Ontario continues to fight real estate speculation
A new law came into effect in Ottawa that makes it more difficult to rent to short-term tenants.
People who rent out their Ottawa apartments through services like Airbnb can now only rent out their primary residence for less than 30 nights. In addition, landlords must get a permit from the city for short-term rentals and pay $110 CAD for it. The permit is issued for two years.
Residence in Ottawa must be proven or the permit will not be issued. The landlord must have an Ontario driver's licence or local identification card. If the property belongs to someone else, that is, the landlord is a subletter himself or herself, you must get written permission from the owner.
There are also other conditions. For example, owners of apartments and houses for rent must publish ads only on special portals registered in Ottawa.
Even if the landlord has obtained a permit and advertises in permitted places, the condominium or housing cooperative management company can prohibit short-term rentals at any time. The landlord can also revoke a permit issued by the city.
Toronto has similar rules for short-term rentals, which the city council started introducing back in 2017. Toronto must also pay tax on rental income if it exceeds $30,000 CAD per year. Since then, landlords who rent through Airbnb have tried to appeal these rules in court, but so far they've been unsuccessful.
The Ottawa government expects not only to replenish the city budget, but also to stop complaints from residents in areas where many apartments are rented for short periods. Owners will rent apartments more often for longer periods, which will reduce rental rates and attract permanent residents to the city. Right now, renting an apartment in Ottawa requires a pretty high income.
