Legal Updates

Apartments cannot be rented for short-term periods when the permitted use under the condominium bylaws is for “residential use only”

September 12, 2023
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A company operating a short-term apartment rental business in a condominium located in Jerusalem, despite the opposition of the apartment owners and contrary to the condominium bylaws.

The Court accepted the claim and prohibited short-term rentals of apartments in the condominium. Condominium bylaws that state that the apartments will be used "for residential purposes only", cannot be interpreted as allowing short-term rentals for business purposes. Here, about 5 apartments in the condominium were rented out for vacation purposes through platforms such as Airbnb and Booking - in a frequent manner which caused many inconveniences to the residents of the condominium. Not only is the use of the apartments for "leisure" purposes and not for "residential" purposes as allowed under the bylaws, but the use of the apartments constitutes the operation of a business in breach of the designation allowed by law for "residential use" and without any business license. Under such circumstances, a permanent injunction was issued prohibiting short-term rentals of apartments in the condominium.