Greek court bans property rental on Airbnb

Greek court bans property rental on Airbnb

A Greek court has blocked a luxury seaside villa from being leased on a short term rental platform, in what could be a major blow for the country's booming Airbnb industry.

It is the first decision prohibiting the short term lease of a property in what lawyers say could also apply to other homes rented out in apartment blocks.

The court, in northern Greece's Thessaloniki, decided that a decision by an owner to lease a luxury home that belongs to a group of four villas in Kassandra, Halkidiki, was against the rules of the complex, reported on Monday.

The owners of the three other villas took the issue to court, complaining that the guests at the villa (that had been advertised on 15 different rental platforms) caused problems with their behaviour.

SEE ALSO: Homes put on Airbnb up 31 pct to 126,000

Among the complaints made were that the shared pool was continually taken over by visitors, who also carelessly used the BBQ area. The three villa owners also said that the guests held parties throughout the night, failing to respect those in neighbouring homes.

Apart from the ban, the court also ordered the owner to pay 4,400 euros in damages to the complex, reported.

Property owners are keeping a close eye on legal disputes affecting short term property rentals that have helped breath life into Greece's real estate market. More court decisions relating to similiar issues are likely in coming months.