Business travellers and vacationers have a need for short term lodging. Toronto, being a top travel destination, has its share of hotels for this purpose.
Increasingly, condos are being promoted as a less costly alternative for short term use ranging from days to weeks. Services such as Airbnb make it easy to offer any residential location such as a condo suite for short term rental at a cost less than that of a hotel.
Residential condos are not intended as hotels. There are safety and security concerns, added liability and costs that affect all residents. There can also be discomfort among residents when unrecognized individuals are seen in hallways and common areas.
While there is no law against this practice, most condominiums do have rules that prohibit short-term rentals. Security is often cited as a primary concern. Short-term renters are unknown to residents and management, not subject to condo rules and can cause damage for which other condo owners are responsible. These individuals can be a disruptive influence on a residential community.
Running a hotel out of a personal space is a business. Canada Revenue Agency taxes such income and it may be the responsibility of the condominium corporation to collect HST on condo fees for suites used as short term rental properties. Also, residency tenancy law restricts the amount that can be charged. Finally, common areas such as exercise areas are not commercial operations intended as amenities for those using a residential property as a source of income.