Yes, a condo corporation in Ontario can restrict or place conditions on your ability to rent out your unit. These restrictions can appear in the corporation's declaration, bylaws, or rules, and they are legally enforceable under the Condominium Act, 1998.
The declaration is the most powerful of the three governing documents. Section 7(4)(b) of the Condominium Act permits a declaration to include conditions or restrictions on the occupation, leasing, and use of units. Some declarations limit units to 'single family dwelling' use, which Ontario courts have interpreted as prohibiting repeated short-term, hotel-style leasing. Others set minimum lease terms, such as six months or one year, or cap the percentage of units in a building that can be rented at any given time. Because the declaration is the foundational document of the condo corporation, changing it requires the written consent of at least 80 percent of the unit owners.
A condo board can also pass rules under Section 58 of the Act to restrict rentals. Rules must promote the safety, security, or welfare of owners and prevent unreasonable interference with the use and enjoyment of units and common elements. Courts in Ontario have confirmed that boards can use this authority to ban short-term rentals even where the declaration is silent on the issue. The bar for passing a new rule is lower than amending the declaration. A rule takes effect 30 days after owners are notified, unless a majority of owners present at a requisitioned meeting vote against it.
If you are renting out your condo, Section 83 of the Condominium Act requires you to notify the corporation in writing within 10 days of signing a lease. You must provide the tenant's name, your address, and either a copy of the lease or a summary using the prescribed form. You are also required to give your tenant a copy of the declaration, bylaws, and rules. Your tenant is bound by those governing documents, and you as the owner are responsible for ensuring their compliance.
For buyers planning to use a Toronto condo as a rental property, reviewing the status certificate before purchasing is essential. It will contain the declaration, rules, and bylaws so you can identify any rental restrictions before you commit. What Is a Status Certificate and Why Does It Matter When Buying a Condo?
