Condominium Corporation Governance, Bylaws, Short Term Rentals

Written by Craig Kelba
JD Candidate 2025 | UCalgary Law

Business ideas can take many forms and operate in countless places. Often, entrepreneurs will consider the assets that they have and how they can make these assets work for them. Alberta is no stranger to the short-term rental boom. Apps like Airbnb and Vrbo offer a platform for property owners to connect their asset to potential customers.

However, the short-term rental market, as with many other industries, can be full of different parties with conflicting motivations. Often, these conflicting motivations add layers of complexity to what appears to be a simple business on the surface. Not everybody feels supportive of the short-term rental market.

Cases where a short-term rental owner wishes to operate under a condominium corporation can give way to conflict, due to the nature of the condominium corporation’s obligations, powers, and governance. The collective nature of condominium complexes can be restrictive to the operation of business. If you are considering operating a short-term rental business out of a condominium owned property, this post provides information about the relationship between short-term rental owners, condominium corporations, and conflicts which may arise.
 
1.  Condominium Property Act and creation of bylaws
In Alberta, condominium corporations are governed by the Condominium Property Act (the “Condominium Act”).[1]  In the Condominium Act, bylaws set out by the corporation shall regulate the corporation and provide for control, management and administration of the units, real and personal property of the corporation, the common property and the managed property.[2] Further, bylaws of the corporation are set on the initial registration of the condominium plan, and remain in force until they are repealed or replaced by special resolution.[3]
 
2.  Special Resolutions
According to the Condominium Act, any bylaw may be amended, repealed or replaced by a special resolution, however, any amendment, repeal or replacement of a bylaw will not take effect until:

1. The corporation files a copy of it with the Land Titles Registrar (“Registrar”), and
2. The Registrar has made a memorandum of the filing on the condominium plan.[4]

Under the Condominium Act, special resolutions must be passed by a majority of 75% or more of all persons entitled to exercise voting powers (generally owners) and representing 75% or more of the total unit factors of all units (7500 out of 10 000-unit factors, as defined by the Condominium Plan for that corporation).[5] These voting thresholds can be met either (i) at a properly convened meeting of the corporation, or (ii) if there is an agreement in writing signed by 75% of the voters with 75% of the unit factors, then there does not need to be a properly convened meeting.

The majority of special resolutions are passed in writing, as it is generally difficult to gather the sufficient number of voters at a properly convened meeting to pass a special resolution.[6] Additionally, amending, repealing or replacing bylaws by special resolution requires appropriate notice of the proposed change given to all interested parties (i.e., owners or registered mortgagees). This notice period is set in the bylaws of that particular condominium corporation (for example, the bylaws may state that a 30-day notice period is required before a special resolution can be passed).

Conversely, the Condominium Act, or associated regulations do not provide a limit for how long a special resolution may take to receive the appropriate number of votes or signatures. Simply put, the threshold provides only for the number of “yes” votes required to pass the special resolution. Abstaining from voting does not explicitly constitute a vote of “no”, unless this is accounted for in the bylaws. Failure to sign a written special resolution is more clearly defined as simply not having voted yet.

3.  Personal Information Protection Act
Although they may fit the definition of a not-for-profit organization under other legislation, condominium corporations have been defined as “organizations” under the Personal Information Protection Act (“PIPA”).[7] Consequently, condominium corporations are permitted to collect and use personal information for purposes that are reasonable, with a general requirement that collection, use and disclosure of personal information must be consented to by the individual.[8]

It is important to note that consent does not necessarily need to be explicit for collection, use and disclosure of personal information required under PIPA. In certain situations, consent may be implied. For example, a person who has signed a waiver has given implied consent that information identifying them as the signor could be disclosed to show that they did sign the document.

Under Section 20 of PIPA, there are also situations where personal information may be disclosed without the consent of the individual.[9] For the most part, being allowed to disclose personal information without consent of the individual under PIPA is related to specific organizations; governmental statutes, regulations, or bylaws; emergencies; or investigations.[10] However, under Subsection 20(a) of PIPA, there is an exemption given where a reasonable person would consider the disclosure of the information is clearly in the individual’s best interests, or that individual would not reasonably be expected to withhold consent.[11]     

Special Resolutions Under PIPA:
With regard to signed special resolutions an individual consenting for the disclosure of their identifying information is dependent on the circumstances. Under the Condominium Property Regulation (“Condo Regulation”), the text of written ordinary and special resolutions voted on by the corporation and the results of the voting on those resolutions, may be disclosed pursuant to a written request of an owner, purchaser or mortgagee, the solicitor of an owner, purchaser or mortgagee, or a person authorized in writing by any of those persons (see S 44(1) of Condominium Act).[12]

The Alberta government addresses voters who give their signature supporting a special resolution. Under PIPA, this is addressed in Section 8, where consent to collect, use or disclose personal information can be given to an organization by voluntarily providing information to the organization for that purpose.[13] In this case, giving your signature for a special resolution is deemed consent for the purposes of that special resolution.

The disclosure of identifying information is less clear for those who have not given their signature, however. The condominium board is a representation of the condominium corporation, and a condominium corporation is defined under S 25 of the Condominium Act as all persons who are owners of the units or entitled to the parcel of land if the condominium corporation is terminated.[14]

The Office of the Information and Privacy Commissioner (“OIPC”) has been clear that although personal information collected by the condominium corporation is subject to PIPA, but so long as the condominium corporation is carrying out its duties or powers under the CPA and does not include extraneous or irrelevant information in carrying out those duties and powers, then it will generally not be disclosing personal information in a breach of PIPA.[15] In another decision, the OIPC defined the actions of condominium corporations as “unit owners making collective decisions regarding the upkeep and management of the condominium.”[16]

It is reasonable to consider that condominium corporations may disclose information of potential voters to ensure that those voters have the opportunity to provide their own decision in the collective group. Directors of a corporation must consider different stakeholders when making decisions on behalf of the corporation, but ultimately, these decisions can be justified if the director acts honestly and in good faith with a view to the best interests of the corporation.[17] The best interests of the corporation does not necessarily mean that all parties need to be satisfied. Rather, it would be a situation where the board of directors is concerned with the overall good of the corporation as a whole.

Note on PIPA:
A special resolution is a collective decision of the owners in a condominium corporation. Although carrying out these decisions requires good faith, it would appear that a corporation would need to be able to identify and contact potential voters on a decision in order to ensure that it is carrying out its duties, obligations, and powers. Ultimately, personal information may be disclosed for a reasonable purpose, and only to the extent reasonably required to meet that purpose.[18]
 
4.  Short Term Rentals Under Condominium Corporations
Under the Condominium Act, Section 32(5), bylaws cannot operate to prohibit or restrict the devolution of units or any transfer, lease, mortgage or other dealing with them or to destroy or modify any easement implied or created by the Act.[19] Effectively, condominium bylaws cannot prevent a person from leasing out their condominium. However, short term rentals on platforms such as AirBnB operate differently, as Alberta Courts have previously identified these types of rentals as licenses rather than leases.[20]

Further, the Court in Kuzio established that licenses are not referenced in S 32(5) of the Condominium Act, meaning they are not protected from bylaws in the same manner that leases are, and that “unit owners share common property and agree that management of the condominium will be under the control of the Board of Directors which may pass Bylaws governing all unit owners.”[21]

Finally, the Court in Kuzio concluded that the bylaws of the condominium corporation were valid, and further that they were allowed to use these bylaws to prohibit short term AirBnB style rentals where no lease has been entered into.[22]
 
5.  Final Notes 
Condominium boards are created to represent the common interests of all owners in the condominium plan. As such, the powers of management can be far reaching so long as the board is acting in what appears to be the best interests of the condominium corporation as a whole. This includes usage of personal information, as well as passing, amending and replacing bylaws by special resolution.
​
Issues with condominium boards can be very difficult to navigate. Often times these issues are complex and time consuming. If you are experiencing an issue with your condominium board, it may require you to seek a lawyer who practices in corporate governance, residential tenancy, or real estate law.
 
 


[1] RSA 2000, c C-22 [ABCA]. Note: in force since April 1, 2023

[2] Condominium Act, S 32(1).

[3] Condominium Act, S 33.

[4] Condominium Act, Ss 32(3, 4).

[5] Condominium Act, S 1(1)(x).

[6] https://cci.ca/resource-centre/view/1900

[7] Alberta, Office of the Information and Privacy Commissioner, Order P2005-005 (Edmonton: OIPC, 2006), at para 22, online: <https://oipc.ab.ca/wp-content/uploads/2022/01/Order-P2005-05.pdf>.; SA 2003, c P-6.5 <https://canlii.ca/t/5619m>.     

[8] PIPA, S 19.

[9] PIPA, S 20.

[10] PIPA, S 20(b-r).

[11] PIPA, S 20(a).

[12] Alta Reg 168/2000, S 20.52(l), <https://canlii.ca/t/569zk>; Condominium Act, S 44(1).

[13] PIPA, S 8(1),(2).

[14] Condominium Act, S 25(2).

[15] Alberta, Office of the Information and Privacy Commissioner, Order P2009-003 (Edmonton: OIPC, 2009), at para 22, online: < https://oipc.ab.ca/wp-content/uploads/2022/01/Order-P2009-03.pdf>.    

[16] [16] Alberta, Office of the Information and Privacy Commissioner, Order P2016-02 (Edmonton: OIPC, 2016), at para 47, online: < https://oipc.ab.ca/wp-content/uploads/2022/01/Order-P2016-02.pdf >.    
 

[17] Condominium Act, S 28(2)(a).

[18] Condominium Act, S 2(a).

[19] Condominium Act, S 32(5).

[20] Condominium Corporation No 042 5177 v Kuzio, 2020 ABQB 152 (CanLII), (“Kuzio”) <https://canlii.ca/t/j5jjh>, at para 26.

[21] Kuzio, at paras 40, 42.

[22] Kuzio, at para 74.