Stricter rules are coming for short-term rental provider.
The City of Toronto just passed a resolution by the local planning and appeal tribunal that will see stricter rules and tighter controls on people renting out their properties on AirBnB. Under the new rules, short-term rentals will only be allowed in landlords' principal residences for up to 180 nights a year for an entire house or apartment.
Homeowners could also rent up to three bedrooms year-round on a short-term — defined as less than 28 days — basis. The biggest change is that if you own a property that you do not live in yourself, you may not list any of the suites on AirBnb. You will also not be allowed to rent out your basement apartment to short-term tenants.
Many feel that this will return many rental units to the market which will aid the current housing crisis, although thus far there hasn’t been any hard evidence to support this. Toronto vacancy rates remain at alarming levels and many are looking for ways to create more long-term rental opportunities.
There has been a lot of discussion around AirBnB and Uber as they are part of the new “sharing” economy. Some feel that their disruptive influence is not good and traditional taxi and hotel businesses should not have to suffer. I feel that this will ultimately play itself out in the marketplace. If these companies continue to innovate and continue to offer consumers a better choice, I expect that they will be around for some time.