Here is the CRA Guidance CRA Guidance Classifying income earned by registered charities from their rental of real estate obtained through access to information.
The guidance discusses “whether the revenue earned from rental of real property by a charity (in this document charity includes a registered charity and an applicant organization) is property income or business income. It is modelled on the principles set out in”.
It notes “The renting of real property to others does not, in itself, indicate that the charity is carrying on a business (related or not-related). The nature and degree of involvement of the charity must be taken into account. As such, a charity will be regarded as carrying on a business when, in addition to providing rental accommodation, it provides additional services (services other than basic services) to such an extent that the rental operation goes beyond the mere rental of real property.”
Charities that own real estate will find the guidance useful.