TORONTO – The Greater Toronto Hotel Association (GTHA) is concerned over the increase in condos being rented out as hotels by private owners. The GTHA claims there are more than 6,000 condo and apartment units being utilized as illegitimate hotel rental units in the Greater Toronto Area.

“There’s no doubt the vast majority [of these rentals] are in condominiums [and] there are a significant amount in the downtown core [and in] some apartment complexes as well,” Terry Mundell, president and CEO of the GTHA tells CityNews.

Mundell says it’s a legal mess for the people renting these units and these renters are in violation of condominium corporation rules as well as regulatory and legislative guidelines.

According to CityNews, popular travel websites including Hotel.com and Booking.com have hundreds of these listings on their websites as hotel options. When contacted by CityNews, both companies declined to provide a comment regarding how they charge and tax the users of this practice.

Mundell says there are several major rental guidelines and laws being skirted due to this emerging trend, including violation of the Fire Marshall’s Act, various zoning laws, as well as non-payment of hotel and commercial property taxes.

Toronto’s city council is expected to release a report regarding this new illegitimatized business practice later this year. [citynews.ca]

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