The condominium regulation is perhaps the most important element that requires attention, yet in many cases it is overlooked by those wishing to rent out an apartment for short-term rentals. This is obviously a mistake!
The regulation acts as the “internal law” of the condominium. It expresses the will of the co-owners regarding the use and possibilities of their apartments and exists to ensure that apartment use does not disturb the peace or compromise the safety of residents or owners.
Drafting and application of the regulation
Co-owners of a condominium jointly adopt a regulation that governs the rights and obligations of owners, the use of common areas, and the rules that must be followed to ensure smooth coexistence within the building. This regulation is formalized through a notarial deed and registered with the relevant Land Registry or Cadastral Office.
The regulation protects everyone’s rights and may prohibit certain uses of the apartments, such as engaging in commercial activities. Short-term rentals via online platforms may be considered such activity under Article 111 of Law 4446/2016, which regulates short-term rentals in the context of the sharing economy.
What if there is such a provision? Have you read the regulation?
If a condominium has a regulation, any disputes between separate apartment owners must first be examined in light of it, alongside other provisions governing horizontal property ownership. The prevailing case law holds that the condominium regulation is binding and cannot be violated, even if such violation has no practical consequences. In other words, a violation does not need to harm another co-owner for the latter to seek judicial enforcement against the misuse of common areas.
Regulation and use of the property
The regulation takes precedence over general law, except in cases governed by mandatory legal provisions. Practically, if a rule prohibits owners from making certain alterations or using their property in a specific way, the prohibition applies even if no harm is caused to others.
Conversely, if something is not specified in the regulation (or by law), each owner retains all legal rights, including the choice of property use, provided that exercising these rights does not interfere with other owners’ rights or compromise safety.
Thus, short-term rentals are permitted unless explicitly prohibited by the regulation. Relevant court decisions, such as decision No. 197/2022 of the Athens Single-Member Court of First Instance, confirm this principle.
Who is responsible for following the regulation?
The responsibility remains with the owner. Tenants in short-term rentals are legally considered guests. For example, decision No. 574/2020 of the Athens Single-Member Court of First Instance states:
“Providing specific services associated with the tenants’ stay in the property, which is treated as a tourist accommodation and exploited for tourism purposes. When a Host accepts a booking request from a Guest, they are contractually bound to provide ‘hospitality services’ as described in their listing at the time of booking… The owner renting the property through an online platform is responsible for ensuring the proper use of the apartment by short-term tenants in accordance with Article 288 of the Civil Code.”
If a tenant violates the regulation, co-owners cannot take direct action against the tenant; they must act against the owner/lessor to stop the violation.
Why knowing the regulation matters
Understanding the condominium regulation is crucial for property owners or short-term rental operators. Tenant violations of the regulation can create conflicts among owners and residents.
What if there is no condominium regulation?
In the absence of a regulation, “harm” must be assessed. Harm is understood as interference with other residents’ or owners’ rights. Even without a regulation, a co-owner who suffers interference with their rights can take legal action based on civil law provisions.
Seeking expert legal advice
If a regulation exists, it must be reviewed before exploiting a property for short-term rental, along with horizontal property ownership provisions. If no regulation exists, the legal framework of horizontal property and general law must be considered.
In cases where no co-owner agreement exists, each owner retains full rights over their property, provided their actions do not alter its intended use, infringe on other owners’ rights, or compromise safety, taking into account good faith and customary practices. Case law also supports agreements granting additional rights to specific co-owners.
In conclusion, knowing and complying with the condominium regulation can prevent problems both in property management and short-term rental operations. Legal advice from specialized lawyers is essential to avoid potential risks associated with property investment and short-term rentals.
Dr. Fotis Spyropoulos: Lawyer–Economist, specialized in commercial and criminal law, postdoctoral researcher at the University of West Attica, Lecturer at UW and HOU, Senior Partner at Spyropoulos Law Firm.
Manos Technitis: Lawyer specializing in commercial and criminal law (LL.M., M.Sc), PhD candidate, Lecturer at Metropolitan College, Associate at Spyropoulos Law Firm.
