Imagine this: it’s Sunday morning. You’re sipping coffee on your balcony, enjoying the peace—until you hear a suitcase rolling down the hallway… again. A couple you’ve never seen before is checking into the unit next door, and by the sound of it, they’ve already discovered the Bluetooth speaker.
Welcome to life in a condo that allows short-term rentals.
Platforms like Airbnb and Vrbo have transformed how people travel—and how some unit owners make money. But for many condo boards and residents, short-term rentals (STRs) bring a wave of disruption: revolving-door guests, late-night noise, security concerns, and a distinct hotel vibe in what’s supposed to be a private residential community.
Can Your Condo Ban Short-Term Rentals?
Short answer: yes, but not overnight.
In Ontario, condo corporations can create rules to prohibit or restrict short-term rentals. The key is setting a minimum lease term—usually six months or a year. Since most STR bookings are for just a few days or weeks, this kind of rule effectively keeps them out.
But here’s the catch: the rule has to be “reasonable” and passed properly. That means the board adopts it, circulates it to owners, and gives them 30 days to requisition a meeting to vote on the proposed rule. In order to requisition the meeting, at least 15% of the owners must sign the requisition. Additionally, the requisition meeting must have quorum and a majority of the units present must vote down the rule – otherwise the rule becomes effective.
If your community wants to draw the line between long-term residents and short-term guests, this is a powerful tool.
But What About the Declaration?
Some declarations already restrict STRs. Others just say units can be used for “residential purposes,” which sounds helpful until you realize it’s legally fuzzy. Is a weekend guest using the unit “residentially”? Maybe. Maybe not.
Fortunately, Ontario courts have tended to side with corporations that interpret “residential use” as something longer-term and not business-like. In other words, your building wasn’t meant to be a vacation rental hub, and the courts get that. Still, a clear, updated rule will save your board from unnecessary battles.
Why Do STRs Create So Many Issues?
Let’s start with the obvious: unfamiliar faces constantly coming and going can make other residents feel uneasy. There may be security risks if guests access common areas or lose keys. And then there’s noise—parties, music, and late-night door slamming don’t exactly scream “quiet enjoyment.”
But there are also less obvious risks. If a guest damages the common elements (say, backs into a garage door), who pays? Your insurance might not cover incidents involving non-residents. And if the guest gets injured on the property, things can get even more complicated.
Plus, enforcement is tough. You can’t exactly recover costs or damages from someone who’s already checked out and flown home. It puts the onus on the owner, who might be hard to track down if they’re hands-off investors.
If You Do Allow STRs…
Some condo communities choose to embrace short-term rentals. If that’s the plan, great—but do it smartly.
- Adopt rules about guest behavior, maximum stays, noise, and liability.
- Require owners to register short-term rental activity with the board or manager.
- Make sure your insurance policy covers the unique risks STRs bring.
Transparency, structure, and accountability are key.
If You Want to Ban STRs…
Provided your declaration allows it, start with a rule that sets a minimum lease term, and make sure it’s properly passed. Consider an amendment to the declaration if you want the restriction to have extra weight—especially if you’re dealing with a persistent problem.
Keep an eye on listings. If an owner is violating the rules, screenshots from Airbnb or Vrbo can be strong evidence. But act quickly—listings disappear fast.
The Bottom Line
Short-term rentals can be lucrative for owners, but they can also destabilize a condo community. Whether your corporation wants to allow them, restrict them, or ban them outright, the key is clear communication, strong governance, and good legal advice.
