What a terrible twist of fate!
Posted 5:00am Updated 6:52am
While at least seven people have disappeared in a fire at a building in Old Montreal that housed illegal Airbnbs, the Quebec government is preparing to open the door to short-term rentals even wider.
Despite all the associated risks.
First, security risks, as insurers have long understood. It’s not for nothing that they demand significantly higher premiums for accommodation that is offered for short-term rentals if they don’t outright refuse to provide insurance.
Because they know that the risks of burglary, theft and fire are higher, especially because of the late arrivals and departures of tenants or their ignorance of the rules governing the use of certain appliances such as fireplaces.
Second, the risks of a worsening of the housing crisis raging across the province, which the Coalition avenir Québec (CAQ) does not seem to recognise.
Short-term tourist rentals are exacerbating the shortage, taking up to 0.5% of housing off the market in some areas, according to McGill’s Urban Policy and Governance Research Group1
These numbers may seem low. But they have significant implications when we know that vacancy rates are extremely low: 2.3% in Montreal, 1.5% in Quebec and even 0.8% in Gatineau.
And, of course, the shortage drives up prices. In the metropolis, rent for a two-bedroom apartment rose 14.5% for units that welcomed new residents in 2022, according to CMHC.2
In this context, the CAQ’s decision to allow short-term rentals for all primary residences from March 25 is difficult to understand, even when municipal regulations prohibit it, as is the case in many sectors, especially Old Montreal.
The municipalities have resisted this new regulation, which practically stipulates the possibility of short-term renting of the main apartment as a fundamental right. Quebec eventually allowed them to escape rule by organizing a referendum. But very few have done so, according to a recent survey by Le Devoir.3
Some will say that there is not much to worry about if the owner is renting a primary residence and just wants to supplement their absence with a rental at the end of the month.
After all, this is the true model of the sharing economy, as in 2008, when Airbnb’s founders had the idea of installing an inflatable mattress in their living room to accommodate visitors to San Francisco… hence the original name “Air Bed and Breakfast” .
But today, short-term rentals are dominated by commercial interests. In Montreal, 10% of hosts account for 63% of revenue. And half of advertisers have more than one listing. According to data analytics site Inside Airbnb, Linda, 99, Samuel, 70, Claude, 66, Kasba, 61…
main residence ? Residence offered exclusively for rent? Very smart the inspector who shares things. The new regulation will therefore make the already extremely inadequate supervision even more difficult.
According to Inside Airbnb, the overwhelming majority (92.5%) of Montreal listings advertised on Airbnb do not have the required registration. You don’t have to worry because Airbnb’s listing doesn’t include the host’s name or the listing’s address. The inspectors must therefore reserve the right to obtain information in individual cases.
It’s totally insane. Airbnb slips away while Quebec and Montreal foolishly pass the buck. It’s time to play as a team. Forcing the world’s Airbnbs to work together to keep their listings in order.
This is the route taken by Vancouver, which has only a quarter (28.5%) of unlicensed advertisers.
And that’s the first thing we should do if we’re going to solve the housing crisis and tighten short-term rental regulations to prevent Old Montreal-like disasters.