27/02/2019 – Jurisdiction Alberta
Part 69 published on 01/03/2020
Court grants permanent injunction to prohibit short-term occupancies
The by-laws of the condominium corporation said that the residential units could be used only as one-family residences and not for commercial purposes. The Respondents were permitting members of the public to occupy their units on a short-term basis. The condominium corporation claimed that this contravened the by-laws, and applied for an order prohibiting these occupancies. The Court previously granted the requested order on an interim basis. [See Condo Cases Across Canada, Part 68, December 2019.]
In this further decision, the Court granted the injunction on a permanent basis. The court said:
The opening words of (By-law) 601.2 are critical: “No unit shall be used in whole or in part for any commercial or professional purpose involving the attendance of the public at such unit and without limiting the generality of the foregoing…”.
In the absence of a lease, occupancy by someone who pays to occupy the premises results in the unit being used for commercial purposes, that is the generation of income which is clearly prohibited by the section.
…
Reduced to its essence, short term occupancy through platforms like Airbnb, where no lease is entered into, results in the functional equivalent of a hotel stay.
In the result, Airbnb renters are not tenants of the owner, but occupy as licensees for consideration.
The short term rental of units, in the absence of a lease, not only contravenes the Bylaws of the Corporation but would result in a fundamental change to the structure and character of the condominium, without the consent of the Board and without the consent of the vast majority of unit owners.