Change to Spanish community rules

Spain’s Supreme Court has ruled that communities of owners can prohibit holiday rentals if a motion is approved by three-fifths of voters in a meeting.

The Community of Owners is a powerful force in Spanish property law – an association that must, by law, exist, in every property with shared facilities such as gardens, entries, lifts, lighting etc.

The Community decides on contracts for maintenance of property, sets the cuotas (fees) that each owner must contribute and can make important decisions about the use of the community.

And the Owners Association will be stronger than ever following a recent ruling by then Spanish Supreme Court that permits owners to veto holiday lets in residential properties.

The ruling clarified the definition of “limits” in the Spanish law of Horizontal Property, which could be said to require absolute unanimity of voting or a three-fifths majority. The Supreme Court came down in favour of the latter, in a decision which could have far-reaching consequences.

The ruling means that only 60% of voters would be required to prohibit holiday rentals in a residential community. However, the ruling is not retroactive and will not affect those who have been carrying out rental activities until now.

The issue of tourist rentals in residential communities has long been an issue in Spain’s coastal resorts, but more recently the rise of Airbnb-type platforms mean that cities have been experiencing problems. Many residential communities have complained that visiting tourists are noisy, stay up late at night and disturb the community life.

It’s not the only recent Supreme Court ruling that has been bad news for holiday rental owners. Last year, the court ruled that tourist accommodation was classed as an economic activity and residents of the community would have the right to veto it on the grounds that a business was being run from home.

This ruling was mainly aimed at companies that rent out several apartments in the same community and was intended to reinforce the rights of residential owners.

The housing crisis is also a factor in the recent judgements. There is a widespread belief that, if an apartment cannot be used for tourist accommodation it is more likely to be offered for long-term rental. However, this remains to be proved.