Municipal Regulation of Short-term Rentals

The City of Toronto is taking steps to regulate short-term rentals.  Other municipalities may not be far behind.

Short-term rentals are a growing concern in many residential communities, including residential condominiums.

The City of Toronto is proposing new regulations to control short-term rentals.  Among other things, the new regulations would

  • introduce a new land use called “short term rental”;
  • permit short-term rentals only in a host’s primary residence;
  • require licensing of companies (like Airbnb) that facilitate short-term rentals, with related licensing fees;
  • require registration of short-term rental hosts and premises, with related registration fees;
  • impose specific safety requirements for short-term rentals;
  • perhaps also introduce new taxes on short-term rentals.

It stands to reason that other municipalities may follow suit.

However, these new municipal regulations don’t change the separate rights of condominium corporations – including rights to enforce existing provisions in the corporations’ declarations or rules (prohibiting or controlling short-term rentals in the condominium) or rights to amend their declarations or pass new rules (again, prohibiting or controlling short-term rentals in the condominium).

In other words:   Although municipalities may be taking steps to regulate short-term rentals, condominium corporations will still have their own separate rights to regulate or prohibit short-term rentals in their specific communities.  Condominium corporations concerned about short-term rentals should review existing provisions in their declarations and/or rules, and may wish to consider declaration amendments and/or new rules, to regulate or prohibit short-term rentals in their condominiums.

Stay tuned to Condo Law News for more blogs about amendments to the Condominium Act and upcoming events .

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Christy Allen discusses Airbnb and Condos -Saturday morning on 580 CFRA

Listen to Christy Allen of Davidson Houle Allen speak about Airbnb and condominiums, on the June 17, 2017 Podcast on The Newsfeed with Kristy Cameron on 580 CFRA!

Find Christy’s appearance on ‘Hour 2’ of the Newsfeed on June 17, 2017 (starting at minute 22:43)

Christy talks with Kristy Cameron about the increasing presence of condominium units listed on Airbnb, particularly in anticipation of Canada Day and the market for accommodations in Ottawa.

Christy explains how condominium units being rented for nightly/short term rentals are a growing problem for condominiums, and such rentals may be in breach of a Condominium Corporation’s rules.

She discusses condominiums’ enforcement rights to deal with an owner or tenant renting for short term/nightly rental on websites like Airbnb, and why short-term rentals are significant concerns for Condominium Corporations, related to security, safety, community, responsibility for common elements, and use of amenities.

Christy also discusses why the recent steps to regulate Airbnb rentals in Toronto are relevant for Ottawa, and whether such steps may be useful here.

Stay tuned to Condo Law News for more blogs about caselaw updates related to condominiums.

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