Airbnb Banned from More Montreal Condo Buildings

Many articles have been written about how great (or bad) Airbnb has been to people. Usually it’s about how you can make some extra money from renting your home, or the rare horror story that make the evening news (usually revolves around a bad guest who throws a drug-induced party and destroys a host’s home). There are also plenty of articles writing about the laws that cities are passing to limit the hospitality sharing economy that Airbnb has now made famous. Now we are seeing in Montreal and in many other cities, condo owner themselves vote to block other owners from short-term rentals in their own buildings.

Laws: Anti-Airbnb

There seems to be much discussion about the legality of Airbnb and short-term rentals. Airbnb’s disruptive innovation in this space, has forced lawmakers to react. Hotels have rallied against Airbnb, and local laws are generally (some exceptions of course) hostile to short term rentals too. Many cities around the world seek to limit short term rentals, with the hope that it would help prevent rents from rising too much. In New York, owners or tenants must live in the property, otherwise they cannot legally rent their apartments out for short periods of fewer than 30 days. San Francisco and other major cities around the world are also mounting crackdowns. Montreal is no different.

In the province of Quebec, the laws require anyone regularly hosting tourists for 31 days or less to obtain a ~$250 permit, must have obtained a Tourisme Québec classification certificate, at least $2 million in insurance and pay a nightly hotel tax. In general, Montrealers are simply scared of what the laws actually allow. The threat of fines is scary, so many Montrealers just want to play it safe and avoid any risks all together by renting for longer than 31 days.

Condo Buildings: Extreme Anti-Airbnb

All those relatively new anti-Airbnb laws are lax when compared to many Montreal condo building rules. After inquiring with over a dozen established condo projects around Montreal, there was one fairly consistent rule: no short-term rentals (aka “no Airbnb”). They all mandated a minimum of a 12-month lease. Lawmakers didn’t even have to lift a finger or hire inspectors; condo owners have actively self-regulated themselves.

A 12-month lease is a big commitment for many people. Students, professional contract workers or travellers very often look for places to stay for 3, 6 or 9 months at a time. For better or worse, many Montrealers will no longer be able to welcome these people. Sometimes the strict rules are the result of one bad owner ruining it for everyone else; for example some condo owners allow short-term renters to throw wild late-night parties, misbehave and cause damage to the building (damage that the other owners have to pay out of pocket). That happens just once or twice, and that’s enough for the majority of condo owners to rally and completely ban short-term rentals outright.

If Only Condos Could Talk…

In at least one condo building in Montreal, security has been hired and they’ve taken it upon themselves to ask all visitors to show ID and register simply to enter the building. Think about that for a second…You have family or friends from out town and they might need to show their passport (if they have nothing else) just to visit you. This is an extreme example of how far condos are willing to stop short-term rentals. This doesn’t even mention the routine of condo owners who spy on their neighbors, or condo board members looking for short-term rental ads from condo owners. All taken together it’s not a friendly environment for Airbnb to operate in.

Single Family and Multiplex Property Values Increase

Single family homes and multi-plex owners are happy to see this trend, as their properties will gain value as they will be free to offer short-term rentals as the competition from condos disappear. Ironically, the argument of affordable housing is one of the main reasons that governments have restricted Airbnb and short-term rentals. In Montreal, it’s already been decided for many condo owners, that the tech giant (and the idea they represent) is not welcome.

It’s your turn now, let us know what you think. Do you know of any condo buildings where short term rentals are actually allowed? Let us know!