Association President’s Short-Term Airbnb Rentals of Condominium Challenged in Court

This case involved a dispute between a condominium owners association (“Association”) and an individual condominium owner (“Owner”), who was the former president of Association, over Owner’s right to operate her condominium unit as a short-term rental on the Airbnb website.

When Owner began operating her condominium unit as a short-term rental on the Airbnb website, she was serving as the president of Association. The other directors on the board opposed her short-term rental operation and caused the Association’s attorney to notify Owner that the operation of her unit as a short-term rental on Airbnb was in violation of Association’s governing documents. When Owner refused to stop the operation, the board voted to remove her as the president and voted to place Association on the City of Chicago’s “Prohibited Buildings List,” which bans Airbnb activity on the designated property on grounds that Association’s governing documents prohibit short-term rentals. In response, Owner filed suit against Association seeking a declaratory judgment that Association’s governing documents did not prohibit short-term rentals.

The trial court granted a motion to dismiss filed by Association after finding: