A key question has been at the heart of many disputes in Greece: Can an apartment in a building whose regulations allow only residential use be rented out via Airbnb or other short-term rental platforms? The recent ruling No. 267/2024 of the Athens Court of Appeal provides a clear answer: no, it cannot.
The Case
The case concerned an apartment building where some owners had leased their properties to a company operating short-term rentals. Other co-owners objected, arguing that the building’s regulation explicitly allowed only residential use of the apartments and prohibited any other purpose.
In their lawsuit, they also pointed out the problems created by the constant change of tenants: noise, disturbances in communal areas, and security issues caused by the circulation of keys among an indefinite number of visitors.
The Court’s Reasoning
The Athens Court of Appeal ruled that Airbnb-type rentals do not constitute residential leases but rather tourist or hotel-type leases.
According to the Court:
- Residential leases imply stable and continuous occupancy by tenants.
- Short-term rentals are temporary and opportunistic, with a constant flow of tourists.
- The service provided is not the use of the property as a residence but overnight accommodation — in essence, a tourist service.
Therefore, when a building regulation explicitly states that apartments are intended “exclusively for residential use” and prohibits “any other use,” operating an Airbnb is a violation of that regulation.
The Role of Building Regulations
The decision underlines that the regulation of an apartment building is binding for all co-owners. Even though tax law treats short-term rentals as income from real estate, the reality is different: Airbnb-type rentals function as tourist accommodations, not as residences.
Practical Implications
This ruling has significant implications:
- It gives legal grounds to co-owners who oppose the operation of Airbnbs in their building.
- It requires investors to carefully review building regulations before purchasing property for short-term rentals.
- It may open the way for more lawsuits, particularly in tourist-heavy areas where tensions between residents and short-term rentals are rising.
Conclusion
In simple terms, the Athens Court of Appeal concluded that:
- Airbnb-type rentals are not residential leases.
- If a building’s regulation allows only residential use, then short-term rentals are prohibited.
This decision could affect thousands of properties across Greece, highlighting the decisive role of building regulations in shaping the future of the short-term rental market.
