Renting out your condominium: Six facts you need to know.

Posted By: Judy Feng

Did you know that both the Residential Tenancies Act (RTA) and Condominium Property Act (CPA) apply to condominium rentals? As a landlord and owner of a condominium unit, you must be familiar with your responsibilities under both pieces of legislation. In Alberta, the RTA is the law that applies to most landlord and tenant situations. It outlines specific rules that both landlords and tenants must follow. The CPA contains additional rules that apply to the rental of condominiums. Here are six key things you need to know before you rent out your unit.

Fact #1: You must inform your condominium corporation

If you have found a tenant and are ready to rent your unit, you must provide the following information to your condominium corporation, in writing:

* your intention to rent out your unit;

* an address where you can be personally served with documents; and

* how much rent you will be charging

Within 20 days of the tenancy starting, you must give your condominium corporation written notice of the name(s) of the tenant(s).

If you stop renting your unit, you must provide notice to your condominium corporation within 20 days of the tenancy ending.

Fact #2: The condominium corporation can ask you for a security deposit

If you are renting your unit, the condominium corporation has the right to ask you for a security deposit to cover any damage that may be caused by your tenant to the common property. The security deposit can be a maximum of one month's rent. Note: this is not the same as the security deposit you can ask for from your tenant!

Fact #3: Your tenant's security deposit cannot be used to pay the condominium corporation's security deposit

You can ask your tenant for a security deposit but you cannot use this money to pay the condominium corporation's security deposit. You must put the tenant's security deposit money into a trust account within two banking days of receiving it and keep records of the security deposit for at least three years. A security deposit cannot be more than what you are charging for one month's rent. For more information about security deposits, visit our Laws for Landlords and...