Some Argue Halifax’s New Airbnb Law Will Cost City Millions

HALIFAX — At one time, Airbnb seemed to many like a simple side hustle to make some cash. During the odd days or when you’re away from your home, you can rent it out rather than leaving it empty. But, as the popularity of Airbnb grew, short-term rentals became full-fledged businesses.

People have been buying up houses and apartments and listing them on websites like Airbnb year-round. Across Canada, this has led to concerns over noise, parking, safety, and the impacts on the nation’s housing crisis.

On February 21, Halifax became the latest city to introduce regulations aimed at the short-term rental industry. By a vote of 13-3, Halifax Regional Council approved new rules that prohibit these rentals in residential zones unless that house or apartment is the owner’s primary residence.

The new law goes into effect September 1.

According to Discover Halifax, 73 percent of short-term rentals in the city are located in residential zones. The city also estimates that 80 percent of all short-term rentals are entire homes. Short-term rentals are immensely popular in Halifax. In August of 2022, there were 2,007 active listings.

Ross Jefferson, the president of Discover Halifax, was one of more than two dozen people who spoke about the issue of short-term rentals at a public hearing before council’s decision. He said council’s new law would eliminate half of all short-term rentals in the city.

Discover Halifax also predicts there will be 75,000 fewer room bookings. This will lead to an economic loss of $49 million as fewer tourists spend their money in the city. The loss will be temporary as the short-term rental stock will rebuild under the new rules.

Several people who run short-term rental businesses spoke out at the meeting. They argued that the new law would impact their business and their income. Hassan Haider, the owner of Atlantic experience, was one of those speakers.

In a follow-up interview with Huddle, Haider said he was still trying to figure out if his three houses and three apartments are in residential or commercial zoning. He is worried about losing his business and the $230,000 he invested in it.

“I have a partner with me, and we worked day and night — blood, sweat, and tears — to gain such capital to start such business,” he said. “And we are working as hard as we can to achieve the highest customer standards for reviews and grow this even bigger.  We had ambitions and we did a lot of research. And in the end we’re thrown under the bus.

“We spent hundreds of thousands of dollars in renovation and furniture that we will never see again. And that’s money that’s been taxed. That’s money that’s been worked hard for.”

Joline Dorey was another business owner who spoke out against the new law. At the meeting she explained how the lost income would have consequences for her and her family. She also argued that restricting short-term rentals won’t solve the housing crisis.

“I feel that’s more of a distraction, to shift the focus on what is really causing the housing crisis. I feel that the report assumes that every [short-term rental] would convert to a [long-term one]. I’m a single mom of two working a full-time corporate job and I run my own consulting business. My Airbnb provides the extra income that I need to pay for my two children and our basic living expenses. Your recommendations would force me into a situation to sell.

“My [short-term rental] would never convert to a [long-term].”

At the council meeting, others argued for the need to regulate and restrict short-term rentals. Many argued that the primary residence rule should extend to all zones throughout the city. There are homeowners who also feel like their neighbourhoods are changing for the worst. They no longer know their neighbors, because of the revolving door of guests.

One resident who spoke eloquently of the social impact was Brendan Smith of Dartmouth. He told council that, in his four-unit apartment building, he is the only long-term renter left. He has dealt with noise, litter, and a deteriorating sense of community.

“During my time living there, I’ve experienced the unpleasant effects of sharing a building with short-term rentals. The building was used as a Covid quarantine hotel during the peak of Covid, with strangers using shared entryways. I’ve been woken up in the middle of the night by vacationing tourists partying on weeknights. I’ve had to clean up garbage strewn all over the street because Airbnb guests often don’t pay attention to garbage regulations.”

“And I know that my own housing situation is precarious because my unit could be viewed as more lucrative if it was turned into an Airbnb too, and finding another place to live right now feels pretty much impossible. Many of these issues affect my neighbors as well as our area has started to feel less like a community and more like a hotel development.”

Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].