More than 12,000 Airbnb rentals in Toronto are exploiting a legal loophole

An opposition politician is calling on Doug Ford’s government to crack down on Airbnb units, saying hosts using the notorious short term rental service exploit a loophole in the new short term rental settlement.

Ontario NDP Housing Critic and University-Rosedale MLA Jessica Bell stood alongside several advocacy groups at a press conference on Tuesday to call on the Premier Ford and Municipal Affairs and Housing Minister Steve Clark demanding that they investigate and crack down on illegal activity. short-term rentals in investment properties.

Bell says “Toronto’s short-term rental market has contributed to a housing shortage and an increase in illegal evictions as investors evicted tenants to convert properties into expensive short-term rentals.”

“There is more of 12,000 short-term rentals currently advertised on Airbnb in Toronto for stays of 28 days or longer,” Bell said, calling it “a loophole that Airbnb is exploiting to avoid complying with the city’s new short-term rental law, which only applies to accommodation rented for 28 days or less.”

This is not a blanket ban on shorter stays, as operators offering rental accommodation for 28 days or less can do so as long as they register with the city and collect and remit a four percent Municipal accommodation tax on all rentals.

The bylaw changes have caused Airbnb hosts to opt for longer stays in droves, but their guests don’t have the same protections as long-term tenants who might be renting the exact same floor plan just across the street. from the hall.

Bell was joined at the press conference by advocacy groups Fairbnb Canadathe Federation of Tube Tenant Associations, Friends of Kensington Market and a local Airbnb guest and tenant facing the threat of illegal eviction.

While the bylaw limiting short-term rentals is specific to the City of Toronto, Bell pointed out that “many of these short-term rentals advertised through Airbnb also violate Ontario law because the tenant is not signing a standard Ontario lease, which is required by law.Tenants are treated as transient guests who can be evicted at the landlord’s discretion with the click of a button.

Was present at the press conference Tianning Ning, who along with her family have been renting a home in Toronto for ten months through Airbnb, and was told earlier in January that they only had until the end of the month to leave the property. Ning says she later saw the rental of the house being relisted for double the rate charged to her family.

This is inconsistent with the province’s Residential Tenancies Act mandatory 60-day written notice that a landlord must provide to tenants before terminating a tenancy.

Thorben Wieditz, director of Fairbnb Canada, said “it’s appalling that tenants in Ontario are being treated like this.”

“A landlord can’t use platforms like Airbnb to bring in tenants and then wash their hands of provincial rental laws,” Wieditz continued, adding that “the government should crack down on investors who use Airbnb to make money.” money on the backs of people desperate for a home.”

Ning Provincial Representative, NDP Toronto-St. Paul MP ​​Jill Andrew said ‘renters in our unaffordable city are struggling enough already’, adding that ‘renters are tired of seeing governments treat investors as more important than their right to a home’ .

“The Ford government must use its resources and tools to crack down on illegal short-term rentals in investment properties.”

Andrew argues that “renter protections in the RTA exist for a reason – to secure the right to stable and secure housing for tenants across the province,” saying this is a department where policy current short-term rental is insufficient. .

“The housing crisis in Ontario means that people are finding housing by any means possible, sometimes through Airbnb,” says Andrew.

“It’s up to the government to adapt to this changing landscape and close these gaps in tenant protections that can – and have – left people out in the cold at all times.”

Bell has also write a letter to Steve Clark and Attorney General Doug Downey to demand action on short-term rentals, specifically pressuring the province to close this oft-abused loophole.

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