Canada’s Airbnb watchdog group has sounded the alarm over a number of condominiums in Toronto that are functioning as “ghost hotels.”
In a press release Saturday, representatives from FairB&B, a nonprofit coalition of hotel owners, academics, and concerned citizens advocating for fair short-term rental regulations across the country, said there are “concerning” “There is a pattern that should be followed,” he said. A building that was zoned and taxed to operate as a so-called “ghost hotel.”
Ghost hotels are typically condominiums rented out by tenants who list their units on short-term rental apps like Airbnb and make hefty profits. The City of Toronto implemented policies to prevent this type of subletting during the pandemic, but as tourists gradually return to the city, ghost hotels have returned.
Ghost hotels made headlines in Toronto in 2020 when two bullets were fired into the wall of a York Street condominium, which neighbors said was being used as an illegal short-term rental. Former City Councilman Joe Cressey dismissed the idea of a ghost hotel at the time, saying the city “desperately needs a hotel.”[s] Short-term rental operators like Airbnb delist properties that don’t comply with local government zoning and tax requirements.
According to Fairbnb, many condos in Toronto have a surprising number of short-term rentals built into their system. These buildings include 236 short-term rental units at ICE Towers at 12 and 14 York Street, 195 units at 300 Front Street West, and 166 units at Parade Towers at 15 and 21 Ice Boat Terrace.
According to data collected by FairB&B, the Spadina and Fort York area has an “astonishing” 2,058 short-term rental properties, which accounts for about one-third of Toronto’s total Airbnb inventory, but only short-term rentals. It also shows that the number of rental properties is significantly lower than the estimated 7,000. List of rental properties in the ward in 2020.
“In Toronto, STRs in investment properties are prohibited and only principal residences can be advertised on platforms such as Airbnb. Hundreds of STRs in a single building known to have a large number of investment units Seeing STRs in place raises the question of whether these STRs are truly legal, or if property managers and hosts are somehow conspiring to manipulate this system.” Fairbnb said in a press release. Stated. “The result is effectively the same: buildings designated as residential and taxed are now operating as ghost hotels.”
