Illegal Airbnb-type rentals: Owners caught in Quebec fined $2.8 million

A year after new rules on Airbnb-type accommodations went into effect, Quebec has issued nearly $2.8 million in tickets to delinquent owners who didn't register their short-term rentals.

• Also Read: Short-term accommodation: According to the speaker, Quebec has missed the mark

“It's annoying to receive a fine of around $3,000 without getting more warnings,” condemned the owner of an 11-bedroom house he rents in the town of Maniwaki on France Boisvenue, Line.

According to the data obtained by The Journal, Revenue Quebec submitted at least 763 infringement notices last year under regulations on tourist accommodation that came into force on 1^er September 2023. This new law requires owners of short-term rentals to display the registration number obtained from the Corporation de l'Industrie Tourisme du Québec (CITQ) in their advertisement.

Among the results given, so far “a total of 698 convictions and $2,785,452 in fines have been issued […] The offenses are related to the offer of accommodation because it does not have a registration number or because it contains incorrect or out-of-date information,” said Myleene Gagnon, spokeswoman for Revenue Quebec.

Archive photo, Martin Alary

Note that the data obtained from the government agency is only available for the quarters between September 2023 and June 2024. This type of fine is between $2,500 and $25,000, plus costs.

Harder than a devastating fire

France Boisvenue denounced the government's practices, and she was convicted last January. She posted her short-term accommodation on Airbnb without a CITQ number. The owner was initially cleared, but Revenu Quebec won an appeal against her in Superior Court last January.

“With legal costs, it comes to me around $3,750. […] Since Airbnb in Montreal burned down, we can no longer register on any platform without a CITQ number,” lamented an owner of some chalets. She is referring here to the March 2023 tragedy Seven people died Illegally posted on Airbnb accommodation in Old Montreal.

A building housing illegal Airbnbs destroyed in a fire in Old Montreal in 2023. At least seven people died in this tragedy.

Photo agency QMI, MAXIME DELAND

With 150 reports, Quebec Metropolis was the place where tax authorities issued the most fines for this type of crime last year. The Laurentides region is in second place (68), followed by Quebec (67) and Outaouais (66).

Fine up to $100,000

The Association Hôtellerie du Québec (AHQ) is happy to see the new “Airbnb law” come to fruition against delinquent owners.

“The law also provides that the government can now crack down on digital platforms like Airbnb or Booking that authorize the display of accommodation ads without a CITQ number… but at the moment it doesn't really look like that,” raised AHQ President and CEO, Véronique Tremblay.

Picture of Véronique Tremblay, President and CEO of AHQ

Photo by DIDIER DEBUSSCHERE

Revenu confirmed by Quebec Newspaper Only three reports of this kind have been submitted to owners of digital accommodation platforms in the past year. We do not know the identity of those who owe these fines, totaling nearly $12,500. Under the government's new rules, companies like Airbnb or WeChalet could be fined up to $100,000 for an illegal ad.

Competition of Employers before Courts:

• August 7, 2024: Jean-Pierre Belzil and Nathalie Hainault received fines totaling $5,000 for displaying a chalet in Stansted, Estrie, on Facebook Marketplace without a CITQ number. “It was a little funny for us to receive the report as we were testing the waters to rent out our under-construction chalet. He was also unavailable and we were waiting for our CITQ number,” M defended.^me Hainault, in an interview The Newspaper.

An ad on Facebook from Nathalie Haineault who offered to rent out her chalet in Estrie without a CITQ number last January.

Photo taken from FACEBOOK, BAZAR ST-REMI

• July 31, 2024: Johanne Tremblay received a $2,500 fine for renting a residence in Forestville at a weekly rate without registering the building with the CITQ. “His testimony was silent on his failure to have a registration number. By acting in a regulated activity sector, he had to exercise due care,” the Quebec court ruled.
• January 16, 2024: France Boisvenue will eventually pay a $2,500 fine for displaying an 11-bedroom home on Airbnb without a CITQ number. “The undisputed evidence is clearly that M^me Boisvenue was organized and provided reason to believe the operation of a “chic dormitories” without this establishment having a classification certificate,” the Superior Court judge ruled.

The 5 areas with the highest fines are:

1. Montreal: 150 tickets
2. Laurentides: 68 violation reports
3. Quebec: 67 violation reports
4. Outois: 66 violation reports
5. Gaspésie: 55 violation reports

Source: Revenu Québec, which counts the number of fines issued in relation to an offer of accommodation that does not have a registration number or that contains incorrect or out-of-date information