During a debate on the final bill on building management and maintenance on Monday, opposition MPs supported efforts to bring order to the housing market, but criticised the requirement for approval for short-term rentals, calling it an incomplete, unfair and even unconstitutional solution.

According to the bill, from 1 January 2025, anyone opting for short-term rentals will need the approval of two-thirds (66%) of co-owners, instead of the previously planned 80%.

“The Social Democratic Party will not support this bill. We are generally in favour of promoting long-term rentals, but we are against the lucrative income from tourist overnight stays being monopolised by hoteliers and entrepreneurs. We are against a fragmented approach and against leaving the decisions to homeowner associations,” said SDP party MP Miso Krsticevic on behalf of the party caucus.

Zivkovic: Proposed mechanism is neither fair nor predictable

He questioned why the draft law does not specify which flats and locations can and cannot be used for short-term rentals.

“When it comes to short-term rentals, it is not the same whether the property is located in the city centre of Zagreb or in the suburb of Sesvete. It is also not the same whether it is a family rental, where pensioners rent out their flats to improve their standard of living, or whether the owner has dozens of flats,” said Krsticevic.

MP Marin Zivkovic (Mozemo party) welcomed the restrictions on short-term rentals, but argued that the proposed mechanism was neither fair nor predictable. He added that local governments still lack effective tools to systematically regulate daily rentals.

Zivkovic also argued that the law favours the hotel industry in the long term and could unnecessarily restrict short-term rentals in areas without significant demand for long-term rentals, such as small coastal resorts and cities.

Minister Bacic: Ownership rights come with obligations

He suggested that changes to the Ownership Act should better define which buildings are for residential use and which are for holiday rentals, “rather than leaving such decisions to the power of capital or the arbitrariness of neighbours”.

Viktorija Knezevic (Centre/Independent Platform North) said the proposed amendmends were unconstitutional. “Any restrictions introduced must be proportionate to their purpose and should not be introduced if the same goal can be achieved by other means,” she said.

Construction Minister Branko Bacic countered that property rights come with obligations and that restrictions are permissible if they are proportionate and justified.

The HDZ party MPs praised the draft law and highlighted the co-financing measures for façade renovations in culturally and historically protected urban areas and the subsidies for lift installations.