Short-Term Rentals in Ontario Condos: What Every Board Needs to Know

What Ontario Law Actually Says About Short-Term Rentals

Ontario’s Condominium Act doesn’t mention Airbnb by name — but it doesn’t need to. The Act states that residential condo units are intended to be occupied only for the purposes of a single-family dwelling. Ontario courts have interpreted this directly: operating a unit as a hotel-like business — offering it to strangers on a rotating, nightly basis — is inconsistent with single-family residential use. That legal interpretation is significant because it gives condo corporations a foundation that doesn’t rely solely on their own internally drafted rules.

Beyond that baseline, Section 58 of the Condominium Act allows a condo corporation to pass rules governing the use and management of units and common elements — including rules that restrict or prohibit short-term rentals entirely. Many corporations also have restrictions already embedded in their Declaration, the founding document of the corporation. If your Declaration states that units are for residential use only, that language has consistently been interpreted by Ontario courts as prohibiting commercial short-term rental activity.

There is one distinction boards need to understand clearly: your authority to restrict short-term rentals exists independently of what the City of London permits. London requires short-term accommodation providers to obtain an annual licence ($196/year as of 2025) and remit a 4% Municipal Accommodation Tax per stay. But holding a city licence does not override your condo’s governing documents. If your corporation prohibits short-term rentals, an owner cannot lawfully operate one — even with a valid city permit in hand.

Does Your Condo Already Have a Restriction in Place?

Before taking any enforcement action, your board needs to know what your governing documents already say. Ontario condo governance follows a three-tier hierarchy, and each layer carries different weight:

•       Declaration: The most powerful document. If it restricts occupancy to residential or single-family use, that language alone may be sufficient to prohibit short-term rentals. Changing a Declaration requires approval from approximately 80% of unit owners — a very high bar.

•       Bylaws: Can address occupancy and use in more specific terms. Amending bylaws requires a majority vote of all owners, not just those who show up to a meeting.

•       Rules: The most flexible layer. Rules can be passed directly by the board without a unit owner vote, though owners can requisition a meeting to challenge them. A rule setting a minimum rental term of 30 consecutive days is one of the most common and practical approaches boards take.

Many London Ontario boards working with Sapphire are surprised to discover that their Declaration already contains language giving them the authority they need. A careful read of your governing documents — ideally with your property manager — is the essential first step before drafting anything new.

For more on how rule changes and owner votes are handled at the annual level, read our guide: How to Prepare Your Condo’s Annual General Meeting (AGM)

How to Enforce a Short-Term Rental Restriction

Having a rule is one thing. Enforcing it is another. Condo corporations have real enforcement tools available, and boards that use them consistently tend to resolve these situations before they escalate.

Compliance letters. The first step is a formal written notice from the corporation advising the owner that they are in breach of the governing documents and requiring them to cease the activity. Many owners comply at this stage — particularly when they understand the legal and financial exposure involved.

Fines. Condo corporations can levy fines against owners for rule violations. The amounts depend on what your governing documents authorize, but fines can accumulate per incident and are added to the owner’s unit ledger, recoverable in the same way as unpaid condo fees.

Legal action. If an owner refuses to comply, the corporation can seek a court order requiring them to stop the unauthorized activity. Ontario courts have repeatedly upheld condo boards on this point. Critically, legal costs incurred in pursuing enforcement can often be charged back to the unit owner — meaning the corporation is not necessarily absorbing that expense on behalf of the community.

At Sapphire, we find that boards who document violations clearly and act quickly tend to resolve these situations without court involvement. Consistency is important: if you enforce against one owner but not another in the same situation, you risk weakening your legal position when you do need to escalate.

If enforcement has ever created unexpected costs for your corporation, it’s worth understanding how those costs get absorbed. For a closer look at that mechanism: What is a Special Assessment?

What to Do If Your Condo Has No Restriction Yet

If your governing documents are silent on short-term rentals, the time to act is before the problem arrives — not after a unit is already listed online. There are two paths available depending on your situation:

Passing a board rule is the fastest option. A rule setting a minimum rental term of 30 consecutive days aligns with the City of London’s own definition of a short-term accommodation (any rental of 29 days or fewer) and creates a clear, enforceable standard. The board passes the rule at a properly called meeting, documents it in the minutes, and provides written notice to all owners. Owners have the right to challenge a rule, so it must be reasonable, consistently applied, and well-justified.

Amending a bylaw is more involved but more durable. It requires a majority vote of all unit owners, which means careful outreach and communication — not just a show of hands from whoever shows up at the meeting. Bylaw amendments can be brought forward at your AGM or through a special meeting, and the rationale should be clearly communicated to owners in advance.

This is one area where having an experienced management company matters. Poorly drafted or poorly communicated rules are far easier to challenge. A logical rationale, consistent enforcement history, and clean documentation all strengthen your position considerably.

For a broader look at governance gaps that leave boards exposed to challenge: Top 5 Mistakes Condo Boards Make (From a Condominium Management Expert)

Frequently Asked Questions

Q: Can a London Ontario condo board legally ban Airbnb rentals in the building?

Yes. Under Ontario’s Condominium Act, a condo corporation can restrict or prohibit short-term rentals through its declaration, bylaws, or rules. Ontario courts have consistently upheld these restrictions, finding that operating a unit as a rotating short-term rental for strangers is incompatible with single-family residential use. Holding a City of London short-term accommodation licence does not override your condo’s governing documents.

Q: What minimum lease term can a condo board enforce in Ontario?

There is no province-wide minimum set by the Condominium Act — the standard is determined by your own governing documents. Many boards pass rules requiring a minimum rental term of 30 consecutive days, which aligns with the City of London’s definition of a short-term accommodation and creates a clear enforcement benchmark. This is not legal advice, but generally speaking under Ontario law, a 30-day minimum rental rule passed by the board is enforceable when properly adopted, documented, and communicated to all owners.

Q: What should we do if an owner is already renting on Airbnb when we pass a new rule in our Sarnia or London condo?

Your board should follow the standard enforcement steps: provide written notice of the rule and a reasonable timeframe to comply, then escalate to fines or legal action if the owner does not cease. This is not legal advice, but generally speaking under Ontario law, a condo corporation’s rules apply to all owners once properly passed — including those who were already operating short-term rentals beforehand. Consulting a condo lawyer before taking formal enforcement action is strongly recommended.

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Related Reading

•  How to Prepare Your Condo’s Annual General Meeting (AGM)

•  What is a Special Assessment?

•  Top 5 Mistakes Condo Boards Make (From a Condominium Management Expert)