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Toronto Rental Cost (& AirBnB) Issues

tripwire said:
How are they really going to enforce that STR is "only provided to individuals who are in need...." I mean theoretically, everyone renting is "in need".

The hosts may not be able to recover, but I'm sure that AirBnB will. Unlike WeWorks, they really don't own/lease most of the property. Once things get back to normal, people will flock by to host. Perhaps not as much as before, as the travel/tourism industry is going to need a bit longer to recover.
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While AirBnB will survive and some STR units will return to market once things go back to normal, I do wonder if STR will disappear to the textbooks as an "asset class" as some sort of oddity of the 2010s.
 
Richard White said:
Actually, STR management companies do lease the properties from the owners who are now asking them to be leased out long term to actual tenants. While Airbnb may not lease properties, the people that put them on various platforms on behalf of the owners do.

These are units that will no longer be available to rent short term even after the pandemic.
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I’d never thought of that. I assumed those with multiple listings owned multiple properties, not that they were simply leasing multiple properties from other owners. Jeez.... what a web.
 
Richard White said:
As someone who works in a condo doing security and knows a corporate rental company doing just this it is easily enforceable. If we see someone who is staying in the building that is 19 years old with their boyfriend looking like they are coming from the gym we can question that and ask them to leave.

Their booking would be canceled by default if they are not a nurse, doctor or emergency services worker like Fire, Paramedics or Police. Homeless people are not the people they are referring to in this case.

Nurses, Doctors, Firefighters and Police officials are in need. These are the people that are working to keep us safe and are at high risk of being infected. In the case of Toronto Fire Services, they sleep in close quarters at the stations and as such need their own accommodations to prevent infection.

311 could also get involved as it would be in breach of an emergency order.
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The hotels are empty, why not put all the essential travellers there and shutdown all STR?
 
Admiral Beez said:
I’d never thought of that. I assumed those with multiple listings owned multiple properties, not that they were simply leasing multiple properties from other owners. Jeez.... what a web.
Click to expand...

Yea I know one guy who leases 5 properties in my condo alone from owners who want to rent their properties on various STR platforms.

It is essentially a management agreement between the owner and the company but once the owner takes it back that unit is gone forever.

In my friends case owners are taking units back and either selling them or renting them long term due to the fact their bills need to be paid. His management agreement was terminated and the company may go tits up very shortly.

Airbnb, bookings.com, vrbo etc wont survive very long if their supply of units drys up.
 
Admiral Beez said:
The hotels are empty, why not put all the essential travellers there and shutdown all STR?
Click to expand...

The corporate rental companies are housing essential workers as seen here:

IMG_20200411_091856.jpg


That said STR units cannot be forced to take on essential workers.
 
Richard White said:
Yea I know one guy who leases 5 properties in my condo alone from owners who want to rent their properties on various STR platforms.

It is essentially a management agreement between the owner and the company but once the owner takes it back that unit is gone forever.

In my friends case owners are taking units back and either selling them or renting them long term due to the fact their bills need to be paid. His management agreement was terminated and the company may go tits up very shortly.

Airbnb, bookings.com, vrbo etc wont survive very long if their supply of units drys up.
Click to expand...

Sure, the people now are being affected, but whenever this clears up, I can see people offering STR again, and then these management companies operating multiple companies will start going again. I feel unless platforms like AirBnB are explicitly banned, STR will eventual rebound back. Could be (and hopefully will be) wrong though!
 
Like many such things, the viability of Short Term Rentals as a business is based on supply and demand. If the demand returns the supply will re-appear. There is no doubt that, though many cities and condo boards were unhappy, the '"consumers'"of STRs (the renters) liked the concept and will use them again, once they overcome their Hodophobia (an irrational fear of travel).
 
Toronto's rental market to slow and experience a decline post-coronavirus

Toronto’s rental market is expected to slow down in the post-COVID-19 period.

According to a report by Urbanation, a source of information and analysis on the GTA condominium and rental markets, demand for rentals fell faster than supply in the second half of March, and rents experienced a slight decline.

The average monthly rent in the post-COVID-19 period decreased 0.7% year-over-year, read the report, which looked at rental market results in the first quarter of the year.

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Urbanation states that the decline in rental transactions “can clearly be related to the impact of the protective measures and economic uncertainty stemming from the onset of the COVID-19 pandemic, with renters less willing or able to take on a new lease at current rents, as well as the closing of Canadian borders and the logistical challenges with showing units and planning for a move in the current environment.”

Shaun Hildebrand, President of Urbanation, also attributed the decline to job losses, adding that this trend is expected to continue.

“As rental demand declines as job losses mount, incomes are reduced, and immigration shrinks, the slowing in the GTA rental market that appeared in the last half of March will progress for at least the next few quarters given the current economic outlook,” said Hildebrand.

“The impact on rents will be something to watch, which will also be influenced by the timing of the record number of units that were expected to complete this year”

New rental listings decreased by 7% in the post-COVID-19 period from a year earlier, a percentage attributed to the rise in condo completions in the first quarter, along with “tenants unable to pay their rent providing notice to vacate, and some short-term Airbnb units becoming available in the long-term market.”

According to Padmapper, Google search volume for apartments for rent in Canada is down 14%.

“We expect the coming spring months to continue to slow down as rents will most likely feel downward pressure from the lack of demand,” said Padmapper, which analyzes rental data, in its monthly report.

dailyhive.com

Toronto's rental market to slow and experience a decline post-coronavirus | Urbanized

According to a report by Urbanation, demand for rentals fell faster than supply in the second half of March, and rents experienced a slight decline.
dailyhive.com dailyhive.com
 
www.thestar.com

Toronto condo rents plunge by 6% in April as short-term rental units flood the market

Some downtown areas see condo and apartment rents drop by as much as 12%. “If rents are going down, there’s a chance prices will be going down as well,” author of Rentals.ca report says.
www.thestar.com www.thestar.com

www.vice.com

It Took the Coronavirus Pandemic to Drop Rent Prices in Canada's Most Expensive Cities

Units that used to be Airbnbs are now long-term rentals and tenants are staying put, pushing prices down in Toronto and Vancouver.
www.vice.com www.vice.com
 
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