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The recent Supreme Court ruling on the prohibition of tourist rentals by homeowners’ associations

In recent years, the rise of tourist rentals has given rise to intense debate in the field of real estate law and community coexistence. Recent Supreme Court rulings number 1232/2024 and 1233/2024, dated 3 October 2024, have clearly established the capacity of homeowners’ associations to regulate or prohibit this type of rental in their buildings. This article analyses the most relevant aspects of the ruling and its implications for landlords and tenants.

Legal Context

The Horizontal Property Law (LPH) regulates the relations in the communities of owners in Spain. However, the phenomenon of tourist rentals, booming due to platforms such as Airbnb, has generated tensions between owners who wish to make their properties profitable and those who prefer a quieter environment.

The Supreme Court Ruling

The Supreme Court, in its rulings number 1232/2024 and 1233/2024, has addressed the question of whether a community of owners can establish agreements that prohibit tourist rentals in the building. In this case, the high court has ratified that:

  1. Competence of the Community: The community of owners has the power to regulate the use of the flats, as long as these rules do not contravene the law. This includes the possibility of limiting or prohibiting tourist rentals if so agreed by a majority.
  2. Necessary Quorum: In order to apply the prohibition of tourist rentals, a quorum of 3/5 of the owners’ meeting must be reached.
  3. Nature of the Agreements: The ban must be formally agreed at a meeting of owners. Failure to comply with these agreements can lead to legal action by the community.
  4. Retroactivity: It seems that the Supreme Court forgets to pronounce on the retroactivity of the prohibition, which we understand should be clearly resolved in future rulings.

Practical Implications

This ruling has several implications:

  • For owners: Those wishing to rent out their properties for tourism should be attentive to the decisions of their community. The possibility of a ban may affect the profitability of their investment.
  • For communities: Owners’ communities should establish clear rules and communicate them effectively. It is advisable to have legal advice for the drafting of agreements that comply with the law.

Conclusion

The Supreme Court rulings 1232/2024 and 1233/2024 strengthen the power of homeowners’ associations to regulate the use of their properties, guaranteeing the coexistence and well-being of all their members, but limiting the rights of foreign clients, for whom the possibility of such rentals was essential in order to make an investment in our country. It is essential that both landlords and tenants inform themselves about their rights and obligations in this context.

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