Short-term rental crackdown: New Quebec bill sets $100K fine for illegal Airbnbs

Quebec has followed through on its promise to crack down short-term rentals and introduced a bill in the national assembly that would tighten the rules on platforms like Airbnb.

Tourism Minister Caroline Proulx tabled on Tuesday Bill 25, which would bring in more regulations for both rental platforms and landlords, and set hefty fines for non-compliance.

The bill would require short-term rental units to have a certificate from the province, and would make it illegal to publish a listing that doesn't have a certificate or an expiry date.

Hosts would need to have one certificate for each listing and post them at the main entrance of multi-unit dwellings after getting permission from the condo or building owner. All rentals would need written permission from the city or borough, which is already the law.

The bill would also make it illegal to enter into a contract for a short-term rental online without a certificate. The bill defines a short-term rental as less than 32 days.

Bill 25 would, if passed, require digital platforms to obtain the certificates for tourist accommodations, validate the certificate, "and to designate a person established in Québec as a representative."

Airbnbs and agents from Revenue Quebec would be responsible for ensuring listings comply with the law.

Proulx's new bill also aims to create a public register of tourist accommodation establishments that would be maintained by her office or another body recognized by the tourism minister.

Not conforming to the new legislation would carry a fine of up to $50,000 for people and up to $100,000 for "all other cases."

Proulx told the media that the fines would be for each offence.

"If Airbnb publishes 10 listings that are non-compliant, it's 10 fines. If they publish 15 listings are not compliant, it's 15 fines," she said after tabling her bill.

Quebec Tourism Minister Caroline Proulx presents legislation that would regulate the rental of short-term residences, at the legislature in Quebec City, Tuesday, May 9, 2023. The legislation would make it illegal for anyone to advertise a short-term rental without including the certificate number and expiry date. THE CANADIAN PRESS/Jacques Boissinot

Proulx said to avoid the "difficulty" in reaching Airbnb representatives, the company will have to create a Quebec official whose name, title, email address and phone number must be shared annually with Tourism Quebec and Revenue Quebec.

According to the tourism ministry, only 30 per cent of rental advertisements in Quebec comply with the current law but said she expects platforms and landlords to follow the new rules.

"It's their job to ensure they conform. If they don't conform and the Revenue Quebec agents find they don't conform, [there will be a] fine," she said.

The new legislation comes after Airbnb officials met with the province earlier this month to discuss compliance issues.

"I made it extremely clear, extremely clear that it's game on and here are the new rules that you'll have to comply [with]," the minister said.

"We're really saying that they need to comply with Quebec's law. These are the new rules that they will have to operate in and if you don't, here are the consequences of not playing the game."

The rules for short-term rentals in the province were put in the spotlight last month after seven people — including six who were renting illegal Airbnbs — died from a fire in a heritage building in Old Montreal. Airbnbs are illegal in that part of the city but were operating under the radar.

The cause and circumstances surrounding the fire are still under investigation.

The association representing Montreal-area hotels welcomed the proposed legislation, saying in a news release on Tuesday that it warned the government that some short-term rental hosts were openly flouting the current laws and that action needed to be taken. 

Some hosts were illegally using the Corporation de l'industrie touristique du Québec (CITQ) registration numbers issued to some of its members, the Greater Montreal Hotel Association said. 

"We welcome this giant step taken in the right direction. We are pleased to see the arrival of this bill, which provides a more rigorous framework for lodging and gives more teeth to Quebec's legislation in this area," said says Jean-Sébastien Boudreault, President and CEO of the Greater Montreal Hotel Association.

"However, it is essential that all the players involved continue to work together to counter the scourge of illegal lodging."

With files from CTV News Montreal's Kelly Greig