Airbnb Hosts Win Right to Rent from Condo Associations: Czech Supreme Court Ruling

The Supreme Court in the Czech Republic has ruled that homeowners’ associations cannot restrict the property rights of individual homeowners who use their properties for short-term rentals like those offered by Airbnb.

The court’s decision came after a five-year legal dispute between a member of a homeowners’ association in Prague’s Soukenická Street, whose views at the meeting were in the minority, and the association’s decision to adopt new statutes. The member filed a lawsuit to invalidate the decision, which went through the Municipal Court and the High Court in Prague before arriving at the Supreme Court.

The court’s decision stated that while homeowners’ associations can regulate various rights arising from membership, they cannot limit the property rights arising from individual ownership of the units.

Homeowners’ associations can only operate within their competencies in administering, using, maintaining, and repairing common areas of the property. Thus, decisions that restrict property rights beyond the scope of these competencies are considered invalid.

The decision means that homeowners can continue to use their properties for short-term rentals without facing legal consequences from the homeowners’ association. However, it’s important to note that this ruling does not mean short-term rentals are unregulated. Property owners who use their units for short-term rentals must still follow other regulations, such as obtaining the necessary permits and paying taxes, as local laws require.