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In Response To ‘Air Bnb The Whole House’

October 15 2018

Why does everyone give Air BnB such a hard time accusing people of being tax dodgers. Do you say to landlords who rent their house out to permanent tenants they are probably dodging tax? Of course not, everyone has to pay tax and if people don’t they risk being caught and prosecuted. Hotel managers can dodge tax too.
Air BnB is here to stay and despite what the QLDC think they can do by regulating it to a maximum 28 or 135 days per year (depending if they registered as a rental house early or not) it is totally unenforceable. My two neighbours houses are rented on Air BnB and they are constantly having new tenants but no one knows if its the owners, the owners friends or actual Air BnB renters.
Certainly Air BnB are not likely to tell the QLDC and ultimately how does anyone every enforce compliance by proving a tenant last month was from Air Bnb, Book a Bach or dozens of other similar sites? Don’t forget that this anti Air BnB sentiment is being led by hotel managers who are trying to protect their room rates. Dont believe me? Check the names on submissions to the QLDC opposing Air BnB’s and see many are hotel managers or senior hotel staff in town.
What the QLDC needs to do is keep approving as many new hotel consents as possible (good work lately) so that there are plenty of rooms available in town. Plenty of hotel rooms will lower rack rates meaning it will be less attractive to rent properties on Air BnB type sites and they will all return to being long term rentals.

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  • Your Name Here

    So you’re saying it would be ok if anyone rents a house and get ALL THE ROOMS on Air BnB separately and make a profit out of it?
    Wouldn’t it be just a hostel and therefore should be taxed and inspected as such?
    I know people on both ends and I know for a fact home owners get away with A LOT of things that commercial businesses don’t and that’s why Air BnBing all the rooms in the house shouldn’t be allowed - or at least be put in the same bracket as hostels and the like.

    Let me be clear : if you own the house - not renting and not paying mortgage - and live there yourself then by all means rent the spare rooms as you see fit. But once you decide not to live there and rent everything separately your place should be in the same bracket as hostels - taxes and inspection wise.

    Posted 17/10/2018 4:41pm (6 months ago)

  • Daniel

    At the risk of repeating my original comment why do you assume that the landlord is not paying tax? If they rented the individual rooms to long term tenants - like local company Rent A Room does - are they any more likely to pay tax? And why do you think landlords should not make profit?
    People who own the houses are able to rent out to whoever they want, including individual rooms and make a profit. That is what all landlords do - they invest in property to make money. If the best way to do is is by AirBnB then who are you to say they can't use them? Don't forget all those people staying in AirBnB"s are tourists injecting money into the local economy so AirBnB is good for the town.

    Posted 27/10/2018 2:53pm (6 months ago)

  • Local

    Well since you mention Rent A Room or other such business as a example, many of us in this district do believe some situations should be charged commercial or increased rates for their volume of occupation and be submitted to ie fire regulations closer in step with those the back packers and hostels need to undergo.

    They are companies' which make income from securing leases of properties and subletting (without being an occupier) letting out rooms or possibly beds in rooms, including often removing the common living area of a lounge to turn it into a bedroom, leaving a kitchen and outdoors as the only common area. A house is then occupied at full capacity or beyond its former full capacity. Producing more waste and stress on community services and the neighbourhood.

    Do these businesses contribute more in rates for their higher volume? Do they provide sufficient parking and other facilities for the volume of tenants? hostels are required to be built with common area facilities, parking and buildings are to be provided within regulated fire standards. Are they managed well to reduce impact of the higher occupancy in a single house?

    It's quite different, in some of these situations, from a standard situation provided in a home owned and let by a landlord to a family or a group of tenants as a home.

    One of these businesses alone have 20 properties on their books. That's one example of 20 homes which were once homes let to families or group of tenants without a 'middle man' business making a profit between the cost of the houses lease and the price charged to the tenants. With greater wear n tear on a property, and pressure on neighbourhoods, I just wouldn't feel comfortable being a landlord that handed my home and investment to this type of subletting situation.

    Posted 27/10/2018 6:57pm (6 months ago)