Prohibition Of Rental Restrictions Under The Strata Property Act

On November 24, 2022 amendments to the Strata Property Act came into force removing sections of the Act that permitted residential rental restrictions. Strata corporations in British Columbia can no longer pass bylaws that restrict rentals or control who may be the tenant or any other terms of the rental agreement. As of November 24, 2022, any strata bylaws that do restrict residential rentals are no longer enforceable.

There are two exceptions to this prohibition on rental restrictions:

  • Strata corporations may still pass bylaws that “require one or more persons residing in a strata lot to have reached a specified age that is not less than 55 years.” This exception is to help support senior housing.
  • Strata corporations may pass a bylaw that prohibits what is commonly referred to as “short-term rentals” or “short-term accommodations”.

This exception is not specifically included in the changes to the Strata Property Act. The government, however, has cited this exception in its press release and its website. According to the government’s website, short-term rental restrictions are permitted because this type of rental is considered a “licence to occupy and a commercial use”.

Accordingly, it appears the government’s goal is to prohibit the restriction of rentals that would be governed by the Residential Tenancy Act.

If you are a strata corporation or developer, you may be required to update your bylaws in accordance with the Strata Property Act or to amend your disclosure statement under the Real Estate Development Marketing Act to comply with the new prohibition on rental restrictions.

If you have any questions or would like assistance, please contact our real estate development team.

Please be advised that this article is for informational purposes and is not specific legal advice of any kind.

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