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, but it cannot outright prohibit leasing entirely.
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
- Corporations cannot completely ban unit owners from leasing in Ontario.
- 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.