We were recently fined by our local municipality for using HomeExchange.com. We were informed that points exchanges are considered short term rentals and are not permitted for our property because points are considered to have monetary value.
We are in the process of disputing the infraction and would appreciate any help from the community. Are there any lawyers based in Canada who might have suggestions on how to best win the dispute? We were told that reciprocal exchanges are acceptable, it is only points exchanges that are the problem.
More specifically, the Bylaw states that we are prohibited from “marketing or providing accommodation or lodging to paying guests”.
Any suggestions or assistance in proving that exchanges using points are not “paying guests” would be greatly appreciated.
Firstly welcome to the Forum Rob and thank you for reaching out and sharing your situation with the community. At HomeExchange, we closely monitor these regulatory matters across different jurisdictions.
To clarify, GuestPoints do not have monetary value and are not a form of payment. They serve as a way to facilitate non-reciprocal exchanges within a community based on hospitality and trust, rather than commercial transactions.
However, some municipalities may have different interpretations of their regulations.
To assist you further, please email us with a copy of the fine document and the specific legislation being referenced. This will allow us to better understand the situation and provide relevant guidance.
We appreciate your engagement in the HomeExchange community and hope to help you navigate this issue.
Hi Melissa,
Thank you very much for your response and offer of assistance. Attached is a copy of the fine that we received. We are being fined for “carry on tourist accommodation business without a license”.
Note that on page 2 of the document they define “tourist accommodation business” means the business of marketing or providingaccommodation or lodging to paying guests, and includes hotel businesses, hostels, pensions, bed and breakfasts, campgrounds, recreational vehicle parks, and vacation rental businesses;
The Bylaw officer claims that accepting GuestPoints means that I am providing lodging to paying guests. Any information on members who have appealed similar bylaws would be greatly appreciated.
In Quebec City, Canada (and many other cities) there is a by-law designed to slow the spread of Airbnb-style accommodation. In our case, there are two key concepts in the by-law: principal residence and remuneration. My understanding is the HE concept is not considered tourist accommodation if you can prove to the city you are using your principal residence. City requires an income tax return with your principal residence address on it as proof. As such, a secondary residence used for HE would not qualify for the exemption, and might be considered tourist accommodation. The second concept to be exempt from anti-Airbnb regulation is remuneration. Reciprocal exchanges are fine, but GP exchanges might be considered by city regulatory officers as a form of remuneration, even if there is no actual money exchanged. GP could be viewed as a voucher to be used exclusively to purchase accommodation. Vouchers might be viewed as a form of private money, earned through accommodating guests. I’m interested in learning if any HE members have encountered such stances from city regulators (anywhere in world), and if HE regulatory affairs / legal counsel can share any insight on this matter, beyond superficial talking points.
Thank you for your detailed and considered reply. It is very helpful for other members to understand the situation with this in your area. There are indeed issues surrounding this type of action from various regional governments and I see @Etienne has already shared more details of this in his reply (thank you!) The HE legal affairs team are aware and in conversations with these government bodies to campaign to keep HomeExchange as completely separate from fee paying booking sites.
and thank you for reaching out and sharing your situation with the community. At HomeExchange, we closely monitor these regulatory matters across different jurisdictions.