A mayoral committee will consider proposals on Tuesday to significantly regulate Airbnb and other online home rental services in London, Ont., with possible licenses, fees and taxes — part of an effort growing to regulate home sharing in the city.
The proposals seek to prevent tenants and condo owners from illegally renting their homes for a few days to workers or short-term tourists without the knowledge of their landlords or condo boards, a trend that a report by the town hall, only aggravates the housing problem. crisis because short-term rentals are more lucrative than long-term ones.
Online hosts would be required to obtain a license for the property where the short-term rental takes place in order to prevent what the report calls “destructive and headline-grabbing parties”, such as the high-profile explosion of 2019 that resulted in nine arrests and $80,000 in damage to a London home.
Licensing would require applicants to prove that the property is their home to prevent commercial operators from dodging regulations aimed at hotels and motels, according to the recommendations. It would also allow by-law officers to ensure the property is up to code.
CBC News made multiple attempts to contact the hosts through the Airbnb online platform on Tuesday, but all attempts appear to have been blocked by the online platform.
Whoops! Looks like I got caught trying to get hosts @Airbnb that they comment on a proposal for @CityofLdnOnt to crack down on short-term rentals. Glad to know they are protecting the world from pesky reporters asking questions. #cdnmedia #HousingCrisis #ldnont pic.twitter.com/DyhzkxoyVI
32% of city’s short-term rentals are vacant: report
The recent city report (Page 142) estimates that around 650 short-term rentals are underway in London as of March 2022, 90 of which are facilitated by Airbnb.
The report indicates that the average occupancy rate for short-term rentals is 68%. By comparison, the city’s apartment vacancy rate is around 1.8%, according to Canada Mortgage and Housing Corporationwith a median monthly rent of $1,120 across the entire stock of 51,431 long-term rental units.
Online short-term rentals, meanwhile, charge an average of $121 per day, which the city hall report says translates to a median monthly income of $1,213.
Many short-term rentals in London are concentrated in some of the most desirable areas, including Old North, Old East and Wortley Village, and close to Western University.
A study published in 2020 by the Canadian Journal of Urban Research suggests that half of all Airbnb revenue is generated by commercial operators who run multiple listings, rather than local landlords, as the company suggests. In some cases, according to the study, some homes are rented out so frequently that they are unlikely to house a genuine permanent resident.
“Airbnb is committed to working with the City of London to develop smart and sensible regulation,” Airbnb spokesperson Matt McNama wrote in an email to CBC News on Tuesday.
“As the economy gets back on track, it is also important to consider the vital impact of Airbnb guests on our communities, including an influx of support for small businesses still reeling after two years of pandemic restrictions. Restricting short-term rentals limits visitors, at a time when London should be welcoming more visitors to the city, not fewer.”
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