Else Beekman
Spain’s Supreme Court has ruled that communities of property owners can prohibit short-term holiday rentals through a majority vote. In two recent rulings, the court clarified that decisions made by a 60% majority of homeowners can limit or ban tourist rentals in residential buildings.
This decision marks an important interpretation of the 2019 Real Decreto-Ley 7/2019, which allows communities to restrict such activities without requiring unanimous consent.
No retroactive impact on existing rentals
According to Juan Ramón Méndez, an expert in holiday rental law, the ruling only applies to future rental activities. Any current legal holiday rentals in operation before a community vote will not be affected. The ban does not have retroactive power, meaning that those who have been legally renting their properties to tourists prior to the decision can continue to do so. However, new rentals will need to comply with the community’s decision.
Concerns over tourism and community living
The Professional College of Property Administrators in Madrid (CAFMadrid) has expressed support for the ruling, stating that tourist rentals often cause conflicts in residential buildings. Noise, waste, and security concerns are among the main issues, and the ruling provides a legal framework for communities to address these problems. Manuela J. Martínez, president of CAFMadrid, noted that this decision would enhance legal security for both property owners and administrators when dealing with tourism-related conflicts in residential spaces.
Legal and practical implications
Méndez explained that communities can now take legal action against those who violate the new rules, such as initiating a cease-and-desist order or seeking compensation for damages. If the offending tenant is a renter, the community can request the termination of their lease and their immediate eviction. To enforce these restrictions, the community must register the decision with the Property Registry, ensuring that future buyers are aware of the limitations.
Limits of the ban
While the ruling allows for a ban on holiday rentals, it only applies to specific short-term tourist rentals outlined in Article 5.e of the Spanish Urban Leases Law. Other types of leases, such as room rentals or seasonal leases, cannot be restricted through this mechanism and would require unanimous consent from all property owners.
The ruling strengthens the legal power of communities to control holiday rentals and preserve residential life, providing a clear path for action against unauthorised tourism activities in shared buildings.
Also read: Number of temporary rental properties in Spain tripled in last 5 years