Apartment owners in Czechia can still rent rooms on Airbnb, new court ruling says

Owners of individual apartments in a building are legally allowed to rent out their property for the short term, for instance on the rental platform Airbnb, the Czech Supreme Court (NS) confirmed Wednesday.

The ruling means that the homeowners' association of a building is unable to prevent a purchased property from being rented out. This comes following a legal dispute regarding an apartment in a building in Prague 1, which was advertised on Airbnb and similar short-term rental platforms.

The Prague 1 case had been referred to the Prague Municipal Court in 2022 – the court initially took the side of the homeowners’ association, saying that if one apartment owner’s actions negatively affected others in the building, then the association had a right to intervene. The Prague court also pointed out that short-term rentals via websites like Airbnb risk violating tax regulations.

The flat owner took the case to the High Court in Prague, which ruled in the individual’s favor. This decision has now been upheld by the NS.

Czechia’s highest court said that, while homeowners’ association cannot prevent purchased apartments from being rented out short term, it can force the sale of the unit if the owner “violates his/her obligations in a way that substantially limits the rights of other owners,” as proven through evidence from fellow neighbors.

Many have blamed platforms such as Airbnb for contributing to the lack of apartment availability in Prague, high rent costs, and enabling raucous tourists. The NS ruling means that apartment owners will be free to lease out their property, which will help continue the usage of Airbnb-style platforms in the country.