Short-term rentals, long-term problems
Airbnb listings report 40 per cent growth in Charlottetown in one year
Charlottetown has seen a 40 per cent jump in Airbnb listings in the last year.
Data collected by AirDNA, a Denver-based data analytics company, shows the number of units listed on the site grew from 369 in August of 2017 to 525 in August of 2018. Property owners drew in a significant windfall over the same time period. Between May and September of 2018, Airbnb listings generated over $5.6 million in revenue. Over the same period in 2017 and 2016, the revenue generated by Charlottetown listings was $3.9 million and $1.4 million respectively.
As of October, there are currently 442 active listings on the site. This includes listings of houses, private rooms and shared rooms. The site defines “active listings” as any that rented at least once each month. “There was way more competition this summer as opposed to last summer,” said Terrie Williams, who manages several properties on short-term rental websites like Airbnb. Williams said she went from managing one property in 2017 to five last summer.
The subject of short-term rentals was a hot topic in this year’s municipal election in Charlottetown. Almost all mayoral candidates said they favoured further regulation on short-term rentals. Critics have argued the growth of short-term rentals is squeezing out long-term renters and is reducing the supply of rental accommodation in the city.
But, the proposals for regulation have varied. Mayoral candidate Jamie Larkin said during the election he would return short-term rentals to owner-occupied properties. Philip Brown said he would enact a municipal room tax on such rentals, similar to taxes imposed on hotels. Kim Devine and Cecil Villard said they would consult with short-term rental property owners and tenants but did not commit to specific regulations. Williams feels that owners of short-term rental properties have been unfairly blamed for the city’s housing shortage.
But, she also says she favours further regulation of the shortterm rental industry.
“I totally believe and think it’s only fair that Airbnb is regulated. If you’re out there running your business, taking business away from hotels that are paying certain taxes, it should be an even playing field,” Williams said. Currently, the province requires short-term rental operators to obtain a tourism license. Rates paid by guests are not subject to provincial or municipal taxes, but owners are expected to declare revenue on their income taxes if they draw in more than $15,000 in yearly revenue. According to AirDNA, at least 10 properties draw more than $40,000 in annual revenue, while the top property took in $51,198.
Williams said she has invested significant resources into renovation of her properties. She said she personally checks in travellers and rents some properties to Holland College students during the fall and winter.
“It’s perfect for them because they’re not paying rent through the summer to keep their place. And then they just come back the next year,” she said.