New Brampton bylaw prohibits use of investment properties as short-term rentals
The City of Brampton has updated its short-term rental bylaw in hopes of addressing ongoing housing shortages in Canada’s ninth-largest city.
City Council voted to update the bylaw this summer, with the changes taking effect September 30.
According to the city websitethose looking to rent space in their homes on a short-term basis now require a special license issued by the city, and investment properties for short-term rentals are no longer permitted.
The city defines short-term rentals (STR) as: “When all or part of a dwelling is used to provide accommodation for any rental period of less than 30 consecutive days in exchange for payment.”
The settlement applies to those who rent rooms, condos or homes through online sharing platforms like Airbnb, VRB and FlipKey.
The city has also limited the length of rentals in primary residences to a maximum of 180 days, and no more than three bedrooms can be rented individually. Owners must also have proof of Commercial General Liability Insurance which must be renewed annually with their city issued license.
The council said it had undertaken a review of its bylaws in hopes of easing this problem and identified several issues arising from STRs, including investors buying multiple properties as short-term rental space. As a result, investment properties leased as STRs are now prohibited.
“Many rental units are advertised for short-term rentals because there is greater potential for the investor/operator to enjoy higher monetary gains than long-term rentals,” the city said on its website. .
“You are no longer allowed to operate an investment property for short-term rental purposes, as this would violate business licensing regulations,” he adds.
The lack of rental housing has been an issue in Brampton for several years, with Canada Mortgage and Housing Corporation (CMHC) posting a rental vacancy rate of just 1.2% in 2019.
“STR’s current challenges to existing regulations such as local municipal bylaws (i.e. property taxes, zoning and licensing regulations) and landlords may not know they are violating the provincial legislation in addition to municipal rules and/or condominium rules,” it read. the city’s website.
“Similar to other municipalities in the GTA, the city has identified the need to develop provisions to regulate short-term rentals and prohibit investment properties from being reclaimed in the city for STR and increasing the cost of housing for renting and home ownership,” he adds. .
The average price of a home or condo has skyrocketed in Brampton recently, having more than doubled in the past five years.
According to statistics from the Toronto Regional Real Estate Board (TRREB), the average price of a single-detached home increased by 115%, from $606,364 in January 2016 to $1,302,553 in October 2021.
Similarly, the average price of a condominium apartment increased by 118% during this period, from $242,806 to $529,862.