At the end of March 2023, a co-owner(1) was sentenced to $83,387 for short-term rental while the condominium building regulations prohibit renting for less than 12 months.
The co-owner, Lu Zhao, bought a condominium in 2014 in a building in Griffintown for short-term rental.
However, in August 2016, the co-owners adopted in assembly an amendment to the regulations of the building to prohibit renting a dwelling for less than 12 months. Penalties were determined at a cost of a $1,000 up to $3,000 per violation.
In April 2017, a new amendment to the regulation to specify that “the promotion of living accommodations on sites dedicated to short-term rentals, such as Airbnb, is prohibited.”
The co-owner decides to continue renting on this type of platform and will even go so far as to say that it is his tenant and not him who is renting illegally (the evidence will refute this).
The co-owner even passed “his” tenants through the neighbouring building in order to hide the rentals.
The syndicate of co-ownership has decided to mount a file to stop these illegal rentals.
With the help of the security guard, accumulation of photos, reports,... the syndicate has put together a case. In 2019, the syndicate mandated a bailiff who booked Mrs. Zhao’s dwelling pretending to be a tourist in order to accumulate sufficient evidence against the co-owner.
In the end, 17 notices of violation of building regulations totalling $49,000 were issued.
Finally, the Superior Court of Québec ruled in favour of the condominium syndicate’s claims and ordered Lu Zhao to stop renting his dwelling for periods of less than 12 consecutive months. According to this decision, the co-owner must also remit $49,000 to the syndicate for unpaid violations, as well as $34,387 in legal costs, for a total of $83,387.
Verifications to be done
So, if you are a co-owner, you must, first, read the deed of co-ownership of the building as well as the regulations in force to check if short-term rentals are allowed.
If a ban is in effect and you decide to rent anyway, you should know that depending on the circumstances and buildings there may be consequences.
The co-owner, Lu Zhao, bought a condominium in 2014 in a building in Griffintown for short-term rental.
However, in August 2016, the co-owners adopted in assembly an amendment to the regulations of the building to prohibit renting a dwelling for less than 12 months. Penalties were determined at a cost of a $1,000 up to $3,000 per violation.
In April 2017, a new amendment to the regulation to specify that “the promotion of living accommodations on sites dedicated to short-term rentals, such as Airbnb, is prohibited.”
The co-owner decides to continue renting on this type of platform and will even go so far as to say that it is his tenant and not him who is renting illegally (the evidence will refute this).
The co-owner even passed “his” tenants through the neighbouring building in order to hide the rentals.
The syndicate of co-ownership has decided to mount a file to stop these illegal rentals.
With the help of the security guard, accumulation of photos, reports,... the syndicate has put together a case. In 2019, the syndicate mandated a bailiff who booked Mrs. Zhao’s dwelling pretending to be a tourist in order to accumulate sufficient evidence against the co-owner.
In the end, 17 notices of violation of building regulations totalling $49,000 were issued.
Finally, the Superior Court of Québec ruled in favour of the condominium syndicate’s claims and ordered Lu Zhao to stop renting his dwelling for periods of less than 12 consecutive months. According to this decision, the co-owner must also remit $49,000 to the syndicate for unpaid violations, as well as $34,387 in legal costs, for a total of $83,387.
Verifications to be done
So, if you are a co-owner, you must, first, read the deed of co-ownership of the building as well as the regulations in force to check if short-term rentals are allowed.
If a ban is in effect and you decide to rent anyway, you should know that depending on the circumstances and buildings there may be consequences.