Can a Calgary Condominium Corporation Restrict Long-Term Rentals?

Section 32 of the Condominium Property Act governs what bylaws can say, and subsection 5 draws a hard line: no bylaw operates to prohibit or restrict the devolution of units or any transfer, lease, mortgage, or other dealing with them. A rental cap, a waiting list, a requirement that the board approve a tenant, and a flat ban on leasing all restrict a lease.

Boards often have older bylaws with clauses like these, adopted before the owners knew the Act's limits or copied from another building. A bylaw that predates your purchase is not safer for that. The statute overrides it.

The rule protects the right to lease, not every condition around it. A bylaw can still require that tenants follow the bylaws, that moves be booked, that pets be registered, and that noise limits apply, because those regulate conduct inside a tenancy, not whether the tenancy can exist.

A board that cannot ban rentals sometimes tries a different tool: a heavy fine for renting without approval. The Act closes that route too. A sanction may not be imposed that has the effect of prohibiting or restricting a lease or other dealing with a unit.

Sanctions in Alberta have to be authorised by a bylaw, must specify the amount or range for monetary penalties, and must be reasonable in the circumstances. They are available for breaches of bylaws, not for breaches of rules.

So a "$500 unauthorised rental fee" has two problems. It restricts leasing, which section 35(6) prohibits, and it may lack a valid bylaw basis.

The Act protects leases. A short-term rental that works like a hotel booking is not necessarily a lease. In Condominium Corporation No. 042 5177 v. Kuzio, 2020 ABQB 152, the court found that guests booking through online platforms held licences, not tenancies, and described features of a commercial enterprise: online advertising, reservation systems, and fee collection. Bylaws banning commercial use and requiring one-family residence could therefore restrict them, and the court granted an injunction.

A 2015 decision, Condominium Corporation No. 0312235 v. Scott, had held that boards cannot restrict short-term rental rights, which is why this area has been described as unsettled.

The City's licensing definition adds a wrinkle. Since April 2025, Calgary treats rentals of up to 180 consecutive days as short-term for licensing purposes. That covers stays well beyond what most people call a vacation rental. The City definition does not decide whether a particular arrangement is a lease or a licence under the Act, so an owner offering furnished stays of a few months should not assume the Act's lease protection applies.

Even where nothing about renting can be restricted, the owner has paperwork. Service Alberta's guidance describes written notice to the corporation before renting, including the address where the owner can be served and the amount of rent being charged, followed by the tenant's names within 20 days of the tenancy starting and a further notice within 20 days if it ends. Tenants and anyone else in possession must comply with the bylaws.

The corporation can also require a rental deposit from the owner, capped at $1,000 or one month's rent, whichever is greater, since January 1, 2020. Within 20 days of receiving notice that the rental has ended, it must return the deposit or provide an itemised statement of damage charges. If damage exceeds the deposit, it may bill the owner, register a caveat against the unit, or sue.

The fact sheet still refers to the Court of Queen's Bench, now the Court of King's Bench, so it predates recent changes. Confirm the 20-day periods and deposit cap against the current Act and regulation before relying on them.

The City of Calgary licenses short-term rentals through a business licence, with primary-residence and non-primary-residence categories. Applications involve a fire safety plan, proof of ownership or owner consent, proof of insurance with a stated minimum liability limit, and emergency contact details posted on-site. Until March 2025 the City required written approval from the condo board. That requirement has gone, but applicants must still comply with the condominium's bylaws, and the board is responsible for enforcing them.

The change cuts both ways. An owner no longer needs the board's signature to get a licence, but a licence is no defence if the bylaws prohibit the use. A licensed unit can still be the subject of an injunction.

A standard long-term lease does not need a short-term rental licence at all.

Substantive review means an editor checked this article against the current text of the Condominium Property Act provisions cited, the Alberta court decision summarised, Service Alberta guidance, and the City of Calgary's short-term rental rules. What a specific building's bylaws say, whether a particular arrangement is a lease or a licence, and how the City applies its licensing rules at a given address depend on that corporation's registered bylaws and the facts; verify current requirements with the property manager, the corporation's records, or an Alberta condominium lawyer before relying on this for a specific leasing decision. This is general information, not legal advice. Corrections: compliance@platuni.com