Else Beekman
From April 3, 2025, residents in Spain will have greater control over short-term rental properties in their buildings. A new reform of the Horizontal Property Law (LPH) will allow communities of homeowners to regulate and, if necessary, restrict tourist rentals.
The reform, initiated by the Spanish government, aims to balance the interests of property owners, tenants, and visitors. At the same time, the Government addresses the growing concerns over mass tourism in residential areas.
Homeowners’ associations to decide on tourist rentals
One of the most significant aspects of the reform is that homeowners’ associations (comunidades de vecinos) will now have the power to decide whether tourist rentals are allowed in their buildings. Under the new regulations, at least three-fifths of the community must approve a property’s use for short-term rentals. This change is designed to ensure that the constant movement of tourists does not disrupt daily life for permanent residents.
Additionally, communities can impose extra fees on landlords who rent their properties to tourists. These fees, meant to compensate for the increased use of common areas and potential disturbances, cannot exceed 20% of the ordinary community fees.
Example in Malaga
The Martiricos Towers in Malaga form a striking example of the impact of tourist rentals on residential life. According to newspaper SUR, in this modern high-rise complex, residents have been facing serious disruptions due to the presence of over 120 tourist apartments. Complaints include constant noise, lack of security, overcrowded common areas, and even difficulties in accessing lifts due to the high turnover of short-term guests. Many permanent residents feel their homes have been turned into hotels, making daily life increasingly difficult. With the new law authorities expect to provide these residents with the necessary tools to restore a sense of community and control over their living environment.
What happens to existing tourist rentals?
For those already renting their properties to tourists, the reform does not impose an outright ban. However, they must comply with all existing regulations and hold the necessary licenses. Any property operating without community authorisation may face severe penalties. Depending on regional laws, fines for non-compliance could reach up to €600,000.
Communities of homeowners will also gain legal tools to report landlords who operate illegally or whose guests cause repeated disturbances. In such cases, they may even claim damages from the property owner.
A win for residents, a loss for investors?
Unsurprisingly, the reform has sparked debate. Many residents welcome these measures as a way to regain control over their living spaces, preventing their buildings from becoming makeshift hotels. On the other hand, property owners and some tourism industry players argue that the restrictions limit property rights and could harm the economy by reducing available tourist accommodation.
The political sphere is also divided. In Madrid, parties like the Popular Party (PP) and Vox oppose the reform, claiming that tourist rentals represent only a small fraction of the housing market and that property owners should have the final say on how they use their assets.
Critics argue that the reform disproportionately favours permanent residents at the expense of property investors who rely on short-term rentals for income. Some landlords warn that this could lead to a decrease in housing supply for tourists, potentially affecting local businesses that depend on tourism.
On the other hand, supporters believe the new rules will help restore balance in residential areas, reducing noise, overcrowding, and maintenance issues caused by high tenant turnover. In cities like Barcelona and Málaga, where the impact of mass tourism has been particularly intense, many residents see this reform as a necessary step to reclaim their neighborhoods from the pressures of the short-term rental boom.
Virtual homeowners’ meetings now allowed
Alongside the new regulations on tourist rentals, the reform also introduces a modernisation of community management. Homeowners’ associations will now have the legal ability to hold meetings virtually.
Homeowners’ associations will now have the legal ability to hold meetings virtually, a practice that the law temporarily permitted during the COVID-19 pandemic but later discontinued. The Popular Party (PP) proposed this change, which the Senate approved. It aims to facilitate participation and decision-making for property owners, especially those who may not always be physically present. Additionally, the reform allows homeowners’ associations to store community records and meeting minutes in digital formats, further streamlining administrative processes.