July 2016
Condo corporations are concerned about those who rent in their buildings.
Not all condo corporations embrace condo suites as rental properties. Renters may be viewed as less concerned about important issues of property ownership such as long term care of the property. They may be viewed, at times unfairly, as the cause of higher rates of vandalism.
Complicating matters is an inability to deal with problem tenants.
The Condo Act does not adequately protect condo owners from renters who may be disruptive or choose not to comply with condo rules. The Residential Tenancies Act, which governs renters, does not reflect the reality that condo buildings were not intended to serve as rental properties.
The city needs increased rental stock and sees condo buildings as part of the solution.
Nearly 30% of new condos are rented. The vacancy rate for rental accommodation, at 1.6%, explains the popularity of condos as rental properties.
Foreign investors were once thought to be the primary reason for high selling prices for condos and increased rentals in condo buildings. This is no longer the case. Canada Mortgage and Housing Corporation estimates foreign ownership to be only 2.4% of condo ownership. This suggests that high selling prices and the increased use of condos as rental properties is a domestic problem.
