Landlord Wins Exemption from Residential Tenancies Act: Zeta Psi Elders Association v Kavanaugh
LTB rules Airbnb rental unit exempt from Residential Tenancies Act due to business purpose
Summarized by RentZenLast updated: July 26, 2024
Case Summary
180 St. George Street, Toronto, ON M5R2N3
Decision in favor of
landlord
Balance Owed
-
Dispute Categories
Agree with the ruling?
Timeline
Application Date
Jan 2019
Hearing Date
Aug 2019
Order Date
Sep 23, 2021
Dispute Summary
The Landlord applied for an order to determine whether the Residential Tenancies Act, 2006 (the 'RTA') applies to the tenancy. The Tenant was renting a coach house from the Landlord, a university fraternity, and was using the unit for short-term Airbnb rentals, which was his only source of income.
Determinations
- Coach house is living accommodation
- Tenant's Airbnb activity is a business purpose
- Predominant purpose of tenancy is business, not residential
- Tenancy is exempt from RTA under s. 5(j)
- 2018 lease did not change nature of tenancy
Case Study
The Tenancy is exempt from the RTA because the predominant purpose of the tenancy is for the Tenant to operate a short-term rental business on Airbnb, rather than for residential purposes. The Tenant did not reside in the unit full-time, and his use of the unit was subordinate to the Airbnb business. The 2018 lease did not change the nature of the tenancy.
Arguments and Actions
Tenant
Arguments
Tenant argued that Airbnb rentals are a residential purpose, not a business purpose, because Airbnb customers reside in the premises.
Decision Summary
The tenancy is exempt from the Residential Tenancies Act because the predominant purpose of the tenancy is for the Tenant to operate a short-term rental business on Airbnb, rather than for residential purposes.
Adjudicator Details
LTB Member
Total Orders
367
Landlord Favorable
88.6%
Tenant Favorable
4.1%
Mutual Agreement
7.4%
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