Bill 224 2002

An Act to amend the
Condominium Act, 1998
to limit the use of condominiums
by transient tenants

Preamble

Units in residential condominium buildings are increasingly being purchased for the purpose of providing furnished short-term accommodation similar to that provided by commercial hotels.

The commercial incentives for doing so are many and include the avoidance of commercial property and hotel taxes, minimizing investment and operating costs and being indirectly subsidized through the general organization of a residential condominium corporation.

The effect of transient tenancies in condominium corporations is clarified by Macdonald J. in Skyline Executive Properties Inc. v. Metropolitan Toronto Condominium Corporation No. 1280 [2001] O.J. No. 3512 (Ontario Superior Court of Justice, September 6, 2001):

The choice of location of one's private residence is one which is influenced by many discrete factors including security, privacy and maintaining the value of one's investment. It is not unreasonable for the owners to say that the recreational facilities are less inviting when they run the risk of encountering absolute strangers. Nor is it unreasonable for them to say that the transient occupants treat the facilities as if they belong to a hotel. They have no interest in the long-term upkeep, maintenance and repair. They do not know the rules and they have no vested interest as do owners and long-term residents in abiding by them.

Therefore, Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. The Condominium Act, 1998 is amended by adding the following section:

Leasing or letting for transient use

83.1 (1) No owner of a unit shall lease or otherwise let a unit or permit a unit to be subleased or otherwise sublet for transient use unless the declaration of the corporation contains express authority to permit transient use.

Term of lease

(2) Except where there is a declaration expressly authorizing transient use, the minimum term of a lease of a unit shall be one year.

Notice

(3) If a declaration expressly authorizes transient use and there is a lease for a term of less than one year, any notice required under subsection 83 (1) shall be given by the earlier of,

(a) seven days after the unit is leased or the lease is terminated, as the case may be; and

(b) the beginning of any new lease.

Definition

(4) In this section,

"transient use" means more than one short-term use or occupancy of a particular unit for a period of less than six months in any period of 12 consecutive months.

Commencement

2. This Act comes into force on the day it receives Royal Assent.

Short title

3. The short title of this Act is the Condominium Amendment Act (Transient Tenancies), 2002.

EXPLANATORY NOTE

The Bill amends the Condominium Act, 1998 to prevent owners of condominium units from leasing or otherwise letting them for transient use unless the condominium declaration provides express authority for transient use.