**Note: I mention “Airbnb” in this article, though I generally mean any short term rental platform
Something happened in my neighbourhood over the weekend. It didn’t make the news (for some reason) and it was eerily similar to what we have seen elsewhere.
I woke up to early morning text and Facebook messages from a few neighbours sharing photos of yellow police tape blocking a section of street where I live with my family. In our very family-oriented and family-friendly pocket, gunshots were fired overnight from the street to a neighbour’s house. Casings found on the street. Bullet holes lodged in the house.
One of the houses on the street is used as an Airbnb rental. It’s a semi-detached house. The other side of that semi belongs to an amazing - AMAZING - woman, who also happens to be a single mom. She wasn’t home at the time, though she could have been and her kids were way too close to this for this to be ok.
The home that was shot at had been listed and rented on Airbnb and is rented often using that platform. This isn’t an Airbnb-specific issue, this is obviously a short-term rental type of problem. My friend (the attached neighbour) has had to call the police 3 times prior to this call for a few issues including domestic abuse and noise violation. The owner of this trouble home has seemingly chosen to overlook all the complaints, probably because the money is good on rentals as it is currently being used.
Another one of my best friends on the street sourced out and connected with some senior staffer at Airbnb to express his (and our) concern. Why are there gunshots at 3:30am near Christmas on a quiet street that’s usually loaded with kids, bicycles and wagons? Who are you enabling? How could you let this happen? Her response was immediate and she vowed “to take swift action”. What that action will be remains to be seen. Her handling of this up to this point was great, I will admit. Silence would have been met with more aggression.
You see, people looking to cause trouble could use platforms like Airbnb often. It provides them cover, shelter, and most importantly a lot of anonymity. They can do what they want and then move on. You could use your cousin’s brother’s grandkid’s nephew as the point person and profile that acts as the tenant, and then do what you want. Most rentals are absolutely, positively, totally fine and honest. Some aren’t, though. And that’s the problem.
As a user of Airbnb myself when I travel, I’ve never had any negative issues to report. I can see why travellers love this tool. I’m a fan, myself. In a world of online-reviews, it doesn’t look like there’s an opportunity to misbehave. What happens in Vegas won’t stay in Vegas if you’ve stayed at an Airbnb. And I like that. We should all be accountable for our actions and history.
In any case, from a tenant’s perspective - there’s a LOT to like about using short term rental platforms. It fills many needs. The bigger problem is with landlords using the platform in Toronto.
I think there’s a missed point that is clearly being made when it comes to the motivation on the part of the landlord to list using Airbnb. There’s been lots of attention at City Hall about recent decisions made by council to limit the way Airbnb is used by landlords.
Landlords want to be able to list many properties, full-time and in perpetuity. A part of the population in Toronto that rents wants these properties to be made available to long-term tenants. The hotel industry wants Airbnb to go away.
Let’s focus on this: Why are landlords so up in arms about being able to rent on Airbnb?? I have a strong opinion about it — as a landlord, as an investor, and as a real estate broker. My perspective may be a bit different than most.
Here’s the long answer…
Landlords (and tenants) are governed by the Landlord and Tenant Board (LTB) in Ontario. There are significant protections in place for landlords, and mostly for tenants. I won’t argue on either side of this position, just want to point out that landlords in general have a negative opinion about the rights afforded to tenants under these laws.
“Professional tenants” exist in hordes and they can use the rights in the LTB to live rent-free for months and months while skirting eviction. Landlords can make life difficult for tenants, and tenants can certainly make life difficult for landlords. I remember recently reading The Toronto Star, and there was an entire section dedicated to explaining to tenants how they can avoid paying rent if they’re unable to.
Landlords generally feel that tenants have unfair rights, at the expense of the landlord. It is because of this that landlords want to limit the risk of selecting the wrong tenant. Because once they’re in, they’re in.
When a landlord rents using short term platforms (STR = short term rentals), they operate outside the jurisdiction of the LTB. Evictions are swift because they’re not really evictions. Airbnb acts as an insurer of sorts if there is damage. Landlords can adjust prices as they so choose (there are rent control laws that severely limit what a landlord can charge via LTB).
I strongly feel that the decisions made by our past Liberal provincial leaders to place rent control limits has had many unintended effects - including the move of landlords towards STR and away from long term rentals.
Playing this out… that in turn has led to a reduction of availability of homes in the rental market, which has led to increased demand and reduced supply, which directly increases competition and, thus, prices for rentals.
The very same legislation intended to reduce housing costs has directly caused the increase of rental prices. And now we can see that it’s also had an effect on the fabric of our neighbourhoods.
This landlord that owns this home that was SHOT AT will likely defend his choice to continue to rent using STR because he doesn’t want to rent to someone with an agreement that is governed via the LTB. As far as I know, he has no intention of making any changes to his current rental structure. It’s still on Airbnb.
Renting on Airbnb does not necessarily mean you’re helping to commit a crime. Though it does enable crime and it does make neighbours feel a bit uneasy with the loads of unfamiliar faces in an otherwise familiar place. Would you agree?
**Update after publishing: Airbnb has suspended the listing after an initial investigation. The city councillor has reported the home as illegally operating under new city rules governing STR. As of December 18, this property is not an option as a short term rental.