New measures to be taken by the city hall in Toronto will imply that property owners in the city will have to rent out their properties for a shorter period of time. The suggested city rule will change the game plan of people intending to list their homes on the rental market.
Under the new regulations announced by the city’s municipal licensing and standards division, a number of proposals were brought forward although no decision has been made so far, the rules will however cover:
# Restricting homeowners from listing homes they are not residing in.
# Modifying zoning regulations to give rise to new rental patterns referred to as “short-term rental”.
# Authorizing Airbnb and other related companies.
# Keeping track of rentals operating interim rental units.
For housing critics including Fairbnb coalition, there are numerous investors who purchase rental units and liquidate them during periods when rates are high and this according to critics leads to further increase in prices and also cuts down the supply.
Although Airbnb, which is the prominent interim rental in the sector, is in favor with the moves taken by the city, it however suggests that a lot of property owners benefit from their services and also contributes immensely towards the city’s economy in the form of tourism revenue.
Speaking on the issue at hand, Mayor John Tory clearly stated his approval of Airbnb and other related companies but goes on to add that measures need to be taken to control the way they operate to ensure that the rental sector is affordable for people.
The city needs to put a stop to people who are hoarding rental units and turning them into short-term rental units as this interrupts the rental sector, Tory added.
Such properties used for short-term housing can be wisely used instead to create long-term housing units which will help address the supply problem.
Councilor Joe Cressy, whose district is home to approximately over hundreds of Airbnb units, expressed his doubts with regards to the government’s approval of the regulations.
Similar to Tory’s suggestions, Cressy also believes that the city should maintain Airbnb and other companies but their operation should be checked by the city.
Thorben Wieditz, Faribnb researcher in a report expressed his appreciation over the city’s recent regulation suggestions and is hopeful that it will be approved.
He went on to add that his main concern is the extent to which the new regulations will affect people and the fact that people in the city are not heeding to the rules.
However to receive cooperation in this vein, the city is relying on information from people who are neighbors to short-term units.