Short-Term Condo Rentals Out of Control

June 2018

In some areas, particularly popular tourist areas, short-term condo rentals are out of control.

Tourists are not at fault.  They are unaware that some condo buildings have rules prohibiting short-term rentals.  They would not be aware of condo rules to protect residential condo living.

While those renting properties in contravention of condo rules and by-laws are at fault, so are condo management and directors who fail to abide by condo rules and by-laws.

Those renting condo suites for short-term use may describe their clients as visitors or guests as a way to confuse the issue and justify their actions.

Listings for short-term rentals don’t identify properties as condo buildings.  Tourists have no obligation to abide by condo rules or by-laws.  When on vacation they are likely to treat a condo suite as if it were a hotel or private house.

These visitors or guests may be vacationing tourists.  In addition to seeing the city, they may be boisterous or have late night parties.  They may spend the day lounging around a swimming pool or working out in the exercise room.

Support for tourists may include greeters and cleaners who require access to the property both before and after each short-term rental.  Garbage must be cleaned up and disposed of.  Increased wear and tear on a building requires added maintenance.

Peaceful residential living is disrupted by this commercial use of residential condo properties.  Higher costs to maintain this commercial use requires higher condo fees.

Listings for short-term condo rentals may describe the property in hotel-like terms.  They may promote recreational features such as a swimming pool, exercise room, laundry services and other available amenities.  Commercial promotion and use of amenities supported by condo fees and inconsistent with condo corporation documents is expected to be controlled.

In residential homes people need to sleep.  They may be up early to work the next morning or have other obligations.  Those on vacation have a different set of priorities.

When purchasing a property in a condo building, there is an obligation to abide by condo documents intended to protect common areas and use of residential properties.  Where condo documents do not allow for short-term rentals, this is intended protection for residential living and notice to those who intend to use a condo suite for other purposes.  This includes ensuring that condo fees are not being siphoned off to support a rental operation in violation of condo corporation rules.

Those using condo suites as illegal hotels make a decision to ignore condo rules and by-laws by which their property is governed.  Condo management and directors have an obligation to enforce their governing documents or change them.