Decisions From the Ontario Courts: A Residential Unit is Not a Hotel, Regardless of Length of Lease

The case of Kapoor et al v TSCC 2450 and TSCC 2477 involved two condominium corporations located near the Rogers Centre in a large condominium development. The Kapoor family, who owned units in both corporations, operated a business called North American Private Accommodations Inc., offering executive rentals and hotel apartments through online booking platforms. Concerns were raised by other residents about short-term rental activity in the buildings, leading the condominium corporations to pass new rules regulating transient tenancies and hotel-like activities in the units. The Kapoor family challenged the rules' validity, arguing they were inconsistent with the declaration, which allowed no restrictions on the minimum or maximum lease length.

The Superior Court of Justice reviewed the condominium corporations' interpretation of their declarations and determined that the focus on the nature of use rather than the lease length was reasonable. The court held that if the use complied with the requirement of a private, single-family residence, there was no restriction on lease length. The court also found that the Kapoor family's operation of hotel-like rentals was inconsistent with the concept of a private, single-family residence, upholding the validity of the new rules.