Certain co-owners may decide to rent their condominium, but there are important points to consider.
For the co-owner, the right to rent his or her condominium is an integral part of his right of ownership: he may choose to live there, or to rent it in order to derive rental income from it. Unless otherwise specified in the lease, the tenant will have the use and enjoyment of the co-owner's entire frection, including the additional rights (example: the use of the swimming pool, the terrace, the parking space of the co-owner), and not only the private portion of the dwelling.
Unless justified by the destination of the building, the majority of the declarations of co-ownership indicate clearly the right of the co-owner to rent his fraction.
The co-owner must be aware that a tenant could be motivated to rent a dwelling located in a co-ownership because of the quality of the building, its surrounding and other facilities, rather than a dwelling located in a multi-unit rental building. On the other hand, it is important to be aware that a tenant may have a conception of life in co-ownership which differs from that of the co-owners who live in the building. This is why it is important to make the tenants aware of the rules governing usage of the building in general, and of the private portion they have rented in particular. Some examples are the specific rules relating to domestic animals, the use of the parking spaces, and cooking on the balconies and terraces.
The declaration of co-ownership of the building is binding on tenants rent one of the fractions and certain provisions of the Civil code of Quebec take into account the presence of the tenant in the co-ownership's building (1). The building bylaws are binding on the tenant or any other occupant of a privative portion as soon as a copy of the bylaws and any modifications to them are given to him by the co-owner or, failing this, by the Syndicate (2). The majority of the declarations of co-ownership oblige the co-owner to provide a copy of the building bylaws to his/her tenant, and to stipulate in the lease that the tenant must respect all of the building bylaws.
The tenant cannot benefit from more rights than the co-owner himself. Consequently, restrictions imposed by the constituting act portion of the declaration of co-ownership (example: the destination of the private portions, common portions, and common portions of restricted use) may be set up against the tenant or upon any other occupant. For example, a tenant will not be able to use the privative portion of the fraction rented from a co-owner, for example by using it to run business, whereas this portion is destined to be used exclusively for residential purposes.
The co-owner who takes the time to inform his tenant about the building bylaws and other particular provisions of the declaration of co-ownership will be able to avoid many difficulties with the Syndicate and the co-owners who live in the building. The tenant will not be able to plead ignorance if he is in possession of a copy of the building bylaws as soon as they sign the lease.
Moreover, the majority of the declarations of co-ownership contain specific provisions that the co-owner is responsible for any damage caused by his tenant which results in the majority of the cases, from acts committed by tenant which violate the building bylaws. Faced with this prospect, the co-owner who chooses to rent out his condominium instead of living in it would be well advised to inform his insurance company and make sure that his coverage is sufficient and takes into account that the premises are occupied by a tenant and covers the co-owner's liability for the faulty acts committed by the tenant.
1. Articles 1057, 1065, 1066, 1070, 1079, 1789 and 1790 C.c.Q.
2. Article 1057 C.c.Q.
Renting a condominium: making the tenant aware of the building bylaws
