Categorization of holiday homes in Croatia
Starting a new business is difficult, and so is the beginning of renting a holiday home or luxury villa in Croatia. There is a lot to be done, requests to be submitted, and counters to visit! You should familiarize yourself with all future obligations that come with the role of renter so that you can fulfill all your obligations on time and correctly. Many would-be renters are surprised when they see how much commitment the rental business actually requires. In this article, we will not deal with absolutely all the renter's obligations, but only with the first step. The first step is at the same time unavoidable, and that is, of course, to obtain a Decision on approval for the provision of accommodation services in the household. The outcome of this solution is better known to everyone as the Categorization of a holiday home. This decision is issued by the County State Administration Office, which is responsible for the place where your vacation home is located.
In order to categorize a holiday home, i.e. to obtain a Decision on approval for the provision accommodation services in the household, you must:
1.Complete the request for the issuance of a decision on approval for the provision of accommodation services in the household, which you can also find on the website of the State Administration Office to which the holiday home belongs
2.You must attach the necessary documentation listed below to the completed application:
- proof of citizenship (identity card, passport)
- proof of property ownership (ownership of holiday home)
- proof of the facility's usability - proof that the building-object in which catering services will be provided in the household meets the requirements in accordance with the special regulations governing construction. As a rule, for new facilities, that is a use permit.
- proof of paid administrative fee
- proof of paid compensation for the cost of inspection (outing to the field to determine the category of holiday home)
You should submit the completed Application and the requested documents (in person or by post) to the central office of the State Administration Office in your county. Then you wait for the office to contact you about the date of departure to the holiday home. We advise you to definitely contact the competent office 10-15 days after submitting the request to check whether all the papers have been duly delivered and when you can expect the official to go to the field.
Finish and furnish the vacation home before applying
Of course, vacation homes that want to be rented must meet the requirements for a certain category, that is, they must be arranged and equipped in accordance with the Appendices of the Rulebook on the Classification and Categorization of Facilities in which Accommodation Services are Provided in Households. You can find the text of the regulations here.
As for holiday homes, the surface area of the closed space without a terrace, balcony or loggia and the number of bedrooms in relation to the number of bathrooms are the initial standards for determining the category of holiday home, but we hope that you have already foreseen all this in the design and construction of the building itself, because it is too late for corrections when villa is finished. You can find the terms and conditions here. Based on the prescribed conditions, you will easily be guided as to what it is necessary to have on the property in order for your vacation home to have 5 stars. Our advice is that you never try to force your way into a higher categorization rank. So, it is better to have a fully equipped and super villa with 4 stars, than a villa with 5 stars in which a lot is missing for a pleasant experience of the guests in your facility. In addition, most agencies and web platforms for accommodation advertising will rank your facility by their own category.
Get a consultation in the process of building and equipping the building.
In order to prevent certain problems when categorizing, state administration offices also offer an advisory survey. If you have doubts during the construction, arrangement, and furnishing villa or during the creation of the project, this is the ideal solution to your problems. You can submit a Request for an advisory (consultative) inspection and get advice on the type of facility, layout of rooms, elements important for obtaining a certain category, arrangement of furniture, etc. In this way, you will avoid unpleasant surprises at the inspection when you are told that something is missing in the facility and that's why you can't get 5 stars. In addition, probably the best option is to involve a consultant in the form of a travel agency, such as Home Rent, in the very process of designing, building, and equipping the villa. With their experience, they will help you answer all the questions that will arise in terms of what kind of villa to build and how it is best to equip and adapt it for rent and ultimately for the categorization.
How many stars will I get?
How many stars your vacation home will receive will be determined by the committee of the Administrative Department by inspection, guided by the previously mentioned Rulebook on Classification of Facilities. The office employees will call you on the contact number from the request and agree with you an appointment to visit the property. The waiting time for an appointment actually depends mostly on the time of year. The biggest crowd for the categorization of villas is in the pre-season when everyone finalizes the works and starts the first season! In the rest of the year, the waiting time for the inspection is not so long. That is why it is best to submit the request when the property is fully decorated and ready to receive guests, or ready for inspection.
Inspection - prepare the villa as if your first guests are coming!
In the simplest terms, on the day of the inspection, your holiday home should look as if guests are coming that day! Everything must be furnished, prepared and arranged in place. The holiday home must be clean and tidy, the appliances must be in working order, and the furniture and equipment must be undamaged. During the inspection, no work may take place and no workers may be present. Safety elements are also checked, such as railings on the staircase, balcony, terrace, sharp and glass unprotected edges, etc. A record is drawn up, which is signed by the members of the commission and the applicant. Suppose the inspection determines that the vacation home does not fully meet the requirements for a certain category. In that case, the renter will be given a deadline by which he is obliged to correct the deficiencies and inform the commission member, who will organize a repeated inspection.
When you receive the Decision, your villa is officially categorized as a holiday home with a certain number of stars. Then, the work just begins!
After categorizing your vacation home, you have three more important things to do.
First - you must display the categorization board in a suitable and visible place in your property, preferably the entrance to the villa itself. The official board is ordered exclusively from authorized manufacturers, namely those who have the consent of the Ministry of Tourism. You can get a list of official producers in your area from the local tourist board.
Second - you must go with the Decision to the local tourist board, where you must request and receive data (user name, password, and Tan list) for the e-visitor system through which you will register the stay of guests in your property. In the local tourist board, you can get all other information about the essential things you must have in a vacation home. You can also simply read our article on owner's Obligation for renting villas in Croatia.
Third - be sure to check with the local tax administration (according to the residence of the owner, not according to the location of the object) whether they have received the Decision on categorization from the competent state administration office, which should be sent ex officio, but sometimes it happens that the owner himself has to take it and register with the tax administration in order to pay all your obligations as a renter.