Court dismisses appeal on short-term rental bylaw
A court has dismissed a motion by seven short-term landlords to appeal the decision of a provincial tribunal that sided with the city’s regulations of Airbnbstyle accommodation in November.
The City passed a bylaw amendment restricting shortterm rentals in late 2017 and the rules were supposed to take effect in June 2018.
The City’s regulations were expected to put many shortterm landlords out of business even before Airbnb and other rental platforms were ravaged by the fall in tourism from COVID-19.
But an appeal by landlords’ to the Local Appeal Planning Tribunal (LPAT) delayed the implementation of the zoning and accompanying licensing rules.
In the divisional court ruling, Justice David Corbett provided no reasons for his judgment, released Thursday.
It followed a daylong hearing via video conference on June 19, in which a lawyer for the landlords told the court that the LPAT made several errors in law when it upheld the City’s zoning bylaw amendment. This allows short-term rentals to take place only in a landlord’s principal residence and stipulates stays cannot exceed 28 days. Homeowners can rent up to three bedrooms in their home for an unlimited number of days per year. But an entire home can be rented for no more than 180 nights annually.
Following the LPAT ruling, Toronto declared the bylaws to be in effect, but it is still working out enforcement and accompanying licensing details. Those were to have been released in the fall, but COVID-19 means new timelines are expected this summer, a City spokesperson said.
The landlords appealing the LPAT ruling are short-term rental hosts who do not live in their rental units. They include Westhaver Boutique Residences, Whitehall Suites, Red Maple Suites, Living Suites, Royal Stays, IHM Limited and Premium Suites.
On Thursday, Jason Cherniak, a lawyer representing the landlords, said there is still a possibility his clients, who were operating before the regulations took effect, could be allowed to continue their operations.
“The possibility of pre-existing short-term rentals continuing to operate remains unresolved and my clients are going to take some time to decide what to do next. Hopefully, the City will be willing to open a dialogue and work with the local small business operators to reach a solution,” he said.
Cherniak said that, technically, the landlords have until Tuesday to appeal the court dismissal before a panel of three judges. He did not say if they planned to do so.
City lawyer Sarah Connor said she was pleased with the court decision. The City told the tribunal and the court that the bylaws permit homeowners to earn rental income from their properties. But they also protect the city’s housing stock and keep hotels from operating in residential neighbourhoods, including highrise condos.
It would be a disaster to allow short-term rentals to operate in condos in the midst of a pandemic, Eric Gillespie, a lawyer representing Fairbnb Canada, told the court on Friday.
“You cannot control a pandemic with that kind of activity,” he said, citing short-term tenants’ use of lobbies and other common areas.
“This is a win for all Torontonians who have been squeezed out of the city’s long-term rental market by Airbnb operators who’ve turned thousands of homes into ghost hotel suites,” said Fairbnb spokesperson Thorben Wieditz on Thursday.