Building Level Caps on Short Term Rentals

A building level cap limits how many units in one building may rent short term, regardless of how many owners want to. Once the cap fills, further owners cannot lawfully list until a place opens, even if the city would license them and the zone allows the use. The direct answer for an owner in a capped building is therefore a question of availability, not just eligibility: is there a vacant place, and how is it allocated?

Caps are set by building documents, by a city rule applied per building, or by both at once, and the stricter cap governs in practice. A city cap of a generous number means little if the building sets a lower one, and a generous building rule means little if the city caps the building lower. Owners must check both numbers and take the lower as the operative limit.

Building caps may be expressed as a fixed number of units, a percentage of units, or a number per floor or stairwell, and the expression affects how quickly a cap fills. A percentage cap in a small building may allow only one or two units, while a fixed number in a large building may allow many. The cap document should also state whether hosted stays count toward the cap, whether owner occupied units are exempt, and whether commercial units are counted separately.

City imposed building caps may aim to preserve residential character inside mixed buildings, ensuring most units remain homes rather than visitor units. Building imposed caps may aim at the same goal from the owners' perspective, protecting lifts, security and neighbour relations. Either way, the cap is a collective limit on individual ambition, and owners buy into it when they buy into the building.

Allocation inside a building may follow first come first served registration, a waiting list, a rotation, a vote or a lottery among owners, depending on the documents. Some buildings grandfather existing renters and allocate vacancies as they arise, which can mean a long wait for a newcomer. Others rotate places annually, which gives more owners a turn but less certainty for any one owner. The method should be written down; if it is not, disputes are likely.

Owners should ask for the allocation method, the current register and their queue position in writing before relying on a future place. A verbal assurance from a manager that a place will open soon is not a permission, and a queue position can move if a grandfathered owner returns or a rule changes. Written, dated information is the only safe basis for planning.

A full cap means no new short term renting in that building until a vacancy arises, and listing anyway risks building fines, city enforcement where a city cap also applies, and neighbour complaints that are harder to defend because the breach is clear. Owners in this position sometimes argue that their unit is different, for example because it is larger or better managed, but a cap does not usually admit exceptions for quality. It admits numbers, and numbers are full.

Lawful alternatives while waiting include long term letting where the building allows it, owner occupation, or a sale to a buyer who does not need short term income. An owner who bought specifically for short term income and finds the cap full should seek advice promptly, because the purchase decision may have rested on an assumption the documents never supported. Early advice costs less than a year of unlawful letting.

Changing a building cap usually requires the same level of owner approval as the document that set it, which may be a supermajority for a declaration change or a board vote for a rule change. City caps change through code amendments, which follow a public process and may include transitional protection for existing operators. Either route takes time and political effort, and neither guarantees success.

Hosts campaigning for a higher cap should present management evidence, such as complaint records, guest procedures and building wear data, rather than income arguments alone, because decision makers weigh collective effects. Even a successful change may apply only prospectively, leaving current unlawful operators still exposed for past stays. The amendment document is the proof of change, not the vote announcement.

Ask for the cap provision, the current register of renting units, the allocation method and any waiting list, and confirm whether a city cap also applies to the building. Record dates and sources, and check whether hosted stays count toward the cap, since that detail alone can change whether a place is truly available.

This guide is general information only, not legal advice for any building. Caps vary by building and city, and one building's cap must never be treated as a general rule. Before acting, verify the position with the official municipal code or registration portal and the building documents for that address.