Living in Milton has its advantages. It’s a safe and modern community with many attractions like the redeveloped downtown and free access to the beautiful Niagara Escarpment, plus great public and private schools. However, an increasing number of short-term rentals in condos is causing a lot of stress for condo owners and their neighbours. The City of Milton is taking steps to mitigate the problem, but homeowners should be aware of their rights and know how to keep their building safe and healthy.
What Are Short-Term Rentals?
Short-term rentals are rentals of less than 30 days in a property that isn’t designated as a hotel, motel or B&B. They can be incredibly lucrative, especially with the growing popularity of platforms like AirBnB, VRBO and HomeAway. The rise in popularity of these platforms has led to an increase in people who are willing to rent out their condos for a short period of time.
Are Short-Term Rentals Legal?
Yes, with certain caveats. The City of Milton dictates that any short-term rental in an apartment building must be approved by the condo board before it can be listed. They must also pay a fee to the municipality, adhere to set regulations and obtain a short-term rental permit. Further, short-term rental operators are also subject to a 2% Municipal Accommodation Tax (MAT).
What Are the Impacts of Short-Term Rentals on Condos?
Having too many short-term rentals in a condo building can have potentially damaging effects. When owners and tenants are in and out of the building frequently, it can lead to neighbourly disputes, noise complaints, property damage and reduced security. In addition, short-term rentals can lead to higher condo fees and dues, as the building is being used more than was originally accounted for.
Are There Any Benefits to Short-Term Rentals?
Yes, although the challenges that come with short-term rentals can often outweigh the benefits. Short-term rentals can positively contribute to the local economy, generate revenue for building owners, and give people the opportunity to explore a neighbourhood before committing to a long-term rental.
What Are the Risks for Homeowners Trying to Sell?
If you’re a condo owner looking to sell your unit, the situation can be even more complicated. Condos with a high concentration of short-term rentals may be off-putting to potential buyers who would prefer a quieter, more peaceful environment. You may want to consult a real estate professional, who can help you navigate the selling process of a condo with short-term rentals in the building.
How to Buy or Sell a Condo with Short-Term Rentals in it?
When buying or selling a condo with short-term rentals in the building, there are a few things to keep in mind. It’s important to do your research and understand the laws and regulations that govern the building both from the municipality and from the condo board.
What Can Buyers Do to Protect Themselves?
If you’re looking to buy a condo with short-term rentals, there are a few steps you can take to ensure a good experience. You should request disclosures from the seller regarding any short-term rental activity in the building. It’s also important to read all the governing documents of the condo and understand the regulations and rules around short-term rentals.
What Can Condo Boards Do to Protect Owners?
Condo boards have the ability to put restrictions in place to protect the safety and security of the building and its owners. They can set rules surrounding the number of short-term rentals allowed, conduct background checks on tenants, and establish regulations to ensure tenant and owner compliance.
Conclusion
Before buying or selling a condo in Milton with a lot of short-term rentals in it, it’s important to understand the laws and regulations that govern both the municipality and the building’s governing documents. The best way to protect yourself is to do your research, consult a real estate professional, and make sure you understand the restrictions the condo board has in place to ensure the building’s safety and security.
FAQs
Is it Legal to Rent a Property for Less Than 30 Days?
Yes, as long as the property holds the required permits and follows regulations set by the City of Milton.
Do I Have to Pay a Municipal Accommodation Tax (MAT)?
Yes, short-term rental operators are subject to a 2% Municipal Accommodation Tax (MAT).
Are There Any Benefits to Short-Term Rentals?
Yes, although the challenges that come with short-term rentals can often outweigh the benefits. Short-term rentals can positively contribute to the local economy, generate revenue for building owners, and give people the opportunity to explore a neighbourhood before committing to a long-term rental.
What Are the Risks for Homeowners Trying to Sell?
If you’re a condo owner looking to sell your unit, the situation can be even more complicated. Condos with a high concentration of short-term rentals may be off-putting to potential buyers who would prefer a quieter, more peaceful environment.
Can the Condo Board Enforce Restrictions on Short-Term Rentals?
Yes, condo boards have the ability to put restrictions in place to protect the safety and security of the building and its owners. They can set rules surrounding the number of short-term rentals allowed, conduct background checks on tenants, and establish regulations to ensure tenant and owner compliance.
