Property manager finds proof of Airbnb rental scam

After a long game of "cat and mouse,"the owner of an Ottawa property management firm believes he finally has proof a tenant is illegally running an Airbnb business out of a downtown condo without the owner's permission.

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According to reviews on Airbnb for the suite at 200 Rideau St., the tenant had been running a covert operation, telling guests to pick up their keys from a lock box attached to a railing outside a Tim Hortonscoffee shop a block away.

They were also told to enter the building through the parking garage to avoid security at the front desk, according to the reviews, and tokeep a low profile.

It's a huge concern.- Dan Dore, owner of Dore Property Management

It's the second complaint this week about a verified Airbnb host in Ottawa who goes by the name "Stay" and is currently renting out 23 units, mostly in the capital and Montreal.

In at least two cases, CBC News has learned the unit is being subleased for a profit without the owner's permission, ultimately breaking the lease and condo building rules.

The host has not responded to CBC's requests for comment.

Property manager Dan Dore searches condo unit for proof of Airbnb rental

6 years ago

Duration 0:52

Property manager Dan Dore searches condo unit for proof of Airbnb rental

'He makes everyone who uses Airbnblook bad'

"It's a huge concern," saidDan Dore, ownerof Dore Property Management. "We fully expect the people who are on the lease are the people actually living in the unit. It's a secure building."

Doreis now starting the process to evict the tenant the only recourse for a landlord in his position under the Ontario Tenancies Act after finding what he believes is evidence that guests were paying money to sleep there.

The eviction process takes at least 20 days and if the tenant opposes, the dispute could go to trial.

"It's quite unfortunate," said Dore."He makes everyone who uses Airbnblook bad."

Unlike several other Canadian cities, there aren't any municipal regulations in Ottawa tackling the growing problem of short-term rentals.

Dore and the OttawaGatineauHotel Association are calling for change, however.They want Ottawa to adopt similar rules to those in place inToronto, Vancouver and Victoria, B.C. rules that require residents to obtain a city licence to rent out theirprimary residence short-term.

Safety concerns

At least two condo buildings on Rideau Street are struggling with the problem.

In one case, security at 234 Rideau St.had to call police this past October when intoxicated Airbnb guests allegedly lit fireworks inside a unit.

Reid Property Management has now equipped its security desks with incident reportforms to fill out anytime they catch short-term rental guests inside.

As well, new plaqueshave been installed on the building's intercoms,stating these types of rentals are not allowed.

'It's a cat and mouse game'

In Dore's case, he leaseda two-bedroom condo to a long-term tenant on behalf of the condo'sowner, who livesoverseas.

One year in, he found out from security that unknown guests were entering the building using the fob to access the building's main door.

Doresaid he confronted the tenant, who admitted he was subleasing the unit and didn't know there was any problem with that.

There would always be a story.... The biggest issue is, we need proof.- Dan Dore

He promised not to do it again,but that didn'thappen, Dore said.Instead, Dore saidhe kept getting calls from security about fishy activity.

The tenant then told him his parents and friends had been visiting,Doresaid.

"It's a cat and mouse game," said Dore. "There would always be a story.... The biggest issue is, we need proof."

'Not abiding by the rules'

It wasn't until Tuesday afternoon Doreclaimed he finally obtained the evidence he needed to take action.

He gave his tenant 24-hour notice he was entering the unit, and once inside, was able to confirmit was the same condo being advertised on Airbnb. The decorations matched, he said, and there were handwritten reviews inside the unit detailing the experiences ofother guests.

CBCNews was allowed to come along and observe the inspection from the hallway outside the unit.

"It's quite unfortunate they're not abiding by the rules and regulations of the building," said Dore.

'It's a problem that it's time to deal with'

The City of Ottawa has said it'shiring a consultant to study existingregulations around Airbnb.

That work won't be presented to council untilafter the election, and somesay that's too late.

Steve Ball, president of the Ottawa Gatineau Hotel Association, has beentalking to the city for months about the need for short-term rental regulations.

"It's a problem that it's time to deal with," hesaid, adding he'sbeen providing information to the mayor's office about what rules othercitiesare adopting.

The most important changehe wants is allowing people to rent out their principal residenceonly.

Licence requirement

"The [other] big one for us as wellis that you need to have a licence," said Ball. "This is not uncommon if you're going to be in business, to have a licence to do business."

For example, in Victoria, alicence costsbetween $200 and $2,500, depending on the unit.In Vancouver,homeowners caught listing units on short-term rental websites without a licence face a fine of up to $1,000 for each infraction.

Ball also wantsAirbnbto only advertisehosts who havea valid city licence.

"If they choose to advertise hosts without a licence, they should be accountable and responsible," he said.

Right now,Airbnbis unable to mediate or assist when it receives notification from a condo ownerthat their unit is being subleased without their permission.

"Unfortunately, as an online platform, we are not privy to the offline agreements you may have made, so we are unable to mediate or assist,"Airbnbwrote to Ottawacondo owner Kasra Rasaee after he filed a similar complaint.