Airbnb to include small tourism tax on rentals

Monday, August 31st, 2015


The home-sharing company Airbnb has agreed to incorporate in its prices a small tourist tax on rental apartments in Paris — following a request by Paris authorities.

In a statement Tuesday, Airbnb said it would collect 0.83 euros ($0.95) per person per day to be paid by lodging tourists from Oct. 1.

That’s a move that could deter Parisian homeowners from opening their doors – and it’s a solution many Canadian investors hope could translate in the West.

One of the greatest issues investors face with home-sharing services is the liability they could encounter should a tenant sublet the space. A Vancouver-based landlord commenting in the CREW forum says that very scenario once played out at one of his rentals, adding that he now has tenants sign an agreement that explicitly forbids subletting unless approved by the landlord.

“AirBnB externalizes the cost of damages and tax loss, plus it spits in the face of city planning,” the anonymous landlord says. “Any of our 40 units found on AirBnB will result in eviction and a legal action.”

In Paris, City Hall said that the tax is a move to bring Airbnb more in line with city hotels – not property investors. Hoteliers already pay the tax and are bearing the brunt of increased competition. Parisian hosts are already required to pay income tax.

Paris — the most visited city in the world — is also the most popular city in the world for home-sharing services.

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