A big cash cow will be coming to Zagreb early next year, just after Christmas, when thousands of European diplomats and officials who need accommodation will arrive in the city for Croatia's six-month EU Council presidency.

Up to 30,000 EU Officials Expected

According to Deutsche Welle, official sources are saying that about 25,000 people will descend on Zagreb in early 2020, while other estimates say that the figure will be closer to 30,000. Many won't be staying in Croatia for the entire six months nor will they all be arriving at the same time. In any case, this is creating real chaos in the tenant world. Simply put, Zagreb landlords can earn more by expelling their current tenants and renting their apartments to EU officials.

Zagreb does not have many hotels. In fact, Jutarnji List notes that there are only 24 four or five-star hotels in the city, which is by no means enough capacity to accommodate the large number of high-level diplomats and EU officials arriving soon.

Zagreb Landlords Are Evicting Tenants

Stanka, a student from Zadar, experienced the nightmare of moving because of the upcoming EU Council presidency, according to Zagrebinfo on December 2, 2019. She had just moved to Zagreb to pursue her college degree.

“My landlady bought my apartment and acquired me with the inventory. During our negotiations, she indicated that she would be upgrading the furniture and raising the rent. She also disclosed that we would not be signing a lease because she had plans to rent the apartment to diplomats in early 2020 for a much higher price. However, then she decided to completely renovate the apartment prior to their arrival, so I had to move out in September,'' the student reported, and claims she had less than a week to move everything out of an apartment where she had lived for only three months.

With the boom in Zagreb tourism over the last few years, a sizeable chunk of apartments which used to be rented monthly, are now being rented out to tourists by the day. This has greatly increased the average apartment rental rates.

“Of the approximately three and a half thousand who are officially registered, there are perhaps ten thousand available beds. And I believe that a large portion of this housing pool is ready to respond to the demands of the Eurobureaucrats," said Zoran Dragun, administrator of the Zagreb Private Landlords Association to Jutarnji list.

He claims that Zagreb has now become a year-round tourist destination, but also believes that rents in Zagreb have not increased as much as publicly reported. The current focus for private landlords is Advent (December); then they'll begin preparing for the big EU opportunity.

No Tenant Rights

Nedjeljko Marković, president of the Pragma social association, has a different opinion.

"The unpredictability of market movements is our biggest problem, because nobody in Croatia oversees these changes. We simply do not have any public housing policies,” he emphasized while referencing the unfortunate circumstances that many Zagreb tenants will soon face.

He claims that his sources from the association, which deal with tenant issues, have already received reports that scores of Zagreb tenants are facing eviction, and will soon be without a roof over their heads due to the arrival of EU bureaucrats and diplomats.

For more information on the housing situation in Croatia, check our our Lifestyle page here.

As Marija Crnjak/Poslovni Dnevnik writes on the 24th of May, 2019, Croatia's private accommodation renters who advertise their premises on platforms such as Booking.com and Airbnb should make sure they are properly registered on the eVisitor system in order to avoid potentially serious consequences. A visit from an inspector could occur at any time.

Along with the beginning of the summer tourist season, the strengthening of the supervision of the properties rented out privately to tourists from landlords and owners, as well as other types of hospitality facilities, is on the cards. State inspectors will be out in full force this season, and they will, among carrying out numerous other tasks, "comb" through potential unregistered listings and punish Croatia's many illegal renters.

This ''action'' will be assisted by the central eVisitor information system that applies to all categorised facilities, and uncategorised apartments and houses will also be searched out on booking and reservation platforms such as Booking.com and Airbnb, as has been confirmed by the state inspectorate.

There are numerous types of categorisation in place for private accommodation, and each and every facility that rents its space to tourists must be correctly registered on Croatia's eVisitor system in order for those guests to be registered with the police and/or tourist office upon their arrival (although this is something many choose not to adhere to, and which, in all honesty, isn't enforced well), and more importantly, for the host to be able to pay the correct taxes. In addition, a tax number must be highlighted for such tourist services carried out within the European Union.

A total of 136 jobs have been systemised ready for these types of inspection during the tourist season, and, together with the employees of the Customs Administration of the Croatian Ministry of Finance, a total of 97 jobs for tourist inspectors to carry out the work have now been filled.

At the moment, 52 inspectors are working to cover Croatia's coast, where the majority of illegal renting takes place, through offices in Rijeka and Split, as well as sixteen other associated offices. In addition to that, during the very height of the tourist season, inspectors from Croatia's continental counties will also be there to help out their coastal colleages. They all have access to the eVisitor system, which will help them to detect illegal renters.

The mechanism for locating Croatia's illegal renters is very simple, if the accommodation advertised on online platforms such as those listed above is not registered on eVisitor, this acts as a sign to inspectors that they can take the appropriate action. It has since been found out from private renters that nobody is asking for categorisation certification on those platforms anymore.

Booking.com and Expedia were asking for categorisation certification until the powerful Airbnb entered the Croatian market just a few years ago. Anamarija Cicarelli, head of the Split family accommodation advice centre, says most rental platforms have lost their legitimacy because they simply go off trusting the advertiser without any actual evidence.

Make sure to follow our dedicated lifestyle page for much more.

Click here for the original article by Marija Crnjak for Poslovni Dnevnik

TripAdvisor and Airbnb recently revealed global travel trends for 2018, featuring cities with predicted growth in demand compared with last year

Desperate times call for desperate measures, or do they?

The digital platform is making itself at home in Croatia, especially along the coast where tourism creates high demand for beds