An Owen Sound couple who run an Airbnb short-term rental in their home told city council Monday the city’s proposed 90-day rental cap would severely limit income they rely on.
Christopher Johannsen and Cheslea Miller appeared during public question period. Johannsen said theirs is a small, city Airbnb for a maximum of five guests. They’ve never had a neighbour complaint and many neighbours have used their service for visiting family, he said.
“I used to teach English in Grade 8 but ever since my traumatic brain injury disability, running our Airbnb is my sole source of income,” he said.
He said they earn just over $21,000, less operating expenses, by renting the Airbnb 201 days of the year. So limiting days to 90 days would reduce that to less than $10,000 per year to rent part of their home just a quarter of the year, he said.
He thanked council for the intention to pass a short-term rental regulatory bylaw, to clamp down on “corporate party STRs,” but asked for the “harsh” 90-day cap to be deleted from the STR bylaw.
He said he found five short-term rentals in the River District when he searched, pre-regulations, “so there’s not a ton of options out there right now.”
He noted half the money raised by taxing STRs will go to tourism and suggested the other half should go toward affordable housing. Outside the meeting, he said council can’t expect to encourage more rental housing by punishing STR operators.
“Given that Airbnb is already established at no cost to the city, it would make the most sense to use this asset to your advantage.” She suggested the city tax STRs more and leverage that revenue to invest more into affordable housing.
“There are perhaps about a hundred small, responsible Airbnb operators who want the right to choose what happens in their own homes. These operators are already great ambassadors for Owen Sound. I don’t think punishing them with a harmful rental cap is a viable path to create more affordable housing.”
Deputy Mayor Scott Greig, who ran the meeting in the mayor’s absence, thanked them and noted the STR bylaw has been sent back for more consideration and that council is “certainly receptive” to gathering more information.
Council at its last meeting was set to pass its bylaw to license, regulate and govern the operation of short-term rentals in the city beginning next March. But instead, it was sent back to staff to address concerns articulated by Coun. Travis Dodd, including that the 90-day STR rental cap is too restrictive and could reduce revenues from the planned Municipal Accommodation Tax, needed to keep the licensing program revenue-neutral.
Last month, council voted to tighten the rules, limiting short-term rentals to 90 nights per year, down from 180 days recommended in a previous draft bylaw.
The city began working towards an STR licensing program last year after concerns were brought to council about a large house on 4th Street West, known locally as Millionaire’s Drive, which neighbours said had been rented out for short stays, turning it into a “party haven.”
Coun. Carol Merton Monday said it’s “absolutely critical” for the public to speak up to help city council solve the affordable housing problem.
“We have heard that STRs take out the supply of affordable housing from the market. And what I would like to hear from those who have STRs, is help us understand why that may or may not be accurate,” Merton said. City clerk Briana Bloomfield said she would accept correspondence about this at [email protected].