The largest owners’ association estimates that across Quebec, some 13,000 of their members are struggling with tenants who unknowingly and illegally sublet their apartments to Airbnb-type platforms.
Posted at 5:00 a.m.
“These rentals are done without a permit, illegally, without the income being declared and without the owners being consenting,” denounced Marc-André Plante, director of public affairs and government relations for the Corporation of Quebec Real Estate Owners ( CORPIQ).
“Often the apartments are rented for Grand Prix week, for construction holidays or at Christmas,” he says.
It was after several phone calls from owners that CORPIQ thought of sounding out its members internally (based on a representative sample, but without scientific validation) to determine the extent of the problem.
Landlords find that their tenants often make more money in a single week than they themselves receive in a month.
Marc-André Plante, director of public affairs and government relations at CORPIQ
Noise and the deterioration of housing are among the other sources of frustration for owners, he continues.
CORPIQ calls for action
CORPIQ calls on the government to act and calls on all political parties. “The marketing of housing by tenants must be better monitored,” argues Mr. Plante.
Since 2020, anyone who wants to advertise their apartment for periods of 31 days or less on such a platform must obtain a classification certificate from the Corporation de l’industrie du Québec. Applicants must in particular provide the title deed, the municipal tax bill or the rental contract, proof of civil liability insurance of at least 2 million, a copy of the declaration of co-ownership if it is a condo or an authorization from the owner if the person is only a tenant.
If such requests were actually made, owners would automatically be notified. This is very often not the case, says Mr. Plante.
Moreover, he continues, rentals are in areas – including downtown Montreal – where short-term rentals are prohibited anyway.
CORPIQ is demanding fines as high as in France, where Airbnb and a tenant were, for example, jointly and severally ordered to pay 58,000 euros ($76,000) in a case of illegal subletting.
Revenu Québec and Montreal pass the buck
Marikym Gaudreault, press officer for the executive committee of the City of Montreal, indicates by email that the City “would like to see an increase in the number of Revenu Québec inspectors dedicated to Montreal and to ensure the accountability of online platforms”.
“The law governing Airbnb-type tourist accommodation is provincial. Revenu Québec has inspection and investigation powers in this area. The agency is responsible for deploying a sufficient number of inspectors on the ground to curb illegal tourist accommodation and ensure that operators pay taxes on their rental income. »
“We are very sensitive to the impacts of short-term rental platforms that harm the rental stock,” she also says, recalling that several boroughs in central neighborhoods have limited commercial tourist rental to very specific sectors.
For its part, Revenu Québec responded to us by directing us to a press release dated June 28. It states that 3,812 inspections were carried out in tourist accommodation establishments from 1er April 2021 to March 31, 2022. “These led, among other things, to the issuance of 584 warnings and 1,961 statements of offence. In addition, 1,099 convictions were obtained, for total fines of nearly $4.3 million. »
Revenu Québec at the same time reminded citizens of their legal and tax obligations, while emphasizing its limited power. “An owner who complies with the law from a tax point of view could, for example, be illegal in the borough where he is located”, underlines the Ministry.
An article from Sun published earlier this month mentioned the case of a citizen who, having received a $3,700 fine from Revenu Québec, submitted an access to information request to find out what underlies the remittance of a statement of offense rather than a simple warning.
The answer: “Revenu Québec does not have any specific document relating to the rules or the parameters for sending a warning or a statement of offense by the inspectors for the application of these Laws. »
And if there is a disaster?
If there is a claim, the subletting was done without the owner’s knowledge and the tenant has no insurance, what happens?
At the Insurance Bureau of Canada, Anne Morin, head of public affairs, says that “it would be necessary to verify the nature of the contract taken out by the owner and the loss causing the damage to know if there would be coverage for insurance. It would also not be surprising if we invoke the responsibility of the tenant, we must also analyze the lease that binds the owner and his tenant.
She especially points out that a home insurance policy, for a landlord or a tenant, “is not designed to cover activities of a commercial nature”.
Airbnb did not comment.