How other cities are fighting back against short-term rentals in their communities

As short-term rentals proliferate, bylaws need to catch up quickly says Councillor Pam McConnell (Ward 28, Toronto Centre—Rosedale).

The city voted in January to look at options for designating ‘temporary accommodation rental’ as a specified use under the zoning bylaw.

As of last week, city staff were still hiring a consultant to look at how other cities are treating short-term rentals and advise on rules that might work in Toronto. An interim report is expected in the fall with a final report next year.

McConnell doesn’t want to preempt that process but expects that properties being legally used as rentals would be taxed at a commercial, rather than residential rate.

“It is possible,” she said, “to find a balance between prohibiting what is the introduction of new hotel and motel uses in our neighbourhoods through the accumulation of singlefamily homes, while still allowing for individual owners to rent out their space.”

Here are some of the cities that have acted: Santa Monica, Calif: The Los Angeles Times called the Pacific coast city’s regulation “one of the most restrictive in the nation,” last year after it banned rentals of less than a month in properties that aren’t owner occupied. Home sharing, where the landlord rents a room in their own home, remained legal. Those landlords, however, had to get a business license from the city and pay a 14 per cent tax on the income. New York City: Renting an apartment for less than 30 days has long been illegal in New York. That rule was intended to make sure scarce affordable housing wasn’t swallowed up by tourists.

Nevertheless, New York is considered the biggest short-term rental market on the continent. Now the governor is considering a bill that, if it becomes law, would, prohibit ads for short-term rentals. The penalty would be a fine of up to $7,500. San Francisco: The city has an Office of Short-term Rentals where operators must apply and register their property. They are allowed to register only one property for rent.

Last year, San Francisco issued a new requirement that rental platforms, including websites, include municipal registration number on any listings or ads.

Those that failed to include the information would face fines of $1,000 per day. Quebec: Since the spring, the province has required landlords, who rent their homes frequently, to be certified under its Corporation de l’industrie touristique du Québec (CITQ) tourist home designation system. That subjects the rentals to a 3.5 per cent tax. Failure to comply can subject the property owner to $500 to $50,000 in taxes.