The British Columbia government is introducing legislation aimed at sending thousands of short-term vacation rentals back into the long-term rental market. The legislation limits short-term rentals to within a host’s home, or a basement suite or laneway home on the property where they reside. If passed, short-term rentals in B.C. would only be offered in the host’s principal residence in municipalities with a population of 10,000 people or more and in smaller communities within 15 kilometres of a larger municipality.
The housing ministry estimates there are about 28,000 daily active short-term rental listings in B.C., an increase of 20 per cent from a year ago. Data show more than 16,000 entire homes are being listed as short-term rentals for the majority of a calendar year. Even if half of those homes came back onto the long-term market, it would be significant.
Short-term rentals in cities like Vancouver, Victoria, and Kelowna have come under scrutiny for several reasons, including the argument that they siphon housing from municipalities already struggling to provide long-term, stable rentals to residents. The government has stated that short-term rentals have put significant pressure on vacancy rates, rents, and home prices.
The legislation is aimed at operators of multiple vacation rentals, who own multiple condos and are renting them out as private hotels in the province. The government is promising to beef up enforcement of short-term rental regulations
The City of Vancouver has already announced that it will increase the costs of a business license to operate a short-term rental in the city from around $109 to $1,000. The city has had regulations in place since 2018. Vancouver has also negotiated with Airbnb (the largest short-term renter in B.C.) to only post Vancouver listings with a Vancouver business license number. The provincial government is already collecting an 11 per cent tax on short-term rentals through the Airbnb platform.
The legislation is part of a larger effort to increase housing in the province, including bringing in a province-wide law to allow up to four units on traditional-sized single-family lots. Additional legislation will be introduced this year to allow secondary suites in every community across B.C. Next year, homeowners will be able to access a forgivable loan of 50 per cent of the cost of renovations, up to a maximum of $40,000 over five years, if they are willing to rent those secondary suites at below-market rate for at least five years
In conclusion, the British Columbia government is introducing legislation to limit short-term rentals to within a host’s home, or a basement suite or laneway home on the property where they reside. The legislation is aimed at operators of multiple vacation rentals, who own multiple condos and are renting them out as private hotels in the province. The government is promising to beef up enforcement of short-term rental regulations. The legislation is part of a larger effort to increase housing in the province, including bringing in a province-wide law to allow up to four units on traditional-sized single-family lots. Additional legislation will be introduced this year to allow secondary suites in every community across B.C.
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