Carlos Baos – Tourist Rentals

How to navigate problems and tensions with the Homeowner’s association.

Last week, we received a query from the owner of an apartment in a well-known area of Costa Blanca, that undertakes tourist rentals during the summer. He was worried about a communication sent to him by the homeowners’ association complaining about his tenants, and a potential ban on vacation rentals. Also, the community wants to raise his community fees. Below are several key issues that anyone in this situation must take into consideration.

Vacation Rental License.

Obtaining a tourist rental license is crucial to ensure that your tourist rental complies with the legal requirements of the Valencian Authorities. Failure to secure this license can lead to substantial economic penalties. If you do not currently possess a vacation rental license, our law firm stands ready to assist you to ensure that your rental business is conducted within the bounds of the law.

Legal status of Tourist rentals in your community of owners.

A further critical aspect (maybe the most important one) is to know have a clear understanding of the law and the situation in your community of owners. Since 2019, it is possible for communities to “limit or condition” tourist rentals. Therefore, the first step is to know what the exact situation in your community of owners is. Is there a prohibition in place? When was it approved? By how many votes? Has the prohibition been registered in the Land Registry? Was it passed as a simple agreement, as part of the statutes, or inside the internal regulations? What is the exact wording of the agreement? What this prohibition in place when you purchased the property? Knowing these details is key to navigating the conflict successfully.

Is it true that the ban is not upheld by the Supreme Court?.

Not exactly. The problem is that since the banning these types of rentals was approved in 2019, the courts have maintained different positions. Several interpret that vocational rentals can be forbidden by a simple majority. Others demand unanimity. There are even some judges defending that no prohibition is possible; that the Community of owners may only limit these rentals or restrict them. The Spanish Supreme Court has yet to weigh in on this matter to put an end to the different interpretations.

Community expenses. Can they be raised to tourist rentals?.

Yes, the law of Horizontal Property allows raising community charges to owners of these type of rentals. For instance, if the community fees are if 100€, and you own a tourist rental, the community could charge you 120€. That is, twenty percent more than the rest of the neighbours.

At White-Baos Lawyers we are experts in Tourist Rentals. If you are having problems with your community of owners, and you seek legal expert advice on this matter, reach out to us without hesitation.

You may be interested in the following services and articles:

Prohibition of tourist rental. We analyse the legal situation three years later. Problems in communities of owners. Land Registry. Jurisprudence. Legal advice.

New court success. Nullity of the ban on Tourist Rentals Agreement in a Community of Owners. Horizontal Property Law. Expert legal advice..

New court success. Works in the homeowner’s association. Claim against the community of owners. Challenging agreements. Expert legal advice.

Carlos Baos (Lawyer)

White & Baos.

Tel: +34 966 426 185

E-mail: info@white-baos.com

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