New Condo Precedence of Sharing Services



An Ontario court has ruled that condominium owners may ban tenants from renting their units on services such as Airbnb or Expedia. After listing several properties on short-term rental websites owners of an Ottawa condo unit have been found guilty of violating the “single family use” provision in the condo’s “declaration”. In accordance to this clause the “single family use” does not embrace the operation of hotel-like operation. This recent ruling was based on the interpretation of Ontario’s Condominium Act. Furthermore, condo owners are arguing that short-term rentals are a breach of a rule introduced in the spring of 2016, which prohibits owners from renting their units for terms less than four months. After setting precedence in Ottawa, this ruling could have wider implications in other common law jurisdictions.

Yet, unit owners maintain that this rule should not be enforced retroactively, especially if they have carried out such business in the past. While this argument may hold up against implicit rules set by each condominium owner, it will not trump the principles set out in the declaration. Since this document ranks high in the hierarchy of documents that govern unit usage disputes, it will be very difficult to amend to allow for short-term rental situations.   

The phrase “single family use” implies something more long-term then simply a place to sleep or to run a hotel-like business. The term is unsuited for the concepts of check-in times and changing dirty sheets. The Ontario judge has set precedence for provinces with similar legal systems to reject commercial use of condo units. Such proceeding raises the possibility of nationwide restrictions.  


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