Court bans short-term rental use of Athens apartment over building rules

A Greek court in Athens has banned the use of an apartment for short-term tourist rentals, citing violations of building regulations designed to ensure residential peace and safety. The decision, issued by the Single-Member Court of First Instance of Athens, follows a legal challenge brought by the apartment building's management against a company that had begun offering the unit through online rental platforms in the summer of 2025. The court ruled that the building’s internal regulations, which prohibit the use of units as hotels or for activities causing excessive disturbance, apply equally to short-term tourist rentals. The dispute arose after the company began operating the apartment as a vacation rental, drawing complaints from other residents. Neighbors reportedly cited issues such as noise during nighttime hours, increased strain on shared facilities, and security risks associated with the regular influx of unfamiliar guests. These concerns prompted the building manager to file an injunction seeking to halt the rental operations under the terms outlined in the building’s bylaws. According to the court’s ruling, while the regulations predate the rise of short-term rental services, they remain legally enforceable within the building. The judge emphasized that the intent behind the restrictions, preventing overcrowding and maintaining a peaceful living environment, is consistent with the nature of tourist rentals, even though the term “short-term rental” was not explicitly mentioned in the original documents. The court mandated that the company cease its operations immediately and warned of potential fines should it fail to comply. This decision adds another layer of complexity to the growing regulatory challenges surrounding short-term rental businesses in Greece, particularly in urban centers like Athens, where such practices have become increasingly common. Short-term rental activity has been expanding rapidly across Greece, fueled by the popularity of platforms that connect property owners with travelers seeking temporary accommodations. However, this growth has sparked tensions among local communities, who argue that such rentals disrupt neighborhood dynamics and place undue pressure on infrastructure and public spaces. The recent court decision aligns with broader efforts to address these concerns. Greece’s current property ownership laws, largely unchanged since 1929, are undergoing a comprehensive review. A special legislative committee is set to begin its work in July, aiming to draft a new bill that could be approved by 2026. The proposed legislation seeks to modernize the country’s approach to property usage, potentially introducing clearer guidelines for short-term rentals and their impact on residential areas. Residents of the affected building expressed relief at the court’s intervention, stating that the presence of tourist renters had significantly disrupted daily life. Some voiced hopes that the ruling would encourage similar actions against other units being used in violation of building rules. Meanwhile, representatives from the rental company declined to comment publicly on the decision, though industry observers suggest that the ruling could signal a shift in how courts interpret existing regulations in relation to evolving market conditions. As the legislative process moves forward, stakeholders across the real estate sector, local governments, and community groups are anticipated to play active roles in shaping the future of short-term rental policies. The outcome of these discussions will likely influence not only the legal landscape governing property use in Greece but also the balance between economic opportunities and residential quality of life in cities like Athens.