Leasing During Interim Occupancy

Interim occupancy creates an unusual window for owners of newly built condos, as it allows the unit to be occupied before the building is fully finished and before the condominium is formally registered. 

The interim occupancy period begins after the municipality issues an occupancy permit for a unit that is fit for occupancy, and construction of other units or common elements may still be underway during that period.

That leaves owners with a major question: 

Can the unit be leased during that stage, and if so, how do you do it without setting the wrong expectations for your tenants? 

This guide covers what interim occupancy is, why leasing during that phase needs a different approach, and how Del helps owners manage the process.

What Is Interim Occupancy?

Interim occupancy is the period when a purchaser can take possession of a new condo unit before the building is fully registered as a condominium. 

During that stretch, the owner may be able to live in or lease the unit, but the building itself may still feel unfinished. 

A unit can be fit for occupancy under the Ontario Building Code even though construction is still continuing elsewhere in the project.

Can You Lease a Condo During Interim Occupancy?

Sometimes, yes. 

During interim occupancy, the buyer may have possession of the unit without having full legal ownership yet. The ability to lease during this period depends on the builder’s rules and the Agreement of Purchase and Sale. 

Some developers prohibit leasing during interim occupancy. Others allow it only with prior consent. Leasing without that approval may constitute a breach of the purchase agreement.

Before moving ahead, owners should confirm:

• Whether the builder allows leasing during interim occupancy
• Whether written consent is required
• Whether the Agreement of Purchase and Sale contains leasing restrictions
• Whether there are builder rules that affect tenant move-in, access, or occupancy

That should be checked first. The rest of the leasing process only matters if the unit can actually be rented during that stage.

Interim Occupancy vs. Final Closing

During interim occupancy, owners usually pay an interim occupancy fee to the builder. 

This monthly fee typically includes interest on the unpaid balance of the purchase price, estimated municipal taxes, and projected common expenses, and it is not credited toward the purchase price.

Why Leasing During Interim Occupancy Needs a Different Approach

Leasing a resale condo is relatively straightforward by comparison. 

The building is operating normally, access systems are in place, amenities are usually open, and the day-to-day rules are already solidified.

Interim occupancy is unique in that the building may still change week to week. Elevators may not be fully operating. Some amenities may not be open. Parking or access procedures may still be taking shape. There may be construction noise throughout the day. 

That doesn’t make it impossible to lease, but it does mean expectations need to be set properly from the start.

What to Lock Down Before Leasing During Interim Occupancy

A tenant moving into a brand-new building may assume “new” means sleek, complete, and fully operational. However, during interim occupancy, that may not be true yet. 

That’s why it’s important to set clear expectations.

A good interim-occupancy lease process should account for:

• Occupancy terms: The tenant should know up front that this is not the same as moving into a fully operational building. Parts of the property may still be unfinished, builder procedures may still control certain parts of day-to-day access, and some building routines can shift with very little warning.
• Utilities and services: One of the first things to clarify is what is already active and what is not. If hydro needs to be set up separately or if certain services are still being rolled out, the tenant should hear that before move-in.
• Parking and access: Is the parking garage or spot actually usable yet? Have fobs been issued? Will the tenant have access through the entry points they are expecting to use?
• Amenity availability: If the gym is still closed, the parcel room is not running properly, or shared spaces are technically part of the building but not yet open for normal use, the leasing conversation should reflect that.
• Move-in logistics: In interim occupancy, the builder often still has a heavy hand in how move-ins happen. Elevator bookings, delivery windows, insurance requirements, access timing, and on-site coordination can all be tighter than they would be in a completed building.

How Del Supports Owners During Interim Occupancy

Del helps owners manage interim occupancy by handling the parts of the lease-up that are less predictable in a new building.

• Expectation-setting: Clear communication around what the tenant is moving into.
• Builder compliance: Making sure occupancy rules and required documentation are handled properly.
• Lease structure: Framing the agreement in a way that reflects interim conditions.
• Tenant communication: Managing the back-and-forth that usually comes with a building in transition.
• Move-in support: Guiding tenants through logistics that are often less settled than in a completed building.

Conclusion

So, can I lease a condo during interim occupancy?

Leasing during interim occupancy can help offset occupancy fees and carrying costs before final closing, but only if the builder allows it and the lease is handled with the building’s actual conditions in mind. 

The main things to look out for are builder consent, lease restrictions in the Agreement of Purchase and Sale, and the operational issues that come with a building still under construction.

Del helps owners work through that stage, so the tenancy starts on clearer terms and is easier to manage once the building reaches regular operation.