If you’re running an Airbnb you need to pay attention.
Some major changes were announced that will drastically impact the industry.
I used to be a fan of what Airbnb was about- like staying over at a friend’s place while you were out of town. I hardly recognize the concept now- between ridiculous guest requirements and all the added fees, you could just stay in a pretty decent hotel- and they won’t ask you to do anything when you leave.
For disclosure, I have a personal cottage that I have posted on the site. Cottages have always been rented and I thought Airbnb would be a decent way to market it. It kind of has been and I do like the insurance protection they offer. I also don’t have any ridiculous guest rules or fees (but it’s criminal how much Airbnb takes).
So, what is being done? The Toronto Star reported Monday that Ottawa will soon block people from deducting expenses on short-term rentals in areas where those services are already limited by other levels of government.
The government’s theory is that if it’s less financially advantageous to put a property up for rent on a platform like Airbnb or VRBO, many owners will instead sell their units or rent them out for longer stretches to locals and newcomers.
I don’t think this is meant to penalize people like me who are legit, but it will hit those who are taking advantage of people, taxes, and properties.
However, the Conference Board of Canada Think Tank said “the number of Airbnbs in Canada is too small to make a tangible dent in Canada’s low housing stock.” And that there “Was no compelling evidence… that Airbnb levels have a meaningful impact on housing affordability”.
If you’re running an Airbnb- I’d seriously consider this future- might be wise to re-strategize.