Condominium in Ontario (Toronto is in Ontario) is a form of ownership, it had nothing to do with the physical form of the home.

You can own a condominimum townhouse (a row of single family homes with front yard, driveways, garage attached by common walls) or a condominium apartment (in say a 30 storey building with 10 parents per floor)

And yes, you can rent out a condominium apartment. Approx 60 % of the rental units in the Greater Toronto Area are condominium apartments.

Most of Toronto's rental stock is privately owned condos, rented out. There is next to no Condo Corporations in Ontario that aren't senior specific that ban renting the unit to long term tenants (many ban short term AirBnb in their bylaws).