Note: The rules and law may have changed since this article was first published. It is provided for archival purposes but you should consult with your lawyer for the current state of the law
In order to ensure that all unit holders interests in a condominium corporation are protected when a unit holder decides to rent their condominium unit, the Condominium Property Act provides rules with respect to renting condominium units. The Act provides guidelines for the owner, renter and condominium corporation.
Owner’s Duty to Give Notice:
The Act provides that before an owner rents their unit they must give written notice of their intention to rent to the condominium corporation.
The Act further provides that the owner must then give the condominium corporation written notice of the name of the tenant within 20 days of the commencement of the tenancy and written notice of the termination of the tenancy within 20 days of the end of the tenancy.
To ensure the reasonable respect and care of tenants, the Act provides 2 default conditions of tenancy which exist despite the lack of or anything to the contrary in the tenancy agreement. Firstly, the tenants shall not cause damage to the real or personal property of the corporation or the common property or the common facilities and secondly, the tenant shall not contravene the bylaws of the corporation.
There are different rights that a condominium corporation possesses with respect to tenants and protecting their unit holders interests. The Act provides 3 important classes of rights but it further provides that the corporation cannot exercise those rights unless their bylaws either specifically or generally provide for same.
Firstly, a corporation can require the owner of a unit who rents the unit to pay to, and maintain with, the corporation a deposit in an amount that does not exceed the maximum amount of a security deposit pursuant to The Residential Tenancies Act. This deposit then can be used by the corporation for the maintenance, repair or replacement of any real or personal property of the corporation or any of the common property or common facilities or any of the common property for which an owner is permitted to exercise exclusive use over, that is damaged, destroyed, lost or removed by a tenant.
If a corporation does collect such a deposit, there are guidelines with respect to the use. Within 20 days of receiving notice of the termination of tenancy the corporation must either:
(a) return the deposit to the owner; or
(b) if the corporation has used the deposit they must deliver a statement of account to the owner showing the purpose, amount used and the balance; or
(c) if the corporation is entitled to use the deposit but has not yet determined the amount they will use they must provide the owner with an estimated statement of account outlining the amount it intends to use and then within 60 days provide a final statement showing the amount used for what purpose and the final balance.
Secondly, a corporation may apply to the Rentalsman pursuant to The Residential Tenancies Act for an order for possession of a rented unit where the tenant causes excessive damage to the real or personal property of the corporation or to the common property or common facilities, causes excessive noise, or is a danger to, or intimidates, persons who reside in other units.
Thirdly, the corporation has rights with respect to collecting arrears owed by the owner. Where an owner is in arrears with respect to payments for the common fund or reserve fund respecting a unit that is occupied by a tenant or where the condominium corporation has obtained judgment against an owner to pay a certain sum, the corporation may give written notice to the tenant to pay the rent otherwise payable to the owner to the corporation until the arrears or judgment are satisfied.
A review of your bylaws is suggested to ensure that these rights are available to your condominium corporation.