Shared stupidity

The GTA is a huge place. Six million captives. There are hundreds of thousands of rental units in Canada’s biggest hunk of urbanity. Currently 99% of them are unavailable if you happen to be looking for digs. That vacancy rate of just over 1% is bad, but last year it was 0.3%.

Fewer rentals means higher rents, despite rules designed to keep costs down. And although tens of thousands of new units are in plans or in construction, condo prices have jumped four times faster than single homes.

Why is it so hard to find a rental in such a big place? Why do they cost so much to rent ($2,400 for the average one-bedder)? And why have condo prices escalated when single family homes have been in a torpor?

One word: Airbnb.

Almost four in ten condos in the GTA are owned by investors. About half of all new sales go to people with no intention of living there. Some of those are rented out to long-term tenants. A load are not. They get Airbnb’d. Currently more than 21,000 units are listed on the company’s site for Toronto.

Do the math. It’s a helluva lot more lucrative to rent out a downtown condo for $200 a night than get $2,500 a month from a tenant. Plus tenants have rights. They’re needy. They can refuse to move out. They can haul your LL butt before a tribunal. They can wear-&-tear your place with abandon. They can stop paying you, and still stay. Even an expiring lease is useless in getting rid of a melonhead. In contrast, Airbnb guests are quickie cash. They come. They go. They pay big. Badda-boom.

Of course, short-term rentals are a social scourge. They put hotel employees out of business. They seriously damage the hospitality business. They take tens of thousands of rental units off the market. They skew the economics of property values, as residences are turned into businesses. In big cities they crash the vacancy rate and raise rents. In small towns they suck off rare rental accommodation and leave streets dark in the off-season. They’re antipathetic to local economies – grocery and hardware stores, dry cleaners and bank branches – that rely on a stable year-round population. And they help lift real estate out of reach for locals.

Yes, Airbnb lets homeowners collect cash they would not otherwise get and, yeah, it’s cheaper to rent a condo in downtown Toronto for three nights than to stay at a hotel. But the societal costs are staggering. So what just happened in T.O. is a good thing.

It’s been a two-year fight. Landlords and the booking site have resisted every step of the way, and refused to voluntarily comply with municipal regs. For more than 20 months the issue has been before a tribunal, and now the decision’s been made. City, 1. Airbnb, 0.

All those units bought to rent out by the night (usually against condo board rules) are now illegal. Short-term rentals will be allowed only inside a landlord’s principal residence, and for no more than 180 nights s year. Homeowners can rent a max of three bedrooms, and not for more than 28 days at a time. No rentals will be allowed in basement or secondary suites. Landlords need to register and pay a fee plus a 4% accommodation (hotel) tax on revenues.

Of course by registering, landlords also join a database which is shared with the CRA – so anyone not declaring Airbnb (or VRBO) income is probably asking for an audit.

The expected result – about 5,000 units will be returned to the long-term rental pool, which is good. Says the lobby group out to geld the short-term landlords: “Commercial hosts are real estate investors who commodify our residential housing stock. They operate anywhere from two to many dozens of so-called entire homes, be these houses, apartments or condo units. They use residential housing stock as hotel inventory in buildings that were not planned, zoned, approved and built as hotels, but as residential buildings.”

Toronto joins Vancouver in trying to reign in the Airbnb beast. In YVR landlords have to secure a business license and can only operate out of a principal residence. Owners also have to pony up provincial sales and tourism taxes, which are collected and remitted by Airbnb. The city says over 70% of the 4,700 short-term rentals listed are legal, but suspicions remain a lot of other landlord are operating under the radar.

Meanwhile Airbnb continues to accumulate bruises for allowing ‘party house’ rentals to be listed and turning a blind eye to the incredible neighbourhood problems which short-term rentals cause – from North York to Venice.

Okay, kids, I know this is all part of the sharing economy. Like Uber. Or Rover. We’re all supposed to be collaborative now. Owners get cash for the bedrooms. Guests get a deal. Hilton gets zip. It feels good in an iconoclastic, screw-da-man kind of way.

But it’s not really sharing. More like stealing. From yourself.

192 comments ↓

#1 PetertheSeparatistfromCalgary on 11.20.19 at 4:20 pm

Banning AirBnb sounds like something Karl Marx would approve and Adam Smith would hate. Just saying!

#2 T on 11.20.19 at 4:22 pm

It’s about time.

The main challenge I see with this is enforcement. There will need to be teams trained on detection and enforcement. Many Airbnb landlords won’t give it up until they see the penalties are real. The act of being an Airbnb landlord has to be shown to be extremely risky so the risk obviously outweighs rewards.

As soon as this becomes the case (if if does) I expect condo inventory to start coming online fast and furious, starting a downward spiral in prices which be followed by more inventory as other investors bail out, and thus further downward pressure on prices.

#3 greg on 11.20.19 at 4:22 pm

Now let’s see if the City can enforce the new rules.

#4 The Great Gazoo on 11.20.19 at 4:24 pm

Insightful post and very good news for City of Toronto residents – and those who have been playing by the rules.

#5 Ron on 11.20.19 at 4:25 pm

If Airbnb has such a huge impact on the housing market, what this really tells me is there was an acute shortage of hotel rooms prior to Airbnb. OR Airbnb created a boom
tourists who.. want to visit Toronto for some reason?

#6 Shawn Allen on 11.20.19 at 4:27 pm

Air BnB

I’m somewhat torn on this.

On the one hand there are the rights of condo owners (even the investor kind) to consider.

On the other hand zoning rules against turning a condo into a hotel seem reasonable.

Condo boards have rights too.

I’m bit concerned with the word “our” in: “Commercial hosts are real estate investors who commodify our residential housing stock.”

Those are not “our” condos or housing stock. In Canada, houses are very largely private property.

But, overall I have to agree with Garth here. Some rules and taxes and restrictions were definitely called for.

Biggest reason for higher rents still comes down to lack of supply. Why is there not even more supply being built? Rules, regulations, costs? Why could we not supply the Air B&B demand plus the rental demand. Rents whether hotel or apartment should ultimately reflect the fair cost in a market economy. Why is the market failing? Was this just a temporary problem that the market would have solved anyhow?

#7 Tater on 11.20.19 at 4:28 pm

I wonder how many pre-con condos have been bought by people looking to AirBnB them? And what those people will do now?

Of course, if there’s no enforcement nothing will change.

#8 This is going to be ... on 11.20.19 at 4:28 pm

Ugly

#9 Remembrancer on 11.20.19 at 4:31 pm

Okay, kids, I know this is all part of the sharing economy. Like Uber. Or Rover. We’re all supposed to be collaborative now. Owners get cash for the bedrooms. Guests get a deal. Hilton gets zip. It feels good in an iconoclastic, screw-da-man kind of way
————————————–
Lest we forget, back in the heady days of the 2000s, the early sharing economy was really about monetizing the possession of stuff that you didn’t use all the time, so when you weren’t using it someone was paying you to “rent” it- free bedroom, rent it for the weekend, not using the car – rent it for the weekend. That got morphed into creatures like Uber, which is really a virtual taxi company that outsources 100% of its fleet or AirBnb with a similar model for accommodations…

#10 FreeBird on 11.20.19 at 4:35 pm

From good doc films Ive seen on this in European cities like Venice etc this is a good thing. Many owners there are non-local/foreigners and essentially unlicensed small biz operators. They displace locals as rental vacancy rates plummet. Those who are pro tax (esp for small biz and self employed) and or against foreign buyers should like this.

#11 Dave on 11.20.19 at 4:38 pm

Closing the door on Airbnb will open a few new doors to smaller Airbnb vendors. Can’t stop it…maybe tame it a little. Many of these Apps are in different languages so good luck holding them accountable.

Cities do not have the bylaw officers to enforce in a meaningful way.

#12 Damifino on 11.20.19 at 4:46 pm

Want to get into the hotel business?

Good for you. Amass capital and buy one or else build one. Get insured. Hire staff. Hire accountants. Collect and remit all accommodation taxes applicable in your jurisdiction.

Best of luck in your new venture!

#13 David Prokop on 11.20.19 at 4:50 pm

I used Airbnb many times around the world and I loved it. As a consumer I get more for less, so no wonder the hotel lobby is using all its might to squash the competition

#14 Shawn Allen on 11.20.19 at 4:56 pm

Air BnB

I would never pay anything close to $200 per night to rent from a random stranger.

I’d trust a Hotel but not random strangers.

Imagine young women renting these. Simply asking for trouble?

These random owners have keys to get in, right?

Were Hotels over -charging? Given economies of scale, a hotel should be lower cost?

The thought of meeting a random stranger to rent his randomly cleaned (or not) condo in a building that may not even allow it is a total non-starter for me.

You could rent 999 times from good people. Eventually the 1 in a thousand real bad (even dangerous) owner will be your fate?

#15 Alistair McLaughlin on 11.20.19 at 4:59 pm

@ Petertheseparatistfromcalgary, read Adam Smith again. That’s if you even read him in the first place. He’s all about competitive markets on a level playing field, with the government acting as referee.

Wanna run a hotel? Buy one. But you don’t get to turn the house next door on my quiet residential street into one. Appealing to some higher free market principles by quoting long dead philosophers whose works you haven’t even read is a fail.

#16 Yukon Elvis on 11.20.19 at 5:01 pm

I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that.

You’re proud of that? – Garth

#17 Sold Out on 11.20.19 at 5:04 pm

Meh. Vancouver made a big deal about announcing restrictions on AirBnB rentals, but it’s a complaint-driven process. And Vancouver city hall has a pretty high threshold before they act. One complaint isn’t enough to get their attention, and plenty of “hosts” are posting fake license numbers with no action taken. @Mortimer_1 has been sending a steady stream of violators details to city hall, but there is little appetite for enforcement. I expect TO will be no different. Just like the unilingual ride-hailing service that operates with impunity in a YVR suburb.

#18 Camille on 11.20.19 at 5:04 pm

A good person buys a condo as a home. It represents a large portion of her net worth. Then winds up in a hotel. Garth’s analysis is spot on, even as I believe he would not have you own a condo as a home. Maybe the economics are not there. But Airbnbers are leaches and cheaters. Bring them into line.

#19 Bezengy on 11.20.19 at 5:05 pm

Plus tenants have rights. They’re needy. They can refuse to move out. They can haul your LL butt before a tribunal. They can wear-&-tear your place with abandon. They can stop paying you, and still stay.
________________________________

Does anyone else see a problem here?

#20 yvr_lurker on 11.20.19 at 5:07 pm

Interesting how Garth is for the Gov’t to act to control this AirBNB beast and for recognizing the problems it causes. I was under the impression from reading this blog for a few years that Gov’t intervention is to be avoided, smaller Gov’t is best, and Mr. Market should be in charge. If young people can’t afford the rent, too bad.. move somewhere cheaper and give up your solid city career to work in construction in a small town…

#21 Kat on 11.20.19 at 5:11 pm

It is a disease that should have been stamped out but no one seems to have the guts to do it. Enforcement isn’t really happening in Vancouver the laws have no teeth when it isn’t enforced. Anyone who cries foul and wants the sharing economy but is upset at the costs going up around them because of it need a reality check.

#22 EB on 11.20.19 at 5:12 pm

#17 Sold Out – Yes, all the regulations in the world mean nothing without enforcement. Sans that not a thing will happen and rental availability will be unchanged. It might scare away a few wee cowering timorous would-be landlords, but the sharks will continue to feed.

#23 Sovavia on 11.20.19 at 5:13 pm

How are audits determined?

Are they random?

Is it software or the capricious whim of some dog-hater?

#24 Mattl on 11.20.19 at 5:15 pm

I’m not a fan of Air BnB but hotels appear to be doing fine, based on the 300-500 a night it takes to get a room in downtown TO. And lots of weeks that I’m looking, the best properties are fully booked.

Now that these rules are in place I guess we can expect hikes, and limited availability. Like trying to find a cab ride Van.

Big government wins again.

#25 RWZM on 11.20.19 at 5:19 pm

Nobody, not even Garth, is capable of believing this.

The rents have been tracking the prices. The prices have been tracking the population, along with the low rates, rent control impacts, and other Garth talking points.

“Currently more than 21,000 units are listed on the company’s site for Toronto.” – And Toronto gains how many people per year?

The price-to-rent ratio has even been going *up* over this whole decade and the vacancy rate has been steadily marching downward for 16 years.

The lies people are capable of telling themselves amaze me.

Prices track demand. When 50% of new condo sales are to investors, not end users, many of whom choose to Airbnb, this is a factor you would be unwise to brush off. As this blog has pointed out with nauseating repetition, causes are legion. – Garth

#26 MM on 11.20.19 at 5:31 pm

We are not a fan of Airbnb as we are a casualty of it! The neighbour right beside our suite (who is a tenant, not an owner in our downtown Vancouver high-rise building) is constantly Airbnb’ing his rental suite to our detriment. There are strange men on our “secure” floor at all hours of the night, noise disturbances including 911 calls – paramedics taking a man out on a stretcher, dragging drugged men into his suite – this is the truth and all documented! This nightmare neighbour has also flooded our suite a couple times. Again, all documented. We complained to the property management company about this nightmare neighbour and they said there was nothing they can do as there has been no bylaw infractions (seriously?!) and Airbnb is currently allowed in this building (you’re kidding!). We requested the property manager to at least inform the owner/landlord of his suite as to what we’ve been putting up with so he knows about this and is forewarned before the next disaster hits. This neighbour is unbelievably shameless – he doesn’t have a job and Airbnbs for a living. Why should he leave if he doesn’t have to work and is making money by Airbnbing a condo he doesn’t even own? Truly sickening!

#27 Yukon Elvis on 11.20.19 at 5:31 pm

#16 Yukon Elvis on 11.20.19 at 5:01 pm
I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that.

You’re proud of that? – Garth
………………………
Who would’nt be ? Tax free cash. Keep it out of Trudolt’s hands. The Lambo is always thirsty. And the girlfriends. One likes Louis Futon and the other two like diamonds. I just can’t seem to get ahead.

#28 Yvr2yyz on 11.20.19 at 5:35 pm

Yvr_lurker: Government is stepping in to collect taxes which is fair

Mattl: yes they will charge more but eventually they will build a new hotel instead of another condo in Toronto and employ 500 workers and pay taxes to the city.

#29 NoName on 11.20.19 at 5:36 pm

@11 @17 @22

If anything is complicated enforcement on stuff like this isn’t, it might lag for a bit when it’s rolled out, but very easy to enforce and collect fines. Iam sure smarter people than I already tought of it.

#30 the Jaguar on 11.20.19 at 5:39 pm

“The phrase come-to-Jesus moment is often used when describing the moment when a politician, employee or child understands that he is on the wrong path and must change direction, it is often considered a positive development.”.

If this latest development isn’t a come-to-Jesus moment, I don’t know what is…………
Answered prayers. Now if the same magic could only be worked on the incredibly boring cannabis industry.

#31 domain on 11.20.19 at 5:40 pm

Amen Garth.

The Mrs. and I rent, and we noticed a dramatic change to the rental market in the Okanagan from around 2015 onward. A dramatic reduction in long term rentals, especially in the Vineyard-peppered neighborhood that we live.

I’ve been spewing the same argument about it since then, short term rentals cause a lot of societal damage, economic damage, and they are a good neighbors worst nightmare.

And maybe when this current downturn picks-up steam, and municipalities are desperate for lost revenue, they will tighten the screws everywhere.

Good riddance.

#32 Rargary on 11.20.19 at 5:40 pm

I’m a proud ex-Torontonian… but will there be resources for a snitchline in Ford world? As many have already mentioned, that’s an abundance of work for the City to manage all at once.

#33 Paddy on 11.20.19 at 5:44 pm

You know you have a good comment when ol’ chiseled abs Gartho offers his rebuttal….

Anyone who travels will agree that Airbnb and Uber are the cats meow…but we also realize that it disrupting the local economy….can we find a balance???

#34 Penny Henny on 11.20.19 at 5:50 pm

#109 Buy? Curious? on 11.20.19 at 3:04 am
Can I say it? Can I say the catch phrase that is sweeping the nation?!? Here it goes!

Ok, Boomer.

I love it!

Oh, I’m starting a petition to have Don Cherry removes from the Hockey Hall of Fame. Not because of his anti-immigration views but because of the damaged he’s done to millions of kids with that “Old time hockey” and violence in hockey. Think of all the concussions kids have suffered because of this guy.

Ok, Boomers. (Plural)

////////////////////

He’s not in the Hall yet

#35 Crazy Cat Lady on 11.20.19 at 5:58 pm

I’m not great at math, but if one night in an Airbnb costs 200$ and the average monthly rent for a 1 bedroom is 2,400$, then you need to Airbnb your unit at least two weeks out of every month in order to make it as financially worthwhile as a long-term rental.
And don’t forget that you have to clean the place out (or have it cleaned -cost of cleaner(s) to be deducted against earnings) between guests -which suddenly makes it sound like actual work.
Garth, you yourself pointed out (in your July 3 2019 blog post) that the average Airbnber makes 14,140 $ a year. If he were renting it out for 2,400$ a month he would be making 28,800$.
And negative reviews can kill a bad Airbnb- there is a lot of competition.
As to partyers, my one and only problem was a long-term tenant who had the police called on him several times by the neighbours. Needless to say, that’s not grounds for eviction. I also suspect he sublet the place while he was working abroad, but try proving that.

Really, the only thing that makes being a long-term landlord worthwhile is the skyrocketing rents and the fact that running a successful Airbnb really is a full-time job.

Frankly, I’m surprised at this hostility towards Airbnb from a guy who wanted property rights written into the constitution.

Don’t the people living next door to a short-term party rental house also have rights? – Garth

#36 Snowflakes on 11.20.19 at 6:11 pm

The ruling is xenophobic against our hardworking rulers in resource-rich countries who believe that it’s in the best interest of the impoverished people to have the oil monies funneled into numbered Ontario corporations and used to buy condos for AirBnB rentals using a nominee who works at the Big 5 banks.

We must be patriotic as Canadians to give Justin Trudeau every aspect of our life, such as how we shop, what we teach our children, what thoughts we have in our minds, and let the State protect us for our freedoms.

But we must also be a welcoming country and allow wealthy leaders from emerging economies to use Canada as a vessel to transform oil monies into AirBnB units for the third world.

We must be tolerant and allow Justin Trudeau to know our every thought.

If you don’t allow this, you’re a hater and you should pack your bags and live in America.

Sincerely,

A snowflake who uses her condo as an AirBnb rental.

#37 oh bouy on 11.20.19 at 6:15 pm

@#1 PetertheSeparatistfromCalgary on 11.20.19 at 4:20 pm
Banning AirBnb sounds like something Karl Marx would approve and Adam Smith would hate. Just saying!

_____________________________________

Indeed.
gov seems to complicate everything it touches these days.

#38 Montreal.... on 11.20.19 at 6:15 pm

Of course, Montreal will ignore adopting the same strict rule and stick with the much weaker law that just went into effect in September. Just like the decided to deal with Uber and the foreign-investor tax in real estate. In an effort to drive up rents and home prices, to the benefit of landlords and real estate speculators. Bienvenue a Montreal!

#39 ts on 11.20.19 at 6:24 pm

Judging by the comments section, there seems to be quite a few nervous condo investors that are worried about the new rules.

#40 Bob Dog on 11.20.19 at 6:26 pm

More BS. According to wikipedia there are 36,000 hotel rooms in Toronto. If there are 21,000 short term rentals the hotels would be out of business.

Unaffordable housing in all Canadian cities is mainly do the prime directive given to the government. Mass migration and growth at any cost.

The housing industry simply can’t keep up with the migration industry.

The only real question is, who has given our elected leaders this prime directive.

There is no mass migration. And 21,000 Airbnb listings are currently advertised. – Garth

#41 Lost...but not leased on 11.20.19 at 6:27 pm

QUESTION:

Why don’t cities simply BAN AirBnB…as opposed to accommodating them ?

What’s Up??

#42 Bye bye BNB on 11.20.19 at 6:27 pm

I checked the bungol.ca website. About 100 condo units have been listed in the last day. Some units listed at +1 million

#43 Niagara Region on 11.20.19 at 6:32 pm

Thanks, Garth, for the great news! The same AirBnB scam is likely occurring in Niagara Falls. A tourist hub, there is a plethora of AirBnB listings in Niagara Falls. I hope that the government comes after AirBnB listings in Niagara Falls as it did in Toronto: house prices in the Niagara Region have doubled since 2014, and I expect that AirBnB has played a role in making houses unaffordable for the locals (like me).

#44 Deplorable Dude on 11.20.19 at 6:38 pm

#24 Mattl…” I’m not a fan of Air BnB but hotels appear to be doing fine, based on the 300-500 a night it takes to get a room in downtown TO. And lots of weeks that I’m looking, the best properties are fully booked.”

———

Ditto. Have you seen the price of Vancouver downtown hotels! They seem to be doing just fine…catering to the tourist tour bus crowds I suspect.

#45 John on 11.20.19 at 6:39 pm

Many Airbnb hosts dont report ANY income to CRA making the returns even larger, justifying the massive prices and flood of investors into downtown condos. Not negative cashflow if you can take in 6-15k per month.

Question for the author, the note says basement and secondary suites are outright prohibited, my understanding was these were allowed if under x amount of days per year.

#46 Timmy on 11.20.19 at 6:42 pm

You’re wrong. It is not simply Air B and B. The Feds basically stopped building rental housing back in the
80s. THe governments now continue to reward developers for building condos, who mainly go to speculators, flippers and money launderers. They could easily have a quota for rental housing instead, but what they’ve done is too little, too late. That’s why it costs 2k for a crappy one bedroom in Vancouver.

#47 Nonplused on 11.20.19 at 6:44 pm

AirBnB would probably be great if people were using it to book actual bed & breakfasts. Many of them are small mom & pop operations that might have a web page but not much advertising other than that and word of mouth. I looked at buying one once and it was basically a 5 bedroom country home and mom & pop lived in one of the bedrooms and provided breakfast every morning. Things like AirB&B and Google maps are probably a heaven sent for these type of operations.

But turning condo units into hotels (only probably without the breakfast)? When I stay in a hotel I am usually on business and I appreciate the clean towels and 3 hour breakfast window at a typical economy hotel. You can usually get that for something around $200 a night too. With air conditioning. Although you don’t want to drink the bottled water its $5. And stay out of the mini-bar. So I’ve never seen the point of AirB&B for business travel. Especially since I like to be within walking distance of wherever I’m working. There is usually a hotel there but not always a condo unit.

I could also see it being useful for “on hill accommodations”. Most people who own a condo on a ski hill don’t use it every weekend. But most of those units are already in a rental pool run by the ski hill.

#48 Leichendiener on 11.20.19 at 6:46 pm

This is a seminal post and the problem is global. And where is the Federal Government on this file?

Curtailment is easy to enforce as all transactions are digital and can be data mined by any government body including the CRA.

#49 Timmy on 11.20.19 at 6:46 pm

There is an area in Florida where there is a huge Russian population and you hear the language spoken quite often. It is all hi end newer hi rises and most of them are over 1 million dollars a pop. I’m sure it’s not the angry Trump voters who bought these places. So again, our governments are encouraging this speculation, thereby screwing the middle class taxpaying locals.

#50 Dave on 11.20.19 at 6:51 pm

Barcelona cracks down on Air B and B

Too bad our government doesn’t have the balls to do the same

https://www.citylab.com/life/2018/06/barcelona-finds-a-way-to-control-its-airbnb-market/562187/

‘Taken together, these measures have global significance for cities managing their own fights against out-of-control vacation rentals. Firstly, they provide a ready-to-go model that makes enforcing local rules not just feasible, but relatively easy. Secondly, they show that concerted pressure from local governments can indeed push Airbnb and other home-sharing sites to take real action. Because while Airbnb deserves credit for working with Barcelona, it has done so after a clampdown on its activities that’s arguably the most rigorous Europe has yet seen.

That clampdown has been a long time coming. Barcelona’s huge popularity with visitors has proved something of a poisoned chalice in recent years. Vacation apartments have spread across central neighborhoods, many of them from hosts who list more than one apartment. Meanwhile, the number of affordable long-term rentals available to locals has shrunk.

Parts of the old city have become tourist ghettos, where residents that remain are kept awake by badly behaved visitors, and increasingly find their local shops and bars taken over by souvenir emporia and coffee chains. The city has hit back, partly by halting approval for new hotels, but mainly by requiring all vacation apartment hosts to apply for a license—applications for which are rejected in areas too saturated with tourist accommodations.

In 2016, Airbnb was hit with a (still unpaid and contested) €600,000 fine for listing unlicensed apartments, following a more modest €30,000 fine the year before (that same fine was also levied against the website HomeAway).

Last year, the city’s new tourism plan stipulated that vacation apartments must pay the highest rate of property tax. And since last summer, investigations by the city have already led to 1,500 unlicensed apartments being de-listed.’

#51 Penny Henny on 11.20.19 at 6:54 pm

Of course, short-term rentals are a social scourge. They put hotel employees out of business. They seriously damage the hospitality business. They take tens of thousands of rental units off the market. They skew the economics of property values, as residences are turned into businesses. In big cities they crash the vacancy rate and raise rents. In small towns they suck off rare rental accommodation and leave streets dark in the off-season. They’re antipathetic to local economies – grocery and hardware stores, dry cleaners and bank branches – that rely on a stable year-round population. And they help lift real estate out of reach for locals.-GT

///////////////////

Funny though you are completely fine with foreign ownership of housing which causes all of the same issues and more.

#52 Shirl Clarts on 11.20.19 at 6:55 pm

This is a big story that affects a lot of everyday Canadians, and yet no mention on CBC.

Anyone back east see this story on local news outlets?

The CBC covered Trudeau’s cabinet ALL. DAY. LONG!

#53 Paul on 11.20.19 at 6:57 pm

#43 Niagara Region on 11.20.19 at 6:32 pm
Thanks, Garth, for the great news! The same AirBnB scam is likely occurring in Niagara Falls. A tourist hub, there is a plethora of AirBnB listings in Niagara Falls. I hope that the government comes after AirBnB listings in Niagara Falls as it did in Toronto: house prices in the Niagara Region have doubled since 2014, and I expect that AirBnB has played a role in making houses unaffordable for the locals (like me).
————————————————————————————————
AirBnB, wasn’t a scam till the Government made it such!
Typical how will it affect locals (like me) me,me,me,me,
Lol.

#54 Dave on 11.20.19 at 7:04 pm

“I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that.

You’re proud of that? – Garth”

———————————————
Do you have 10 thousand associates living in Vancouver and Richmond?

#55 Shawn Allen on 11.20.19 at 7:05 pm

Trust me

It takes substantial trust to rent Air BnB or to Uber

In fact it takes trust to do almost anything including just walk down your street.

People forget it is the government (police and laws) that in large part allow us to give our trust so freely.

All hail the government.

Yet the government itself is increasingly not trusted.

#56 BlogDog123 on 11.20.19 at 7:11 pm

Things your hotel does that AirBnB landlord says “what me worry?”.

1. Pest control.
2. Noise control,
3. Health and safety checks.
4. Sprinkler system, fire safety inspections.
5. Pay hotel taxes (prov,fed,local).
6. Pay tourism taxes.
7. Front desk people to help out with lockout issues quickly.
8. Upkeep, property improvements.

The AirBnB guy is looking for a quick buck, would really prefer cash under the table…

#57 Long-Time Lurker on 11.20.19 at 7:11 pm

Deputy Prime Minister and Intergovernmental Affairs Minister: Chrystia Freeland.

(Snicker.)

…Now to the issue of Cheney becoming Vice President….

https://www.armstrongeconomics.com/international-news/politics/vice-the-dick-cheney-rumsfeld-conspiracy/

#58 Long-Time Lurker on 11.20.19 at 7:11 pm

Hmm. So if Don Cherry did blackface three times he’d get a pardon and if Justin Trudeau said immigrants should wear a poppy he’d have to resign as PM?

#59 AGuyInVancouver on 11.20.19 at 7:13 pm

#16 Yukon Elvis on 11.20.19 at 5:01 pm
I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that.
_ _ _
You’re a parasite. Hope you’re enjoying your failing, smoldering wreck of a city.

#60 Shirl Clarts on 11.20.19 at 7:14 pm

#19 Bezengy on 11.20.19 at 5:05 pm
Plus tenants have rights. They’re needy. They can refuse to move out. They can haul your LL butt before a tribunal. They can wear-&-tear your place with abandon. They can stop paying you, and still stay.
________________________________

Does anyone else see a problem here?

^^^^^^^^^
Umm yeah! They figured out what they can get away with.

Blame the media, social networks, the fake news, and the growing divide among the have-nots and the haves.

#61 leebow on 11.20.19 at 7:19 pm

#43 Niagara Region

You could get 25% cap rate in Niagara Falls back in 2014. No wonder the prices doubled. Even after the price increase, RE in NF is still undervalued. Air BnBs are there, but they are not the problem. Blame social assistance and lack of good jobs.

#62 Lost...but not leased on 11.20.19 at 7:22 pm

Garth:

You previously posted about people who have principal residences and also have basement suites and the tax hit when they sell….

AirBnB ers will thus get hit as well on the capital gains..correct?

#63 Tom Grozny on 11.20.19 at 7:23 pm

Hrm… why do we have to come up with new fancy names like “sharing economy”?

A business is a business. Be it Airbnb, Uber, etc. the expectation has always been that if you are making a profit, you pay taxes.

Are we saying that tax evasion is ok for some businesses but not others?

#64 Not 1st on 11.20.19 at 7:24 pm

Now that the election is over and new cabinet selected the slogan had officially become Failing Forward.

Seamus as resources minister? Seriously WTF?
Guy has no clue what’s produced in western Canada.

And Freeland us as much an Alberta as I am Klingon.

I disavow this govt in its entirety.

#65 oh bouy on 11.20.19 at 7:25 pm

@#58 Long-Time Lurker on 11.20.19 at 7:11 pm
Hmm. So if Don Cherry did blackface three times he’d get a pardon and if Justin Trudeau said immigrants should wear a poppy he’d have to resign as PM?
_________________________________

YOU LEAVE THAT DEAD HORSE ALONE!

#66 Yukon Elvis on 11.20.19 at 7:32 pm

#59 AGuyInVancouver on 11.20.19 at 7:13 pm
#16 Yukon Elvis on 11.20.19 at 5:01 pm
I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that.
_ _ _
You’re a parasite. Hope you’re enjoying your failing, smoldering wreck of a city.
………………………..

It is not so bad up here in the penthouse Vancouver guy san. I can just take the elevator down to the dock and zip over to Macau. Takes about 5 minutes in the cigarette. Casino never closes.

#67 Flop... on 11.20.19 at 7:35 pm

Working on a mansion in Shaughnessy at the moment.

There is no one around.

I could do a nudie run down the street with my undies on my head, and no one would be there to witness the shrinkage…

M45BC

#68 Cici on 11.20.19 at 7:37 pm

It’s about time. Although cute when it started, AirBNB has grown into idiotic proportions, and like you said, destroyed neighborhoods, negatively impacted the hotel industry, and created obscene fiscal inequities.

#69 Entrepreneur on 11.20.19 at 7:38 pm

Right on and good call on the new rules for Airbnb, GT.

When making money under the table you are not supporting the community, the system, from the bottom up. And bumping hard working people out.

The computer will help control the mess, one-by-one and a start in the right direction.

Took awhile though but thumbs up!

#70 joblo on 11.20.19 at 7:38 pm

What no more bedbugs, cockroaches and other vermin in TO condos frum the tourists?

#71 Niagara Region on 11.20.19 at 7:40 pm

Ireland cracked down on Airbnb earlier this year:
https://www.irishcentral.com/news/irishvoice/airbnb-gets-its-wings-clipped-in-ireland

A number of other cities globally have also begun heavily regulating Airbnb:
https://www.cntraveler.com/galleries/2016-06-22/places-with-strict-airbnb-laws

Airbnb has been generating severe housing shortages and economic hardship for local renters and would-be homebuyers in many cities across the globe.

My maxim: People before profit.

#72 crowdedelevatorfartz on 11.20.19 at 7:40 pm

@#17 Sold Out
“Just like the unilingual ride-hailing service that operates with impunity in a YVR suburb.”
++++

Yep.
Apparently you can pay the taxiKabu with renminbi ……..

https://globalnews.ca/news/3953538/richmond-ride-hailing/

#73 Flop... on 11.20.19 at 7:40 pm

Airbnb is just a nappy rash.

Look closer and you’ll see the real disease…

M45BC

#74 GC on 11.20.19 at 7:42 pm

My family and I have used Airbnb numerous times over the last 6 years in numerous different locales. We have never had a bad experience. Mostly they have ranged from good to amazing.
Hotels have tremendous costs built into their business. Building code, zoning, employment regulations, taxes and resorts fees (taxes) and also taxes. It is not so much that there is a shortage of hotels as there is just tremendously more value in renting a condo than a hotel. For our family of four we would get a two bedroom condo in either just as convenient a locale or better locale than any nearby hotel. 2 bedrooms is a big deal for a young family. Good luck finding a two bedroom hotel room that is also affordable. On top of that we would get a full kitchen, saving us tons more money by not having to eat out or order room service. We would get all of that for half the price of a 0 bedroom hotel room. It truly is a game changer for families on vacation.
That being said I truly feel for people that have to live beside and Airbnb. It would be a nightmare.
Local jurisdictions need to protect their rackets and neighbour hoods need relief so some regulation is probably over due.
UBER- it’s not so much that Uber is anything special. It’s the fact that Taxis are so awful. My wife and I have sworn to never step foot in a cab again. Drivers falling asleep at the wheel, driving without paying attention, driving while eating, driving while on the phone, speeding excessively, vehicles literally falling apart and in disrepair, vehicles in disgusting condition inside, rude and or aggressive disposition you name it.
We have never experienced any of that with Uber. And Uber shows up way faster. Sometimes it’s as if they manifest out of thin air after you select which driver you want.

#75 SoggyShorts on 11.20.19 at 7:44 pm

#20 yvr_lurker on 11.20.19 at 5:07 pm
Interesting how Garth is for the Gov’t to act to control this AirBNB beast and for recognizing the problems it causes. I was under the impression from reading this blog for a few years that Gov’t intervention is to be avoided, smaller Gov’t is best, and Mr. Market should be in charge. If young people can’t afford the rent, too bad.. move somewhere cheaper and give up your solid city career to work in construction in a small town…

**********
I have also been reading for years and Garth gas been very consistent in his messages and positions. The relevant one this time being
“Cheating taxman bad”
Hard to argue that one.

#76 crowdedelevatorfartz on 11.20.19 at 7:47 pm

@#21 kat
“Enforcement isn’t really happening in Vancouver the laws have no teeth when it isn’t enforced. ”
++++
True enough.
City of Van is too busy painting crosswalks multiple colors.

The most cost effective option?

Revenue Canada should just start an AirBNB “rat line” and let annoyed neighbors turn them in……

#77 Clowns to the left of me, dirt bags to the right on 11.20.19 at 7:53 pm

#27

One girlfriend loves Louis Futon does she?
That is unintentionally funny I think.

I am guessing you are a fraud and in good company here.

#78 Drill Baby Drill on 11.20.19 at 7:55 pm

The China USA trade deal is kaput. So much is being made of the impeachment hearings that the MSM has not reported on the senate bill passed today. It has more than rankled the Chinese. Look out below.

https://www.congress.gov/bill/116th-congress/senate-bill/1838

#79 YouKnowWho on 11.20.19 at 7:56 pm

Next on the hit list: uber.

For what?

Emissions contribution and traffic contribution with all these vehicles that wouldn’t be on the road, idling, waiting for a ride, stealing passengers from public transit already on place.

#80 peteinto on 11.20.19 at 7:59 pm

C’mon Garth. Just more intrusion in private property.We have too much CRA big brotherism already.

#81 crowdedelevatorfartz on 11.20.19 at 8:01 pm

The British election promises from the Labour Party.
Free University for all.
Free internet.
(Gee I wonder what generational voting block they’re shooting for…….)

And last but not least…..
Nationalize all utilities.( turn the clock back to 1979)

https://www.reuters.com/article/us-britain-election-labour/ready-for-change-britains-labour-unveils-radical-manifesto-idUSKBN1XU2RN

#82 JohnnyAB on 11.20.19 at 8:01 pm

Same happens in Greek cities. When the crisis hit in 2009 the apartments that were sold for 80K EUR, suddenly were on the market for 25-30K in 2011. Now the same apartments are sold for 50K just because people buy there “investment” properties. There’s a big travel company called Mouzenidis Travel that is constantly modifying their business model and recently started to be the intermediary between the people with money and the Airbnb tourists. They are finding and helping the investors buy apartments in the big cities then they are taking care to rent them to the tourists. The Real Estate prices soared and are still going up. So yes, Airbnb is a big game changer and cooling it down a little (like the stress test) is a good thing. Glad it started to happen.

#83 Captain Uppa on 11.20.19 at 8:02 pm

Loved using AirBNBs while abroad and it was a great source of income for some good, honest people. My wife and I stayed in a small town in Spain where a single mother of three rented out a part of her property.

On the other hand, I can see it being a problem as Garth has mentioned above.

#84 Out Of Work CEO, Will Travel on 11.20.19 at 8:06 pm

City and Provincial Planning Boards made no effort to encourage building “Rental Purpose Buildings” so now Ontario is the poster child for “how not to create rentals in an environment of too expensive building fees; codes and land costs. All levels of government swallowed up as much of the investment money developers were willing to pony up. Once you stay in a good Hampton Inn or Hyatt Place or Four Seasons you know service makes a difference. AirBnB will never ever be able to give the clean; private; safe; reliable stay of even a two star hotel.

#85 TC on 11.20.19 at 8:07 pm

Absolutely fantastic post Garth. I feel the Airbnb business model should be banned altogether everywhere and made illegal for the following reason in your post re-printed below.

“Commercial hosts are real estate investors who commodify our residential housing stock. They operate anywhere from two to many dozens of so-called entire homes, be these houses, apartments or condo units. They use residential housing stock as hotel inventory in buildings that were not planned, zoned, approved and built as hotels, but as residential buildings.”

Airbnb is wrong, unfair, and deceitful and should be stopped EVERYWHERE! I would support or if were a municipal council official draft legislation for a vote to rid an area of this pestilence.

#86 Adele McCoy on 11.20.19 at 8:12 pm

DELETED

#87 Flanneur on 11.20.19 at 8:14 pm

Try taking 2 wolfhounds to a hotel.

#88 Robert Ash on 11.20.19 at 8:20 pm

I owned a Condo for years in Florida. The Condo had strict By Laws, that permited Short Term Rentals of 3 months or more… These By Laws, were written such that Foreclosures could be enforced by the Condo Association/Home Owners association.
Short term rentals would require 1) Written registration of the Guests, short term or long term. Ie the Condo Management had to have knowledge of the Occupants, ID, and Details. 2) A State License to collect and remit the Florida State Tax. 3) An IRS, registration in the form of a ITIN Individual Tax Identification number for Foreign Owners 4) Yearly Income Statements, and Remission of Fed Taxes to IRS, usually completed by a US Accountant.. Can be managed independently if the Landlord, is conversant with IRS rules and tax laws. 5) Dispositioin of the Asset, has to be addressed in terms of Capital Gains, and Tax Treaties, with specific Countries..
There are more details, but those were the main, considerations, to be a Foreign Owner and not have your Condo, foreclosed..
In my opinion this was a fair way to treat Absentee owners and Long term resident/owners..
The Violators, did not fair well… Good Condo boards, with Efficient Legal Backup and the Support of the Local City/Town Municipal affairs, was all that is required..
My opinion is that it is very unreasonable to think any Neighbor who lives in a Multiple Residential Building, paying a Mortgage and hoping for quiet enjoyment etc.. would not want a Hotel Next door… Duh!!

#89 Why admit to it? on 11.20.19 at 8:36 pm

#16

Well, when the Chinese army comes in to squish you, you can hop on a plane to Canada. Then you can be arrested for fraud, maybe deported back to China. Why would you admit to fraud in the first place?

#90 Yukon Elvis on 11.20.19 at 8:36 pm

#77 Clowns to the left of me, dirt bags to the right on 11.20.19 at 7:53 pm
#27

One girlfriend loves Louis Futon does she?
That is unintentionally funny I think.

I am guessing you are a fraud and in good company here.
…………………..

Gimme some credit will ya. I’m the King of Rock and Roll and karaoke too. It was intentional. Good fishing here today. Beaucoup poissons. Even Garth took a bite.

#91 Flop... on 11.20.19 at 8:37 pm

Well, I got the Cabinet reshuffle wrong.

Thought the Metrosexual Messiah was going to put more liquor in it.

You know, so he’d have something the blame down the line…

M45BC

#92 Flop... on 11.20.19 at 8:49 pm

Minister For Middle Class Prosperity?

Are they serious?

Sounds like something TurnerNation would have joked about.

One of Trudeau’s gimps must be reading this board.

Can’t wait for the first update from the Minister.

I’ll have a stab at it.

Boss, it appears the middle masses want us to stop taxing the crap out of them…

M45BC

#93 yvr_lurker on 11.20.19 at 8:57 pm

#75 Soggy
————–

I was being sarcastic in my post. It is clear that having little Gov’t oversight with AirBNB has led to uncollected taxes from speculators buying condos, renting out by the night, and flaunting loose Gov’t oversight and condo board rules. Just surprised that Garth would actually think this is a problem that needs to be corrected. Too bad he does not also see the same type of societal problems for about a decade 2006-2016 with condo towers and houses being sold in YVR to foreigners who are playing a globalized version of housing monopoly. Many of us here in YVR have been commenting on this for years.

#94 YouKnowWho on 11.20.19 at 9:06 pm

#83 Out Of Work CEO, Will Travel

FYI

Semi/detached development fee is 76k as of Nov 1 2019, up 16k from Nov 2018 in Toronto.

….in case you’re wondering about who’s contributing to crazy housing prices here is good after tax 76k you need to drop on a fee.

Isn’t that 6% of average 416 detached? Wasn’t that called a down payment? :-)

#95 toronto1 on 11.20.19 at 9:11 pm

Remember that the cities have the power to tax

all the city of toronto has to do is to change the tax rate of any air bnb rental to commercial and see that business model go kaput………

its a good thing—

ive stayed at both air bnbs and hotels and after a few bad experiences with the air bnb places i will only stay at hotels— no need to pick up keys or wait and i know exactly what im getting

#96 Mr Canada on 11.20.19 at 9:12 pm

Nonsense. It’s easy to blame AirBNB… Is it the cause of <1% rental vacancy rate? Nope. Garth mentions there are 21,000 AirBNB units in GTA, yet the GTA brings 70,000 new units to market EVERY year — there are 2+ million dwellings in the GTA – 53% are detached homes, the rest are condo's, apartments etc. Sorry folks, AirBNB is a rounding area in the scheme of things — vacancy rates in the big smoke have historically been <1.5% BEFORE AirBNB….government says they will free up 5,000 units because of this change, yes, and the budget will balance itself — everyone has short memories. So, what's the primary reason? Exactly what Garth said, who wants to be a landlord and face restrictive rent controls and crazy tribunals, you might as well put your equity in a bond fund. (This is where the microphone drops)…

#97 Joe on 11.20.19 at 9:16 pm

If the root cause is that the current regulations protect the irresponsible tenants at the expense of the good ones, then why not simply remove the bad laws instead of adding new ones?

#98 45north on 11.20.19 at 9:18 pm

Airbnb.

The Ottawa Citizen has an article “Council to consider new regulations for long-term rentals”
by Jon Willing. That’s what it says but it should say for short-term rentals. I found the article on the e-paper site but not on the regular Ottawa Citizen site.

There’s a disconnect between the proposed regulations and the actual operation of AirBnb. Basically they talk about this as a landlord-tenant thing. It’s not. I took quotes from the article and my comments follow.

“The bylaw would compel the landlord at the time of signing a lease with a tenant to provide contact
information for the landlord and designated property manager, instructions for waste management, instructions for lawful parking, instructions for maintenance and cleanliness and instructions on how to report problems.”

with AirBnb there is no landlord, there’s no tenant and there’s no lease. There’s the host and the guest, the guest gives the host his credit card. That’s it!

“Cutting down on vermin” – there’s another disconnect here. The idea of AirBnb is there is no vermin. Zero.

“Hefty fee for property re-inspection” Look, if the host doesn’t provide a good place, he’s going to be rated poorly. AirBnb is going to see to it, he doesn’t get any bookings.

“Tracking problem rental addresses” the solution proposed by the City, looks more like the problem

“Educational Resources in Different Languages” Again, the solution proposed by the City, looks more like the problem. Estimated cost is $100,000.

“On-line searchable database of violation” AirBnb provides this out of the box.

“Making Files available for tribunal cases” Sounds like the goal is to have tribunal cases.

If you want to outlaw AirBnb, just say so. NY City has. If you think AirBnb is legitimate, then start again.

#99 MF on 11.20.19 at 9:28 pm

Just like I support increased taxes on RE, I support the reigning in on AirBnD’s.

They are part of the problem, and this is a step in the right direction.

MF

#100 SunDays on 11.20.19 at 9:28 pm

DELETED

#101 Yukon Elvis on 11.20.19 at 9:29 pm

#88 Why admit to it? on 11.20.19 at 8:36 pm
#16

Well, when the Chinese army comes in to squish you, you can hop on a plane to Canada. Then you can be arrested for fraud, maybe deported back to China. Why would you admit to fraud in the first place?
…………………………

Fish on ! Fish on ! Poisson !

#102 NoName on 11.20.19 at 9:33 pm

#89 Flop… on 11.20.19 at 8:49 pm
Minister For Middle Class Prosperity?

Are they serious?

Sounds like something TurnerNation would have joked about.

One of Trudeau’s gimps must be reading this board.

Can’t wait for the first update from the Minister.

I’ll have a stab at it.

Boss, it appears the middle masses want us to stop taxing the crap out of them…

M45BC

Funny thing, out of all classes wealthy are the least diverse but what do I know I am just factory worker…

#103 Jmr on 11.20.19 at 9:44 pm

There is no enforcement here in Montreal. The city expects citizens to out their neighbours. Great concept for positive social fabric. Mostly people just wont risk registering. I don’t understand why the CRA isn’t all over air bnb. All listings should require a SIN/business permit no. to list on Airbnb and income reported to government from Airbnb. That would fix so much of it, its worth the risk at lower than hotel fees because its mostly tax free money. Government must prefer the rising real estate values over the taxes? I don’t get why they don’t enforce this federally.

Jmr

#104 DON on 11.20.19 at 9:53 pm

So the communists in Toronto regulated AirBNB?

#105 Flop... on 11.20.19 at 9:58 pm

I’ve done my fair share of traveling.

I’ve stayed in some Bed and Breakfast places but I prefer hotels.

NoName just wrote me and so that reminded me of an experience I had in his homeland of Croatia.

I was backpacking from Prague to Dubrovnik with Mrs Flop and on the way we passed through Zadar, Croatia.

I read in the guidebook I had that if you were looking for a place in a private residence that you went to the Official Tourist Office.

The person behind the desk asked how many nights we wanted to stay, I think we replied two, and then on our behalf they placed a called to a person that had an accredited place.

Around 5 minutes later a guy named Robert came down and walked us back to his house.

Probably not practical in a big city, but I liked how everything was above board.

Next time I call NoName and stay on NoNames uncles couch…

M45BC

#106 DON on 11.20.19 at 10:00 pm

#3 greg on 11.20.19 at 4:22 pm

Now let’s see if the City can enforce the new rules.
******************

I would be more worried about the CRA and how far back they can reach. CRA is hungry.

#107 NoName on 11.20.19 at 10:12 pm

My post makes no sense until you this from global, it mentions not prosperity just diversity.

https://www.msn.com/en-ca/news/politics/trudeau-unveils-major-cabinet-changes-with-freeland-as-deputy-pm-new-ministers-for-diversity-middle-class/ar-BBX3CP2?ocid=mmx&PC=EMMX20

https://imgur.com/a/hoQWjGe

#108 DON on 11.20.19 at 10:17 pm

#11 Dave on 11.20.19 at 4:38 pm

Closing the door on Airbnb will open a few new doors to smaller Airbnb vendors. Can’t stop it…maybe tame it a little. Many of these Apps are in different languages so good luck holding them accountable.

Cities do not have the bylaw officers to enforce in a meaningful way.
************

Not if they list online and the City or CRA are desperate for revenue or hell just see a lucrative revenue stream all they have to do is look for ads online. Easy Peasy!

#109 DON on 11.20.19 at 10:22 pm

#16 Yukon Elvis on 11.20.19 at 5:01 pm

I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that.

You’re proud of that? – Garth
*****
You do know that Garth was the Minister of National Revenue…right!

#110 BC Renovator on 11.20.19 at 10:28 pm

#16 Yukon Elvis on 11.20.19 at 5:01 pm
I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that.

You’re proud of that? – Garth

—————

A perfect example of the xenophobic/frustration towards foreign ownership in the YVR. But yet locals who preach this are deemed Racist and White Nationalists. F yourself Yukon, your ruining our neighbourhoods

#111 DON on 11.20.19 at 10:34 pm

#16 Yukon Elvis on 11.20.19 at 5:01 pm

I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that

***********

I still can’t understand why you needed to brag about it on the internet. Ego bigger than the brain moment?

Scenario: Some angry moister – who is priced out of the Housing Market (but gets good pay) is pissed at this activity (that is seen as preventing home ownership) – sees your blog and goes to work and remembers till the enforcement begins. Have you ever dealt with the CRA, and your properties are still in Canada, and the CRA to my knowledge can go back a long time.

#112 Barb on 11.20.19 at 10:37 pm

Getting approval is quite involved: this from a 2012 example from the North Okanagan

“it has cost us $200 for an application for a permit for a secondary suite, $90 for the initial inspection, $100 for a building permit and $60 a year for a business license.”

“Plus we are asked to put in two solid, steel fire doors (that makes three doors within three feet of each other) at a cost of $1,400, dampers in all of the vents upstairs and fireboard the furnace room walls (the ceiling of the entire suite has fireboard on it already).”

“To add insult to injury, they now say we need to pay separate water, sewer and garbage for the suite.

I guess that means we pay the (water) base rate twice.”

#113 Tony on 11.20.19 at 10:54 pm

Good renters are rare.

#114 Leo Trollstoy on 11.20.19 at 10:57 pm

Nobody will enforce this

#115 Ronaldo on 11.20.19 at 11:04 pm

Seems Ireland has the same problem as we do with Air BnB’s.

https://www.irishcentral.com/news/irishvoice/airbnb-gets-its-wings-clipped-in-ireland

#116 Ponzius Pilatus on 11.20.19 at 11:30 pm

#158 IHCTD9 on 11.20.19 at 2:34 pm
#142 yvr_lurker on 11.20.19 at 12:23 pm
#139
Yep, times change. So live somewhere else. Choices.

——
Exactly. Pull up the ladder now that you have made it, and who gives a shite about how the next generation will fare in our major cities. Tough shit. We can all live in shoeboxes in the sky just like in major Asian cities; this is the developers idea and definition of a World Class City. I rather choose the route of voting for parties who understand and care about this issue, unlike yourself.
_____

YVR is done. The show hasn’t been worth the ticket price for a long time now. The best thing you can do is usher your kids out of Van.

Frankly, I’d get the kids right out of BC altogether – the perennial lefty governments destroyed Van in under 30 years, but are still getting elected.
———————
Just what I was waiting for.
You were lurking around pretending to be a moderate.
No you show your true colours deep blue neo-con.
Perennial lefty governments?
Try again.

#117 dakkie on 11.20.19 at 11:36 pm

Canada’s Most Splendid Housing Bubbles v. Its Other Markets, October Update
https://www.investmentwatchblog.com/canadas-most-splendid-housing-bubbles-v-its-other-markets-october-update/

#118 DON on 11.20.19 at 11:46 pm

#41 Lost…but not leased on 11.20.19 at 6:27 pm

QUESTION:

Why don’t cities simply BAN AirBnB…as opposed to accommodating them ?

What’s Up??
*************

There’s always a happy balance when there is much needed revenue on the table.

All they have to do is google and cross reference with one of their many integrated databases. CRA come for you!

#119 Not So New guy on 11.21.19 at 12:09 am

Hmmmm, and I thought Airbnb was mostly about escorts and the prostitution industry…

#120 DON on 11.21.19 at 12:16 am

@ Yukon….I thought something was too fishy. You must have been using roe as bait.

My bad!

#121 Sail Away on 11.21.19 at 12:20 am

Now to crack down on all the FN reserves selling stuff under the table for cash!

[awkward silence]

Sorry… feel free to return to socially-acceptable mudslinging

#122 crowdedelevatorfartz on 11.21.19 at 12:34 am

@ Yukon Elvis
Reel them in Elvis…..reel them in….

#123 Jenny Wang on 11.21.19 at 1:34 am

There are plenty of non English short term rental sites servicing Vancouver. Since a majority of visitors to Vancouver are non English speakers , the time spent on Air BB and licensing for legal status is nil, zero. I know it’s hard to believe but many Vancouver real estate professionals will still tell you that a majority of condo buyers are of non English speaking origin, go figure.

They’re like those nasty, non politically correct climate deniers who won’t listen to Greta, just bad people. But since they work the front lines , they might just be right. There are plenty of Air BB sites where you can rent , if you speak the right language. City of Vancouver doesn’t have the will to follow through, that’s that.

Vancouver also has a fully functional UBER, just not for everyone who doesn’t know the secret language of underground commerce. Nor does the CRA have any political motivation to bridge the ethnic divide. Those ridings are contested, volitile, swinging wildly. It’s no place for a Liberal to try and expose the truth, so it’s all left alone. Instead all this yabber about cracking down is only focused on residents, low hanging fruit. The message is, don’t mess with a voting bloc in a riding Liberals hope to win. And don’t talk about the mess in HK. Aren’t ethnic politics the best? It’s why you can zone ALR land in some communities and watch as local politicians not budge on loosening the death grip taxi licenses have in others. Trudeau Senior weaponized these political arenas and condo rentals will suffer indefinitely because of it.

Come think of it Laurier split the prairies so the west couldn’t compete against a more populated East. Seems like Liberals have been playing this cheesy game for a while. I’m all for the coming WEXIT guys, can’t wait.

And, Seamus the philosopher taking over resources from ex bus driver Sohi, that’s just hilarious. Gerald Butts our shadow PM is dating us to seperate. Let’s call his bluff. Politics has to change both local and federal.

#124 Smoking Man on 11.21.19 at 1:40 am

Late night burbon wisdom.

If you’re not a risk taker your short life is meaningless.

You got to go all in once in a while to feel life. Or you can drive toward death slow and easy thinking you beat it…

Risk takers rock, communist are idiots…

#125 ab_lurker on 11.21.19 at 2:47 am

#14 “The thought of meeting a random stranger to rent his randomly cleaned (or not) condo in a building that may not even allow it is a total non-starter for me.”

I am worst: the thought of those hidden cameras is a total non-starter for me!

#126 Moh on 11.21.19 at 3:59 am

You can’t preach free market without air B n b. It serves its purpose hence why the government allows it.

#127 Dan on 11.21.19 at 5:06 am

You own a house, or 8.

You own them.

You should be able to rent them to who you want. For how long you want.

It the free market. What happened to you Garth?

Residential real estate and commercial properties are two different animals, regulated in separate fashion, and for good reason. You don’t get to drive your motorcycle on the sidewalk. You shouldn’t be allowed to operate a hotel in an apartment building. Your rights do not supercede those of others. – Garth

#128 not 1st on 11.21.19 at 7:29 am

In another installment of how my country really works I am afraid that starbucks or selling carboard shacks doesn’t keep our economy afloat.

See all those little rail lines on the map and on the roadside? They wind up into all sorts of places in the country where people don’t want to live and they get our resources out of those places where we sell to overseas markets for money. Real GDP.

But we cant do that if our national rail company is on strike and our PM is surfing in Tofino. Longest rail strike is coming up. 15 days until parliament. More than 40 unfilled vessels sit off the west coast.

#129 not 1st on 11.21.19 at 7:37 am

Garth forgot to mention the dozens of home store (Rona, Home depot, Lowes) closures across the country yesterday.

Not a good sign for residential construction. Prepare for your made in Canada by Trudeau recession. You voted for it.

#130 YouKnowWho on 11.21.19 at 7:54 am

You don’t get to drive your motorcycle on the sidewalk. You shouldn’t be allowed to operate a hotel in an apartment building. Your rights do not supercede those of others. – Garth

I hear what you’re saying Garth. It’s a slippery slope. Even you, as I read your blog you are bouncing between the “Me! Me! Me!” to “We! We! We!”

You’re just human, no less flawed than the rest of us. You don’t have the answers to the meaning of life. You don’t know how all of this came to exist. Maybe a theory or two…

Why should people get to buy big V8 engine cars? Those selling them are selling my breathing air. Your breathing air. Why?

Why should noisy Harleys roll on the street? The noise of that bike sold to some egotistical dude is my peace and quiet being sold along with it. Why?

A few examples…just like Uber was selling peace of residents trying to live. Rights of many shouldn’t be overseen for the rights of few. But they constantly are.

We humans are more than happy to focus entirely on Me Me Me because We We We is too inconvenient. Me is better than We. We actually sit around and feel better about ourselves for having things by comparing ourselves to those who have not and feel better about ourselves as a result. We glorify it Your blog constantly warns about not becoming one of those unfortunate lesser have nots, is it not?

If you feel that made sense, I’m happy for you. – Garth

#131 Remembrancer on 11.21.19 at 8:05 am

#121 crowdedelevatorfartz on 11.21.19 at 12:34 am
@ Yukon Elvis
Reel them in Elvis…..reel them in….
—————————————-
Reel them in? YE is more the Dragnet Factory Trawler of commenters…

#132 Sail Away on 11.21.19 at 8:13 am

#58 Long-Time Lurker on 11.20.19 at 7:11 pm

Hmm. So if Don Cherry did blackface three times he’d get a pardon and if Justin Trudeau said immigrants should wear a poppy he’d have to resign as PM?

—————

No, silly. The rules are vastly different for libs and cons.

#133 crowdedelevatorfartz on 11.21.19 at 8:28 am

@#115 Ponzie Platitudes
“No you show your true colours deep blue neo-con.
Perennial lefty governments?
Try again.”
+++++

Ok.
You’re the one always preaching we should get rid of our polluting gas guzzlers and “take the bus”
.
Now that the NDP govt is sitting “in control” in a precarious minority govt .

We have

https://www.straight.com/news/1327566/unifor-threatens-complete-shutdown-metro-vancouver-bus-system-three-days-next-week

Thats 350,000 daily riders left scrambling to get to school, work, Dr’s appointments, job interviews, etc etc etc..

Or Skytrain rapid transit ,which in the govts infinite brilliance, is ANOTHER union negotiating a new contract at the same time as the bus drivers.

https://bc.ctvnews.ca/skytrain-workers-union-calls-strike-vote-ahead-of-scheduled-talks-1.4693432

And the pro union NDP govt response?

https://www.burnabynow.com/opinion/opinion-labour-strife-the-achilles-heel-for-union-backed-bc-ndp-1.23997115

The NDP party explanation is, “we are letting negotiations proceed without any outside interference.”

What they dont say is …there are NO negotiations, the drivers and BC Transit have walked out, not talking to each other…nada, bupkis.

But not to worry.
The BC NDP are busy.

https://globalnews.ca/news/6196373/bc-transgender-day-of-remembrance/

Well , I guess next week as the Bus transit strike goes “full stop” and i drive by the loaded bus zones with angry voters remembering which govt is in power and doing nothing to force the bargaining children back to the table….I’ll just smile, rev my gas guzzling, planet killing truck, toot my horn and wave….. :)

Give the socialists enough rope and they always hang themselves.

#134 Ferdinand McMillan on 11.21.19 at 8:40 am

Canada has been paying a salary to dead terrorists families. Khadr isn’t the only recipient. Holland has finally got the balls to stop this evil practise, but not Trudeau. He wants his juice box and a non voting seat at a secondary table on a defunct security council with no functioning power. How any moral Canadian can support Trudeau is ikely how the devil shows himself through the deeds of brain dead Liberals.

The Jerusalem Post: Netherlands cuts aid to Palestinian Authority over terrorist salaries.
https://www.jpost.com/Middle-East/Netherlands-cuts-aid-to-Palestinian-Authority-over-terrorist-salaries-608527

#135 not 1st on 11.21.19 at 8:40 am

Let me repeat, TMX will never be built. Oh you might have seen some trucks driving around or a pile of pipe somewhere, sure. But oil actually flowing and loaded on to tankers as intended, WILL NEVER HAPPEN.

https://business.financialpost.com/commodities/energy/trans-mountain-pipeline-biggest-obstacle-legal-delays?video_autoplay=true

#136 Stan Brooks on 11.21.19 at 8:47 am

There was an article on how Canadians are fine with the extreme levels of personal debt because the retirement system is rock ‘solid’ followed by another BS article on how we pay lower taxes and are better off financially than the Americans.

And now we have this:

https://ca.finance.yahoo.com/news/sun-life-retirement-savings-canada-190848882.html

Nearly Half Of Canadians Expect To Be Working Full-Time At Age 66: Survey.

Testing the intelligence of the audience/or the lack of such or just blatant lies? Maybe both.

What is important it seems is the ever increasing conditioning of the herd by constantly repeating that ‘bad is good’ and ‘debt is wealth’.

Cheers,

#137 crowdedelevatorfartz on 11.21.19 at 8:49 am

@#129 HortonIsAWho
“We humans are more than happy to focus entirely on Me Me Me because We We We is too inconvenient. Me is better than We. We actually sit around and feel better about ourselves for having things by comparing ourselves to those who have not and feel better about ourselves as a result.”
+++++

I’m not entirely sure but I dont think you can refer to yourself as human when you’re from another planet……

#138 Tater on 11.21.19 at 8:57 am

#29 NoName on 11.20.19 at 5:36 pm
@11 @17 @22

If anything is complicated enforcement on stuff like this isn’t, it might lag for a bit when it’s rolled out, but very easy to enforce and collect fines. Iam sure smarter people than I already tought of it.
———————————————–

Yeah, it’s easy. Just need to hire people to actually do it. Seems Vancouver may have missed that step. I’m sure Toronto will be the same.

#139 PetertheSeparatistfromCalgary on 11.21.19 at 9:09 am

The GTA is made up of many cities. AirBnb will now be more popular in places like Mississauga, Hamilton etc.

This will probably help the car rental business as tourists who are not use to Toronto driving will have to travel farther to see the sights.

Oh well at least commuters will get a free buzz from increased carbon monoxide while they are stuck in traffic. Tourists will also discover the many wonders of Toronto traffic.

Have fun!

#140 YouKnowWho on 11.21.19 at 9:11 am

If you feel that made sense, I’m happy for you. – Garth

OK, I did just wake up, and I morning-commented, but I think it made some sense.

To recap (now that I had coffee):

Humans think of self before others.

AirBNB logic you support should be (and eventually will be) applicable elsewhere.

Do you think your right to buy a V8 truck for transportation supersedes all others rights to clean air? Or your right to ride a noisy Harley supersedes others right to peace and quiet? Or your right to have your dog off leash in a leashed area supersedes the by-law because your dog is well behaved, according to you?

Just random examples, I know, but quite comparable and relevant to the efforts of all of us living peacefully together, just as this AirBNB logic and action you agree with tries to do.

#141 PastThePeak on 11.21.19 at 9:23 am

Residential real estate and commercial properties are two different animals, regulated in separate fashion, and for good reason. You don’t get to drive your motorcycle on the sidewalk. You shouldn’t be allowed to operate a hotel in an apartment building. Your rights do not supercede those of others. – Garth
++++++++++++++++++++++++++++++

And very simply, that is it. Business has to have rules. To address the first commenter – Adam Smith was not an anarchist or libertarian, believing in no rules at all. That simply leads to chaos.

A desire for smaller government doesn’t mean no rules or regulations. AirBnB might have started out as sharing a room in your house, but then morphed into investors trying to run residential hotel rooms in condo/apartment buildings and not following any health, safety, or tax rules. There is no sharing in that.

That doesn’t mean AirBnB or VRBO have to be banned. But it doesn’t mean a free-for-all. We owned a Florida condo that we rented out (VRBO and related services – not AirBnB), but it was all above board. The condo developments were built with this use in mind (most units were used in this manner), guidelines were outlined in the condo association rules, and the stays had to be a minimum of 2 weeks (some buildings were min 1 month, others min 1 week). We carried insurance which addressed the use.

If a city wants to allow specific developments for AirBnB or VRBO purposes, then this is a reasonable accommodation IMO. Everyone who purchases a unit in such a building knows what they are getting into, and the CRA knows were to come a knocking.

Last comment – many that complain about higher taxes also believe they should be able to cheat and pay none (illegally). That only narrows the base, making broad-based tax reductions (which we all should want) harder.

#142 Jen on 11.21.19 at 9:26 am

I rent my basement suite through Airbnb, and have done so since November of last year. I claim all income from this rental. I maintain my home to a higher standard than many of my neighbours. I do not have a problem with noise/partying as I reside here. My neighbours rest easy in the knowledge that no one will be staying here unless I am here to oversee the stay.

I share many of the same concerns expressed here, and have had numerous arguments with myself about using the platform, and whether I am making conditions worse in my small city for those searching for rental housing.

I would like to point out that I am serving a market that very few people seem to recognize. The majority of my guests are young professionals who are working in what I guess is called the “gig economy”. These are people who travel between job sites (hospitals, dealerships, various government offices) in order to maintain their employment. They are here for a period of between 2-4 days, usually, and many travel between 3 or more worksites, while maintaining (or trying to maintain) their own residences. These people are here at least monthly.
As a “hive mind” here, you tell me how these younger folks would possibly have the ability to keep these jobs if they had to pay for hotels and meals out on a similar travel schedule?

I would suggest that we (as in the globe) are also suffering from a sickness within our employers. It seems many companies are no longer hiring people on a full time basis to work a desk for 5 days a week. Instead, they’re sending these unfortunate folks out to work between, say, 3 different jobsites in 3 different cities. If they want to keep their jobs, they need to maintain these schedules, and the employers don’t give a wet rat as to the “how” of it.

I have doctors, mri technicians, service managers all needing an affordable place to stay for a couple of days a week at least once a month. Pretty sure that anyone would find this unfeasible paying hotel rates of upwards of $150/night (plus fees, taxes, marketing fees and then meals out). OK – maybe the docs could afford it.

Airbnb/STR is also a symptom of a larger economic illness, and it’s something that rarely is recognized.

#143 crowdedelevatorfartz on 11.21.19 at 9:37 am

@#128 not even 2nd
“Garth forgot to mention the dozens of home store (Rona, Home depot, Lowes) closures across the country yesterday.”

Rona( formerly a Quebec owned company) is OWNED by Lowes ( A US based company).
They are shutting down money losing branches…..ironically most in Quebec…perhaps Quebecer’s prefer Home Depot?

Been to a Rona lately?
Small, cramped, musty , like a crappy hardware store from the 1960’s with knowledgeable staff.

As for Home Depot stores closing?????
Please provide a link.
Perhaps you mistook Home Reno ( a branch of Rona) as Home Depot?

https://business.financialpost.com/news/retail-marketing/lowes-is-closing-34-underperforming-stores-in-canada

#144 Quintelian on 11.21.19 at 9:38 am

“Banning AirBnb sounds like something Karl Marx would approve and Adam Smith would hate. Just saying”

The real estate market is a perfect example why Adam Smith’s invisible hand doesn’t always work.

Yesterday there was a radio talk show which featured a hard-working woman who had fallen on hard times through no fault of her own, and was living in her car, in a mall parking lot in North Vancouver, while trying to fight cancer. If nothing changes, this will be the second Christmas she will spend in her car.

Do you believe Adam Smith would think this right?

#145 Stan Brooks on 11.21.19 at 9:52 am

You shouldn’t be allowed to operate a hotel in an apartment building.

Says who? The owner, the other building residents (what if they agree?), the city authorities or the hotels lobby?

Should you not be allowed a free enterprise as far as you don’t cause problems for others or that is reserved for the elite uber rich politicians friends only?

And why the different treatment between short term and long term rentals?

Why then housing is allowed capital free appreciation and billed/advertised as an investment. Or to be used as collateral against HELOC?

To many regulations to squeeze (always) the small guy.

Cheers,

#146 Jasper Adams on 11.21.19 at 9:54 am

Five alarm emergency to the attention of Trudeau.

https://www.breitbart.com/politics/2019/11/20/clinton-foundation-donations-plunge-reaching-16-year-low/

Justin have the Clinton’s 200 million in his first year. How much of that came back into the Trudeau Foundation is yet to be deducted.

Justin, Gerald, the Clinton’s are broke, they need more of Canadian taxpayer dollars.

#147 Remembrancer on 11.21.19 at 9:58 am

#132 crowdedelevatorfartz on 11.21.19 at 8:28 am

Maybe you should ask whether the unions will purchase carbon offsets for the impacts of the strike due to 350000 commuters not taking the bus or will the NDP government do that on behalf of the province?

And given recent tensions, what if Alberta withholds surplus 40 gal oil barrels for using with (hopefully not old growth forest) busted up wood pallets for keeping warm on the picket lines? Is there a BC alternative, or will they be shipped in from Washington?

Asking for a friend…

#148 Not So New guy on 11.21.19 at 10:05 am

@ #132 crowdedelevatorfartz on 11.21.19 at 8:28 am

Now that’s not very nice.

I would have thought a good capitalist like you would have offered someone a ride…at 10 bucks a pop ;)

#149 DON on 11.21.19 at 10:17 am

@ Crowded

IN 2001 in the latst transit strike under the new BC Lib/Con alliance…now we know they were just plain corrupt. That strike lasted 4 months. I vaguely remember standing at the bus stop watching a truck gun its engines….was that you? Gas was cheaper than…especially in abortsford. Big boys and girls should come to the table on both sides without big brother. Dammed if they do dammed don’t.

#150 Concerned Reader on 11.21.19 at 10:22 am

Isn’t this the same as blaming foreigners for the real estate woes? Canadians are buying these properties and renting them to whoever they choose. You are just as likely to have bad neighbours who rent long term as you are short term. To make short-term rentals viable for the LL they need to be occupied consistently and the tenants will still spend in the local economy. The assertion that ST reduces economic activity seems false to me. The only real damage done here is to hotels who charge more for poorer accommodation.

#151 Blog Bunny on 11.21.19 at 10:37 am

I am getting addicted to this blog. The pictures make me smile every morning. Today is just too cute. If you ever need bunny pics, give me a shout out.

#152 Ponzius Pilatus on 11.21.19 at 11:09 am

#80 crowdedelevatorfartz on 11.20.19 at 8:01 pm
The British election promises from the Labour Party.
Free University for all.
Free internet.
(Gee I wonder what generational voting block they’re shooting for…….)

And last but not least…..
Nationalize all utilities.( turn the clock back to 1979)
————————
Privatizing the railway was a huge mistake.

#153 Leo on 11.21.19 at 11:11 am

Re: #16 Yukon Elvis

Many Asian country’s around China were/are having problems with China buying up property.

I know Thailand implemented a rule that property has to be 51% owned by a Thai.
So if a foreigner would like to buy a house, they either need a partner or a spouse who is Thai. Then if there is a failing out or it doesn’t work out, the property goes to the Thai.
Some multi suite condos get around this by having at least 51% of the suites owned by Thai.

I thought this was a good solution that didn’t prevent foreign investment but still protected the country and its citizens. Might it would be a good solution for Canada and take care of this kind of guy.

#154 Yukon Elvis on 11.21.19 at 11:18 am

#109 BC Renovator on 11.20.19 at 10:28 pm
#16 Yukon Elvis on 11.20.19 at 5:01 pm
I live in Hong Kong. I own several condos in Vancouver. Travel agencies in HK refer their clients to me for accommodation. They pay me direct here in HK. Try and tax that.

You’re proud of that? – Garth

—————

A perfect example of the xenophobic/frustration towards foreign ownership in the YVR. But yet locals who preach this are deemed Racist and White Nationalists. F yourself Yukon, your ruining our neighbourhoods
………………………….

Fish on !

The blog is not for trolling or fishing. Keep it up and you’re overboard. – Garth

#155 Ponzius Pilatus on 11.21.19 at 11:24 am

#132
Last strike, which lasted 4 months, I walked from Westwood Plateau down to the Westcoast Express.
And then zipped Downtown in style.
Was fit as a fiddle.
Mind over matter.
That separates us from the animals.

#156 Shawn Allen on 11.21.19 at 11:29 am

David Dodge says the world has excess savings

David Dodge (the former Bank of Canada Govenor) was interviewed on BNN this morning. Near the start he lists three issues.

The third issue he listed was “in a world where we seem to have excess savings, what does this imply for monetary policy going forward” .

I have posted here dozens of times that a world awash in debt is also a world awash in savings. (Since the debt is owed to someone or some entity).

David Dodge also endorses a Federal deficit ongoing f about 1% of GDP or about $25 billion.

He suggests the government needs to encourage more investment to improve productivity.

#157 IHCTD9 on 11.21.19 at 11:31 am

#115 Ponzius Pilatus on 11.20.19 at 11:30 pm

Just what I was waiting for.
You were lurking around pretending to be a moderate.
No you show your true colours deep blue neo-con.
Perennial lefty governments?
Try again.
____

A moderate?

I’ve ripped JT new ones at least 100 times since 2015. I laugh when he stuffs my bank account with handouts. I laugh at the folks who voted the nimrod back in again. I do this almost every day.

Vancouver/GVRD is euchred. It’s politically and economically inconvenient to enforce the law out there. That’s about all there is to it.

I mean, you’ve got underground taxi services running around in broad daylight that only take Chinese fares (for cash) and your government says there is nothing they can do about it for crying out loud!

You folks keep voting in sensitive and weak politicians, so now you’re totally screwed, end of story. The entire system is getting ****** over out there by those who have come to learn what they can get away with (pretty much anything).

GVRD voters have stuck it to themselves like no other group in the history of Canada.

#158 not 1st on 11.21.19 at 11:34 am

#141 Figure it Out on 11.21.19 at 9:25 am
—-

15% of our GDP is related to natural resources and ag. And the rail is the link to it.

But keep going, the more people who don’t know about our economy the bigger the upcoming recession. Wait until residential RE hits the skids and consumer spending dries up.

Trudeau and his cabinet are basically roadkill for whats coming. And if you thought there was a lot of umms and ahhs in his speeches wait until that happens. Its not even on their radar screen.

#159 IHCTD9 on 11.21.19 at 11:38 am

#152 Ponzius Pilatus on 11.21.19 at 11:09 am

————————
Privatizing the railway was a huge mistake.
___

Yes, much better to have it run by government for 375% increase in cost like ICBC.

#160 Dharma Bum on 11.21.19 at 12:01 pm

As long as Air BnB provides a service to travellers that is deemed financially and practically advantageous to the user, it will continue to thrive.

When planning where to stay, travellers currently have the tools (i.e., the internet) to research and book their options. As it stands, savvy, budget conscious travellers are increasingly choosing to stay in short term rental accommodations vs the standard hotel/motel type of place.

Why? Cost advantages. Convenience. Amenities. Flexibility. Parking.

It will not matter what municipal governments do. The underground economy will thrive as long as the legitimate economy is too expensive and unaccommodating (no pun intended).

Water seeks its own level.

Be water.

Hotel prices have become prohibitive while their level of service has declined. They are too rundown, have terrible television services, the rudest employees, non-flushing toilets, plugged sinks, noisy air conditioners and heaters, paper thin walls, busted furniture, chemical smelling air, oh, and did I mention they are prohibitively expensive?

They might be fine for the corporate expense account crowd, but for leisure travellers, the private short term rental market is the only way to go for anything more than a 2 night stay, or road trip crash pad.

The hotel industry will have to step up to the plate and re-think its current paradigm.

Hotel suites will need to have full kitchenettes with supplies, at the very least, and they will have to provide full TV cable packages and Netflix, and all of that stuff. Prices will have to come down. The old model has to disappear.

Maybe municipalities also need to ease their obscene tax burden (city tax, occupancy tax, room tax, breathing tax….).

#161 not 1st on 11.21.19 at 12:05 pm

The west needs a rapid delink with Canada and relink with US infrastructure. Spending all our infrastructure bucks on hauling around frazzled commuters and not our resources will lead to devastation of the economy.

https://business.financialpost.com/executive/posthaste-this-cn-rail-strike-is-bad-but-its-just-a-symptom-of-our-economys-much-bigger-problem

#162 Ben on 11.21.19 at 12:12 pm

Someone may have already mentioned, but the focus here is availability of long-term rentals. However, as a consumer of Air-bnb and VRBOs, they are a huge help when I travel with 3 kids. I can rent a kitchen and enough beds for a good rate… Most hotel rooms are only permitted for 4 people and they don’t offer many options for families that travel.

Of course there are extended stay hotel offerings but those are extremely expensive.

I am very much for paying equivalent accomodation taxes to the hotels, but would hate to see VRBO disappear as an option.

#163 not 1st on 11.21.19 at 12:15 pm

But on the bright side, Canada will now meet its paris targets no problem. Cutting the GDP in half is the surest way.

Yes it was the warmest year on record too. That’s got to be why $2B in grains sit unhavested in the fields.

A lot of people are lucky to be eating so well this winter. Only by the sheer force of will by some very resilient non snowflake people did your stores get stocked for this winter.

Hey but keep going with the SJW stuff, freeze and starve are right around the corner.

#164 GBiddy on 11.21.19 at 12:34 pm

The blog is not for trolling or fishing. Keep it up and you’re overboard. – Garth

X2

Go troll and fish somewhere else pls, ur both growing annoying. And smug. Anyone can fish/troll.

Garth will turn you into…chum.

#165 NoName on 11.21.19 at 12:39 pm

#104 Flop… on 11.20.19 at 9:58 pm

If and when you go back, your are probably better off telling them that you dont know me.
Maybe if you mention my name in vain, you might get free room and breakfast or at lest big discount…

#166 oh bouy on 11.21.19 at 12:42 pm

@#159 IHCTD9 on 11.21.19 at 11:38 am
#152 Ponzius Pilatus on 11.21.19 at 11:09 am

————————
Privatizing the railway was a huge mistake.
___

Yes, much better to have it run by government for 375% increase in cost like ICBC.
_____________________________________

privatizing any service is a huge mistake.
short term gain, long term pain.

#167 NoName on 11.21.19 at 12:48 pm

#160 Dharma Bum on 11.21.19 at 12:01 pm

Be water.

allan wats i sea…

https://www.youtube.com/watch?v=AvOj7LKl6BQ

#168 jess on 11.21.19 at 1:03 pm

shared stupidity indeed!

https://www.propublica.org/article/trump-inc-podcast-ukraine-scandal-follow-the-money

#169 Quintelian on 11.21.19 at 1:08 pm

Those who advocate unrestrained AirBnb offend my sensibilities. It’s horrifying that their moral compass is calibrated to fit within the parameters that suggest that as long as it makes the service or product cheaper, it passes the test of what is good for society.
Seems like an argument that would have been made by the slave dealers.
But that aside, it’s just wrong to privatize the profits and socialize the costs.

#170 Mattl on 11.21.19 at 1:20 pm

#128 not 1st on 11.21.19 at 7:37 am
Garth forgot to mention the dozens of home store (Rona, Home depot, Lowes) closures across the country yesterday.

Not a good sign for residential construction. Prepare for your made in Canada by Trudeau recession. You voted for it.

—————————————————————-

Not sure how much you know about the history or RONA, but they were acquiring independent stores about 10 years ago. Lots of them. These stores had satellites in areas that made sense for the independent, but very little sense for a big box chain. Osoyoos for instance.

Lowes is right in closing these stores, it’s not a reflection on the economy as much as a repudiation of RONA’s misguided growth strategy. Lowes does not need stores withing 30K of each other, it’s a destination shopping experience.

#171 IHCTD9 on 11.21.19 at 1:25 pm

#166 oh bouy on 11.21.19 at 12:42 pm
@#159 IHCTD9 on 11.21.19 at 11:38 am
#152 Ponzius Pilatus on 11.21.19 at 11:09 am

————————
Privatizing the railway was a huge mistake.
___

Yes, much better to have it run by government for 375% increase in cost like ICBC.
_____________________________________

privatizing any service is a huge mistake.
short term gain, long term pain.
___

ICBC insurance is an easy 3X more expensive than Ontario private insurance – and it’s been even more pain since BC’s broke lefty government forced ICBC to pay them divys. Ten years later BC’ers are getting pounded into the ground like a fence post by their new ICBC for profit rates. I call that long term pain, and the longer it goes, the more painful it seems to be for BC drivers. It’s essentially FOREVER pain until the day that ICBC bloats out of existence.

Then look at public hydro production in Ontario via OPG. Rates got so high Wynne was getting heckled and boo’d whenever she showed her face in some areas of Ontario. She was getting ripped so bad that she publicly broke down in tears over the insanity of what some Ontarians were paying for electricity and apologized. Then she buried the problem in a public corp, where it still lives today growing like a Demogorgon on its forth molt.

Give me an example or two of a public to private conversion into a proper competitive environment where things got worse.

#172 PastThePeak on 11.21.19 at 1:31 pm

#134 not 1st on 11.21.19 at 8:40 am
Let me repeat, TMX will never be built. Oh you might have seen some trucks driving around or a pile of pipe somewhere, sure. But oil actually flowing and loaded on to tankers as intended, WILL NEVER HAPPEN.

+++++++++++++++++++++++++++++

Yep. All is proceeding according to the Liberal master plan. They do not want to actually build the pipeline, but they can’t have it visibly blow up in their face either. The courts and indigenous are doing the Liberal hard work.

Hence, what you see:
– Liberals have lots of talking points about workers hired and construction starting soon. But the work isn’t “putting the pipe in the ground”.
– Liberals will publicly say that they are doing everything they can, look at all the jobs we are creating, we support the West yes siree, etc
– But meanwhile you will see very little support on the legal front. Every challenge will be stretched out as long as possible. Gov’t legal might not even show up to represent in court, like the last time.
– We haven’t even seen the start of the NGO protestors chaining themselves to the trees and equipment yet.
– Liberals are hoping that the SCC or just delays strike the fatal blow to the project. Libs will say we tried our best, and spent what we could, but in the end the project wasn’t viable. $10B down the drain, but what could they do?

#173 Bill Morneau on 11.21.19 at 1:48 pm

Garth is 100% correct, one word: AirBnB

#174 not 1st on 11.21.19 at 1:52 pm

Alberta should stand up and declare TMX status non grata, invoke act of god clause and cancel all intended oil shipments and find a new home to southern friendly locals. Pipeline should only traverse AB and Sask boundaries, call up Trump and tell him to take 25% of it to the coast for us.

Same time declare the BC market non critical and shut down the aging leg of TMX and let the carbon market do its thing. Same thing for L9 into Montreal, non core interests. Businesses abandon non core properties all the time.

#175 Leo on 11.21.19 at 1:58 pm

ICBC was running well and making a small profit for years.
Their funding kept getting cut till they could not sustain their operations and now it is a disaster.

But I still think BC and SK have a better insurance system than AB… Rates were 2x-3x higher than their neighbors till the government stepped in and capped the rates…. but now those caps have been removed, and I am sure rates will be on the rise again.

#176 Damifino on 11.21.19 at 2:01 pm

#157 IHCTD9

Vancouver/GVRD is euchred.
——————————-

Hey! Thanks for the new word (to me, anyway).

informal – North American

deceive, outwit, or cheat (someone)

“the merchant can be euchred out of his caftan by hard bargaining”

#177 Sold Out on 11.21.19 at 2:02 pm

#171 IHCTD9

“…BC’s broke lefty government forced ICBC to pay them divys.”

Gordon Campbell and Christy Clark were BC Liberals, not lefties, and not affiliated with the federal party. Think Socred/ Con freakshow marriage. Beloved of the Fraser Institute, they looted ICBC blind instead of privatizing it.

#178 Sail away on 11.21.19 at 2:08 pm

#171 IHCTD9 on 11.21.19 at 1:25 pm
#166 oh bouy on 11.21.19 at 12:42 pm
@#159 IHCTD9 on 11.21.19 at 11:38 am
#152 Ponzius Pilatus on 11.21.19 at 11:09 am
————————
Privatizing the railway was a huge mistake.
___
Yes, much better to have it run by government for 375% increase in cost like ICBC.
_____________________________________
privatizing any service is a huge mistake.
short term gain, long term pain.
___

Give me an example or two of a public to private conversion into a proper competitive environment where things got worse.

——————–

Exactly. CNR has a CAGR (incl. div) of 17% since privatization in 1995. Fantastic as a publicly-traded business.

Who else thinks this? Only my hero Buffett and Bill Gates.

#179 Overheardyou on 11.21.19 at 2:45 pm

All you have to do is go to the listings on Airbnb and click report this listing. Then send a link to the government department in charge of enforcement. Anyone can share the now illegal listings to help get the ball rolling on these new rules. Airbnb certainly won’t be quick to react, so it’s up to the citizens of Toronto

#180 IHCTD9 on 11.21.19 at 3:03 pm

#176 Damifino on 11.21.19 at 2:01 pm
#157 IHCTD9

Vancouver/GVRD is euchred.
——————————-

Hey! Thanks for the new word (to me, anyway).

informal – North American

deceive, outwit, or cheat (someone)

“the merchant can be euchred out of his caftan by hard bargaining”
__

I actually understand it as:

“utterly done in or at the end of one’s tether; exhausted.”

From the card game “Euchre”, where us playing buds understood that if you got “yooker’d” you were, or got “screwed”.

ie. “Jim was pretty much euchred after he blew a tire and a piston on lap #4”

#181 Sail away on 11.21.19 at 3:07 pm

#179 Overheardyou on 11.21.19 at 2:45 pm

All you have to do is go to the listings on Airbnb and click report this listing. Then send a link to the government department in charge of enforcement. Anyone can share the now illegal listings to help get the ball rolling on these new rules. Airbnb certainly won’t be quick to react, so it’s up to the citizens of Toronto

———————————–

So many people so happy to screw their neighbour. Sad.

#182 Ubul on 11.21.19 at 3:07 pm

It is not property owners responsibility to solve rental property shortage. It is financially not sustainable that rents don’t reflect the cost – as many people bragged on this blog about their low rent, compared to the cost of owning the same apartment or house.

Markets should decide how property owners utilize, monetize their property. If there is oversupply at certain market, people move into other markets. At the moment when AirBnb is less profitable than long term rental, people will utilize their monetizing accordingly.

It is also not property owners responsibility how effectively CRA collects taxes from taxable income.

We either believe or not in the role of the markets.
Both have consequences. Picking which side we chose at convenience also does. Not a good one.

Before anyone speculates: I have no dog in the AirBnb race.

#183 Sail away on 11.21.19 at 3:12 pm

#175 Leo on 11.21.19 at 1:58 pm

ICBC was running well and making a small profit for years.

Their funding kept getting cut till they could not sustain their operations and now it is a disaster.

—————————-

Why would they need funding if they were making a profit?

Profit definition: “a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something”

#184 Sail away on 11.21.19 at 3:18 pm

Re: insurance

Buffett built his empire on private insurance, and Prem Watsa followed suit in Canada. Another fantastic private business.

The premiums from their companies are far lower than ICBC, who is somehow still running giant deficits.

Governmental efficiency at work. Why would anyone want those jokers to run anything?

Toronto is going to make a similar dog’s breakfast of this Airbnb with the same type of efficiency. Wait and see.

#185 James on 11.21.19 at 3:22 pm

#18 Camille on 11.20.19 at 5:04 pm

A good person buys a condo as a home. It represents a large portion of her net worth. Then winds up in a hotel. Garth’s analysis is spot on, even as I believe he would not have you own a condo as a home. Maybe the economics are not there. But Airbnbers are leaches and cheaters. Bring them into line.
___________________________________________
I have used AirBNB but I sure as hell agree that way too many condos here are rented out. I have used AirBNB when traveling out of country and it is convenient to my business needs. Usually when our last minute overseas meetings are scheduled in mid summer and the hotels are booked. I often have felt a little uneasy about using someone else’s domicile as my hotel room. But then again I do not rent a flat in London and throw a Rave. I finish my work get a bite and sleep.

As Garth stated. “Almost four in ten condos in the GTA are owned by investors. About half of all new sales go to people with no intention of living there. Some of those are rented out to long-term tenants. A load are not. They get Airbnb’d. Currently more than 21,000 units are listed on the company’s site for Toronto.”
So essentially you are now the owner of a concrete vault in a hotel. Good luck condo owners. Crap always flows downstream.

#186 tccontrarian on 11.21.19 at 3:46 pm

#132 crowdedelevatorfartz on 11.21.19 at 8:28 am

Well , I guess next week as the Bus transit strike goes “full stop” and i drive by the loaded bus zones with angry voters remembering which govt is in power and doing nothing to force the bargaining children back to the table….I’ll just smile, rev my gas guzzling, planet killing truck, toot my horn and wave….. :)

Give the socialists enough rope and they always hang themselves.

Well done Fartz (you deserve a capital “F” for this post)
Amazing you can see so clearly through the ‘fog’…

tcc

#187 Steven Rowlandson on 11.21.19 at 6:19 pm

Thanks to the real estate market jacking up the cost of a roof over my head I stay at the Honda Hilton most of the time.

#188 Buford Wilson on 11.21.19 at 8:17 pm

Garth, better to let our old friend Mr Market handle this issue.

#189 Dan on 11.21.19 at 9:44 pm

I live in the quoted North York and I know someone who lives next to a property rented through airbnb for parties. The owners are waiting for the building approvals and doing a bit of cash on the side.

That family is in a horrible situation – with loud music until the wee hours of the morning and cars coming and going all night long. I hope this new airbnb regulation will help them.

#190 Rebs on 11.22.19 at 12:43 pm

Airbnb provides an excellent service (as an ALTERNATE to a hotel room, not a substitute). For example, most hotel rooms do not have kitchens where you can prepare your own food and live as a local.

Airbnb is privately owned capitalism at its best.
The more acute problem seems to be tax evasion when running this business.

#191 Graeme on 11.22.19 at 2:25 pm

I’m not sure what to make of this. I agree with you but this is clearly “telling owners how they can use their property” … It feels like we should be OK with a wealth tax if we’re OK with this?

#192 Hamsterwheelie on 11.23.19 at 8:47 am

We had air bnb in a bedroom in our home – an interesting mix of doctors on rotation (we were located between 3 hospitals) weekend tourists, students going to a month or shorter course locally (osteopath, bra making, world water health) The house was too big for us so we downsized and used the ‘windfall’ to rebuild an 1800’s corner grocery into 4 units – we have long term renters in 2 units upstairs – we took the garden suite and a small, separate, Airbnb beside us – mostly we get docs on rotation, family visiting their child at university or summer tourists going to a wedding or exploring en route to Niagara falls. All the filters are on for our place (guests must have previous good reviews, no parties, minimum 2 night stay etc) when your bedroom is on the other side of the Airbnb you’re going to want to run it well.
Absentee landlords are the scourge of our city and I would suggest the scourge of Airbnb too – we keep the unit ready for friends and family visiting as well as airbnb – at some point we will get (the right) long term tenant when ready.
Unfortunately human behavior means that crappy people will choose profit over property management/ improving a neighbourhood / actual work – absentee landlords across the board pretty much suck IMHO!