Slashing fees by half on short-term rentals part of Vaughan’s push to ‘stimulate’ economy

‘We are in this together'

Yorkregion.com
March 19, 2021
Dina Al-Shibeeb

Slashing fees for short-term rentals is one way the City of Vaughan is pushing to stimulate the local economy and help its citizens, says Coun. Rosanna DeFrancesca.

“We have support people to get back on their feet, right? I mean, everybody's been suffering in so many different ways and on so many different levels over this year,” DeFrancesca said.

On March 10, the City of Vaughan ratified its staff’s recommendations, which includes lowering the annual licensing fee for owners from $300 to $150. Staff showed how other major jurisdictions in Ontario have lowered fees, ranging from $50 in Toronto to $250 in Mississauga.

Last year, fees were increased to $300 for an independent owner, $500 for brokerages with up to 10 listings, $1,000 for brokerages with up to 50 listings, $5,000 for brokerages up to 100 listings, and $10,000 for brokerages with over 100 listings.

In hopes of becoming “more competitive with other Ontario markets,” staff’s recommendation to halve platform fees was also ratified.

In 2019, Airbnb urged Vaughan to tone down its fees for both owners and brokers and reminded the city that it not Toronto. At the time, Vaughan made new regulations, which came into effect at the start of 2020 after a 2018 incident when a man was killed and another injured after shooting at an Airbnb rental in Vaughan. A survey showed its citizens indeed wanting new rules and regulations.

“This has got to do with fees, it has nothing to do with supporting Airbnbs in specific,” DeFrancesca said.

“I think it's just to try to encourage people to come into the city, and people who need the support financially that are operating businesses in the city.”

Daniel Shafro, a Vaughan-based real estate broker at Sutton Group-Admiral Realty Inc., said that there is demand for short-term rentals in the city from visitors, as well as homeowners looking for transitional accommodation between moves or renovations.

“But generally, my clients that have short-term rental properties are outside of Vaughan. They're on King West downtown, throughout Toronto,” he added, indicating Toronto’s strength compared to others for short-term rentals.

In an email, the City of Vaughan said these changes aren’t only in line with fees in other neighbouring municipalities, but to give “greater flexibility to industry participants in how the Municipal Accommodation Tax may be remitted, and providing explicit requirements relating to licensee information collection and submission.”

These changes also to spur “voluntary compliance with the regulatory regime implemented by the city,” it added.

“(The recommendations) will ensure that staff have the necessary information and authorities to effectively protect the health, safety and well-being of the public, while safeguarding the community through effective administration and enforcement of the bylaw.”

Other businesses in Vaughan also want to see more activity.

“I had inquiries regarding restaurants and the expansion of the patio use for the rest of the summer or the season,” DeFrancesca said. “Staff did say that they wanted to continue that (like last year).”

“We're in this together as a community, we have to support each other,” she added.