By David Lu
Condominiums in Lowertown are highly desired as rental units because of their proximity to so much of what Ottawa has to offer. Before renting out that unit however, condo owners would be well served to make themselves aware of their obligations under the Condominium Act and their Condominium’s governing documents.
Here are some things to keep in mind when renting out your condominium unit.
Use the new Standardized Tenancy Agreement form: All new residential tenancies commencing on or after April 30, 2018 must use a Standardized Tenancy Agreement created by the provincial government.
Notify your condo corporation: Owners who rent out their unit (or renew the lease on their unit) must provide a copy of the lease or a summary of the lease to their condo corporation. Notifying the condo corporation also ensures that the board has a record of who is living in the community. This enhances the safety of everyone in the condominium building.
Familiarize yourself with your condominium’s governing documents: Owners should request their condominium’s governing documents (declaration, by-laws, and rules) and familiarize themselves with them. Not only will that allow the owner to be more aware of what is allowed and not allowed at a condominium, a landlord is also obligated to provide these documents to the tenant.
Make sure your tenant understands the rules at your condominium: We often see disputes where a tenant has unknowingly breached a rule at a condominium because the landlord never informed them. An owner can avoid this by providing their tenant and/or potential tenants with a copy of the governing documents before signing the tenancy agreement.
Under the Condominium Act, landlords must provide a copy of their condominium’s declaration, by-laws, and rules to their tenant within 10 days of entering into a lease or renewal of a lease.
Look into Airbnb and other short-term rentals: Establish whether your condominium forbids short term rentals. Owners who do short-term rentals in contravention of their Condominium’s governing documents can be subject to legal action that could result in them paying a substantial cost award.
We have also seen instances of unit owners renting their unit out long-term, but their tenant sub-leases the unit on Airbnb without telling their landlord. Make sure to emphasize with any prospective tenant that sub-leases of any kind require the consent of the landlord.
Update your address for service: Owners who rent out their condominium must ensure that they update their mailing address, in writing, with their condo corporation. Otherwise important notices will be sent to the unit, instead of where the unit owner actually lives. If your condominium allows for the electronic delivery of notices, it may be a good idea to take advantage of it.
Check smoke alarms: A landlord is obligated to test the smoke alarms in their rental units annually, when the battery is replaced, when a change is made to the electric circuit or when a change in tenancy occurs. Some condominiums regularly test the smoke alarms in the units as part of regular maintenance. Therefore, an owner should check with their board to see if that is the case at their condominium.
By ensuring that the tenant is well informed, the unit owner will be better positioned to ensure a smooth tenancy period.
If anyone needs additional information, the Condominium Authority of Ontario is a great source of information for condo owners and tenants.
David Lu is an Associate at Davidson Houle Allen LLP, a boutique Condominium Law firm serving Eastern Ontario.