If you are a condo investor, or a vacation home buyer, who may wish to rent out your condo, the strata bylaw regarding rentals is of utmost importance. So here are a couple of changes effecting the strata rental restrictions
New rules apply to residential strata developments are categorized into two sections.
The rental disclosure statement is filed on or after January 1, 2010.
- If the strata corp adopts a rental restriction bylaw, the bylaw won’t apply to any strata lot where the developer files a rental disclosure statement until the rental period specified in the rental disclosure statement expires.
- The number of subsequent owners of the strata lot is irrelevant, with all subsequent owners being able to rent out their strata lots until the rental period expires
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The RDS was filed before Jan 1,2010
- Any rental restrictions adopted by the strata corp will apply to a strata lot on the earlier of a) the date the strata lot is conveyed by the first purchaser to a new owner and b) the date the rental period set out in the rental disclosure statement expires
For strata lots where the RDS was filed after DEc 31, 2009
the number of owners subsequent to the first purchaser is irrelevant and the ability of all subsequent owners to rent continues until the date the rental period set out in the statement expires
Developers can now create strata complexes that effectively have no ability to prohibit or limit rentals or they can create strata complexes that adopt rental restriction bylaws for new projects, depending on the market.
Over the years I’ve seen a number of situations where the strata wouldn’t permit an owner to rent under a hardship clause (which still exsists under the new Strata Title Act, but the owner has to prove it and the strata doesn’t have to permit the rental). Ever been in this situation?