Toronto is hoping to have strict regulations for short-term rental properties in place by October.
The number of listings on sites such as Airbnb have tripled since 2014.
Hosts would not be allowed to rent out their property if it's not their primary residence. That would reduce 3,200 listings bringing the figure down to 7,600.
"I think what's we've done here, as we've tried to do with everything, is achieve a balance between this kind of availability for tourists and others and the needs of people for permanent housing and the need for stable neighbourhoods," says Mayor John Tory. "The sharing economy and companies like Airbnb have great economic potential for our city and great benefits for residents and visitors to the city but the potential impacts of short-term rentals on our neighbourhoods, our housing affordability, on existing industries, and on availability on housing must be carefully considered. What we don't need is the withdrawal of much needed housing from permanent residents who need it or neighbourhoods to be disrupted by the comings and goings, sometimes daily, of different renters often in multiple homes in neighbourhoods or condo buildings."
Short-term rental hosts could also be subject to a 10 per cent tax. That's compared to the four per cent tax hotels pay. "Hotels are paying commercial taxes to the city which is a substantially increased rate of tax over residential taxes. So, a condominium owner who puts their condo on Airbnb is only paying residential taxes. Whereas, the hotel room that might three floors below is paying commercial tax. So, the 10 per cent tax really doesn't even, I don't think, equalize. Again, none of this is fixed in stone."
Properties would also need to be registered with the city for a fee of anywhere between $40 and $150 per home. Enforcement may be tricky. "Just as we know now because we get complaints about weddings parties and things that go on in condo buildings or in neighbourhoods. I would assume that we would find out because we get the calls when people are dissatisfied with some of the disruption; you'll find it's fairly robust reporting. When we are actually taking steps to enforce whatever laws are in place, people will see us enforcing it and will know they have to register," Tory explains.
Seventy-two per cent of listings rented out in 2016 were condos, apartments or lofts.
Fifty-three per cent of listings last year were in downtown Toronto.