Friday, May 27, 2016

Beware of Renting your Condo as AirBnb

Your mortgage does not say You are permitted to rent as a commercial landlord; then you would be a commercial investor like Trump Tower  [how many people couldn't get financed]

Your mortgage requires you to stay within the provisions of your Condo By Laws.   If you contravene your by laws your mortgage is considered in default.

In the condominium sector, where, according to Gerald Miller, a managing partner at Gardiner Miller Arnold LLP, 80 to 90 per cent of Canada’s Airbnb market is concentrated, there are definite risks for lenders – and homeowners.
“If you contravene the declaration of bylaws and rules of the condominium corporation,” he points out, “that means you’re offside here. It means you’re in default of your mortgage, because the corporation can take action against you and whatever costs are incurred; they can lien your unit.”Mr. Miller says Airbnb renters flew under the radar for the first few years of the service’s operation, “but now it’s become mainstream. It is everywhere. So in the end when you are exposed you could have a problem. You either stop doing it or you are going to have a problem, not only with the condominium corporation, but with your lender as well.”

What's the lesson?

Get Factual advice.   Follow the By Laws and Have the correct Financing in place.

Can we talk?   Call me. 

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