Toronto Star quotes our Managing Director, Mark Dellamano incorrectly.
To clarify what Dellamano said: “The appeal to the OMB and the delay of such by-laws, does not harm nor impact our business – Its business as usual, for our existing clients until the Province has the appropriate time to spend on the topic. Dellamano indicated that we do have some potential clients that have held back listing their Short Term Rentals in Toronto and we feel the delay will help them make the decision for us to move forward with their investment properties being listed with Toronto Short Term Rental Property Management Corp. services”.
The issue around affordable housing in Toronto is real and we do not intend to work with properties that are affordable housing.
A family home rental is not a comparable market offering to Hotels and B&B’s. Unlike a condo rental or hotel, for families on corporate assignment, vacation, or in town for one of the many service offerings unique to Toronto such as hospital visits, a short term rental offers the full range of kitchen, dining, and family time to visitors as a home does.
Market diversity provided by this product offering is a strength and boon to the city. Tourism is a large focus today for any city. Toronto tourism and business visitors are becoming savvier and there are many cities competing for the same dollars. Short term rental booking solutions provide a distinct incentive to choose Toronto as a destination.
Regulation is definitely called for. However, some of the suggested regulations offer only impediments to owners’ rights to use their property as they wish. This prunes the common law we all trust in unclear ways. While our company is not in a position to fund legal research in this area or hire lobbyists we have had similar concerns raised by our clients.
The research gathered for and made available by the city council suggests that communities care strongly about subletting activities by non-owners and care far less about whether an owner pays a specific set of city taxes.
Much of the public perception short term rental services have garnered is based upon worst case scenarios and ‘nimbyism’ rather then actual cases. We feel strongly that having a professional company vetting guests removes both the perception of potential disruptive guests and can tangibly be held to account for ensuring the city regulations, fire codes, city fees, and other new rules are adhered to.
We feel firmly that it is better that a home is monitored than sit vacant for half the year. Many people have homes in the city that that are not their primary residence as they only live in Toronto for a portion of the year. Letting a home sit vacant creates added pressure on all city services and does nothing to assist in providing housing for Torontonians.
Short Term rental of an investment property that would sell for one million plus dollars is not connected to the general affordable housing requirements of the city. Consider that if renting a home long term is to be 30% of the average pre tax income of $45,000, than $1,125 per month would be available for rent. It is clear that affordable housing would not be addressed by restrictions to the short term rental of single family homes in The City of Toronto. Contrast this to a person renting an apartment or living in subsidized community housing, and also using it to generate a profit by subletting. We suggest there are different markets being address with a single broad solution.
We further suggest that the similar regulations implemented in communities like Niagara on the Lake and Collingwood be considered. Short Term Rentals are regulated successfully in other communities and assist in the creation of rules that are appropriate for Toronto while ensuring that new economic forces have the diversity needed to flourish.
Furthermore, there are much larger issues around Airbnb’s as some refer to Short Term Rentals in the City of Toronto. For example, we rented a number of units on Airbnb for information gathering purposes. On one occasion we ended up in a TCH unit and another a rental unit in a building that clearly does not allow Short Term Rentals. These are the units that are affordable housing and perhaps some focus could be spent identifying them and freeing up some units to make more affordable housing available in Toronto. Also, when a crisis arises in the city, such as the recent fire leaving 600 people without homes, Short Term Rental Units often free up properties to assist in these situations, as a reminder.
Below is a link to the references article: