Short-stay rentals for expats, international employees and temporary residents remain highly popular. At the same time, the legal framework governing this type of rental has become increasingly strict. What used to be a grey area between tourist rentals, short-stay accommodation and regular residential letting has, by 2026, been sharply defined by recent legislation and case law.
For apartment owners and homeowners’ associations (HOAs), this has led to a growing number of disputes. Owners often see short-stay rentals as an attractive source of income, while HOAs are confronted with nuisance, increased wear and tear, and insurance risks. The key questions therefore remain the same: can an HOA prohibit short-stay rentals, and under what conditions? And what do the latest legal developments mean in practice?
What is considered “short-stay” in 2026?
One of the most important developments is the clarification of the concept of short-stay. Whereas temporary rentals of several months were previously often presented as a form of “regular residence”, that interpretation has largely been abandoned.
In 2026, legislation and case law broadly distinguish between three categories. Tourist or holiday rentals usually concern very short periods, often up to a maximum of thirty days, typically to changing guests. Short-stay refers to temporary rentals for a limited period, usually between one and six months, to specific target groups such as expats, students or temporary workers. Regular residential letting concerns long-term occupation with full tenant protection and a genuinely durable residential character.
This distinction is crucial, because short-stay rentals are increasingly classified as a hybrid form with a commercial nature, rather than as normal residential use.
The deed of division: the legal foundation within the HOA
In virtually every dispute regarding short-stay rentals in apartment buildings, one document is decisive: the deed of division. This deed forms the private-law foundation of the HOA and has a higher legal status than the house rules or resolutions of the general meeting.
Most deeds of division contain a destination clause stating, for example, that a private unit is “designated for use as a dwelling”. The key legal question is how the concept of “use as a dwelling” should be interpreted. The Dutch Supreme Court and several Courts of Appeal have provided important guidance on this issue in recent years.
The consistent line in case law is that “use as a dwelling” generally implies a durable character. This means that the occupant has their principal residence in the apartment and that the use shows a degree of permanence. Where an apartment is structurally and repeatedly rented out to different occupants, particularly at commercial rates and with additional services, courts increasingly qualify this as business-like exploitation. In such cases, the use is no longer considered residential, but rather comparable to operating a hotel or boarding house.
Prohibitions on commercial exploitation and model regulations
In addition to the destination clause, many deeds of division or applicable model regulations contain provisions prohibiting commercial exploitation. The Model Regulations 2017, in particular, play a significant role in this context. When assessing compliance, courts look not only at the wording of the regulations, but also at how the rental is actually carried out in practice.
Relevant factors include the frequency of tenant turnover, the extent to which additional services are offered, such as cleaning or linen services, and the way the property is marketed. The more the rental resembles professional exploitation, the more likely it is to be deemed incompatible with a residential designation.
VAT increase and the commercial nature of short-stay rentals
A development that carries additional weight in 2026 is the increase of the VAT rate on short-stay rentals to 21 per cent. This fiscal change is more than a simple cost increase for landlords. It reinforces the legislator’s view that short-stay rentals constitute a commercial service rather than ordinary residential letting.
In disputes between HOAs and apartment owners, this VAT qualification is increasingly used to support the argument that short-stay does not qualify as normal residential use. Although tax law and civil law are formally separate, their classifications increasingly align in practice.
Fines and enforcement within the HOA
Many HOAs seek to enforce compliance with the deed of division through penalty clauses in the house rules. A key legal point in this context is that house rules may not introduce new prohibitions that do not already have a basis in the deed of division.
A fine for short-stay rentals is only valid if the deed of division or the applicable model regulations already contain a prohibition on commercial use or use contrary to the residential designation. The house rules may further specify such a prohibition, but may not extend it. This distinction is crucial and frequently forms the core of legal proceedings.
The role of the municipality versus the role of the HOA
A common misconception is that a municipal permit for short-stay or tourist rentals automatically entitles an owner to rent out the apartment. This is incorrect. Municipalities assess compliance with public law, in particular housing legislation and local by-laws. HOAs, by contrast, operate within the realm of private law, primarily by reference to the deed of division and the regulations.
These systems exist alongside one another. It is therefore entirely possible for an owner to hold all required municipal permits, yet still be ordered by a court, at the request of the HOA, to cease short-stay rentals and pay substantial penalties. In practice, this distinction often comes as an unpleasant surprise to owners.
Risks for apartment owners
Renting out an apartment in breach of HOA rules entails significant risks. HOAs increasingly initiate summary proceedings to obtain an immediate prohibition on short-stay rentals, often subject to substantial daily penalty payments.
In exceptional cases, particularly where there is serious and persistent nuisance, an owner may even be temporarily deprived of the right to use their own apartment. In addition, insurance issues play an increasingly important role. Many building insurance policies held by HOAs exclude coverage for damage arising from commercial exploitation. In the event of fire or water damage, this may have far-reaching financial consequences, not only for the landlord, but potentially for the HOA as a whole.
Conclusion
By 2026, the scope for short-stay rentals within an HOA structure has become increasingly limited. Legislation, case law and fiscal developments all point in the same direction: short-stay is increasingly regarded as a form of commercial exploitation that is not readily compatible with a residential designation.
For HOAs, it is essential to keep their regulations up to date, to establish clear enforcement policies and to act consistently. For apartment owners, investing in short-stay rentals without prior legal assessment carries considerable risk.
Are you involved in a dispute regarding short-stay rentals within your HOA, or would you like to assess in advance whether short-stay is permitted in your building? Law & More advises both HOAs and apartment owners on their rights, obligations and strategic options.
FAQ
Can an HOA completely prohibit short-stay rentals?
Yes, an HOA can effectively prohibit short-stay rentals if this follows from the deed of division. If the deed designates apartments for residential use only and prohibits commercial exploitation, courts increasingly accept that repeated short-stay rentals fall outside permitted residential use.
Does short-stay always qualify as commercial use?
Not automatically, but in practice it often does. Courts assess factors such as the frequency of tenant turnover, the duration of stays, the target group and whether additional services are offered. The more the rental resembles professional accommodation, the more likely it is considered commercial exploitation.
What if the tenant stays for several months?
A longer stay does not automatically mean residential use. Even rentals of several months can qualify as short-stay if the apartment is repeatedly rented to different occupants without a durable residential character.
Can house rules alone ban short-stay rentals?
No. House rules may not introduce new restrictions that are not already anchored in the deed of division or applicable model regulations. They may only further specify existing prohibitions.
Does a municipal permit override HOA restrictions?
No. A municipal permit only concerns public law compliance. HOA restrictions are based on private law and remain fully enforceable, even if all municipal permits are in place.
Can an HOA impose fines for short-stay rentals?
Yes, provided the fine is based on a valid prohibition in the deed of division or regulations. Courts closely scrutinise whether fines are proportionate and properly grounded.
What risks do owners face if they continue short-stay rentals despite objections?
Owners may face court injunctions, substantial penalty payments, temporary loss of use of the apartment and serious insurance coverage issues.
Is short-stay likely to become easier again in the future?
Current legislative, judicial and fiscal developments point in the opposite direction. Short-stay within apartment buildings is expected to face even stricter scrutiny rather than relaxation.
