The Supreme Court Allows Banning Short-Term Rentals with a 3/5 Majority in Homeowners’ Associations
Recently, the Supreme Court has issued two rulings that represent a significant change in the regulations governing homeowners’ associations: from now on, it will be possible to ban short-term rentals if a three-fifths majority of the property owners vote in favor.
Previously, this decision required unanimous agreement among all neighbors. However, since 2019, the law has changed, and these rulings confirm that a qualified majority is sufficient to ban or restrict properties from being used for short-term rentals.
What Are the Implications of This Ruling, and How Does It Affect Your Homeowners’ Association?
The Supreme Court’s rulings resolve an ongoing debate that had caused confusion, as some courts interpreted “restricting” short-term rentals as not including a full ban, while others did. The Supreme Court has now made it clear that if the homeowners vote by a qualified majority (3/5), properties can no longer be used for short-term rentals, clarifying that “restricting” can indeed mean banning this activity.
- This does not mean that those who were already renting their properties for short-term stays will be affected, as the rulings are not retroactive. In other words, they will only apply to those who wish to start this type of rental in the future.
Why Is This Decision Important for Homeowners’ Associations?
For many homeowners’ associations, short-term rentals have brought various problems: noise, disorder, lack of security, and a generally more complicated living environment. With this Supreme Court decision, associations now have a stronger tool to ban short-term rental activities if they choose to do so.
If your community is concerned about this type of rental, it will now be easier to address the issue in meetings and reach an agreement without requiring unanimous consent, as was previously the case. Additionally, these measures can be registered in the Property Registry, ensuring that future property owners are aware of the restrictions on short-term rentals in the building.
Greater Legal Certainty for Homeowners’ Associations
The Supreme Court has also emphasized that this decision protects the interests of homeowners, as it prevents a single owner from blocking a majority decision to ban short-term rentals. Now, the community has greater decision-making power to protect its quality of life and harmonious coexistence.
For property owners who prefer not to have their residences used for short-term rentals, this change provides greater peace of mind and legal certainty. Homeowners’ associations, in collaboration with their property managers, will be able to handle these situations more clearly and efficiently.
In summary, this ruling provides communities with a key tool to regulate short-term rentals in their buildings, thereby improving coexistence and ensuring a peaceful and secure environment. If your community has concerns about the impact of short-term rentals, now is the time to address the issue in meetings and make decisions that benefit everyone.
Legal Updates in 2025
It is important to highlight a significant amendment introduced in the Organic Law 1/2025, of January 2, on measures to improve the efficiency of the Public Justice Service, which modifies the Horizontal Property Law regarding short-term rentals.
In its final provision four, this reform modifies Law 49/1960, of July 21, on Horizontal Property, by adding a new section 3 to Article 7. This new section establishes that any property owner wishing to carry out short-term rental activities, as described in section e) of Article 5 of Law 29/1994, of November 24, on Urban Leases, must first obtain express approval from the homeowners’ association.
Additionally, a modification is introduced in section 12 of Article 17, stating that any decision regarding the approval, restriction, conditioning, or prohibition of short-term rental activities must have the favorable vote of three-fifths of the total property owners, who must also represent three-fifths of the ownership shares.
Finally, the reform includes a new second additional provision, establishing that property owners who were already engaged in short-term rental activities before the entry into force of the Organic Law on measures to improve the efficiency of the Public Justice Service, and who had previously complied with sectoral tourism regulations, may continue such activities, respecting the conditions and deadlines established by the applicable regulations at the time of their registration.
We can help you manage your Homeowners’ Association. Do not hesitate to contact our team of property management experts.
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