Toronto landlord launches $1.6M lawsuit after city gave stranger approval to rent her condo on Airbnb

A Toronto landlord is suing her former tenant, the tenant's boyfriend, the City of Toronto and Airbnb, after her downtown condominium was rented out on the short-term rental platform for months without her knowledge or consent.

The statement of claim, filed on behalf of Allison Rasquinha in Ontario Superior Court of Justice on June 22, says Michele Nicole Carter and Jose Cornejo Kelly registered Rasquinha's studio condo on Adelaide Street West with the city for short-term rental without authorization and rented it out dozens of times on Airbnb in violation of the condo corporation's rules.

It accuses Airbnb and the city of facilitating the registration and rental of the unit, claiming both neglected their responsibilities to verify whether Carter and Cornejo Kelly had the legal right to rent out the property on a short-term basis.

"[My condo] is my most valuable possession. It's near and dear to my heart," Rasquinha said in an interview with CBC.

"It's a terrible feeling to see something that you love be weaponized for profit and gain that you weren't even aware of."

The lawsuit seeks $1.6 million in damages from the four defendants for financial losses and mental anguish, among other harms. The allegations haven't been proven in court and none of the defendants has filed a statement of defence yet.

Multiple attempts to contact Carter and Cornejo Kelly by phone, email and at a Hamilton, Ont., home registered to owners with the same names were unsuccessful.

According to the statement of claim, Rasquinha entered into a one-year lease agreement with Carter that began on July 1, 2022. 

The agreement, viewed by CBC Toronto, prohibits tenants from subleasing the property without written permission from the landlord and compels them to abide by the condo corporation's declaration. The declaration, also viewed by CBC, forbids renting out residential units for less than a year.

Two weeks after the lease took effect, the city issued a short-term rental registration for the unit to Jose Cornejo Kelly, according to the claim and a document obtained by Rasquinha through a freedom of information request.

CBC Toronto previously reported that Carter said Cornejo Kelly lived in the unit with her, although his name wasn't on the lease. Rasquinha said she had never met him and she was never informed that he'd moved in. 

The claim alleges Carter and Cornejo Kelly listed the unit on Airbnb between July 14, 2022, and April 2, 2023.

"The property listing has over 30 reviews and as such, it is evident that it has been rented at least 30 times during the duration of the listing," the lawsuit says. 

Rasquinha confronted Carter in February after learning from the building's security team that she may have been running an unauthorized Airbnb business, but Carter denied knowing anything about it, according to the suit and emails viewed by CBC Toronto.