The Puerto Rico Court of Appeals has confirmed a ruling regarding rental practices at the Condominio Diplomat, affecting residents and property owners. The court upheld a decision by the Department of Consumer Affairs (DACo) that required the condominium's Board of Directors to enforce restrictions against short-term rentals. This ruling emphasizes the importance of adhering to condominium regulations and the responsibilities of governing bodies.

The case, Juana I. Semidey Matos v. Consejo De Titulares Y/O Junta De Directores Del Cond. Diplomat v. Inmobiliaria Maho, LLC (Docket No. TA2026RA00448), centers on a complaint filed by resident Juana I. Semidey Matos against the condominium's Board of Directors and Inmobiliaria Maho, LLC. The complaint alleged that some property owners were renting their units for periods shorter than the 30 days mandated by the condominium's governing documents. This practice, according to Semidey Matos, led to various issues, including plumbing problems and safety concerns.

Background

The dispute began on November 18, 2025, when Semidey Matos filed a complaint under the Puerto Rico Condominium Law, claiming that the Board of Directors had been negligent in enforcing the rental restrictions outlined in the condominium's governing documents. She argued that the Board allowed short-term rentals, which violated the rules and created adverse conditions for residents.

In response, the Board of Directors denied the allegations, asserting that the governing documents did not explicitly prohibit short-term rentals. They maintained that the condominium's regulations did establish a minimum rental term of 30 days. Inmobiliaria Maho, a corporate entity owning property in the condominium, intervened in the case, arguing that the Board lacked legal standing to be sued as a separate entity.

The Ruling

On June 5, 2026, DACo issued a summary ruling declaring that the Board of Directors must take action to enforce the rental restrictions. The ruling stated, "the Board of Directors must act diligently in response to the complaint by Semidey Matos and take necessary measures to ensure compliance with the law, the governing documents, and the condominium regulations." The court emphasized the Board's responsibility to uphold the rules governing the condominium.

Both the Board of Directors and Inmobiliaria Maho appealed the decision, arguing that DACo acted prematurely and without allowing them to present their case adequately. They contended that the summary ruling violated their due process rights by not allowing for a hearing or the opportunity to contest the evidence presented.

Impact

The court's decision reinforces the authority of condominium boards to enforce their regulations and highlights the legal obligations of property owners within such communities. This ruling is significant for residents in Puerto Rico, as it clarifies the enforcement of rental restrictions and the responsibilities of governing bodies in maintaining community standards.

This ruling may set a precedent for future cases involving condominium regulations and short-term rentals, emphasizing the need for compliance with established rules. Property owners and boards across Puerto Rico will need to review and potentially adjust their practices to align with this legal interpretation.

What's Next

While the court has upheld the DACo's ruling, the Board of Directors and Inmobiliaria Maho may still explore further legal options, including potential appeals. However, details regarding any pending related cases were not available in the court filing.