Can the condominium owners’ association ban letting to holiday guests?

What does the law say?

As a condominium owner, you have the exclusive right to use your flat. You are free to manage and use your rooms, but you must not make it harder for others to exercise the same right or damage the common parts (Art. 712a CC).

The owners’ association can adopt regulations on administration and use. This requires a majority of the owners who also hold more than half of the value shares, unless the deed of establishment or regulations require more (Art. 712g para. 3 CC). The deed of establishment may also state that the other owners can object to letting within 14 days. An objection is invalid without good cause (Art. 712c paras. 2 and 3 CC).

Neighbour law also applies: no one may disturb their neighbours through excessive noise or other nuisance (Art. 684 CC).

What did the Federal Supreme Court decide?

In 2015, the owners’ association of a residential complex in Nidwalden with 26 flats decided to ban letting by the day, week or month, allowing only long-term letting. The regulations required a two-thirds majority for amendments, and the resolution achieved it. An owner whose daughter advertised the flat on Airbnb challenged the resolution and lost at every level of court (Federal Supreme Court 5A_436/2018 of 4 April 2019).

• According to the court, short-term letting with cleaning and laundry is commercial accommodation, not “residential use”. The existing regulations therefore did not allow it.
• The owners’ association can set its own rules on use. These are limited by Arts 2 and 27 CC, Arts 19 et seq. CO and the nature of condominium ownership.
• A general ban on letting is usually incompatible with federal law because it would effectively force owners to use the property themselves.

This ruling concerns a specific case. Whether a ban stands in your complex depends on the exact wording of your regulations, the quorum and the circumstances. We have not looked for later Federal Supreme Court rulings on this issue.

What does this mean for you?

1. Get a copy of the deed of establishment, regulations and minutes of recent meetings, for example from the property manager or the land register, where the regulations are recorded (Art. 712g para. 3 CC).
2. Look for terms such as “residential use”, “commercial use”, “letting” and “objection”, and check the quorum required for amendments.
3. If they say nothing about it, speak to the property manager and your neighbours before your first guest arrives. An open conversation often prevents a motion being brought at a meeting.
4. Give your guests house rules covering quiet hours, rubbish, the laundry room and parking.
5. Check what insurance policies the owners’ association has taken out. The meeting is responsible for insuring the building against fire and other risks and taking out the usual liability insurance policies (Art. 712m para. 1 no. 6 CC).

If the meeting votes on a ban

• Check whether the required quorum is reached. In the Nidwalden case, the regulations required a two-thirds majority.
• Suggest less restrictive rules, such as a minimum stay, a maximum number of guests, house rules or a local contact person.
• You can challenge a resolution that breaches the law or the articles of association in court within one month (Art. 75 CC, via Art. 712m para. 2 CC). Get advice in good time.

How do the rules differ between cantons?

Condominium ownership is governed by federal law and applies in the same way everywhere. The additional rules differ by canton: in Valais, you register as a landlord with the municipality; in the canton of Bern, a change-of-use permit may be required in larger apartment buildings; and in Geneva and Vaud, the 90-day rule applies to entire flats. In municipalities with more than 20 per cent second homes, also check the Second Homes Act.

A short summary, not legal advice. The linked official source and your municipality’s rules prevail.