A UCLA study has found that “that a 1% increase in Airbnb listings leads to a 0.018% increase in rents.”. Short term rentals have been illegal in Vancouver until April 18, 2018, but Airbnb listings have grown by over 270% between 2013 and 2018. Applying the UCLA model, Airbnb has lead to a 4.87% rent increase in Vancouver. That works out to $3,397.17, or, more than $750 extra annually for me. It’s time for Airbnb to compensate renters of Vancouver.
The following is my demand letter to Airbnb.
888 Brannan Street,
4th Floor, San Francisco,
April 28, 2018
Dear Sir or Madam,
1. Between Jan 1, 2013 (or earlier) and April 18, 2018, Airbnb has operated or caused to operate illegal short term rentals in the City of Vancouver in violation of City of Vancouver Zoning & Development Bylaw 3575 as in force in that period, specifically:
Section 10.19.4: No person shall use or permit to be used any sleeping unit for a period of less than one month unless such unit forms part of a hotel.
Section 10.21.6: No person shall use or permit to be used any dwelling unit for a period of less than one month unless such unit forms part of a hotel or is used for bed and breakfast accommodation.
2. Based on data provided by Airbnb 1)https://2sqy5r1jf93u30kwzc1smfqt-wpengine.netdna-ssl.com/wp-content/uploads/2016/07/VancouverReport_finalcopy_June-1.pdf and the City of Vancouver 2)http://council.vancouver.ca/documents/pspc7_000.pdf, the number of Airbnb units have increased from 1,800 in 2013 to 6,667 as of March 2018, and increase of 270.39%.
3. A UCLA study has found that “a 1% increase in Airbnb listings leads to a 0.018% increase in rents” 3)https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3006832.
4. Based on the UCLA study, Airbnb is responsible for a 4.87% rent increase.
5. I moved to Vancouver in November 2013. Between then and April 2018, I have paid $69,800 in rent.
6. Thus, applying UCLA model to Vancouver, $3,397.17 of my rents are an increase attributable to Airbnb’s illegal operations in Vancouver.
Based on the facts above, the I hereby demand the following from you:
Payment of $3,397.17 as restitution for damages suffered as a result of rent increases caused by Airbnb operating, or causing to operate, illegal short term rentals in Vancouver.
Please confirm in writing that you have complied with the above demands within thirty (30) days of this letter.
Please note that if I have to commence legal proceedings in order to require your performance of the above actions, this letter will be tendered in court as evidence of your failure to attempt to resolve this matter. Further, you may be liable for any court costs, attorney fees and damages, including punitive damages.
You might want to contact a lawyer to discuss your legal rights and responsibilities.
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