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

• Published date: 11 June 2020
• Author: Erina Sato and Jennifer J. Biernaskie
• Subject Matter: Real Estate and Construction, Real Estate, Landlord & Tenant - Leases
• Law Firm: McLennan Ross LLP

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...