Do Airbnb Guests Have Tenant Rights in Ontario?

Do Airbnb Guests Have Tenant Rights in Ontario? Airbnb Stays and Tenant Rights

The rise of short term rental platforms like Airbnb has transformed the hospitality landscape in Canada. While these platforms offer travellers unique accommodation options, they also raise questions about guest rights, particularly regarding tenant protections. In Ontario, the Residential Tenancies Act (RTA) governs the rights and responsibilities of landlords and tenants. Understanding whether Airbnb guests fall under the RTA’s purview is important for both hosts and guests. [ 1 ]

Short term Rentals vs. Tenancies: Defining the Distinction

The core distinction between a short term rental and a tenancy lies in the nature of the occupancy. Tenancies are typically characterized by a longer-term commitment, often for a fixed period outlined in a lease agreement. Tenants have certain rights, such as rent stability and protection from eviction without due process. Conversely, short term rentals involve stays of a shorter duration, typically less than a month. Guests in such arrangements generally lack the protections afforded to tenants under the RTA.

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The Travelling Public Exemption and its Implications

The RTA includes an exemption for the "travelling and vacationing public." This exemption clarifies that the Act does not apply to short term stays intended for tourism or leisure purposes. This exemption reinforces the distinction between short term rentals and tenancies. In essence, the RTA is not designed to regulate short term rentals catered to travellers.

Exceptions and Grey Areas: When the Line Blurs

While the travelling public exemption offers a clear framework, there can be situations where the distinction between a short term rental and a tenancy becomes blurred. For instance, an Airbnb guest who books a stay for an extended period, exceeding the typical duration of a vacation, might raise questions about their rights. The Landlord and Tenant Board (LTB) adjudicates such disputes and determines whether the RTA applies based on the specific circumstances. Factors considered by the LTB include the length of the stay, the purpose of the rental, and whether the guest intends to establish a residence in the unit.

Case Studies: Learning from Precedents

Past LTB decisions provide valuable insights into how the board interprets the RTA in the context of Airbnb rentals. In a noteworthy case, a board member ruled against a long-term Airbnb guest seeking tenant protections. The decision hinged on the guest’s status as part of the "travelling and vacationing public," despite the extended duration of their stay. This case reinforces the principle that short term rental platforms are not substitutes for traditional tenancies.

Safeguarding Interests: Recommendations for Hosts and Guests

For Airbnb Hosts:

• Clearly outline the intended purpose of the rental in your listing. Specify that the unit is intended for short term stays and not long-term tenancies.

• Establish clear terms and conditions that govern guest occupancy, including the maximum duration of stays.

• Familiarize yourself with the RTA and the travelling public exemption to ensure compliance with regulations.

For Airbnb Guests:

• If you intend to stay for an extended period, communicate your intentions clearly with the host upfront.

• Understand that Airbnb stays generally don’t qualify for tenant protections under the RTA.

• Consider alternative options, such as traditional lease agreements, if you require long-term accommodation with tenant rights.

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Conclusion: Striking a Balance in the Sharing Economy

The short term rental market offers undeniable benefits for both hosts and guests. It’s important to navigate this space with a clear understanding of the legal framework. By recognizing the distinction between short term rentals and tenancies, and by adhering to relevant regulations, both hosts and guests can contribute to a thriving and well-regulated sharing economy.