Tianning Ning and her family were able to get away from the Toronto rental market for 10 months by staying in one of the many short-term rentals listed on Airbnb.

The family could not find a suitable home due to a lack of Canadian credit history, so Ning along with many other families across Canada are resorting to short-term rentals such as Airbnb.

Ning and her husband were elated when they were able to book an Airbnb for 311 days at around $5,150 per month. However, their dream soon turned into a nightmare when the host told the family they would need to leave by the end of the month, cutting their arrangement short.

The family’s situation is shedding light on the grey zone that exists with entities like Airbnb. These rentals are becoming increasingly popular but has brought to light concerns about the financialization of housing, which hurts renters while investors, property developers, and landlords profit.

Housing is treated as a commodity — a vehicle for wealth and investment — rather than a social good

Office of the United Nations High Commissioner for Human Rights

Financialization is defined as housing being treated as a commodity. In 2021, short-term rentals or STRs, accounted for over 15 per cent of revenues in the accommodation services subsector. Compared to 7 per cent in 2017, many are saying that housing is now a commodity.

In 2018, STRs generated approximately $2.8 billion, according to Statistics Canada.

Between 2011 and 2016, Canada lost 322,600 rental units with rents below $750 — affordable to households earning less than $30,000. Throughout 2021, another 230,000 low-rent units were lost.

STRs like Airbnb are enabling small investors and large corporations to generate higher revenues compared to long-term tenancies.

What Are The Effects Of STRs On Smaller Markets?

Often, short-term rentals contribute to the cost of rents for tenants living in the area. Gentrification is also a result of STRs, along with a reliance on tourism, since many are near walkable green areas, shopping, and transit.

The City of Edmonton has determined that 1 in 4 renters spend more than 30 per cent of household income on housing costs. Some tenants may even be displaced because of long-term rentals converting to short-term rentals for higher profit margins.

Are There Any Regulations?

The Alberta Hotel and Lodging Association, are calling for regulations on short-term rentals. The association said that they are not opposed to genuine home-sharing; however, many individuals and corporations are buying houses and condos to rent out on a nightly business.

It is a big business

Tracy Douglas-Blowers, association president and CEO

Many major cities across Canada have outlined short-term rentals as accommodations for under a month.

Others are calling for a vacant home tax, registration, listing properties as principal residences, acquiring a business license, and abiding by zoning bylaws.

Who Is Accountable?

Ning’s family had their belonging removed from the Airbnb at the beginning of June.

The family brought the matter to the LTB which determined that they were not protected under the province’s Residential Tenancies Act.

The Airbnb host said she had a family emergency and needed to move back into the home.

Airbnb offered the family re-booking options and a coupon to cover one month, but the family declined the offer, saying it was inadequate.

The LTB’s decision has garnered many questions about who is considered a tenant, how they are protected, and what responsibilities hosts must adhere to.