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Lifestyle Real Estate

Toronto condos are tightening the rules around party rooms

As Christian Buer’s 33rd birthday approached, he wanted to book his condo’s party room to host a few dozen friends for drinks. When he bought a unit in the Art Condos at Dovercourt and Queen the year prior, he didn’t think too much about the party room, but figured it might be smart to take advantage of something he pays for every month. And he had successfully done so before, hosting a friend’s child’s birthday party without issue.

This time, however, he discovered if he wanted to actually party in the party room, it would cost him.

When he went to book it, he was informed he would have to fork over $25 per hour to hire a security guard, leave a $500 deposit and pay a non-refundable $100 administrative fee.

“That’s when I made the well-informed decision to not book the party room,” he says.

An informal survey of condo dwellers – friends, colleagues and a Bunz group – quickly reveals these restrictions are not uncommon in Toronto: some condo bylaws require additional security, some implement time-based restrictions, some demand the purchase of liability insurance, some ask for a refundable deposit and some call for all of the above.

While all residents contribute to common areas like party rooms through monthly fees, those who specifically want to use the shared spaces are asked to bear the financial burden. These added costs not only offset the price of repairs that might be required after a raucous gathering, but act as a deterrent to wild parties.

However, many argue that these restrictions are prohibitive and dissuade residents from using a service they already pay for.

Toronto real estate agent Alex Balikoev has also noticed a shift in building regulations around the use of shared spaces, reflecting their increasing popularity among residents.

“These rules are getting tighter and stricter,” he says.

The reason? As the city’s real estate culture matures, condo boards are getting better at protecting their investments. Party rooms are increasingly important to potential buyers as unit prices rise and average square footage shrinks. 

“The smaller the units in the condo corporation, the more these common areas matter, because this is where residents tend to spend more time,” Balikoev says. 

According to Tim Duggan, a Toronto lawyer who specializes in condo law, condo corporations have broad obligations to managing a variety of stakeholders. When looking at finances, the condo deals with owners. When looking at bylaws that involve conduct, the condo deals with all residents.

When it comes to party rooms, Duggan expects most boards are likely to not distinguish between those who own units and those who rent.   “Most buildings in my experience treat [renters and owners] as roughly equivalent because the risks are generally taken to be about the same,” he says.

But not everyone sees this equality playing out. Courtney Walker rents in a building east of the downtown core and says she is subject to different rules for renting the party room than neighbours who own.

Renters must provide a $500 certified cheque from their bank, while owners are allowed to leave a personal cheque. It may seem small, but obtaining a certified cheque requires trips to the bank and administrative fees. And unlike a personal cheque, a certified cheque draws funds directly from an account, meaning Walker basically hands over an envelope of cash to building management, adding additional anxiety to the situation.

She says this reflects a recent policy change and contributes to an environment where she feels like “a second-class citizen” in her own building.  These differences may come down to perceived liability, where renters are seen to have less investment in protecting shared spaces than owners.

“It’s frustrating to feel that we’re being treated differently because we’re renters,” Walker says. “Just because we don’t own a unit doesn’t mean this isn’t our home or that we’re not invested in the community. It feels yucky to be treated with what feels like suspicion when we’re just trying to throw a birthday party for our kid.”

Geordie Dent, executive director of the Federation of Metro Tenants’ Associations, agrees that condo renters regularly face obstacles accessing amenities like party rooms.

“We get issues like this all the time,” he says. “Tenants sometimes call about rules that require a landlord’s approval to use a party room, even if the tenant might not have access to the landlord [like an overseas investor using a management company]. Other times tenants are outright barred from using services, which shouldn’t be the case.”

However, the legal situation for renters who face additional party room regulations is somewhat unclear.

“There is some limited amount of case law dealing with treating tenanted units differently than owned units,” Duggan says, suggesting there might be potential recourse for renters.

When it comes to condos, the Condominium Authority of Ontario’s Keegan Ferreria says party room rules must abide by a “reasonableness provision.” Changes must be sent as a notice to owners and can be challenged. 

While Christian Buer owns his unit and says he’s unlikely to challenge his condo’s prohibitive party room rules, he also isn’t likely to use it anytime soon. “I want to burn money on nothing, so luckily I have a party room that I can’t use,” he jokes.

news@nowtoronto.com | @MilesJKenyon

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