Condo owner out of luck after building bans short-term rentals

Calgary condominium boards have started to ban short-term rentals, and for investors, that creates a dilemma with a possible loss.

Max Latter bought a condo in the Guardian south tower as an investment property but is now facing a dilemma: to sell it or rent it as a long-term property.

“It’s unfortunate that a small few ruin it for everyone,” said Latter.

Latter bought the two-bedroom, two-bathroom condo in 2023 and has since renovated it.

On July 31, he was notified by the building’s condo board that short-term rentals (STRs) of fewer than 30 days would be banned.

This came after board members voted against STRs.

“I’m looking at renting it as a furnished unit or trying to sell it as a furnished unit because I did do a lot of work on the renovations,” said Latter.

A notice was sent to Latter by the condo board that STRs will be banned starting in November.

This past June, a man died after falling out of the Guardian south tower.

Latter says this was what triggered the meeting among owners, which eventually led to the upcoming ban.

“Options definitely could have been explored in the condo meeting, where they were discussing if they were going to allow it or not,” said Latter.

”I do understand the guests who were living there don’t have a sense of community when people are always moving in and out and there’s always cleaners moving in and out. It kind of changes the experience they bought for.

“Everyone was quite passionate in that meeting, and it was electric with how people’s opinions on each side were.”

Tony Brezio has lived in the Guardian north tower since 2019 and says STRs are also banned there.

He spends time at friends’ places in the south tower and understands long-term residents’ frustration over the impact of short-term rentals on their quality of life.

“(At) Stampede time, there’s lots of people here, so it is heavy traffic,” said Brezio.

“With the parties, you can’t really avoid it. (With) Airbnbs, it comes naturally.”

Growing trend

Realtor Sherry Johnston says the list of buildings banning short-term rentals is growing.

“What’s happening with the market, I’ve noticed, is the complexes are not allowing Airbnbs as much anymore for liability reasons,” said Johnston.

“The boards are noticing quite a bit of liability issues regarding Airbnbs with people going in and out.

“The owners in the complexes aren’t really caring for strangers coming in and out as well.”

The Guardian south tower ban comes after a year-over-year sales drop of nearly 6.5 per cent to the benchmark prices on condos.

In 2024, the benchmark price was $345,000, and now the benchmark price is $322,900.

The vacancy rate has also changed dramatically—it was 1.4 per cent in 2023, and the Canada Mortgage and Housing Corporation forecasts it to be at 5.8 by year’s end.

“Unfortunate things happen—can’t always predict that, and that’s part of the risk, but I think, still, Airbnb is profitable, and it does have a place in the market,” said Latter.

“If I had to do it again, I would probably look to do it in a house or even outside the city. I think there’s more profit to buying a bigger property and doing it kind of as a vacation home.”

In a statement to CTV News, Airbnb said, “While we require hosts to follow rules set in place, we encourage parties to resolve private disputes directly with each other.”

It also outlined how home sharing generated $255 million in economic activity in 2024 while contributing $57 million in tax revenue.

CTV News reached out to Guardian Tower for a comment.