Governments across the country are beginning to crack down on Airbnb rentals through additional taxation, limitations or banning them out right.
Banff and Canmore have outlawed the casual rental service in residential areas, imposing heavy fines on the practice. Calgary has also initiated discussions into the Airbnb industry to determine if policy is needed.
Indications are Cochrane is on deck to study the implications of Airbnbs though use in the community is limited with fewer than 65 rentals listed in town limits.
Coun. Morgan Nagel and other critics of tighter restrictions or all out bans say it stinks of government interference and hurts families looking for creative ways to make a little extra money.
Is this a case of governments trying to ensure they get their cut? Are they possibly protecting corporate hotel interests? Or, is there a public interest in regulating the Airbnb industry?
There is some merit to the argument that such regulations do serve the public good. For example, Airbnb renters do not have to pay hotel tax, get business licences and pay less property tax than commercial properties. Though few will shed a tear over the fact Airbnbers charge less than big chain hotels, keep in mind it also puts smaller private businesses, such as bed and breakfasts, at a disadvantage.
There is also a case to be made that Airbnb rentals have the potential to reduce vacancy rates and drive up housing and rental costs as foreign investors buy up property to use solely for short-term rental income. A story out of Montreal back in August told of a man who was the sole full-time renter in his nine-unit condo building that had been taken over by short-term renters.
However, Cochrane is not Montreal, nor is it Canmore or Banff. While the community does get some tourist traffic, it doesn’t compare to our neighbouring mountain towns, nor is it likely at risk at becoming the next foreign investment destination like Vancouver or Toronto.
That doesn’t mean the impacts on the community should not be considered. It is definitely worth studying to ensure short-term rentals are not negatively affecting our community by hurting small businesses or causing hardship on those looking for affordable rentals or property.
A family renting out a basement suite or other spare space for what amounts to a couple thousand extra dollars a year is not a big deal. Entire apartment buildings or streets sitting empty to cater to short-term renters is an issue worth combating.
Coun. Morgan is right when he says government should not regulate for the sake of regulating and, yes, people should be able to take their own risks without government interference. However, when those actions negatively affect others, that is when we do need laws.
What council should not do is look at the Airbnb market as an easy tax grab. Instead, it must be fair in its approach and only take action if there is a measurable or foreseeable problem.
