Property experts: Apartment associations’ proposal could do more harm than good

Should an apartment association be allowed to stop owners from renting out their homes for short periods? A debate that once played out mainly between neighbors has reached the threshold of legislation, raising the question of how far restrictions can go in the name of residential peace.

The proposal comes from the Estonian Union of Apartment Associations, which wants owners in a building to have the power to prohibit short-term rentals. That would give apartment communities a direct way to respond to disputes linked to temporary tenants and the changing use of homes.

Property experts warn that the answer could create more problems than it solves. They caution against excessive regulation, while acknowledging that the difficulties associated with short-term rentals are not merely theoretical.

The central uncertainty concerns the broader housing market. If apartment owners could easily ban rentals in their building, what would happen to rents and apartment prices? The proposal could also affect small investors and the way homes are bought, rented and managed across Estonia.