Even before a final decision by city council on business licensing rules for short term accommodations (STA’s), a local AirBnB and Vrbo hosts are preparing for legal action.
“Our frustration with a lack of communication with council and lack of engagement has pushed us to get legal council,” explains Adam Wayland who owns several short term accommodations.
Wayland says cracking down on the small number of irresponsible AirBnB hosts in London can be accomplished by enforcing existing bylaws and doesn’t require a new business licensing rules for everyone.
He’s leading a group of hosts who recently retained a lawyer and launched an online legal fund.
London Ontario Host Legal Fund (Source: Adam Wayland)
Of the proposed regulations, he’s primarily concerned with a requirement that STA’s only be permitted on primary residential property of the host effectively shutting out multi-unit hosts and out-of-town hosts.
“Houses that are functioning as unlicensed hotels,” asserts Councillor Shawn Lewis.
Lewis says the city is not proposing a change to the rules, rather they’re creating rules for an emerging type of business that can disturb neighbours and contribute to the housing crisis.
“They are disrupting the character of the neighbourhood, they are taking housing inventory out of the market, and we got to put some rules in place,” he explains.
Lewis isn’t concerned about a legal challenge, “Our by-law is very consistent with by-laws adopted by, I think the number is two-dozen municipalities across this province.”
Early this year, city staff surveyed websites that advertise STA’s estimating about 650 are being offered in London, roughly two-thirds (440) offering an entire house or apartment.
One of those is owned by Ceris Thomas who says there’s a misperception about multi-unit hosts.
“It’s super fun to meet people from around the world, but we are definitely not making tonnes of money off it,” she admits.
Thomas rejects the idea that they are contributing in a significant way to the housing crisis by suggesting short-term accommodations fill a housing gap for people requiring flexible stays longer than would be comfortable in a hotel.
Vacation rental houses in London, Ontario (Source: Airbnb)
“(Councillors) say, ‘we are not banning AirBnB’, but by doing this, they will,” she warns.
Wayland says even if the business licensing rules are approved by council, his group will fight to have their voices heard.
“Our legal fund will likely increase in numbers and we’ll be able to engage further with the city perhaps in an after-regulation timeframe.”
Council will make a decision about the proposed business license for short-term accommodations on June 14.
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