PS Suggests Strict Rules For Local Accommodation

Rui Caetano Proposes Clear Rules for New Tourist Rentals

Rui Caetano, the Partido Socialista (PS) candidate for mayor of Funchal, has called for stronger local rules to control the growing number of short-term rentals in the city. Speaking at a press conference today, Caetano presented a proposal that focuses on regulation, oversight, and protection of residential areas. The proposal includes a series of specific measures aimed at reducing the impact of tourist accommodation on local communities.

1. Create containment zones for new short-term rentals

Caetano said that new rentals should only be allowed in selected areas, based on local planning. This would help prevent overcrowding in residential neighborhoods.

We propose the creation of containment zones and the definition, together with the parish councils, of areas where new rentals can be authorized.

2. Work with parish councils to define allowed areas

The candidate emphasized that local communities must be involved in decisions about short-term housing. He criticized the current administration for not doing enough to coordinate with local bodies.

Caetano emphasized the need for cooperation with parish councils to define where new short-term rentals may be authorized, highlighting a lack of action from the current administration.

Concerns About Regulation Failures and Illegal Use

3. Strengthen inspections and control of existing rentals

Caetano said the city has failed to control the existing short-term rental market, allowing illegal practices and disturbances for neighbors.

What we argue is that there must be strict monitoring of short-term rentals, and there must be regulation — but immediate regulation.
(…)
Over the course of four years, this City Council has done nothing to regulate short-term rentals. It feels like we're in the Wild West of local accommodation.

He pointed to complaints from residents, including reports of overcrowded apartments, noise, and unpaid condominium fees, as signs that the situation is out of control.

4. Make sure public subsidies are not misused for tourism

Caetano also questioned how a cooperative housing development - which had received public support through tax and planning incentives - was now being used for tourist accommodation. He said this shows a lack of oversight and a failure to protect public investment.

The City Council gave public benefits, and if it does, it must naturally create mechanisms to carry out proper oversight and ensure that those public benefits go toward the goals that were defined — not toward real estate speculation.

Campaign Focus on Housing and Transparency

The Socialist candidate’s proposal comes at a time of growing tension over the housing crisis in Madeira’s capital. With elections approaching, short-term rentals have become a central issue for many voters, especially those affected by rising rents and the loss of long-term housing. Rui Caetano says his plan aims to restore balance between tourism and residents’ needs, and he insists that the city must act now to fix what he describes as years of neglect.

Source: Diário de Notícias Madeira