I’m in my car a lot between appointments. This week my mind keeps drifting back to the new “AirBnB rules” in Toronto and Ottawa + the one-sided media coverage of the causes and ramifications.
I’d like to state for the record I currently have no STR holdings and don’t see that as part of my investment strategy, yet I do believe in individual property rights, one’s right to make money from your property (in a safe manner) but moreover I believe in avoiding (pretty obvious) pitfalls when drafting legislation.
One of the unintended consequences of the new STR (AirBnB) restrictions/legislation is that there may end up being MORE empty second suites. This won‘t be a win for tenants or “affordability”, but more likely there will just less units overall in the marketplace.
This could happen as a result of many homeowners not want to rent their units out to long term tenants. There are many reasonable reasons for this:
1/ The totally biased LTB and HUGE wait times to even have a case heard, including nonpayment of rent or destruction of property.
2/ The RTA in general.
3/ The government dictated rental increases, that are not correlated to other government controlled increases (like property taxes) or even inflation.
These are just a few reasons that owners may not transition their properties to LTR. Many properties will still be used for Airbnbers who disobey the new rules, and others will be taken off the market completely.
Under these new rules, if you use your basement suite for a family member occasionally, then you can’t even rent it out short term at other times. The restrictions could have further unintended consequences as it may encourage more people to have illegal and unsafe second suites; since those won’t be registered or easily enforced.
I believe in your right to rent your property out as a STR or a 2nd suite to a long term tenant, but the city should not have a right to dictate that to you. This willy-nilly government interference is an example of blundering that doesn’t get to the root of complex housing issues.