Hosting in Toronto - New rules have been confirmed by LPAT today November 18,2019

[Donata12]

LPAT has dismissed the appeal and the new changes voted by the City of Toronto Council 2 years ago will now come into effect. Timelines and implementation will be communicated in December. Here is the link to what has been published today 

https://www.toronto.ca/community-people/housing-shelter/rental-housing-standards/short-term-rentals/

I wonder if Airbnb plans any action to mitigate the huge loss in listings they will experience. I am pro changes to a certain point, don't' mind paying a tax on occupancy like hotels do nor a license to be able to host. What i have a problem with is the fact that all listed properties have to be the primary residence. I do no think this is fair.

Thoughts?

[Ash51]

Hello Donata,

I saw the news yesterday: https://www.thestar.com/news/gta/2019/11/18/provincial-tribunal-upholds-toronto-bylaws-for-airbnb-ot...

Interestingly, I don't see any hue and cry on this issue anymore from either side.

Many parts of the news are confusing to me. I was expecting some heads-ups and guidelines from Airbnb.

Do we have to wait for appeal for review or what?

What can we expect now? A letter from the City for registration and pay tax? Or is it our responsibilities? I am confused.

Thanks for your opinion in your post though.

Ash

[Daniel6733]

Has anyone heard from Airbnb if there will be an appeal on the latest decision?

[Donata12]

@Daniel6733 @Ash51 

just got this email from Airbnb this morning....

quote

Hi Donata,

In December 2017, Toronto City Council passed bylaws limiting short-term rentals in the city. The long-awaited appeals concluded November 18 and the Local Planning Appeal Tribunal (LPAT) upheld the decision of the city. The short-term rental rules have not yet been enforced, and will take time to implement.

While this ruling protects home sharing in Toronto, we continue to share your concerns that these rules unfairly punish responsible short-term rental 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. Airbnb will send out more updates as this process moves forward. Thank you for your support and advocacy throughout this process.

For more information, read about the city's bylaws.

Have questions? Reply to this email and someone from our team will get back to you.

Thanks,

The Airbnb Team

Unquote

I guess we will be in limbo for a while!

[Ash51]

The email we got today doesn't have any indication about further appeal. It says that Airbnb will work with the City. So I am thinking that we expect an announcement from the City in December to register our properties ($50) and pay 4% tax (?when) plus $1 per booking. Does it drive up the price or all deductions from hosts? 

I feel like we live in a bit of backdated city where innovation has no value. Big corporations are taking the lead and depriving common people like us. I am not affected by this new law through, but I have to be careful all the time. It's no more worry-free.

[Krystal16]

@Donata12 
@Ash51 
@Daniel6733 

I heard that this will go ahead if there is no appeal, I also heard that 4+ hosts are appealing, yet the city says they are still planning to go ahead with the implementation of the rules. 

Back in 2017 when this was being discussed Airbnb held meetings where employees of Airbnb attended these meetings and answered questions, yet I have heard nothing from Airbnb besides the email that was shared above.  

How other hosts planning to mitigate this?

[Sean433]

@Krystal16 @Donata12, @Ash51 

I don't think it is the end of the world if you are only hosting 1 or 2 listings. Or if you are managing other peoples listings as long as those  home owners are the principle residents of the listed home.

The only downside I see besides the tax is that we can only rent 180 days per year. I wonder how they will monitor whether a host booked 90 days or 210 days a year. Only if airbnb sends the city reports. In any case, the best thing to do then is to rent it long term for 6 months during the slow season. We make about the same during these months as we do with long term anyways.

[Dimitri301]

Hello, 

The LPAT stated that timelines of enforcement will be released in December. It's now January and I have not heard or see timelines of enforcement. Does anyone know when the new rules will be enforced? If I have already booked more than 180 nights in 2020, what happens to my guests or bookings if the new rules are enforced during these reservations? 

Thank you to anyone that can reply with insight. 

[Donata12]

@Dimitri301 

tjis is the latest published on Toronto website. You can subscribe to their mailing list so you do not miss any updates!

The City is planning to implement the licensing and registration rules for short-term rentals in phases. This page will be updated as more details are available.

Phase 1: Complaint-based investigation – ongoing
As the licensing and registration system is being put in place, the City continues to respond to issues on a complaint basis. Residents can contact 311 to report issues related to short-term rentals, such as noise, waste and zoning infractions and the City will investigate accordingly.

Phase 2: Licensing and registration – Spring 2020
Licensing of short-term rental companies and registration of operators will begin in spring 2020. Current and prospective short-term rental operators will have three months to register. During this time, the City will educate the public on short-term rental rules, encourage operators to register their short-term rentals, and work with companies to ensure compliance with the licensing rules.

Phase 3:  Enforcement and MAT – Summer 2020
All current short-term rental operators will need to be registered by the end of phase 2. The City will take enforcement actions against short-term rental operators that are not registered or are not following the rules. As of the end of phase 2, registered short-term rental operators will also be required to start paying the four per cent Municipal Accommodation Tax (MAT) on a quarterly basis.

Enforcement action will also be taken against companies that allow unregistered operators to list on their platform or contravene the bylaw.

New short-term rental operators can register on an ongoing basis.

[Ryan21]

Thank you for the great info Donata. Airbnb customer service doesn’t have a clue about what’s going on. 

[Krystal16]

@Dimitri301 

I am going of my assumptions, however I don't believe that the city can enforce bylaws retroactively, therefore, if the new rules are active for April 1st and everyone should be registered by that time that would mean that you can not host more than 180days between April 1st and Dec 31st 2020.  2021 you would not be able to host more than 180 days between Jan 1st 2021 to Dec 31st 2021.

Keep in mind, no more than 180 days that is short term rental.  If you have a long term tenant that stays for 45 days they are considered long term and they will not eat into your 180days.

[Krystal16]

Long term in Toronto is considered 28 days or more.

[Yvonne186]

Hi everyone,

I received a letter for Municipal Licensing Standards Office last week, requested to inspect my home under of zoning by-law enforce. I called 311 ask about it, the city said it's illegal to rent my home on Airbnb ( short term rental ) before I registered it, I want to register it, but the city is not ready for it till spring.

What I should do? Please advice me as much as you could? Thanks!

Y

[Ash51]

Hi Yvonne,

Do you have any update about your situation related to inspection?

Did you get your inspection done by the city?

Is it related to pandemic regulations? 

I am a bit worried to put up my listing. So I blocked up to June 2 (emergency ends, possibly). 

Thanks,

Ash

[Donata12]

@Ash51 @Yvonne186 

hi there!

I haven’t heard anything. Tried to contact the city several times but they are not answering. My co-host has told me that she is getting reservations for the summer and as far as she know the licenses are not being enforced yet. On the other hand, under the listing tax profile, there is a mandatory field for the license that, if left empty, does not allow me to save any changes. I have inputted 0000 and it worked. I have updated my VAT that now Airbnb will collect for us instead of me having to go through the resolution centre.

My co-host said she also heard that they might reconsider this ruling since it seems that a lot of short term listings are no longer so. She also said she heard rumours that listing that were online from 2018 and before could be grandfathered.

I really don’t know, but i am going to open up my listing starting August with a minimum stay of 5/7 nights. Up until now, and luckily for me, i had rented it to a corporation from January to July and i sailed through Covid this way.

If anybody has updates please share thanks!