Blogs Mondaq Canada Recent Decisions Support Increased Powers For Condo Boards In Restricting Commercial Activity Within Individual Units

Recent Decisions Support Increased Powers For Condo Boards In Restricting Commercial Activity Within Individual Units

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Many condominium boards have implemented a temporary ban on short-term rentals in an effort to maintain the safety of their residents during the current COVID-19 pandemic. While some may opt to reallow this somewhat controversial use of residential units, others are considering permanently prohibiting this practice in light of ongoing issues arising from short-term rental units like increased noise complaints and safety concerns.

A recent case out of Edmonton establishes a strong precedent that condominium corporations in Alberta whose existing by-laws prohibit commercial use or limit occupancy to the owner, their tenants, family or friends will not require a majority vote of unit owners to implement a such ban.

In Condominium Corporation No. 042 5177 v. Kuzio, 2020 ABQB 152, Justice R. Paul Belzil determined that changes to the condominium by-laws prohibiting short-term rentals were intra vires the Board and granted a permanent injunction. The Court held that short-term rental of units, in the absence of a lease, not only...

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