Right to rent and rules to follow

For a co-owner, the right to rent his unit is an integral part of his ownership rights: he may choose to live in it or to rent it out in order to obtain rental income. However, the destination of the immovable may limit this right.

Article 1063 of the Civil Code of Québec states that a divided co-owner has the disposal of his fraction and may use and enjoy it freely, provided he complies with the by-laws of the immovable and does not impair the rights of the other co-owners or the destination of the immovable.

The importance of context in defining the destination of the building may, among other things, limit the right to rent in the case of short-term rentals.

Short-term rental

In properties where the declaration of co-ownership does not contain specific provisions to this effect, directors wonder whether they have the right to prohibit short-term rentals, as this activity often has the effect of commercializing a building, even though its destination was “residential.”

In a 2001 decision, the Court of Appeal recognized the right of the syndicate to prohibit via by-law the rental of fractions for short periods, i.e. less than one year, if such prohibition is justified by the destination of the immovable. Such a short-term use has a high risk of affecting the peace, stability and security of a building, which are qualities that co-owners generally seek. Thus, a by-law prohibiting short-term rentals adopted by the syndicate will probably be valid. However, the same court has recognized the right of co-owners to rent out on a long-term basis their fraction of an immovable whose destination is residential.

Common expenses

A co-owner who rents his fraction of the co-ownership remains a co-owner; he is the one who maintains certain rights and who also assumes certain obligations towards the syndicate. Thus, regardless of what is stipulated in the lease with respect to the payment of common expenses, it is always the co-owner who is required to pay them, even if the tenant has undertaken to do so.

Voting rights

Even if a fraction of the co-ownership is rented, it is the co-owner who will be invited to attend the meeting of co-owners and who will exercise his right to vote. However, this right may be delegated to a third party by proxy.

Compliance with the declaration of co-ownership

The declaration of co-ownership must be respected by co-owners and tenants alike. As soon as the tenant receives a copy of the by-laws of the immovable or any amendments thereto, he is bound to comply with them.

In addition to the remedies that the owner of a fraction can initiate against his tenant, the syndicate may act directly against a tenant and even, in certain circumstances, request termination of the lease.