London’s decision to allow Airbnb, Vrbo and other short-term rentals has already had a chilling effect on the industry.
“We have made the decision to close our business and sell other parts of our business,” says Adam Wayland as he packs up his things to sell his house in east London, Ontario.
Wayland says that after nine years of offering short-term accommodation at a number of local properties, the new rules implemented this fall have forced its hand.
“It’s disheartening to say the least,” he admits. “I feel like the plug has been pulled and I have to reinvent my life and reinvent my business.”
He recently canceled contracts with local cleaning, lawn care and home repair companies.
Short term rental will soon require a special business license in London.
In October, City Hall will begin accepting license applications for Airbnb, Vrbo and other short-term rentals.
Hosts must charge 4% hotel tax, submit to inspections, and only rent space on their primary residential property.
By closing the door on out-of-towners and multi-tenants, some city councilors expressed hope earlier this summer that it would help solve the housing crisis and reduce neighborhood nuisances like noise.
However, Wayland does not believe the council’s decision will put many homes back on the market.
He heard from other hosts that large REITs were offering to buy properties to add to their holdings nationwide.
Residents of Ewald Place are still attending parties at a short-term rental on their cul-de-sac, but hope the upcoming rules will bring changes later this fall.
“Lots of laughter, getting louder as the booze kicked in,” recalls Mike Mulder who was woken up by a party at 4am last week.
Debra Rigby fears there are loopholes in the licensing rules, telling CTV News London: “I’m afraid people are trying to get around this somehow.”
Wayland says some hosts are considering going underground in the unregulated short-term rental market.
“You see it in Toronto. Kijiji, Craigslist, Facebook ads. Hosts that say ‘tell them you’re related to me,’” he says.
City Hall warns that operating short-term accommodation without a license will result in a fine of $500 per day, rising to $1,000 per day for repeated violations.
Rigby thinks many eyes will be on unlicensed operators this fall.
“Neighbors and anyone else who lives nearby will be very diligent about reporting,” he says.
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