Rights and Obligations of Condo Tenants: Owners’ Obligations when Leasing a Unit

One of the hot topic nowadays in the condominium industry pertains to tenants in condos, short-term leasing of units and Airbnb type of short-term rentals. In this post, and in more to follow, I will be blogging about the rights and obligations of condominium corporations, unit owners and tenants with respect to the leasing of residential units.

Pursuant to the Condominium Act, a condominium owner who leases his or her unit, or renews a lease, must within 30 days:

1. Notify the corporation that the unit is leased;
2. Provide the corporation with the tenant’s name, the owner’s address and a copy of the lease or renewal (or a summary in the prescribed form); and
3. Provide the tenant with a copy of the declaration, by-laws and rules of the corporation.

If the lease of a unit is terminated or not renewed, the owner of the unit must also notify the corporation in writing. While the onus is on the owner to notify the condominium corporation of the above, the condominium corporation also has a statutory obligation to maintain a record of the lease notices it receives.

Condominium corporations can adopt rules that regulate the leasing of units, provided that such rules

1. promote the safety, security or welfare of the owners and of the property and assets of the corporation, or
2. prevent unreasonable interference with the use and enjoyment of the common elements, the units or the assets of the corporation.

The rules must also be reasonable and consistent with the Condominium Act as well as with the corporation’s declaration and by-laws. The wording of the rules is therefore very important.

We have already blogged on the fact that condominium corporations can adopt a rule prohibiting short-term leasing of units. Condominium corporations can also, in certain circumstances, restrict the type of usage permitted in units. That being said, corporations must always be careful when they adopt rules and it is always recommended that rules be reviewed by legal counsel before adopting them. An improper rule can create a lot of difficulties when comes the time to enforce them.

Stay tune for my next post on tenants in condos which will deal with compliance issues, and in particular with the tenants’ obligation to comply with the Condominium Act and the condominium’s governing documents.