Airbnb Rental Exempted from RTA: Zeta Psi v Kavanaugh 2022
Court upholds ruling that Airbnb rental is exempt from Residential Tenancies Act due to predominant business use
Summarized by RentZenLast updated: August 16, 2024
Case Summary
Decision in favor of
landlord
Balance Owed
-
Dispute Categories
Agree with the ruling?
Timeline
Hearing Date
Jul 2022
Order Date
Jul 13, 2022
Dispute Summary
Tenant appealed a Landlord and Tenant Board decision that held the Residential Tenancies Act did not apply to his tenancy due to the exemption in s. 5(j) for premises used predominantly for business purposes. The Board found the tenant was primarily using the premises to operate an Airbnb short-term rental business.
Determinations
- No error of law in Board's decision
- Board correctly applied predominant purpose test
- Tenant's arguments challenged factual findings, not legal errors
- Appeal dismissed
Case Study
The court found no error of law in the Board's decision. The Board correctly applied the predominant purpose test to determine if the exemption in s. 5(j) of the RTA applied. The tenant's arguments challenging the factual findings were not grounds for appeal, as appeals are limited to questions of law.
Arguments and Actions
Landlord
Arguments
Landlord argued the Board correctly applied the predominant purpose test to find the RTA exemption applied.
Tenant
Arguments
Tenant argued the Board erred in finding the predominant use of the premises was for an Airbnb business.
Actions
Tenant operated an Airbnb short-term rental business from the premises as his only source of income.
Decision Summary
The Divisional Court dismissed the tenant's appeal of the Landlord and Tenant Board decision. The court found no error of law in the Board's application of the predominant purpose test to determine that the RTA exemption for business use applied to the tenancy. The tenant's arguments challenging factual findings were not grounds for appeal.
Adjudicator Details
Divisional Court
Total Orders
21
Landlord Favorable
71.4%
Tenant Favorable
28.6%
Mutual Agreement
0.0%
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