If you’re going to rent your house or basement unit on Airbnb, you may soon have to be licensed through city hall.
If you’re going to rent your house or basement unit on Airbnb, you may soon have to be licensed through city hall.
It’s the answer to years of debate about why “short-term accommodations” such as rooms and homes offered up through Airbnb, VRBO or even Kijiji don’t face the same rules and regulations as other overnight stays in London.
City politicians will weigh a new bylaw with a host of requirements, including limiting Airbnb and similar rentals to a principal residence, meaning you live in the place you’re renting out.
“Our ultimate goal is to minimize those problematic potential party houses and protect the housing stock,” Nicole said Musicco, co-ordinator of municipal compliance at city hall.
Other benefits of licensing Airbnb and other short-term rentals in London include “protecting the character, amenities and quality of residential neighbourhoods,” as well as helping city hall address any public safety or nuisance issues, Musicco said.
London has about 650 active short-term rentals, and 90 per cent of local listings are on Airbnb, according to a city hall report. Two-thirds of those rentals offer an entire home, while roughly one-third include private rooms.
Some of the homes are in clusters near Western University, Old East Village, Wortley Village and the Bishop Helmuth neighbourhood.
The average nightly rate is $121, with a median monthly rent of $1,213.
The rise of rooms or homes rented on Airbnb and similar platforms is reducing housing stock in many cities by converting units that would otherwise be rented on an annual basis into mini hotels or vacation stays.
“Global research has concluded that the continued growth of the industry has happened to the detriment of affordability and availability in cities throughout the world,” city staff say in a report.
Council has prioritized London’s housing crisis as a key area of focus. The red-hot real estate market and skyrocketing rental rates – plus a backdrop of relatively low vacancy rates – are putting further pressure on residents grappling with the costs of keeping a roof over their heads.
There are more than 6,000 households waiting for rent-geared-to-income or other deeply subsidized units.
London’s homeless population also is growing, with more than 300 people living on the street this winter and seeking refuge at temporary and drop-in shelter spaces.
Based on the recommendation from staff, which will be tabled at Tuesday’s community and protective services committee, people renting out rooms or entire homes for short periods – versus a typical lease for a housing unit – will have to:
- Show they own the property or have written permission from the owner
- Provide identification
- Pay a $175 application fee and have proof of general liability insurance for at least $5 million
- Submit photos of the room or home
Tuesday’s committee meeting will also include a public participation portion for Londoners to share their thoughts.
Politicians could decide to recommend approval of the bylaw right away, or send it back to staff for one last review after the public feedback.