Can a condominium restrict rentals in Ontario?

Time Posted on September 29, 2011 at 04:04 PM User Mario Deo

Restricting rentals of condo units in a building can affect individuals purchasing units in the condominium market and more specifically, the investor-owned units. However, those who plan on owning and residing in the unit may invite such restrictions because of the fear that rented units would generally have a negative effect on the community. Our firm received an inquiry regarding whether Ontario Condominiums are able to impose such restrictions on condo rentals. 

Q: I have been told by a couple of owners of rules in their Florida condos that require an owner to occupy a purchased unit for a period of 3 years before being eligible to put the unit into rental.  Is such a rule allowable in Ontario?  I further understand from these owners that there is a stated percentage of units allowed to be rental properties and no more.  Is such a rule allowable in Ontario?

A: Unfortunately the answer is no to both questions for Ontario. Our law firm has argued the leading case in the restriction of rentals in Ontario which allows for the passage of a rule by the board, which requires all leases to be a minimum of 12 months. Beyond that, the rental of units cannot be restricted except, of course, that tenant residents must comply with the same provisions as owner residents, that the landlord is responsible for any tenant transgressions, and that a copy of the lease must be provided to the corporation (see section 83 of the Condominium Act). It is the same legal philosophy that has not allowed adult only buildings in Toronto and the rest of the Ontario for that matter. I do not agree with these restrictions on condominium communities, however there is a provincial election coming up! A condominium should certainly be allowed to forbid rentals. Why not? It is their property to govern and the restriction does not hurt anyone if there is ample notice of it (which is simple to do).

Tag rentals, rules

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