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Condo Board Member Severe Conflict of Interest

nightstreak

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Our building has a strict no short term rentals rule, yet there are ongoing issues with Airbnb. Well... well... I just found out that our longest serving board member who owns a half dozen units has 4 of them on Airbnb and is a co-host with 2 other hosts with units in the building. We've confronted the board but we're being gaslit. Absent any confirmed short term rentals, nothing wrong is being done they say. Having a listing isn't against the rules so they claim. It's infuriating.

Is it worth hiring a lawyer to pursue this? Is this illegal or just against a condo board rules.
 
Our building has a strict no short term rentals rule, yet there are ongoing issues with Airbnb. Well... well... I just found out that our longest serving board member who owns a half dozen units has 4 of them on Airbnb and is a co-host with 2 other hosts with units in the building. We've confronted the board but we're being gaslit. Absent any confirmed short term rentals, nothing wrong is being done they say. Having a listing isn't against the rules so they claim. It's infuriating.

Is it worth hiring a lawyer to pursue this? Is this illegal or just against a condo board rules.
You need to see if it is an official Rule of your Corporation. If it is, Boards have legal duty to enforce the Corporation's Declaration, By_Laws and Rules. Most restrictions on short-term rentals are in Rules. See this great blog post from Denise Lash. https://www.lashcondolaw.com/short-term-rentals-in-condos-what-could-possibly-go-wrong/ In some cases there is NOT a 'real Rule" but it is some sort of unofficial guideline. These are much vaguer and Boards can ignore them.

My suggestion is to send in an official REQUEST FOR RECORDS to get a copy of your Rules. There is an official Form, available at https://www.condoauthorityontario.ca/resource/request-for-records/ and you must use it. This info is useful, Rules and Declarations are Core Records. https://www.condoauthorityontario.ca/wp-search/?swp_form[form_id]=1&swps=request+for+records When complete you must deliver the Form to the Address for Service of your Corporation. This may be the 'management office' but is always given in the Periodic Information Certificates that your Corporation must send you twice each year. The Board has 30 days to respond, with yet another Form!

Evern if your Corporation allows short-term rentals, the City has additional requirements https://www.toronto.ca/community-pe...ousing-rights-information/short-term-rentals/

Let us all know what you do and what you find out, dm me if you want more info. If you find it IS a Rule and if the Board are not enforcing it, you can go to the (free) Condominium Authority Tribunal SEE: https://www.condoauthorityontario.ca/issues-and-dispute-resolution/ and https://www.condoauthorityontario.ca/issues-and-solutions/short-term-rentals/
 
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Thanks for all that. It's certainly an official rule. This guy keeps getting elected to the board because most owners are absent investors and several of them have Airbnbs in the building. This has got to be illegal.

I'll follow up.
 
Our building has a strict no short term rentals rule, yet there are ongoing issues with Airbnb. Well... well... I just found out that our longest serving board member who owns a half dozen units has 4 of them on Airbnb and is a co-host with 2 other hosts with units in the building. We've confronted the board but we're being gaslit. Absent any confirmed short term rentals, nothing wrong is being done they say. Having a listing isn't against the rules so they claim. It's infuriating.

Is it worth hiring a lawyer to pursue this? Is this illegal or just against a condo board rules.
Hire a private investigator to book one of the units on Airbnb.
 
Thanks for all that. It's certainly an official rule. This guy keeps getting elected to the board because most owners are absent investors and several of them have Airbnbs in the building. This has got to be illegal.

I'll follow up.
If it’s an official Rule the Corporation is obligated to enforce it. I would go to CAO and attach copy of your Rules. Good luck.
 
Want to 'report back' on this? If you followed through it would be good to know what happened.

I collected evidence and wrote a press release. I'm using it as leverage for them to do their actual jobs. Seems to be working.

I consulted with a neighbour who said that the most that'll happen is a slap on the wrist, if that. Getting them in the media is far more terrifying for them.

Let's see if the corrupt board members run again and whether the attraction of AirBnB during the World Cup will be too much to resist.
 
I collected evidence and wrote a press release. I'm using it as leverage for them to do their actual jobs. Seems to be working.

I consulted with a neighbour who said that the most that'll happen is a slap on the wrist, if that. Getting them in the media is far more terrifying for them.

Let's see if the corrupt board members run again and whether the attraction of AirBnB during the World Cup will be too much to resist.
If a Board does not enforce the Rules (especially if the Rule is absolutely clear) the CAO and its Tribunal can ban them from being Directors.
 
If a Board does not enforce the Rules (especially if the Rule is absolutely clear) the CAO and its Tribunal can ban them from being Directors.

It's the property management who aren't enforcing the rules. The board acts behind the scenes and chose this company because they're pliable and lack integrity. Can they be banned or have their license revoked? They're in clear collusion with the corrupt board members which I understand would be harder to prove without access to their private communications.

The rules are clear but the property management's procedures are designed so that the rules can't be enforced in practice.

Rule: No short term rentals. All leases must be for 12 months or more. Black and white. It's in the declaration.
In Practice: Security is instructed to ignore people they don't recognize, any resident can let anyone stay in their unit. Family members, friends, etc. Impossible to prove. Even when you show them the unit on AirBnB, they send a letter to all residents reminding them that short term rentals are prohibited which of course goes ignored. When I inform them that there is a new occupant different than the one that was there last week, they refuse to verify that the occupant is the person on the lease.

Rule: No smoking in units or anywhere on the property including on balconies.
In Practice: When someone smokes, you call the security desk, they take 10-30 minutes to go check the unit. By then the smoker is obviously no longer smoking. You ask them to speak to the resident: we don't bother residents unless there is an ongoing issue observed at that moment — which they refused to act on in real time. No cameras allowed in the corridors, stairs or on balconies. If I catch the smoking with my phone, the footage is deemed inadmissible to property management because it's a privacy invasion (It's not, if I can see them from my unit, then there's no expectation of privacy).
 
It's the property management who aren't enforcing the rules. The board acts behind the scenes and chose this company because they're pliable and lack integrity. Can they be banned or have their license revoked? They're in clear collusion with the corrupt board members which I understand would be harder to prove without access to their private communications.

The rules are clear but the property management's procedures are designed so that the rules can't be enforced in practice.

Rule: No short term rentals. All leases must be for 12 months or more. Black and white. It's in the declaration.
In Practice: Security is instructed to ignore people they don't recognize, any resident can let anyone stay in their unit. Family members, friends, etc. Impossible to prove. Even when you show them the unit on AirBnB, they send a letter to all residents reminding them that short term rentals are prohibited which of course goes ignored. When I inform them that there is a new occupant different than the one that was there last week, they refuse to verify that the occupant is the person on the lease.

Rule: No smoking in units or anywhere on the property including on balconies.
In Practice: When someone smokes, you call the security desk, they take 10-30 minutes to go check the unit. By then the smoker is obviously no longer smoking. You ask them to speak to the resident: we don't bother residents unless there is an ongoing issue observed at that moment — which they refused to act on in real time. No cameras allowed in the corridors, stairs or on balconies. If I catch the smoking with my phone, the footage is deemed inadmissible to property management because it's a privacy invasion (It's not, if I can see them from my unit, then there's no expectation of privacy).
NO, the BOARD are in charge and THEY are liable - it is the Board's responsibility to enforce the Rules and yours seem VERY clear. The Property Management company is hired by and controlled by the Board and if the Board has hired a company who cannot enforce the Rules it is up to the Board to find one which can.

That said, enforcing all Rules is not easy but it is something that BOARDS must try to do and thus must hire a PM Company who makes an effort. Condo Managers and Condo Management Companies are licenced (by the Condominium Management Regulatory Authority of Ontario https://www.cmrao.ca/ but I see no point in trying to have their licences cancelled as it is up to the Board to ensure they hire one who makes the effort to enforce the Rules, I think it is maybe impossible to stop all non-residents as owners can have friends visiting but if you find adverts of AirBnB then that would seem like pretty good evidence! You should note that Condo Corporations are not allowed to fine owners or residents for Rule breaking BUT, they can (and those who care do) have their lawyers send the offending Owners legal letters' and most Declarations allow Corporations to charge-back enforcement costs. Lawyer letters are remarkably expensive!
 

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