Did you know that more and more residents are jumping on the condo living bandwagon? While there are many hot spots where this is particularly prevalent (such as Toronto, aptly nicknamed "Condo City"), this trend can be seen in many cities and countries world-wide. Based on all the cranes visible against numerous skylines, this may come as no surprise to many - but what does it mean for investors, property managers, and tenants?
Condominiums remain a compelling real estate investment option for investors, who leverage them to cover mortgage expenses and accumulate equity. At the same time, the demand for renting condominiums is on the rise, with more people opting for the urban lifestyle, amenities, and convenient living benefits that condominiums offer.
Exploring the Responsibilities of Landlords and Tenants in Condominiums, Stratas, & HOAs
+ The Role of the Condo's Property Manager
Individuals who own or invest in condominiums and lease their units are considered landlords regardless of whether they're rending a free-standing home or a unit in a condominium, and are therefore subject to landlord-tenant laws. However, the dynamic between landlords and tenants in a condominium setting differs from that in a free-standing home, rental apartment building, or complex.
As if condominium living wasn't complicated enough, the tenant relationship adds an extra layer of interest - particularly as it pertains to the relationships between the landlord and tenant, landlord and property manager, and tenant and property manager.
Condominiums are subject to unique rules and documents that differ from other private residences, emphasizing the ownership of space. Landlords may lack awareness of the risks and obligations associated with investing in a condominium and leasing out units, as well as potential liabilities towards the condo corporation. Similarly, tenants may not grasp the differences between renting a condominium and an apartment, and should understand the proper procedures for addressing issues. When the property manager of the condo is added to the mix, the situation can become complicated!
Given the growing number of condominium renters, it is crucial to emphasize the significance of this relationship and hierarchy. Let's sort out the roles, rights, and responsibilities of each party below; whether you're a landlord, tenant, or property manager - we're clearing condo relationships up for everyone in this tricky triangle!
Note: To explore the responsibilities of the owner and tenant in a condominium, we're focusing on residents of Ontario. While the concept may be generally similar in other provinces and countries, please be sure to verify what is applicable to your particular place of ownership and situation.
What are the responsibilities of the owner and tenant in a condominium?
Every condominium corporation has its own unique governing documents (which include a declaration, bylaws, and rules) that all residents must adhere to, in addition to the overarching Condominium Act, 1998 (Condo Act) legislation. The more familiar a person is with these documents, be it a landlord or a tenant, the less likely it to create trouble in a condo community.
Top 3 Tips for Landlord / Owner Responsibilities in Ontario Condominiums
First of all, condo owners must inform management and provide the tenant's contact information when deciding to rent out their unit. According to Section 83 (1) of the Condo Act, owners are legally obligated to notify their corporation within 10 days of entering into a lease agreement with a tenant.
Secondly, It is the obligation of landlord to provide their tenants with copies of and ensure compliance with all governing documents, just as it is the responsibility of the unit owner to guarantee that the tenant follows the condominium corporation's governing documents.
Lastly, it is the landlord's continued responsibility to keep their tenant(s) informed of any ongoing issues, updates to regulations, and requirements that the condo corporation may have. This is in addition to any standard obligations the landlord has towards their tenant, as prescribed by the Landlord and Tenant Board of Ontario.
Main Takeaways for Tenant / Renter Responsibilities in Ontario Condominiums
Tenants are contractually obligated to their landlords, who are the owners of the condominium unit they are renting (and therefore are the ones contractually obligated to the condo corporation). Because of this relationship, tenants should primarily seek assistance from their landlord for any issues that arise, whether within their unit or the condominium.
It's important to understand that condominiums function differently that apartment complexes that are strictly renter-only, in that the condo corporation is only responsible for the upkeep, repairs, and maintenance of common areas, not individual (private) apartment units.
As such, the owner acts as the primary point of contact for tenants when it comes to addressing issues like maintenance problems, as they will be best able to sort whether this is a unit-specific concern (that they must address on their own) or part of the corporation's responsibilities (and therefore an issue that should be passed along to the condo's property manager.
It's important to note that although there are regulations for condominiums, the interaction between an owner and a tenant is governed by specific legislation, specifically the Residential Tenancies Act, 2006.
What is the Condo Corporation vs. Owner / Landlord Responsible for Maintaining and Repairing?
This is a great question! The quick answer is that the condo corporation is responsible for maintaining the common elements, whereas the condo owner is responsible for maintaining their individual suite, as defined in the condo's bylaws.
To get a better understanding of the particulars of condo maintenance and repairs (and who's responsible for what), check out the articles below:
The Role of the Condo's Property Manager: Dealing with Landlords / Owners and Tenants / Renters
Condominium managers will naturally engage with residents, including tenants, on a daily basis. Tenants can anticipate receiving polite and respectful service during their interactions with management. It is common for managers and tenants to discuss routine building matters, and prudent for tenants to report emergencies to management or building staff (in addition to informing their landlord).
The manager works for the condo corporation: Nevertheless, tenants should be aware that condominium managers offer their services to the condominium corporation under the guidance of the condominium’s Board of Directors, and that both the condominium and the owner have distinct responsibilities towards each other, however, the role and services of the property manager is not a contractual relationship or obligation towards the tenant.
The condo corporation has a contractual relationship with the owner / landlord: When renting a property, tenants should understand that the manager is employed by the condominium corporation and follows instructions from the board of directors. Furthermore, it is only the unit owner (the landlord) that has a formal relationship with the condo corporation; as such, it is the responsibility of the owner to maintain a separate relationship with their tenant(s).
The condo owner / landlord has a separate relationship with their renter /tenant: Basically, the landlord functions as the "middle man" in facilitating processes between the tenant and the corporation. In case a tenant encounters any problems with the rented unit or other aspects of the condominium, they should first address the matter with their landlord, who can investigate and either resolve the issue directly (if the issue is in-suite) or address the appropriate party (if the issues is the responsibility of the condo corporation).
Understanding the rights, responsibilities, and unique roles of owners / landlords, tenants / renters, and property management is key to successful condo living and reducing unpleasant complications, whether contractual or community-based.
By familiarizing yourself with these important inter-connected points of the triangle, you'll be better equipped to understand your part and the obligations of others in ensuring effective and efficient communication and resolution for all your condo concerns!
-Stratastic Inc.
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