Limit on Homeowners

For those looking for a place to live in Toronto, the Ontario Rental Tribunal has sided with the city of #Toronto when it comes too putting a limit on how homeowners can rent out their properties and that includes short term rentals like Airbnb. The rules haven't taken effect yet but it will be a game changer and could free up thousands of units across the city under new guidelines. Homeowners listing their property for a short term rental which is less than 28 days can only rent out their primary residence for a maximum of 180 nights per year!

The rules were approved by city council back in 2018 but were appealed before taking effect. The group Fairbnb which has ties to the hotel industry has been pushing for those guidelines since 2016. They say this decision could not only free up more space for renters but also creates new opportunities in the hospitality industry.

Thorben Wieditz is the spokesperson for Fairbnb and states "It essentially legalizes true home sharing which means that you and I can rent out our own place when we go away on vacation or are away on the weekend. But you and I cannot stock pile, lease up or buy up dozens and dozens of residential housing units. So I think what's happening too is that we see a lot more hotels being built in the city of Toronto. For example, if you know there is not unregulated competition from ghost hotels because investors would see it is okay to invest into Hotel stock which actually makes sense in a city, especially if we don't have to compete with the grey market."

Airbnb released this statement in reaction to the Tribunal decision it reads “While this ruling provides regulatory certainty for home sharing in Toronto, we continue to share our host concerns that these rules unfairly punish some responsible short term mindful hosts who are contributing to the local economy. We remain committed to working closely with the City of Toronto and the Airbnb community as these new rules are implemented."

The city has not said exactly when the rules will take full effect and information is expected to come next month.