If you’ve been on a condo board for any length of time, chances are the topic of short-term rentals has come up. Maybe a resident mentioned seeing a listing for a unit in your building on a booking platform. Maybe noise complaints started pointing to a revolving door of guests who don’t know the parking rules, the quiet hours, or where to put the recycling.
Whatever the trigger, it is a situation that more and more condominium boards across Calgary and Alberta are navigating today.
Here’s what you actually need to know.
The City of Calgary defines a short-term rental as providing temporary accommodation for compensation in a dwelling unit or portion of a dwelling unit for periods of up to 30 consecutive days. That captures the obvious platforms like Airbnb and VRBO, but also informal arrangements where someone collects rent for a weekend stay or sublets while travelling.
It’s worth noting that bed and breakfast operations with a permit are treated separately under the city’s licensing framework, and the rules differ accordingly.
This is where things get interesting, and where a lot of boards have had questions.
Section 32(5) of Alberta’s Condominium Property Act states that no bylaw can operate to prevent a lease or other dealing with a unit. For years, that created some uncertainty about whether a corporation could actually stop an owner from listing their unit on Airbnb.
A 2020 Alberta Court of Queen’s Bench decision largely settled the debate. In Condominium Corporation No. 042 5177 v. Kuzio (2020 ABQB 152), the court ruled that short-term rental arrangements through platforms like Airbnb create a licence, not a lease. The distinction matters significantly: because the guest is a licensee rather than a tenant, the protections in section 32(5) don’t apply. The court found that short-term occupants are the functional equivalent of hotel guests, not tenants, and that this type of use represents a commercial purpose that fundamentally changes the character of a residential condominium.
The result: a condo corporation in Alberta can, through properly written bylaws, prohibit or restrict short-term rentals.
The court also noted that condominium owners do not have the same rights as owners of property in fee simple. Buying a condo unit means accepting the governance framework that comes with it.
Even if a corporation permits short-term rentals, owners operating them in Calgary face a set of city-side obligations.
Calgary City Council approved changes to the Business Licence Bylaw that took effect January 1, 2024, requiring all short-term rental hosts to hold a valid business licence. Further amendments were approved in December 2024 and came into force April 1, 2025.
Under the current rules, hosts must obtain a licence categorized as either a primary or non-primary residence, which replaced the previous tiered system based on number of rooms. All licences require a fire inspection before they’re issued, including renewals. The fire safety requirements include a detailed floor plan posted inside the unit, smoke alarms, carbon monoxide detectors, and fire extinguishers, with alarms to be tested monthly. Licences cannot be issued for affordable housing units.
There’s also a practical safeguard that often goes unnoticed: until April 1, 2025, the city required written approval from the condo board, sealed by the board, as part of the licence application. That requirement has since been removed at the city level, though applicants are still expected to comply with their condominium corporation’s own bylaws. In practice, this means the obligation to enforce sits squarely with the corporation and its bylaws, not the city.
Beyond the legal questions, there are day-to-day realities that boards deal with when short-term rentals operate in a building without clear rules.
Security and access control are at the top of the list. Guests who are strangers to the building often mean key fobs being shared, propped doors, and elevator holdups during high-turnover periods. Unlike a long-term tenant, a short-term guest has no long-term stake in the building and no ongoing relationship with the corporation.
Wear and tear on common areas increases with transient use. Furniture in lobbies, flooring in elevators, and garbage rooms are all affected. Noise complaints tend to spike around short-term rental units, particularly on weekends. And in a well-run condominium, the culture of the building is shaped by people who are invested in their community. A high turnover of guests changes that, even in small doses.
There are also insurance implications worth raising with your corporation’s insurer. Some policies have exclusions or implications related to short-term commercial use of a unit that may affect the corporation’s overall coverage.
If your corporation doesn’t currently have clear language on short-term rentals, this is worth addressing. Here’s what’s within your reach.
Review your existing bylaws. Many bylaws already contain language around residential use, commercial activity, or the requirement that units be occupied by owners or tenants. A legal review can clarify whether your current wording is sufficient or whether a specific amendment is needed.
Consider a targeted bylaw amendment. If your corporation wants to take a clear position, whether that’s a full prohibition or a set of conditions under which short-term rentals are permitted, a bylaw amendment gives you a solid foundation to enforce from. Under Alberta’s Condominium Property Act, bylaws require approval by a special resolution before they’re binding.
Establish a process for enforcement. Knowing what your bylaws say is one thing. Having a documented process for how you respond when a violation is identified is another. That includes how you notify the owner, what remedies are available, and what chargeback authority the corporation has.
Keep records. If an issue escalates, having documented complaints, correspondence with the owner, and records of board decisions creates the paper trail you’ll need.
Communicate proactively with owners. Sending out a clear note about the corporation’s position on short-term rentals, with a reference to the relevant bylaw, is often enough to prevent most problems before they start. Owners who understand the rules tend to follow them.
It’s worth keeping in mind that the regulatory picture around short-term rentals continues to shift. Calgary’s April 2025 amendments are relatively recent, and the city has indicated it will continue monitoring the market, including the possibility of a moratorium on new non-primary residence licences if housing vacancy rates drop below a specified threshold.
Alberta’s broader condominium legislation is also in a period of change following the amendments introduced through Bill 30, the Service Alberta Statutes Amendment Act, 2024. The new condominium tribunal, which launched April 1, 2026, provides corporations and owners with a more accessible path to resolving disputes, which includes disagreements over bylaw enforcement.
For boards managing properties in Calgary or across Alberta, short-term rentals are not a problem that resolves itself. The good news is that the legal tools to address it are well established, and with the right bylaws in place, enforcement is manageable.
At UrbanTec, staying current on legislative changes and bylaw trends is part of how we support the communities we manage. If questions come up for your board, we’re happy to talk through what we’re seeing.
This article is for general informational purposes and does not constitute legal advice. For questions specific to your condominium corporation’s bylaws or enforcement options, consult a qualified legal professional.
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