If you’re going to rent your house or basement unit on Airbnb, you may soon have to be licensed through city hall.
City politicians will weigh a new bylaw with a host of requirements, including limiting Airbnb and similar rentals to a principal residence, meaning you live in the place you’re renting out.
London has about 650 active short-term rentals, and 90 per cent of local listings are on Airbnb, according to a city hall report. Two-thirds of those rentals offer an entire home, while roughly one-third include private rooms.
Some of the homes are in clusters near Western University, Old East Village, Wortley Village and the Bishop Helmuth neighbourhood.
The average nightly rate is $121, with a median monthly rent of $1,213.
The rise of rooms or homes rented on Airbnb and similar platforms is reducing housing stock in many cities by converting units that would otherwise be rented on an annual basis into mini hotels or vacation stays.
Based on the recommendation from staff, which will be tabled at Tuesday’s community and protective services committee, people renting out rooms or entire homes for short periods – versus a typical lease for a housing unit – will have to:
- Show they own the property or have written permission from the owner
- Provide identification
- Pay a $175 application fee and have proof of general liability insurance for at least $5 million
- Submit photos of the room or home
Tuesday’s committee meeting also will include a public participation portion for Londoners to share their thoughts.
Politicians could decide to recommend approval of the bylaw right away, or send it back to staff for one last review after the public feedback.