A suspected Kensington Market “ghost hotel” has been temporarily shut down, pending the outcome of an investigation by home-sharing service Airbnb.

“These listings have been suspended from Airbnb while we continue to investigate. Hosting is a big responsibility and those who fail to meet our expectations will be subject to suspension or removal,” said Lindsey Scully, spokesperson for Airbnb in Canada, in a statement emailed on Friday.

The nine units in question, formerly three large apartments, were located inside what was once described as a vibrant artist and student community, at 38 Kensington Place.

Former tenants allege they were squeezed out by illegal rent hikes and intimidation tactics, so the landlord could turn a higher profit on the building.

“Airbnb is opposed to the practice of evicting tenants in order to list a property on our platform and we believe any home-sharing regulations should uphold this principle,” wrote Scully.

Paralegal Peter Balatidis, who has represented property owner Claude Bitton at the Landlord and Tenant Board, has said his client will not speak with the media.

“At this time my clients and I decline to make any comment,” said Balatidis, via email, after being informed of the suspension Friday.

The transformation of 38 Kensington Place was the subject of a story published online on June 19. Scully told the Star that day that the listings were being investigated.

The listings were pulled offline on Thursday, she said.

Scully said an investigation can result in a range of penalties “from a warning to suspension or removal from our community.”

Ghost hotels are buildings where apartments have been converted into short-term rentals, effectively turning a residential building into a hotel.

The building containing the suspended Airbnb units is one of five Kensington Market properties purchased by Bitton in 2016.

Tenants, at the time, said Bitton asked for rent hikes as high as 50 per cent. Bitton told the Star’s Jessica Botelho-Urbanski that he was simply seeking to negotiate new leases and only wanted fair market rent.

The Airbnb units were created by dividing up what were once three-storey apartments into smaller units. Some tenants remain in the building, but at least three large apartments had been converted into Airbnb rentals, based on listings viewed by the Star and interviews with former tenants.

The Star viewed one unit after it was rented out by tenant advocacy coalition Fairbnb, for $127 a night, plus $65 cleaning and $24 service fees, for a total of $216.

The listing boasted that up to four could sleep in a neighbourhood known for “art and famous graffiti artists everywhere,” full of food and bohemian charm.

All nine units were advertised as belonging to “Marina,” “originally from Moscow.”

Former tenant Chris Leithead said he’s disheartened by what he sees as a lack of regulations around rental housing.

“I grew up in Toronto,” said Leithead. “I don’t know if I can continue to live in the city I grew up in because this is happening all over.”

In Toronto, landlords are not allowed to arbitrarily transform apartment buildings into hotels. The rise of Airbnb rentals has resulted in proposed regulations for short-term rentals. Public consultations are underway and a final report is due back to the city’s executive committee this year.

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Thorben Wieditz, with Fairbnb said the fact the account was still active this week is not exactly “confidence boosting” for people facing evictions or involved in the fight against ghost hotels.

He said once regulations are passed the city will have the tools needed to actually act, rather than “waiting for a short-term rental platform to do their own investigation,” said Wieditz.

“It just speaks to the need for coming up with regulations soon, to avoid situations like these.”