Council to finalize rules on Airbnb and short-term rentals this week

Competing groups lobbying for both tighter and looser rules

After months of lobbying, accusations and counterclaims, Toronto should this week get rules regulating Airbnb and other short-term rentals.

The stakes are high for San Franciscobased online platform Airbnb, its thousands of local “hosts” and the increasing number of Torontonians unable to find affordable homes in the drum-tight, long-term rental market.

At a busy monthly meeting starting Tuesday, councillors will debate proposed new restrictions recommended by the planning committee. People on all sides expect some council colleagues to try to make the framework more Airbnbfriendly, and others to try to make the rules more restrictive.

“I know that there’s been a lot of pressure on a lot of councillors,” said Gord Perks, the Parkdale representative who, like many councillors, has been inundated with pleas from Airbnb hosts and potential hosts.

Many have also heard competing voices from the “Fairbnb” coalition pointing to “ghost hotels” and other potential hazards of legalizing lucrative rentals of less than 28 days.

“I couldn’t tell you the final vote,” or whether the proposed rules will be loosened, said Perks, who expects to vote against legalizing Airbnb at all. “I suspect the vote will be very close.”

The planning committee agreed with city staff proposals to allow Torontonians to short-term rent out only homes that are their principal residence.

“I suspect the vote will be very close.” GORD PERKS CITY COUNCILLOR

Airbnb hosts renting out up to three bedrooms for an unlimited period, or their whole home for up to 180 nights per year, would pay the city $50 per year. Short-term booking agencies would pay the city a $5,000 licence fee and $1 a night per booking and have policies to curb noisy, disruptive tenants.

Councillors on the planning committee rejected a staff recommendation to allow landlords to short-term rent out “secondary suites,” including basement apartments.

Ana Bailao, Mayor John Tory’s housing advocate, said she will stand by that decision at council, arguing such contained suites — with kitchen and bathroom facilities for exclusive use of the tenant — must remain long-term rentals.

Bailao also wants to ensure the ban applies to all self-contained secondary units in Toronto, not just the roughly1,700 with that legal designation.

The Ward 18 Davenport councillor plans, however, to propose an amendment making it clear the new rules would allow somebody who is renting a secondary suite as their primary residence to in turn use part of it for short-term rental.

“This is about creating the flexibility so people who live in a dwelling unit have the opportunity to participate in Airbnb, while ensuring we don’t remove units from our housing stock,” she said in an interview Monday.

Tory’s office said the mayor will support Bailao’s proposals.

However, his deputy mayor, Councillor Denzil Minnan-Wong, said he will go into council with an “open mind” on new rules.

Airbnb welcomes Toronto city council finalizing short-term rental regulations, said Alex Dagg, the company’s director of Canadian public policy.

But Airbnb is lobbying some councillors to reject the secondary-suite ban and the cap on total nights owners can rent out their whole home and running radio ads to build public support for that position.

“We also have a poll that says 68 per cent of Torontonians support allowing short-term rentals in secondary suites, so we’ve been trying to share that with councillors who have also heard from many Airbnb hosts in their wards,” Dagg said.

“We’re really urging city councillors to not cause harm to families who are trying to purchase their first home or stay in homes.”

One homeowner estimated at the planning meeting she earns 30 per cent more with Airbnb than if her unit was on long-term rental.

Meanwhile Fairbnb, which includes unions, hotel owners and residents’ groups, is pushing for tighter restrictions.

Thorben Wieditz, spokesperson for the group, said owners should have to prove an address is their primary residence with government-issued identification.

Wieditz said he is “cautiously optimistic” council will strengthen, rather than soften, the proposed regulations.

Other issues coming to council include updates on SmartTrack and the Rail Deck Park proposal, proposed new security measures at city hall, a proposal to establish an Indigenous office at city hall and a strategy to combat anti-Black racism in Toronto.