Residents harmed by the proliferation of short-term tourist rentals won an important court victory. One family that had made their home in a Madrid block of flats outside the Plaza Mayor has been awarded almost €39,000 in compensation. This judicial ruling underscores the ongoing battle locals continue to have against the exploding, unregulated short-term rental sector. To date, the Spanish government has taken a tougher and tougher stance against this market.
Their home’s not just any building – it has 60 flats, of which 75% have been converted into tourist accommodations. Moreover, they reported extreme stress, anxiety, and loss of sleep due to the rowdy visitors. The simple case turned into the defining moment. It showed the extent that unregulated tourist rentals are invading the quality of life and privacy of residents.
In response, the Spanish central government has cracked down on illegal rentals, instructing Airbnb to remove more than 65,000 unauthorized listings. A recent study from the consumer and social rights ministry revealed that more than 15,200 tourist flats in Madrid lack the necessary licenses to operate legally. Madrid isn’t the only city trying to walk this line. In Barcelona, Mayor Jaume Collboni has made it a priority to end apartment rentals for tourists completely by 2028. As it stands, Barcelona has a cap of 10,101 approved short-term rental flats.
The ruling came after the family’s lawyer, Miguel Ángel Rubio, represented them in court following unsuccessful attempts to resolve the issue with the municipal authorities and rental owners. As Rubio pointed out, the family had been through the wringer with the constant harassment.
“The family have one tourist flat above them, another below them, and more tourist flats near their bedrooms,” – Miguel Ángel Rubio
From the beginning, the judge understood that the noise and commotion caused by the tourist rentals was more than just an inconvenience. He said these matters demonstrated disgusting and criminal activity.
“The constant noise, the breaking of shared fixtures, the filling of the lobby with suitcases at all hours and the presence of shopping trolleys filled with towels and other cleaning items for the multiple tourist-use flats… have been duly proven and are not isolated incidents,” – Judge
Additionally, the judge emphasized that the actions taken by the owners of these flats violated residents’ fundamental rights to personal and family privacy.
“The actions were not merely irritating but also unsanitary, indecent and even illegal.” – Judge
Rubio argued that this penalty was negligible compared to their potential earnings. It estimated that owners could make more than €150,000 in one weekend of renting their space.
“The family came to me and told me that they’d been to the police who’d come with a decibel meter and had fined the owners €16,000. But the problem is that [the companies that own these flats and others] can make more than €150,000 in rents in a single weekend, so a €16,000 fine is nothing for them. So I had to bring a case on the grounds that the family’s fundamental rights were being violated – and it succeeded.” – Miguel Ángel Rubio
As groundbreaking as the ruling was, the most interesting aspect may be the damages awarded. In doing so, it requires the shutting down of ten concrete tourist flats in the block, creating a precedent for further such cases throughout Spain.
“The family are very happy and very positive because the judge has ordered the flats to stop operating and has ordered the owners to pay them damages.” – Miguel Ángel Rubio
Escalating rents throughout Spain intensify this conflict. It’s little wonder that over the past decade, rents have increased 80%. In Spain, almost half of renters pay an outrageous 40% of their income in housing costs. This is in sharp contrast to the EU average of only 27%. In fact, a recent report from the Bank of Spain sounded alarm bells over rising rents and electricity bills harming renters.