Quebec's new Airbnb legislation could be a model for Canada — and help ease the housing crisis

For years, Quebec has had what many experts viewed as one of the strongest laws in Canada to regulate Airbnb and other short-term rental platforms.

Airbnb hosts had to register with the provincial government, or they could face fines.

But it was also clear the law wasn't actually working, with the vast majority of Montreal's listings on the platform being unlicensed.

The problem was brought into sharp focus after a fire in March in an Old Montreal heritage building that killed seven people — several of whom were staying in illegal Airbnbs.

On Tuesday, the provincial government tabled updated legislation aimed at making sure only eligible, registered hosts can post a listing. 

"This new law represents a pretty significant step forward there, because it is really kind of tightening the constraints," said McGill University Prof. David Wachsmuth, the Canada Research Chair in Urban Governance.

"That's a really good template that I think other provinces, and certainly Ontario and British Columbia, the other big provinces, should be looking to emulate."

Such a system, Wachsmuth said, would allow municipalities to set their own rules and use the provincial database to ensure those rules are being enforced.

Regulating short-term rentals effectively could help alleviate a strained housing market in many parts of Canada, said Wachsmuth, who has studied the impact of Airbnb on the market.

His 2019 research found that the company had likely resulted in the removal of 31,000 units from Canada's long-term rental market.

"Short-term rentals are one of the factors contributing to high housing prices right now, both in terms of owner-occupied houses as well as rents," he said.

"That's just because they've been responsible for converting thousands of homes into what are effectively hotels."

Currently, there is a patchwork system of regulations across the country attempting to get a handle on short-term rentals.

Vancouver and Toronto already have rules in place, for instance, while Halifax is implementing changes starting Sept. 1.  Other smaller municipalities, such as Mont-Cascades, Que., have recently moved to ban short-term rentals outright.