Can a condo corporation stop me from renting out my unit in Ontario?
Ontario law limits how much a condominium corporation can restrict a unit owner's right to lease their unit. Under amendments to the Condominium Act, 1998, a corporation can require owners to notify it when they lease their unit and to provide the tenant with a copy of the governing documents, and declarations can and sometimes do restrict leasing significantly, including provisions that function as an effective ban in some circumstances.
Corporations can impose reasonable leasing rules — minimum lease terms (typically not less than a certain period), tenant registration requirements, and rules requiring tenants to acknowledge the condominium's rules. Short-term rental platforms like Airbnb occupy a grey zone: many declarations or by-laws prohibit rentals shorter than a defined minimum term, which effectively restricts short-term rentals, and some corporations have successfully enforced these provisions.
If you plan to buy and rent out a unit, review the declaration and rules carefully for leasing restrictions before signing an offer. If a restriction is in the declaration, it is difficult to remove and can significantly affect your investment.
Key takeaways
- Some condo declarations can function as an effective ban on leasing, even though corporations must still follow other statutory requirements like tenant notice provisions.
- Corporations can require notices, tenant documentation, and minimum lease terms.
- Short-term rental restrictions (e.g., minimum lease periods) are often enforceable.
- Read the declaration for leasing provisions before buying as an investment property.