The History of Condo Rental in Toronto
Want to know about the history of condo rental Toronto? Then sit tight and read this article till the end!
A lot of public coverage has lately been focusing on short-term rentals in Toronto, and now the City of Toronto is seeking to control them. Yet how did it all begin? So what exactly is the “short term” rental? So why does the government waste all this time and energy trying to control it? Sky View Suites (a short term rental company) and Toronto Rentals can help address these concerns.
Defining the short-term rental period, according to the City of Toronto, is shorter than 28 days. However, most people use the word “short term rental” very broadly… based on who you’re referring to, that may mean something less than 12 months. With global mobility on the rise, short-term rentals of 2 to 3 months are very popular nowadays, particularly for people who travel for work.
Condo complexes do have their own set of rules and guidelines for short term rentals. Depending on the house, short term rentals may be considered anywhere from one day to something longer than a year. It is important to consider these meanings and how they affect you.
The Airbnb and Sharing Economy Movement
In the last 6 years, short-term rentals (i.e. less than 28 days of rental) have been more popular thanks to websites like Airbnb and the rise of the shared economy. House and apartment owners do this to augment their profits and pay down their mortgages. Was it a bad thing?
No, but what was originally supposed to be a couch sharing company has become a huge enterprise that now exists in every big city in the world. The hotel business is certainly feeling the pinch (a lot like the horse carriage firms of the early 1900’s). Hotels have spent millions of years convincing local officials to “level the field.”
Objections from condo owners about disruptions and breached security related to Airbnb have also been raised. And last but not least, urban advocates and those worried with affordable housing are fighting back on the affordability loss caused by the take-off of Airbnb property from the traditional rental sector. Much of this has prompted the City of Toronto and other big cities around the world to tighten restrictions on short-term rentals.
Condo Rental Toronto Regulations
- Short term is classified as any rental time shorter than 28 days
- You are only permitted short term rentals on your principal home (no investment property)
- Short term rentals are restricted to 180 nights a year There is a 4 a cent tax levied on rentals
- You will file with the city and pay an annual $50 registration charge.
These are the latest draft rules for the City of Toronto and the Council and other shareholders will meet on 31 August to vote on the fate of Airbnb owners and managers. When moved, what does this mean to you, the owner of the Airbnb?
Therefore, if you are actually renting your investment property from Airbnb (or other related websites) for lengths of less than 28 days, you may need to adjust the way you re-enter your rental property. In reality, you do not even have an option–Airbnb is planning to help implement the new rules by exchanging details with the City and eliminating any rentals that may not follow the criteria. The identical occurred in San Francisco a couple of years ago, and the number of Airbnb rentals in that city was halved.
Vancouver recorded a 47% drop in Airbnb listings (6,600 to 3,700) post-regulation, primarily due to punitive enforcement by local authorities (hundreds of fines already imposed to owners) and collaboration with Airbnb. Airbnb alone deactivated 2,500 Vancouver listings that did not have a company number.
Maybe a cheaper option (given you’ve already wasted all this money on furniture) and an alternative that most people don’t know is corporate accommodation. How is company housing and how do private owners profit from it? Most businesses in the corporate housing sector are mainly business tenants commuting for jobs (with the 2-3 month stays we listed earlier) who are not part of the city’s short term renting.