In the Czech Republic, the Supreme Court has issued a ruling that states that homeowners’ associations cannot restrict the property rights of individual homeowners who rent their properties for short-term stays, such as those offered by Airbnb. This decision was reached following a five-year legal dispute between a member of a homeowners’ association in Prague and the association’s decision to adopt new statutes, which the member opposed.

The court has stated that while homeowners’ associations can regulate various rights that arise from membership, they cannot limit the property rights that arise 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.

This ruling means that homeowners who rent their properties for short-term stays will be able to continue doing so without facing legal consequences from their homeowners’ associations. However, it is important to note that this decision does not mean short-term rentals are unregulated. Property owners must still comply with other regulations, such as obtaining the necessary permits and paying taxes as required by local laws.

This ruling is significant as it provides clarity on the limits of homeowners’ associations in the Czech Republic. It ensures that individual property owners maintain their property rights and freedoms without being unduly restricted by their homeowners’ associations. Furthermore, it is expected that this ruling will have implications for future disputes between homeowners and their associations regarding property rights and the use of properties for short-term rentals.

Overall, the Supreme Court’s decision clarifies the legal framework surrounding short-term rentals in the Czech Republic and ensures that homeowners can continue to exercise their property rights without undue restrictions.

Article by Prague Forum