Step 2. Legal Considerations
Condo corporations often have provisions about short-term rentals which usually range from a single day to several weeks. Long-term rentals are usually for several months to a year.
Review the condo corporation’s governing documents
Review your condo corporation’s declaration, rules or by-laws to see if there are any short-term rental provisions or obligations. You can request a copy from your condo corporation using the mandatory Request for Records form.
Examples of short-term rental provisions:
- Prohibiting certain types of tenancy agreements
- Limiting which amenities short-term tenants can access
- Limiting how often owners can rent out their units.
Condo owners who rent their unit on a short-term basis are responsible for their unit’s occupants, their occupants’ guests and their behaviour in the condo building. This can also extend to any damage that a short-term occupant or their guests cause to common elements.
Notify your condo corporation if you have a short-term rental issue so they can deal with it as soon as possible because, by law, they must address violations.
A condo corporation or owner can take legal action against another condo owner, occupant or short-term tenant by filing an application with the Condominium Authority Tribunal if they are:
- causing a nuisance, annoyance or disruption
- not complying with the condo corporation’s governing documents
The Tribunal can only deal with short-term rental issues if:
- the condo corporation’s governing documents prohibit, restrict or otherwise govern short-term rentals
- the short-term rental issue is causing a nuisance, annoyance or disruption involving noise, odour, light, vibration, smoke or vapour.
The Tribunal cannot deal with disputes that involve dangerous situations which have caused or are likely to cause injury, illness or damage to a condo unit or common element.
Review municipal by-laws
Check your municipal by-laws because some municipalities prohibit short-term rentals or require owners to obtain a licence or register. The City of Toronto, for example, requires short-term rental operators to register with the city before they rent out their property for less than 28 consecutive days.