The benefits and risks that must be known for operating Airbnb

Since its establishment in 2008, Airbnb has used a sharing model to closely connect travelers with landlords around the world, becoming a dark horse in emerging technology and a new star in the current tourism industry. The more expensive price than staying in hotels and hotels, the more down-to-earth layout, the more home-like environment, and the more space created by the sharing concept have made Airbnb's army grow. More and more people hope to use houses for short-term rental because this brings more benefits than long-term rental. Many people think this is "easy money". Is that true?

In the present, useAirbnb accommodation has become a fashionable choice for traveling around the world. In Toronto, the number of properties operating Airbnb has increased by 288%. A report shows that 13% of landlords in Toronto have mastered 37% of short-term rental units on Airbnb. Between 2014 and 2016, the number of short-term rental homes tripled, covering 10,800 properties. According to Inside Airbnb data, as of August 2018, Toronto's Airbnb homes had more than 17,500 listings. But at the same time, Airbnb has also been criticized by the hotel industry and tenant groups around the world.

Currently operated in the City of TorontoAlthough Airbnb is not an illegal act, in some cases, there are still many problems that may put homeowners in legal action. The Toronto City introduced regulatory bylaws to regulate the short-term rental market in 2017, but was sued by some Airbnb operators and several related short-term rental operators to the Ontario Planning Appeal Tribunal (LPAT) and is currently awaiting a hearing, so the relevant laws have not really come into effect. In Markham, in most areas, considering the noise, garbage, nuisance, community safety and other conditions that may be generated by operating short-term rentals, Markham has explicitly prohibited residents in the area from conducting such rental business.

Two major cities in Canada start to regulate short-term rental

At the end of 2017, the Toronto city government passed a motion to regulate short-term rentals under the vote of city councillors. To rent the entire house on short-term rental websites such as Airbnb, you must register with the city government and pay a 50-yuan annual fee. A whole unit can be rented for up to 180 days in a year. Short-term rental platforms need to pay a one-time registration fee of 5,000 yuan, a license fee of 1 yuan per night, and record and keep information about all online properties.

The city government is right, tooAirbnb's regulation has issued suggestions, including that houses engaged in short-term rentals mainly go to the city government to register and pay fees, only self-occupied properties are allowed for short-term rental, vacant properties are not allowed for short-term rental, and properties with multiple rooms can only rent up to 3 rooms, etc.

But soon after, several people workedAirbnb's owners and related groups believed that such a bylaw resolution was unfair, and immediately sued the city government to the Ontario Planning Appeal Court. The original hearing date was September 2018, but it was not successfully held and was immediately postponed to August 2019. For those who are waiting and watching, it is better to release short-term rentals to collect higher returns. There are also many people who are eager to join the short-term rental ranks and are afraid of sudden changes in the policy.

British Columbia Class Accepted11% "Taxes and Taxes"

Just to regulate in TorontoDuring the heated discussions of Airbnb, Vancouver announced relevant information policies to regulate short-term rentals in 2017, which were officially implemented in April 2018. The requirements of the bylaws include that the owner needs to purchase an annual business license of RMB 49 and pay a one-time application fee of RMB 54.

In 2018, the British Columbia government also announced that owners and tenants who rent houses on Airbnb will be charged an 8% sales tax and a 3% hotel tax, a total of up to 11% of "extraordinary taxes". The business tax collected will be used to subsidize the city's affordable housing plan. After Vancouver implemented a bylaw in April last year, as many as 400 properties were removed from the Airbnb platform within one month, most of which were converted to long-term rentals.

Hotel tax will be collected as fiscal revenue at the municipal government level to promote the development of the city's tourism industry. In the future, once Toronto's legislation on short-term rentals begins to be implemented, the commercial tax system will inevitably refer to other cities. Currently, if the property is counted as a commercial category in Toronto, it is necessary to2.5% -2.7% tax. For ordinary private houses, the land tax is around 0.7-1%, which is quite different. The increase in taxes is a reality that short-term rental owners have to face.

Although there is no relevant legislation on short-term rentals in Toronto, if the government decides to formulate and implement short-term rental laws similar to other provinces and cities, short-term rental owners are most likely to face increased taxes from provincial and municipal governments. For the principle of market equity, many cities that pass short-term rental bylaws requireHomeowners on short-term rental platforms such as Airbnb pay travel-related taxes like hotels.

Co-management of property short-term rental Compliance is important

Differentcondo has different regulations for short-term rental units, and some condo buildings even clearly stipulate that short-term rentals are not allowed. For condo owners, short-term rentals are likely to violate the contract you agreed to comply with the building bylaws when you initially purchased the property. For safety reasons, many condos regulate entry and exit and stay between residents and guests through locked lobby doors, using keychains to activate elevators, and requiring tenants to register through building front desks.

Let strangers using short-term rental platforms enter these strictly regulatedCondo building means that it will increase the risk of the entire apartment building. Therefore, the relevant regulations on short-term and long-term rentals are usually displayed in the building by-laws and regulations. If the owner of the unit rents out the unit to a stranger, anyone in the building can report to the management office. If found to violate the bylaws, you may be warned and fined.