registration with AJPES)
After fulfilling the above conditions and entering the register, you can start performing your activity.
Before the accommodation rental actually begins, it is also necessary to arrange for the issuance of invoices to guests (cash or non-cash). The taxable person, a natural person who provides the service, must issue an invoice for it, regardless of whether he is a VAT taxpayer or not. The host is also obliged to report each guest to the competent police station within 12 hours of their reception. The registration is made physically or electronically.
Renting accommodation to tourists
As a natural person, you can only rent and advertise your property to tourists if you have a registered rental activity. A natural person who rents property to tourists and is not registered or does not have a registered activity, as required by the Act on the Prevention of Illegal Work and Employment (ZPDZC-1) or other laws, is considered to be performing illegal work. Since ZPDZC-1 prohibits illegal work, this also applies to advertising illegal work by individuals. Such advertising is prohibited and sanctioned, as is the rental of property to tourists by individuals who are not properly registered for renting out property through advertisements and various online platforms.
Everyone would like to earn extra money, which hosting allows, but you need to be aware that it is necessary to approach this with a clear plan and a high degree of responsibility. The income can be really good, but it largely depends on the location, size of the room/apartment and the equipment of the accommodation. We must not forget about costs such as space maintenance (additional heating, electricity, etc.), purchase of equipment (sheets, towels, accessories), cleaning and of course our availability.
The path to renting out accommodation and earning extra income is not easy, but it is not impossible. If you have that extra space in the attic or basement, or an empty room, we encourage you to show it to us. Polna hiška is by your side from the very beginning, from arranging and advising on accommodation, to arranging all legal matters and continuing when you receive guests. If you are wondering why you even need a hosting agency, we recommend the article Why do you need a hosting agency? on our blog. Use your space and our knowledge to earn extra money.
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