It's more important to regulate Airbnb than to tax it, says short-term rental researcher

It's more regulations, not new taxes, that will solve B.C.'s housing crisis says short-term rental researcher Karen Sawatzky.

Sawatzkyhas extensively studied the effects of short-term rentals and is thechair of the City of Vancouver's Renters Advisory Committee.

She says the provincial government's recent agreement with Airbnb that will see the online short-term rental company collect provincial and municipal taxes through its platform levels the playing field for hotelsbut doesn't do much else.

"It's a tax fairness issue that definitely needed to be corrected," said Sawatzky. "So that's good. But it doesn't really address the housing issue."

Inequity fix

Sawatzkysaid various accommodation providers have long been pointing to the inequity that existed by allowing Airbnbto operate without paying taxes.

But the new eight per cent provincial sales taxfor Airbnb which the government expects will generate$16 million annuallyand will be directed toward affordable housing will only pay for a drop in the bucket of the housing shortage issue, she said.

Sawatzkyreferencedresearch done by theB.C. Rental Housing Coalition during the lead-up to last year's provincial election. The coalition'sanalysts determined $1.8 billion wouldbe required to provide adequate housing to all BritishColumbians

"We are desperatelyin need of funds for affordable housing, so every little bit helps," said Sawatzky. "This is going to be an annual source, so it'll help a little bit."

However $16 million a year falls short of the $1.8 billion estimateand won't realistically address the time-sensitiveissue of people not being able to afford a home in the province, she said.

In addition to the new Airbnbtaxes, Sawatzkyrecommended thatthe province find a way to hold Airbnbandsimilar online businesses accountable for their practices.

From her research, Sawatzky found it isnotoriously difficult for local governments to regulate the businesses themselves, rather than the hosts that use their services.

The hosts often fall within a government's jurisdiction, and licences and taxes can be incorporated into the service, but businesses like Airbnbthathave their headquarters in other jurisdictionspose a problem that will only grow along with the sharing economy, she said.

"It's one thing to fine the hosts if they don't get a licence in a jurisdiction where a licence is required. But the platforms are still making money," said Sawatzky.

"How do we hold the corporations themselves accountable for that, rather than just the hosts?"

Furthermore, Sawatzkyrecommended a review and strengthening of B.C.'sResidential Tenancy Act to keep it up to date with the growing Airbnb trend.

With files from The Early Edition