HOT TOPIC: ALBERTA COURT ORDERS THAT TENANTS BE SUBJECT TO CONDOMINIUM CORPORATION APPROVAL

A Court in Alberta has imposed special restrictions upon a landlord who has had a history of selecting “bad” tenants. Henceforth, that landlord’s chosen tenants must be approved by the condominium Board.

To my knowledge, this is a first in Canada – but I’m guessing that it may not be the last time we see such an order.

On many occasions, I’ve been asked about the idea of adding such a “tenant screening” provision to a condominium’s Declaration, By-laws or Rules. There is room for debate about the validity of such a provision. But, leaving that issue aside, I’ve also felt that such a provision could be “dangerous” because of the risks of a claim against the condominium corporation in the event that a tenant is in fact rejected by the Board. [One can imagine claims for lost rent and perhaps claims of Human Rights violations.] Screening tenants could be a risky business.

But I wonder: Are these risks reduced if the screening is authorized, in relation to a specific landlord, by a Court order?