•   
  •   
  •   

MoneyHow Toronto's proposed short-term rental regulations compare to other cities

16:55  04 may  2019
16:55  04 may  2019 Source:   cbc.ca

Rise of ghost hotels casts pall over Toronto rental market

Rise of ghost hotels casts pall over Toronto rental market Toronto’s housing crisis is being fuelled by the emergence of “ghost hotels” — profitable, short-term rentals posted on websites like Airbnb that are replacing long-term rental housing — a Toronto Star/Munk School of Global Affairs and Public Policy investigation has found. While Airbnb markets itself as a way for individuals to rent their homes when they’re away, there are more than 1,700 Airbnb usernames in Toronto listing more than one entire property for rent — an indication they are either commercial property management operators or enterprising individuals becoming de facto landlords, an analysis of data from the independent

The rules proposed by the City of Toronto define " short - term " as less than 28 days. It wants to restrict short - term rentals to primary residences — in Carleton Grant, Toronto ' s executive director of Municipal Licensing and Standards said the city looked at other jurisdictions before coming up with

A short - term rental company is any company facilitating or brokering short - term rental reservations online and receiving payment for this service (for All short - term rental companies are required to obtain a licence to operate in the City of Toronto . Short - term rental operators are people renting

How Toronto's proposed short-term rental regulations compare to other cities© CBC News McGill Professor David Wachsmuth has studied Airbnb for years and says regulations will only be effective if Airbnb shares data about hosts.

In late 2017 and early 2018, Toronto city council approved regulations on what kind of short-term rentals should be permitted in the city.

While Airbnb hosts are appealing the city's move at the Local Planning Appeal Tribunal— with a decision not expected until after the hearing in August — other Canadian cities already have regulations in effect.

Montreal has both provincial and city regulations on who can operate a short-term rental, as well as restrictions on neighbourhoods in which they're allowed.

A real-estate entrepreneur, a PhD graduate, a former trader: These are some key players in Toronto’s short-term rental market

A real-estate entrepreneur, a PhD graduate, a former trader: These are some key players in Toronto’s short-term rental market A real-estate entrepreneur, a PhD graduate, a former trader: These are some key players in Toronto’s short-term rental market

Short - term rentals were technically not permitted in Toronto while the proposed regulations were being appealed. But the rules were not implemented due to multiple appeals A provincial tribunal has ruled in favour of Toronto ' s plan to put stricter regulations on the city 's short - term rental market.

The city is proposing regulations that would limit short - term rentals in Toronto , including properties listed on Airbnb. One proposed change would ban

Vancouver has regulations that apply to the entire city, and requires hosts to have a business license.

How Toronto's proposed short-term rental regulations compare to other cities© Timothy Neesam/CBC, Paolo Costa/Shutterstock, Felix Lipov/Shutterstock Timothy Neesam/CBC, Paolo Costa/Shutterstock, Felix Lipov/Shutterstock

While the regulations in those cities are aimed at returning homes or units to the rental market, their effectiveness remains in question. Recent data obtained by CBC News has shed light on how well enforcement is working. At least one expert says neither city has fully addressed the issue, and says without proper data from companies like Airbnb, they won't.

What Toronto wants

The rules proposed by the City of Toronto define "short-term" as less than 28 days. It wants to restrict short-term rentals to primary residences — in other words, you can only list the home you live in on sites like Airbnb. An entire home can be rented as a short-term rental if the owner/tenant is away up to a maximum of 180 nights per year

New short-term rental regulations in Kelowna take effect

New short-term rental regulations in Kelowna take effect City says new bylaws will help manage growing short-term rental market.

Toronto ’ s rules were meant to address concerns that short - term accommodation is replacing Under the regulations , landlords would be licensed for a year. The rental companies would pay a Short - term rentals would be restricted to the landlord’s principal residence — up to three rooms for

Since Vancouver began enforcing its short - term rental rules in September, the number of listings in the city has decreased by about 40 per cent from its peak. How Toronto ' s proposed short - term rental regulations compare to other cities .

If you want to rent out your home, you must register with the City of Toronto and pay a fee of $50. If it's a company — like Airbnb — they must be licensed by the city and pay a fee of $5,000 plus $1 a night booked through the platform.

How Toronto's proposed short-term rental regulations compare to other cities© Cole Burston/The Canadian Press Cole Burston/The Canadian Press

In terms of enforcement, Carleton Grant, the city's executive director of Municipal Licensing and Standards, said it's an honour system.

"Enforcement would be address based on complaint. We would look at our database to say, 'You're not registered you're not able to participate in this space,'" said Grant.

Fines for breaking the bylaw could be as high as $100,000.

Vancouver

There are similarities in other cities to what Toronto wants to bring in.

In Vancouver, short-term rentals — which it defines as less than 30 days — are permitted only in a property owner's primary residence. Vancouver's bylaws require hosts to get a business licence as well.

Toronto Must Treat Housing As A Human Right To End Rental Crisis: UN

Toronto Must Treat Housing As A Human Right To End Rental Crisis: UN TORONTO — A United Nations representative visiting Toronto said she's shocked about the state of affordable housing and implored city councillors to urgently tackle the crisis embracing a human rights approach. "I'm only saying what's visible to all of you as you walk or ride your way to work," Leilani Farha, UN special rapporteur on adequate housing, told the city's affordable housing committee Tuesday. "The homelesness on the streets, it's unacceptable in a rich country, and in a city like Toronto. Skyscrapers are going up that are clearly not intended for people who are in housing need, and clearly, are intended for investors.

This video describes how the new short term rental regulations will affect owners and renters in the city of Toronto . View the infographic

A Toronto condo building has decided to embrace rather than fight short - term rentals by partnering with Airbnb to regulate short - term rentals through a special program. Airbnb says a Toronto condo building is the first in Canada to sign an agreement with the short - term vacation rental company.

If hosts break these rules, they could be fined $1,000 by the city.

How Toronto's proposed short-term rental regulations compare to other cities© Martin Trainor/CBC News Martin Trainor/CBC News

Since the regulations came into effect, listings on sites like Airbnb have dropped by about 40 per cent.

"When our regulations went live last September, Airbnb removed almost 2,500 listings of operators who had chosen not to be compliant with our bylaws," said Kathryn Holm, Vancouver's chief license inspector.

When it comes to enforcement, it's not just complaints driven. It also monitors websites for non-compliant operators not registered with the city.

Montreal

In Montreal, the rules are a combination of provincial and city regulations.

Unlike Toronto and Vancouver,  you are allowed to rent out a property that's not your primary residence on a short term basis. If it's for less than 31 days, and you're doing it on a "regular basis", the unit is classified as a "tourist residence" and you need to get certification from a body called the CITQ (Corporation de l'industrie touristique du Québec).

How Toronto's proposed short-term rental regulations compare to other cities© Tristan Le Rudulier/CBC News Tristan Le Rudulier/CBC News

But it's unclear what's classified as renting out a space "on a regular basis." The law defines it as "habitual" "constant" or "recurrent."

311 complaints about short-term rentals have skyrocketed in Toronto

311 complaints about short-term rentals have skyrocketed in Toronto The Ice Condos tops the list of addresses with the most 311 complaints about short-term rentals in Toronto, according to eight years of data obtained by CBC News from the city.

The planning committee agreed with city staff proposals to allow Torontonians to short - term rent out only homes that are their principal residence. Short - term booking agencies would pay the city a ,000 Airbnb welcomes Toronto council finalizing short - term rental regulations , said Alex Dagg

Short - term rental operators — those who rent multiple units and some single-unit landlords that rent on platforms such as Airbnb — are asking the “The bylaws also help to achieve the city ’ s Official Plan objectives of ensuring the adequate provision of residential rental housing … by ensuring that

Fines for lawbreakers range from $2,500 to $50,0000. But Revenu Québec — the provincial body responsible for monitoring Airbnb listings since June 2018 — has not issued a single fine, just warnings.

In Montreal, some neighbourhoods have also implemented their own rules.

For example, in Ville-Marie, listings for "tourist residences" are only allowed in a 3.3-kilometre stretch surrounding one of the city's busiest commercial streets.

The rules also prevent new rentals from opening within 150 metres of each other. But a recent CBC investigation found between 700 and 800 active listings and almost all of them are outside the permitted zone.

'I don't think there is a single place that has really solved this problem'

At least one expert said existing regulations are not effective in cracking down on illegal operators.

"I don't think there's a single place that really solved this problem," said McGillProf. David Wachsmuth, who has studied Airbnb for three years

"There are a whole bunch of good ideas about what effective regulations would look like, but they all basically hinge on whether cities or provinces get the data about Airbnb hosts in order to effectively enforce them."

How Toronto's proposed short-term rental regulations compare to other cities© Benoît Chapdelaine/Radio-Canada Benoît Chapdelaine/Radio-Canada

In a statement to CBC News, Airbnb said it's worked directly with cities to share "comprehensive data" and information but added: "In doing so we need to balance this with the privacy of our user community."

The fate of the City of Toronto's proposed regulations won't be known until this fall at the earliest. A hearing is set for

August, but city officials say it could take months after that to formally introduce regulations — that is, if the appeal by Airbnb hosts is dismissed.

Read more

Toronto Tory MPPs say they stand by Ford’s budget cuts.
Local Progressive Conservative MPPs under pressure to stand up for Toronto against deep funding cuts say they’re standing behind Premier Doug Ford, even if a couple don’t want to talk about it. 

Topical videos:

usr: 3
This is interesting!