Short-term leasing has been regulated in Quebec and several adjustments have been made to reflect the reality of the market so that the coercive measures in place allow compliance with the regulations.
Short-term rentals are very popular in condominiums. Many co-owners will buy a condominium to only rent it on platforms like Airbnb.
According to section 1065 of the C.c.Q., a co-owner can rent his unit, but he must comply by notifying the Syndicate. “1065. A person who acquires a fraction, by whatever means, including the exercise of a hypothecary right, shall notify the syndicate within 15 days.
A co-owner who leases his private portion shall, within the same time, notify the syndicate. The co-owner shall give the name of the lessee, the term of the lease and the date on which he gave the lessee a copy of the by-laws of the immovable. The same applies, with the necessary modifications, where the private portion is otherwise occupied.”
The duration of the rentals is the element to take into account before wanting to rent a condo in the short term. A condominium is a living environment regulated by a deed of co-ownership and its regulations. The majority of Syndicates will ban short-term rentals to ensure the tranquility of the premises to their inhabitants in the first place. Short-term rentals are indeed often rhyming with parties, frequent comings and goings, non-compliance with regulations... etc.
So, if you are a co-owner, you must, as a first step, read the deed of co-ownership of the building as well as the regulations in force in order to check if the short-term rental is authorized. If a prohibition is in force and you decide to rent anyway, you expose yourself to fines and legal proceedings against you to stop these rentals.
Conversely, if nothing regulates rentals regardless of their duration, you could then decide to rent your condo on a short-term basis or with a lease. But the provincial measures will still apply: When a co-owner rents, on a regular basis, his condominium unit on a short-term basis (for a period of less than 31 days), it becomes subject to the Law(1). He must then obtain a classification certificate (Permit Number) and comply with several legal obligations, failing which he is exposed to fines.
In any case, the co-owner remains responsible for his tenant. If the tenant disturbs the enjoyment of the premises, the Syndicate may request explanations from the co-owner and may apply penalties to the co-owner according to the indemnities provided for in the deed of co-ownership.
Finally, the Syndicate could refer the matter to the Administrative Housing Tribunal (TAL) and request the termination of the lease and the eviction of the tenant in the event of problems caused by the tenant.
“Section 1079. The syndicate may demand the termination of the lease of a private portion, after notifying the lessor and the lessee, where the non-performance of an obligation by the lessee causes serious injury to a co-owner or to another occupant of the immovable.
The syndicate may, for the same reasons, after notifying the co-owner and the borrower, demand the termination of a loan for use of a private portion.”
In Syndicat 365 Saint-André v. Tahar Chaouche(2), the Syndicate asked the Tribunal to terminate the tenant’s lease on the ground that the tenants, by their behaviour, disturbed the enjoyment of the premises of the other occupants of the immovable, which caused serious harm to the owner-occupants of the building.
After analysis the Tribunal concluded that “the Syndicate has established its right to terminate the lease and considering the gravity of the serious damage suffered, it will be provided for the provisional execution of this decision under the terms of section 82.1 of the Act respecting the Administrative Housing Tribunal.”
(1) https://www.quebec.ca/tourisme-et-loisirs/hebergement-touristique-courte-duree
(2) Syndicat 365 Saint-André c. Tahar Chaouche 560697 http://t.soquij.ca/n9DWp