Instruction Guide 15

1. What is a Rental Restriction Bylaw

A rental restriction bylaw can:

• prohibit the rental of residential strata lots entirely;
• limit the number of strata lots that may be rented; or
• limit the length of time the strata lots may be rented.

A bylaw that limits the number of strata lots that can be rented must also set out the procedure to be followed in administering the limit. A strata corporation that has a bylaw limiting the number of strata lots that may be rented may wish to consider whether the following rentals permitted under other sections of the Act should be counted in the limit:

• rentals to family members under the family member exception;
• rentals permitted on the basis of hardship;
• rentals permitted under a Rental Disclosure Statement; and
• rentals established prior to the filing of a rental restriction bylaw in the Land Title Office and permitted to continue under the provisions which delay the application of a rental restriction bylaw.

The strata corporation cannot:

• screen tenants;
• establish screening criteria;
• require that it approve of tenants; and
• require the insertion of terms in tenancy agreements or otherwise restrict the rental of a strata lot except by a bylaw that prohibits or limits the rental of residential strata lots.

2. Rentals Permitted Under other Sections of the Act

If a strata corporation has a rental restriction bylaw, an owner may be permitted to rent his or her strata lot despite the bylaw under the following provisions:

the family member exception;

• a determination of hardship by the strata council;
• the provision which delays the application of a rental restriction bylaw; and
• the owner is a party whose right to rent is preserved by a Rental Disclosure Statement filed by the Owner Developer.

3. Exception for Family Member

A rental restriction bylaw does not apply to prevent the rental of a strata lot to a family member.

A family member is defined as:

• a spouse of the owner;
• a parent or child of the owner; or
• a parent or child of the spouse of the owner.

A “spouse of the owner” includes an individual who has lived and cohabited with the owner for a period of at least two years at the relevant time, in a marriage-like relationship including a marriage-like relationship between persons of the same gender.

A rental to a family member creates an assignment of the owner’s powers and duties under the Act, Regulations, bylaws, and rules.

[For more information on rentals to family members, please refer to Instruction Guide 6, “The Role and Responsibilities of Tenants and Landlords”.]

4. Exemption for Hardship

An owner may apply to the strata corporation for an exemption from a rental restriction bylaw on the grounds that the bylaw causes hardship to the owner.

Neither the Act nor the Regulations define “hardship”.

An application for the exemption must:

• be made in writing;
• state the reason why the owner thinks an exemption should be made; and
• indicate whether the owner wishes a hearing.

The Regulations provide that a “hearing” means “an opportunity to be heard in person at a council meeting”.

When a hardship application has been made, the strata council must:

· hear the owner or owner’s agent within three weeks of the date of the application, if the owner requests a hearing;

· give its decision in writing to the owner within one week of the hearing;

· give its decision in writing within two weeks after the owner applied for the exemption if no hearing is held or requested.

If the strata council fails to provide its decision within the time specified, the exemption is allowed, and the owner would be permitted to rent the strata lot.