The Supreme Court has ruled that homeowners’ associations can prohibit short-term rentals if more than half of the owners agree, without the need for unanimous consent. Previously, there were doubts about whether unanimous approval or just a majority was required to make this decision. However, the Supreme Court has clarified that a qualified majority of three-fifths is sufficient.
This decision is based on the fact that short-term rentals are driving up rental prices, making it reasonable for neighbors to limit this activity if they deem it necessary to protect their interests. The Court also emphasizes that this measure is proportional and fair to protect the interests of the community. Moreover, it explains that the words “limit” or “condition” include the possibility of prohibiting such rentals, which had already been recognized in previous cases.
In summary, homeowners’ associations have the right to prohibit short-term rentals if a sufficient majority agrees, and unanimity is not required.