Part 49 published on 01/02/15
Strata corporation’s by-law procedure for administering rental limit not adequate
The strata corporation had passed a by-law to limit rentals. The strata corporation initially granted the applicant hardship exceptions, therefore allowing the applicant to rent his unit. Those exceptions were subsequently terminated, and the strata corporation then levied fines for the applicant’s violation of the by-law. The Court held that the rental restriction by-law was void, and the fines were cancelled. The Court said that the by-law provisions did not establish an adequate procedure within the meaning of section s. 141(3) of the Strata Property Act. The Court said:
The Bylaws do not establish a clear and logical process for administering the limit and are completely silent on how the Strata Corporation determines which strata owners are entitled to be designated as rental units when the rental limit is not reached. Moreover, on their face, the Bylaws do not prevent the Strata Corporation from administering the rental limit in an arbitrary fashion.
The Court also offered a list of considerations for such By Laws.