Toronto condo owner discovers unit listed on Airbnb behind her back — with more than 70 reviews
CBC News
By Lauren Pelley
05 March 2018
Sanda Jovasevic
agreed to lease her downtown Toronto condo to a tenant in May 2016. She
later found out someone was repeatedly renting out the unit through the
home-sharing website Airbnb, without her consent. (David
Donnelly/CBC News)
When Sanda Jovasevic agreed to lease her downtown Toronto condo to a
tenant in May 2016, she hoped it would be a wise, long-term investment
for her retirement.
But after a series of strange incidents the following year, including
the unit's front door being left wide open, Jovasevic and her husband
learned something was going on behind their back: Someone was
repeatedly renting out the unit on Airbnb.
"It was a complete shock to us," Jovasevic said.
A CBC Toronto investigation has found two condo owners whose units were
being listed on Airbnb without their consent by a "host" who claims she
works for a Toronto property management company.
Legal experts say the scenario shows why condo and tenant legislation
needs to keep pace with the rising popularity of home-sharing websites.
"How many people went through our condo without even knowing us?"
Jovasevic said. "And what could have happened that we were not aware
of?"
Mystery tenant
Jovasevic used a real estate agent in the spring of 2016 to find a
tenant for her investment property at 300 Front Street West, a highrise
just north of the CN Tower in the heart of Toronto's entertainment
district.
She said the agreement was brokered between her real estate agent and
another agent, and Jovasevic and her husband never actually met the
tenant who signed the lease. But the tenant, a man named Shripal
Banker, did provide a reference letter stating that he worked as an
accountant for a Toronto property management company called Zahra
Properties.
For more than a year, the Jovasevics assumed all was well with their tenant, who paid $2,100 each month in rent.
But in 2017, Jovasevic started to worry. In February that year, she got
a call from her building concierge saying the unit's door was wide open.
Then, in November, the concierge called to inform her of a noise
complaint and said two Airbnb guests were staying in the unit. The
concierge also told Jovasevic the unit had been listed in their system
as an Airbnb condo the entire time.
Jovasevic started doing her own research and found her condo's listing
on the website — and it had more than 70 reviews dating back to 2016.
Jovasevic told her tenant she was going to inspect the unit. But she
said Banker didn't show up at the inspection on Nov. 7. Instead, a
woman who said she was a representative for Zahra Properties — the same
company listed as the tenant's employer — came in his place. In emails
provided by Jovasevic, the same woman identified herself as a property
manager with Zahra Properties and referred to Banker as her "client."
During the inspection, Jovasevic took photos of the unit's empty
closets and fridge, and the dated checklists she believes were left by
cleaning staff. Jovasevic said it was "obvious" the unit was being used
for a home-sharing business, but the woman denied it.
Later that month, Jovasevic entered the unit again for another
inspection, and instead of Banker, she found a woman from the U.S. who
said she was renting the unit through Airbnb for $266.17 US for a
two-night stay.
Jovasevic had seen enough. She issued a notice to Banker to end his
tenancy that month, writing that her condo was "rented out for the
short-term rentals without [her] consent."
Meeting 'Sofia'
The Airbnb listing for Jovasevic's condo has since been removed. But
until recently, it was among more than 10 listings from a verified
Airbnb host named "Sofia" whose units have roughly 700 reviews
combined. CBC reached out to "Sofia" through Airbnb but has not
received a response.
Prior to its recent removal, CBC attempted to book a one-night stay at
Jovasevic's condo through the posting listed on Airbnb. "Sofia"
confirmed the CBC journalist's booking and asked to meet at a nearby
grocery store on February 27.
At the meeting spot, a woman who identified herself as "Sofia" and said
she was a representative for Zahra Properties said the unit wasn't
available, instead taking the journalist to another condo building
nearby on York Street, where she provided keys to a unit.
CBC Toronto located the Airbnb listing for the unit, which has since
been taken down. After being approached by CBC, the owner listed on
property records said she was not aware the unit was ever listed on the
website. She said she believed a long-term tenant named Shripal Banker,
who referred to himself on his lease agreement as an accountant with
Zahra Properties, was living in the unit.
Afzal Nathoo operates Zahra Properties and said the company only
manages rental properties owned by its "principals, family and friends."
"It does not manage properties owned by third parties, outside this
select group of owners," Nathoo said. "No property therefore, is
managed without the knowledge and the consent of the owner in respect
of its use or any other matter."
During an
inspection of her condo unit last year, Sanda Jovasevic says there was
no food in the fridge, no clothes in the closet, but she did find
checklists like this. She believes they were used by cleaners coming in
and out of the unit after Airbnb guests. (Sanda Jovasevic)
When CBC shared the addresses and unit numbers for the two condos with
Airbnb listings, Nathoo said his company does not represent tenants at
either location but confirmed that his employee, Shripal Banker, "has
been participating in renting condominiums in Airbnb."
Nathoo also said Banker is not affiliated with Zahra Properties, but is an employee of Nathoo's gas station.
"I have made it clear to Mr. Banker that his rental activities are not
acceptable and he has terminated all rental activity," Nathoo said.
Banker declined to speak to CBC.
Law 'struggling to catch up'
Legal experts say certain types of home-sharing situations can potentially violate Ontario legislation and condo bylaws.
"It all depends on the condominium documentation," said Denise Lash,
founder of Lash Condo Law. While some condos don't allow home-sharing
services, others have policies supporting short-term rentals, which
Jovasevic said is the case in her building. (300 Front Street West)
Lawyer Caryma Sa'd said the Residential Tenancies Act also applies, and
landlords would be within their rights to try to end a tenancy if they
discovered Airbnb rentals were happening without their knowledge.
"The law is always struggling to catch up," she said.
Short-term rentals have long been a "legal grey area," echoed Thorben
Wieditz, a spokesperson with Fairbnb, a national coalition of
organizations focused on establishing fair regulations for short-term
rentals.
But Wieditz hopes upcoming regulations in Toronto — similar to those in Vancouver and New York — will change that.
Sanda Jovasevic
and her husband bought a condo unit at 300 Front Street West as an
investment property. (David Donnelly/CBC News)
In December, city council voted to require short-term rental operators
to obtain a licence, a change that will come into effect later this
year. Homeowners or renters will also be limited to offering their
primary residence.
Even now, when hosts sign up on Airbnb "they must certify that they
will comply with local rules before they list their space," company
spokesperson Lindsey Scully said in a statement.
"We also have a hosting responsibilities page that reminds people to
check their local laws and regulations and includes additional
information and resources."
Landlords can also share concerns about specific listings with Airbnb. Scully said the platform treats "each case seriously."
'Inspect your units'
On Friday, Jovasevic walked around her now-empty condo unit, which has
broken stove knobs and carpet stains from what she believes was a
regular parade of Airbnb tenants coming and going.
She said Banker has officially moved out, though she doesn't believe he ever actually moved in.
Landlord and Tenant Board hearing
But her fight isn't over yet. Later this month, she will face off with
the tenant she never met at a joint Landlord and Tenant Board hearing.
Jovasevic is making the case that Banker was renting the unit out
without her knowledge. She said he's countered with his own claims that
she harassed him and disrupted his enjoyment of the unit.
Still, Jovasevic plans to rent the unit out again — she'll just do things differently next time.
She offered a cautionary message to fellow landlords: "Inspect your units, now."
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