RSS
Search

2018-05-16

Some condominium corporations are struggling to address the growing popularity of short-term rentals, Toronto condominium lawyers Armand Conant and John De Vellis write in The Lawyer’s Daily.

“They create a significant problem for condominium corporations, from increased wear and tear on common elements, increased security costs, disruption and general anxiety as residents complain that what they thought was their home has been turned into a hotel,” say Conant, head of the condominium law group with Shibley Righton LLP, and De Vellis, who also sits on the firm’s condo group.

They say it’s often a tenant — not the owner — who offers the unit for rent, adding that a veritable “cottage industry has blossomed” where people rent from unit owners on a long-term basis and then lease to others for short-term stays.

Sometimes they are featured on specialty websites but in other cases, the tenant has created their own online portal where they list "a number of units at various locations, all available for rent on a hotel-like basis," Conant and De Vellis explain. "Often the owner has no idea what is happening to their unit."

Tenants who sublet may “run afoul” of the Residential Tenancies Act, 2006, which states that a rental unit may only be sublet with the consent of the landlord, Conant and De Vellis say. It also states that they cannot charge more than they pay in rent to the owner.

“For condominium unit owners, these unlawful sublets are not just a nuisance, they may create a big financial headache,” they write.

“That’s because most condominium corporations have indemnity clauses in their declarations that make the owner responsible for all costs incurred by the condominium corporation, including legal costs, in the event the owner or the owner’s tenants breaches the condominium corporation’s declaration, bylaws or rules.”

This is an excerpt from an article that appeared on AdvocateDaily.com.

Please click here to read the rest of the story.

Name and Title
Featured
Name and Title
Featured
2018-05-16