If hotel-type short term rentals are allowed in your co-ownership, any apartment owner who wishes to rent to tourists must take the following precautions. The most important one is to ensure that he abides to the Act respecting tourist accommodation establishments (the Act) and it’s Regulations. He will also ensure that he does not contravene municipal urban planning bylaws on uses. Some municipalities have adopted bylaws restricting or prohibiting hotel-type rentals. However, the majority of central districts Montreal boroughs allows this activity, which however will only be authorized in residences located in commercial areas.
June 5, 2015 - A resounding judgment was handed down on June 4, 2015 by Judge Danielle Turcotte, Superior Court judge, on the vote required in a co-ownership to adopt a penal clause.
What is a penal clause?
A penal clause is a provision allowing the syndicate to impose to a co-owner penalties or fines if he fails to comply with co-ownership rules. This is a penalty of a pecuniary nature: a sum of money is claimed from the defaulting co-owner. The penal clause must be sufficiently detailed for its application to be simple.