As stated in a previous blog post, the city of Toronto proposed a registration and licensing system for short-term rentals in order to open up long-term rentals for Torontonians. The primary objective is to limit and discourage commercial operators from offering multiple listings in order to lower rental rates, and encourage long term renters while still accommodating tourists.
Yesterday, the proposal was approved by John Tory's executive committee and will proceed to public consultations.
John Tory believes that, "Toronto will demonstrate it is a forward-looking, innovative city that isn't trying tot urn back the hands of time." The "one host, one home" rule exists in several cities such as New York, San Francisco, and Vancouver.
The report proposed:
- Be legal for up to 3 rooms or an entire home (as long as it is a person's principal residence)
- Registration with the city is required
- Annual fee payment
- Remit a tourist tax (rate TBD)
- Short-term rental maximum stay of 28 days
The city staff will submit a final proposal to council later this year.
There was little opposition to this proposal, with Airbnb even on board. Their representative, Chris Lehane, head of Global Policy and Public Affairs, stated they "need to be regulated... [and] pay our fair share of taxes," who believes their service is a platform for the middle class making travel affordable.
Toronto's hotel industry along with Fairbnb, a coalition of groups representing hospitality workers, also praised the proposal. The Greater Toronto Hotel Association is pleased with the proposal establishing a difference between traditional home sharing and that of Airbnb.
Regulations in the short-term rental market look to be a step in the right direction for Toronto, and many agree. Toronto's strained rental market will now have a bit more protection.
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