I get a lot of questions about condominium rentals.
A client looking to buy his first rental condo told me that the condominium corporation had a bylaw prohibiting rentals. If he couldn't rent out his unit, he wasn't going to buy.
Can condominium corporations prohibit rentals?
The short answer is "NO".
The Condominium Property Act discusses the corporation's powers around restricting renting of property. Between the Act and precedents, condominium corporations can't restrict normal rental situations.
Regarding Airbnb rentals, a 2020 decision out of Alberta's Court of Queen's Bench found that running an Airbnb is similar to operating a hotel. Airbnb guests are not renters; they are comparable to hotel guests.
If your buyer client is planning on operating an Airbnb they must check current condo bylaws. And, they have to realize what is allowed now could be prohibited by future bylaw change.
Conclusion
Long-term condominium rentals are allowed.
Short-term rentals like Airbnb can be restricted by condominium bylaws.
My client purchased the unit and is very happy. He says it is the first of what will be many investment properties!
Cheers,
Barry
