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Airbnb partners with downtown condo in first-of-its-kind short-term rental agreement

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Airbnb partners with downtown condo in first-of-its-kind short-term rental agreement
Wed, Oct 25: Joanne Downs has been renting a room in her condo for about a year through home sharing site Airbnb, and her building has just teamed up with the company in a new “Friendly Buildings” agreement. But as Erica Vella reports, some councillors are not impressed with the new agreement – Oct 25, 2017

Joanne Downs has been operating an Airbnb in her Fort York condo for almost a year, and the extra income is something she has come to appreciate.

“I live in the master bedroom with my partner and I rent out the spare room,” Downs said.

On average, her Airbnb brings in $6000 a year of added income.

Downs said she was happy when she found out her condo board signed an agreement with Airbnb to help monitor short-term rentals in the building.

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“It’s the Friendly Building agreement,” Aaron Zifkin, regional director of Americas for Airbnb, said.

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“This program provides a unique dashboard for each building where they can see the type of activity happening. Everything from checking in and which units are being used.”

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The agreement also includes an insurance policy which provides coverage for both units and common space in the buildings.

Click to play video: 'Toronto condominium the first in Canada to sign agreement with Airbnb'
Toronto condominium the first in Canada to sign agreement with Airbnb

WATCH: Toronto condominium the first in Canada to sign agreement with Airbnb

Airbnb also splits five per cent of revenue from rentals with the buildings’ condo board.

Nick Bednarz, vice president of the Neptune condo board said when the condos were built in 2010, the declaration permitted short-term rentals, but with sites like Airbnb becoming more popular, the board attempted to amend the declaration.

“We tried going down the road of trying to amend the declaration to ban short-term rentals … You need 80 per cent of owners to agree and we didn’t have even 20 per cent respond,” Bednarz said.

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“At the [Annual General Meeting], it was very clear that that’s not what owners wanted. People expressly bought in our condo because our declaration allows this.”

The City of Toronto is currently looking at implanting new rules around home sharing in Toronto.

READ MORE: Toronto to put the squeeze on Airbnb, short-term rental market

Cllr. Kristyn Wong-Tam isn’t pleased with the deal Airbnb and the condo made.

“I don’t think it was smart on their part especially since the city of Toronto is working on regulations on trying to provide some fairness in the industry,” she said.

The proposal include a new short-term rental tax of up to 10 per cent and a new zoning framework that would permit rentals across the city in the principal residence of any owner or tenant in residential and mixed use zones.

The city’s proposed regulations will be addressed in council in December, and the Fort York condos’ Friendly Building agreement is expected to start Nov. 1.

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