Real Estate Practitioners should normally determine if a property is residential and subject to the Residential Tenancies Act. However, certain hybrid situations can cause problems. For example, consider a tenant renting a home located on 30-acre rural property and also renting the barns and balance of the property as a riding stable. If the individual occupied the home prior to the riding stable operation and leased the business operation under a separate lease, the Residential Tenancies Act would undoubtedly apply to the residential tenancy.
If the person became a tenant coincident with renting the barns for a riding stable operation under a single lease (in other words the occupancy of the house was required to carry on the business) the property would undoubtedly be judged as principally used for commercial purposes. Establishing whether a residential or commercial tenancy exists can have a significant impact particularly in regard to notices concerning termination, rent charged and rights of access by the landlord (or his/her agent) to show the property and to make repairs.
Practitioners should also be aware of exclusions for certain types of rental arrangements provided in the Residential Tenancies Act.
• Living accommodation intended to be provided to the travelling or vacationing public or occupied for a seasonal or temporary period.
• Living accommodation when the occupancy is conditional on the occupant continuing to be employed on a farm, regardless of where the accommodation is situated.
• Living accommodation provided by a non-profit housing co-operative to tenants in member units, occupied by a person in a penal or correctional facility, governed by selected legislation (e.g., Public Hospitals Act), provided as emergency shelter or provided by an education institution (subject to certain qualifications).
• Living accommodation located in a building or project and the occupancy is required relating to a function performed by the tenant in that building or project.