Condo corporation rules, short-term rental restrictions, and your compliance obligations
Condo landlords operate under two layers of authority simultaneously: provincial landlord-tenant law and the condo corporation's declaration, bylaws, and rules. Both apply. Violating either has real consequences. Here's what you need to know.
Condo corporations can restrict and regulate: short-term rentals, pets, parking use, move-in and move-out times and procedures, amenity use, noise, and number of occupants. These rules bind you as the owner and they bind your tenants. You are responsible for your tenant's compliance with condo rules — you cannot disclaim responsibility simply because you weren't present. Violations by your tenant can result in fines to you, legal action from the corporation, and potentially mandatory compliance orders.
The majority of Toronto and Vancouver condo corporations now explicitly prohibit rentals shorter than 28 or 30 days. Municipal licensing requirements are tightening further — in Toronto, only your principal residence can be rented short-term. As a non-resident investor-landlord, short-term rental platforms are effectively not a viable strategy in most condo buildings built in the last decade. Check the declaration and rules before purchasing any condo with short-term rental income in mind — many declarations simply prohibit it.
Include the full set of condo rules and the condo declaration as a schedule to your lease — tenants must explicitly agree to comply. Notify the condo corporation of your tenant's contact information as required by the Condominium Act. Respond promptly to any complaints from the property manager about your tenant's behaviour. You can be fined for your tenant's violations of condo rules — build this risk into your investment assessment. Repeated rule violations by a tenant may constitute grounds for eviction based on interference with others' reasonable enjoyment.
Before purchasing any condo as a rental investment, have a lawyer review the status certificate: Is the reserve fund adequately funded relative to the reserve fund study? Are there pending or anticipated special assessments? What do the rules say explicitly about rentals, short-term use, and rental caps? Is there a maximum percentage of units that can be rented (some corporations cap at 20–30%)? A rental cap that has been reached means you legally cannot rent the unit — a catastrophic discovery after purchase.
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Read All ReviewsThese guides are written for Canadian buyers, sellers, renters, and landlords and are kept current for 2026. They are for informational purposes only — not legal, tax, or financial advice. Rules vary by province; confirm details with your lawyer, accountant, or licensed real estate professional before making decisions.