Real Estate

Government dismisses Airbnb request to bail out hosts

  • Last Updated:
  • Apr 7th, 2020 8:33 am
[OP]
Sr. Member
Dec 9, 2007
577 posts
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Government dismisses Airbnb request to bail out hosts

Posted in finance and here Real estate.. Mods move/edit


Government dismisses Airbnb request to bail out hosts

I'm not a host and I have never done Airbnb

My understanding is that they make more money renting daily instead of a yearly lease.

I assume a lot of hosts are leverage to the tilt to maximize profits.

I guess they can't cover their bills if they convert from airbnb to yearly leases..

So you want the the taxpayer to help you???






https://thinkpol.ca/2020/04/03/no-gover ... -one-word/


“No.”

That’s the Government of Canada’s one-word response to Airbnb’s request to bail out hosts who are struggling to survive amid cancellations brought on by the COVID-19 pandemic.

Parliamentary Secretary for Housing and Member of Parliament for Spadina—Fort York Adam Vaughan tweeted out the response to Airbnb’s request yesterday

Airbnb had spent the last decade ruthlessly going after all levels of government to remove or water down housing rules that stand in the way of long term rental units being turned into irregular hotels and hosts had labelled government attempts to regulate short term rentals as “big government” trampling on “individual property rights”.

But as bookings collapse amid the COVID-19 pandemic, Airbnb Canada’s public policy director Alex Dagg wrote a letter to Canada’s Deputy Prime Minister Chrystia Freeland asking for government handouts to “regular Canadians who share their homes to earn extra income.”

Airbnb had asked the government to make employment benefits available to Airbnb hosts, defer sales taxes for short term rentals and to defer income taxes for Airbnb hosts.

Airbnb’s request was met with widespread anger and derision.

“The predators at AirBNB do not deserve a bailout,” Tweeted housing market data analyst Stephen Punwasi. “AirBNB didn’t even respect the laws in place during the housing crisis. Now they want a bailout?”
29 replies
Deal Addict
Dec 30, 2012
1098 posts
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Did Justin at least offer them free hugs?
Sr. Member
Jul 7, 2019
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Why wouldn't Airbnb ask for a bailout?
It doesnt hurt to try, if they get rejected (which they did) then they're still exactly where they started.
Deal Addict
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Jul 8, 2010
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AirBnb just cut their marketing budget - 800$ million savings. Guess they can share some of those savings with their underwater hosts...
Deal Fanatic
Oct 7, 2007
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On yesterday's radio news, I heard the reporter say that AirBnb was finished. I was waiting for the reporter to provide more details but he didn't elaborate on the story for the time I was listening.
Deal Guru
Feb 29, 2008
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What's the difference between bailing out the airlines, hotels, etc?

I'd rather not bail out anyone or bail out with strings attached (ie: no layoffs, higher pay, etc).
Deal Addict
Dec 30, 2012
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JayLove06 wrote: What's the difference between bailing out the airlines, hotels, etc?

I'd rather not bail out anyone or bail out with strings attached (ie: no layoffs, higher pay, etc).
I agree but if we’re forced to bail out anyone, I’d rather it be companies with some utilitarian value for all or most of society (banks, airlines, etc). I certainly do not want tax dollars going to bail out Chad and Tyrone and Gurpreet from their 1600 psf condo investment.
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Nov 24, 2013
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Airbnb bailout was a long shot anyway.
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Feb 29, 2008
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civiclease wrote: I agree but if we’re forced to bail out anyone, I’d rather it be companies with some utilitarian value for all or most of society (banks, airlines, etc). I certainly do not want tax dollars going to bail out Chad and Tyrone and Gurpreet from their 1600 psf condo investment.
Airbnb provided value. If hotels were not do expensive, there would be no Airbnb. Just like taxis and Uber.
Member
Feb 15, 2018
335 posts
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JayLove06 wrote: Airbnb provided value. If hotels were not do expensive, there would be no Airbnb. Just like taxis and Uber.
Value at the expense of affordable housing for regular Torontonians? The only value a service like Airbnb would provide is if someone was letting out an unused room in their 2 or 3 bedroom place. However, when people start to buy whole units for exclusive Airbnb rentals then we have a problem. Anyway, these condo investors individualized their gains and now want to socialize their losses. No can do.
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canuckstorm wrote: Value at the expense of affordable housing for regular Torontonians? The only value a service like Airbnb would provide is if someone was letting out an unused room in their 2 or 3 bedroom place. However, when people start to buy whole units for exclusive Airbnb rentals then we have a problem. Anyway, these condo investors individualized their gains and now want to socialize their losses. No can do.
Affordable housing is the responsibility of the government not investors. And what is affordable to you? These investors would be renting out units at $2k a pop. Is that affordable?

I don’t care if Airbnb lives or dies. But thry do provide a need that was clearly lacking in the hospitality spectrum.

Removing Airbnb will not do anything for affordability. When those units are govvled up the problem will be here.

Start holding the government accountable for cheaper accommodation. It’s their bloody job.
Member
Feb 15, 2018
335 posts
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JayLove06 wrote: Affordable housing is the responsibility of the government not investors. And what is affordable to you? These investors would be renting out units at $2k a pop. Is that affordable?

I don’t care if Airbnb lives or dies. But thry do provide a need that was clearly lacking in the hospitality spectrum.

Removing Airbnb will not do anything for affordability. When those units are govvled up the problem will be here.

Start holding the government accountable for cheaper accommodation. It’s their bloody job.
I 100% agree that affordability is the government's job and the ontario government should have passed more stringent legislation restricting Airbnb activities to owner occupied properties with excess capacity.
While I blame the government for this inaction, I do not want my tax dollars to go towards propping up real estate specuvestors who are worsening the affordability problem. They took the risk, let them face the consequences. Finally, the government got something right by turning down Airbnb.
Deal Guru
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canuckstorm wrote: I 100% agree that affordability is the government's job and the ontario government should have passed more stringent legislation restricting Airbnb activities to owner occupied properties with excess capacity.
While I blame the government for this inaction, I do not want my tax dollars to go towards propping up real estate specuvestors who are worsening the affordability problem. They took the risk, let them face the consequences. Finally, the government got something right by turning down Airbnb.
That’s fine. I don’t want them bailed out either.
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Mar 10, 2018
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choclover wrote: On yesterday's radio news, I heard the reporter say that AirBnb was finished. I was waiting for the reporter to provide more details but he didn't elaborate on the story for the time I was listening.
If Airbnb is finished then same for Hotel industry. But I may be wrong.
I dont care about Ethics, morals, rules or laws. I will apologies only when I get caught.
I try not to apologies but sometimes do it. not because its right thing but it benefits me.
New Mantra for idiots Just ask RFD before searching answers anywhere.
Member
Jan 10, 2006
496 posts
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callernamet wrote: If Airbnb is finished then same for Hotel industry. But I may be wrong.
I think you are wrong because there really is no individual accountability for major hotel chains. How far down the line is an AirBnB host going to keep a depreciating asset while they are squeezed to sell?

One thing for sure, this Pandemic will cause investors to start thinking twice before jumping back in with AirBnB.
Jr. Member
Jun 3, 2018
176 posts
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JayLove06 wrote: What's the difference between bailing out the airlines, hotels, etc?

I'd rather not bail out anyone or bail out with strings attached (ie: no layoffs, higher pay, etc).
The regulations in place. The fact that its taking residential areas and making them a commercial. The exploitation of communities. Should I go on?

Seriously tired of capitalists turn socialists when they want a handout. They're acting like they have no options.
Banned
Jan 23, 2016
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callernamet wrote: If Airbnb is finished then same for Hotel industry. But I may be wrong.
If hotels go bankrupt the bond holders will take over the assets and sell them off new owners who will manage them better. The strong survive. The weak die and get replaced. Let Airbnb burn.
Sig abuse is not permitted on RFD - Mods
Deal Guru
Feb 29, 2008
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zeroxmarquis wrote: The regulations in place. The fact that its taking residential areas and making them a commercial. The exploitation of communities. Should I go on?

Seriously tired of capitalists turn socialists when they want a handout. They're acting like they have no options.
go back to sleep.
Member
Jul 2, 2018
264 posts
258 upvotes
I represent Hotel buyers and sellers, like you would expect it's the middle class that will get wiped out here. The average joe who sold/HELOC'd their home to invest into a 40-60 room Hotel will be done for. The family with two Comfort Inn's 3 hours outside of GTA will struggle to stay alive. The larger investors will weather the storm and then raise more capital to purchase discounted properties to offset losses of the past (pending government bailouts). This is not to say there won't be Large groups completely wiped out, I have one client that I recently spoke to that has 12-15 properties in the approx. $8-12m range each and they are pretty much done for.

I exited the Hotel business recently because even without Covid-19 the return on investment just didn't make any sense at all. I may consider re-entering when everything goes up for sale. Aggressive investors will buy at the bottom, some will get wiped out as their location may never recover, others will make a killing buying at a bargain. I am not trying to get in at the bottom as I'd rather take on less risk for less reward.

If AirBnB is done for (doubt it) and Hotels are available on the cheaps it's a great entry point if you plan to hold for 5-10 years.
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Mar 23, 2003
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if and when this pandemic is all solved, AirBnB will be right back to business as usual.
Now it may be different people running the show. But the show will go on.

The ONLY way to actually make a change is if the gov't passes and ENFORCES the right laws to protect our housing from something like AirBnB.

It's simple. Gangs, politicians, businesses, etc... they change all the time.
But what will be done to actually change the business model is the real question.

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