• Tuesday 15 November 2016

    Vancouver proposes to have the license for the Airbnb short-term rental

    The Vancouver city had announced that it is working to remove the short term rental listings from the city and thereby allowing the licensed residents to operate their units in the principal residences. Mayor Gregor Robertson said that, the city staffs are trying to implement new license that would permit the short term rental to operate in the principal residences, this will be applicable for both the owned and rented.
    If the council implements the proposed regulations, then the residents have to list all of their principal residences or the part of the principal residences. They have to list the properties occupied by a family or by the single person throughout the year on the online rental websites like Airbnb.
    In order to get the license, the owners or the operators need to prove that they controlled the home through the copy of the title or the tax assessment. And those who are rented have to show the signed tenancy agreement that should reflect the short term tenants are allowed.
    They should provide the regular personal business address with the valid photo id and also they should provide the utility bill dated for the last three months.
    The owners or the operators need to post their license number along with any of their listings. Strata bylaws prohibit that the short term rental are not eligible to get such a license.
    The general manager of the development services, building and licensing, Mr. Kaye Matheny Krishna said that, the units which are not the principal listings has to be handled to the long term rental market, so the people who are the residents of the Vancouver can do so. He says that, the short term rental properties are illegal because they are just a kind of investment properties and they are in the structure of the boats and trailers.
    Kaye Matheny Krishna said that the lane houses or the secondary units would not be eligible for the license because they are not used as the principal residence. But the renters of those units can use them as the short term rentals by getting approval from their landlords.
    Robertson feels that, according to the regulation of the short term rentals and the empty homes tax, which was announced recently, many of the long term rentals housing will be given back to the market.
    The mayor said that, the main intention is to have balance between the short term rentals and to allow path for some people to continue to do it. But focus is given to the long term rentals and safeguarding the long term rental supply.
    Housing is more important about homes; it is not about operating a business, in case of the situation like this, renting and affordability has become rare. So there will be the low frequency of vacancy. So it is important to take the steps for short term rentals and dealing with the empty homes to make arrangements to get the rental supply.
    As per the news from the city, there are about 5,300 unique short term rental listings. The new regulations would permit half of the short term listings and almost all of the private room listings. But it will ban about 1000 homes; they can be later used as the long term listings.
    Andreea Toma, the chief licensing officer said that, until the new regulations are implemented, the city will try to follow the laws against the operators whose listings are unique and created a significant impact to the people. She also said that, they don’t want to see the multiple investment apartments for the shorter term rentals.
    The accomplishment will be based on the observation of the short term rentals and the investigations will be going on to check the short term listings have the valid license or not. And the city will follow up about the active listings.

    Krishna said that, the fee structure has to be planned and it will be the next phase of planning. Robertson said they are not trying to make money out of this. The city said that the short term rental licenses are subject to the hotel tax and the other taxes; they will be reinvested to fund the housing activities.
    The city began to study the short term rental use Vancouver and also in other 20 cities. If the new legislations are approved, the staffs will discuss with the rental sites like Airbnb, travel agencies and hotel industry before implementation.
    Vancouver has few things to tell Los Angels
    The home prices increase year after year, and the economists predict that the prices will burst if this is the situation in the future. It is rapidly increasing for the past 15 years and still no solution has been found. The real estate prices have increased up to one third of the amount than the last year. The normal price for the home is $930,000 and the household income is $70,000.
    It was difficult to point out, when the people of Vancouver came to realize that the building sector was out of control. It is the crucial situation for the Vancouver as per the present. The average person of Vancouver could save for 25 years to place a down payment for the typical property. It is not possible to find the suitable rental place because the vacancy rate is less than 1%, but the prices and the rents tend to increase whatever the situation is.
    The 15% tax for the property purchase by the foreigners was implemented quickly, and many contractual deals were changed and they were made much more costly. An empty home tax is under work; the city may charge 2% additionally if the owners do not occupy the house or rent it to the other people. Airbnb will face many obstacles to free up many rental units.
    The soft protectionism will not help to stop the expansionism. This is not the prettiest act. Vancouver at present is not the city that everyone has expected. It is the politically and the socially affected city. Federal Tax officials have been sent to the city to investigate the local real estate transactions. The politicians depend on the developers to give funds for their campaigns. The city depends on the jobs for the survival; the provenance depends on the taxes from the people whereas, the federal government depends on the foreign investment and the home owners are depending on the inflated equity at the time of their retirement.
    This is a kind of the racialism in the city, and the people of Vancouver have not experienced this before. Media has shown how the real estate industry has changed and it has documented the examples of the misbehavior.
    It is possible to find the solution for this problem, but the lesson learnt from the Vancouver issue is that when the city lies between the mountains and the oceans it becomes the target of many people and not much they can bring an end to the market places.
    Mayor Gregor Robertson said that, Vancouver is seeking attention for the balance of the short term rentals that will ensure the proper usage of all the housing. And the long term rentals will be protected and the residents will be allowed to do the short term rentals in their principal residences.
    Author Bio : Anand Rajendran is the Co-Founder and CEO of Jeato, one of the top most android app development companies in Chennai. He is also a digital marketing specialist who guides business companies to boost sales in internet marketing. Jeato, a Vacation Rental software product developed by this company called Homezu Script which is nothing but an Airbnb Clone Script which also comes with Android & iOS Apps

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