By Liz McKenzie
A ruling in December 2016 by Justice Robert Beaudoin of the Ontario Superior Court clarified a variety of issues around short-term rentals and non-residential uses in condominiums.
Condominium corporations have the authority to ban unit owners from renting their properties on short-term leases. While this authority has been challenged in the past and the challenges overturned, this judgement strengthens corporations’ authority.
A Condo Declaration is a document that sets out how units can be used. In residential condos, single-family use is usually the permitted occupancy. In his judgment, Justice Beaudoin wrote that single-family use “cannot be interpreted to include one’s operation of a hotel-like business, with units being offered to complete strangers on the internet, on a repeated basis, for durations as short as a single night.”
Airbnb rentals can be a lucrative business. So lucrative in fact, that buyers purchase condo units specifically for short-term rentals. They may acquire hundreds of units and manage them as a quasi-hotel business. Some offer the use of common elements such as the garage, the pool and meeting rooms, compromising security and safety of legitimate residents and owners.
Condo owners have lots of stories about the problems with short-term rentals: increased noise, garbage, partying, traffic and breaking condo rules. These activities cause inconvenience to neighbours and lead to increased costs to condo boards for legal intervention to shut down the established short-term rentals.
Owners at one condominium experienced unbearable noise and excessive garbage at a newly purchased unit. After many sleepless nights and ignored warnings, they did some sleuthing and found the unit advertised on an Airbnb site, offering accommodation for eight people. In frustration, they taped the following notice to the door:
“If you have rented an apartment or room here at xxx Condominium, please be advised that you are in contravention of the Rules of this Condominium. No short-term rentals are permitted within this development. The owner of this unit is aware of the Rules.
He has been advised by our legal counsel that advertising and renting to you is a violation of the Condominium Rules. He should not have rented this unit to you.
The Condominium Rules are a legally binding document under the Condominium Act of Ontario.
Please be advised that you could be called to appear in a court of law to provide witness to any illegal activities that might be on going here.
Under the circumstances you may want to consider staying elsewhere.
Should you have any questions regarding these matters please contact:
Curious to know if your neighbours are offering short-term rentals? Start scanning the booking pages on sites such as Kayak.com, Airbnb, Expedia.ca etc. You might turn up some surprises.
Justice Beaudoin’s ruling is found at https://www.scribd.com/document/333751583/Ottawa-Carleton-Condo-Corp-961-v-Menzies#from_embed
Financial Post article
http://business.financialpost.com/legal-post/ontario-court-ruling-says-condo-buildings-can-ban-sharing-services-such-as-airbnb
By Liz McKenzie
A ruling in December 2016 by Justice Robert Beaudoin of the Ontario Superior Court clarified a variety of issues around short-term rentals and non-residential uses in condominiums.
Condominium corporations have the authority to ban unit owners from renting their properties on short-term leases. While this authority has been challenged in the past and the challenges overturned, this judgement strengthens corporations’ authority.
A Condo Declaration is a document that sets out how units can be used. In residential condos, single-family use is usually the permitted occupancy. In his judgment, Justice Beaudoin wrote that single-family use “cannot be interpreted to include one’s operation of a hotel-like business, with units being offered to complete strangers on the internet, on a repeated basis, for durations as short as a single night.”
Airbnb rentals can be a lucrative business. So lucrative in fact, that buyers purchase condo units specifically for short-term rentals. They may acquire hundreds of units and manage them as a quasi-hotel business. Some offer the use of common elements such as the garage, the pool and meeting rooms, compromising security and safety of legitimate residents and owners.
Condo owners have lots of stories about the problems with short-term rentals: increased noise, garbage, partying, traffic and breaking condo rules. These activities cause inconvenience to neighbours and lead to increased costs to condo boards for legal intervention to shut down the established short-term rentals.
Owners at one condominium experienced unbearable noise and excessive garbage at a newly purchased unit. After many sleepless nights and ignored warnings, they did some sleuthing and found the unit advertised on an Airbnb site, offering accommodation for eight people. In frustration, they taped the following notice to the door:
“If you have rented an apartment or room here at xxx Condominium, please be advised that you are in contravention of the Rules of this Condominium. No short-term rentals are permitted within this development. The owner of this unit is aware of the Rules.
He has been advised by our legal counsel that advertising and renting to you is a violation of the Condominium Rules. He should not have rented this unit to you.
The Condominium Rules are a legally binding document under the Condominium Act of Ontario.
Please be advised that you could be called to appear in a court of law to provide witness to any illegal activities that might be on going here.
Under the circumstances you may want to consider staying elsewhere.
Should you have any questions regarding these matters please contact:
Curious to know if your neighbours are offering short-term rentals? Start scanning the booking pages on sites such as Kayak.com, Airbnb, Expedia.ca etc. You might turn up some surprises.
Justice Beaudoin’s ruling is found at https://www.scribd.com/document/333751583/Ottawa-Carleton-Condo-Corp-961-v-Menzies#from_embed
Financial Post article
http://business.financialpost.com/legal-post/ontario-court-ruling-says-condo-buildings-can-ban-sharing-services-such-as-airbnb