Achi news desk-
New short-term rental rules that will provide more homes for people are expected to come into effect on May 1, 2024, as the Province releases additional information to guide hosts, platforms and visitors through the changes.
“The impact of short-term rental apps like Airbnb, VRBO and others has been the loss of thousands of long-term rental homes in the midst of a housing crisis, increasing the cost of housing for British Columbians,” said Premier David Eby. “That’s why our government has created balanced new rules to tackle speculators who effectively operate small hotels, while also ensuring that homeowners can still rent spaces in their main residence. As we have already seen, these new rules are turning short-term rentals back into homes for people who live and work in our communities.”
The new rules are aimed at curbing the growing short-term rental market which is taking homes off the market. An analysis by short-term rental data analytics company AirDNA, as of March 2024, shows that more than 19,000 entire homes in BC are listed as short-term rentals for the majority of a calendar year. Data from a McGill University professor about short-term rentals in BC also shows that as of June 2023, the top 10% of guests earn almost half of all revenue.
“We are in a housing crisis that requires strong action to provide more housing for the people who live and work in our communities,” said Ravi Kahlon, the Minister for Housing. “The changes passed last year to address the growing short-term rental challenges are already bringing more long-term homes back onto the market. As the rules for hosts and platforms come into effect, we’re taking another strong step to provide more long-term homes for people in communities across BC.”
The new rules which come into force on 1 May 2024 are:
- The Principal Residence Requirement, which means that short-term rentals can only be offered in a host’s principal residence, plus one additional unit, secondary suite or home/garden shed on the property in communities with populations greater than 10,000 people .
- The Principal Residency Requirement will act as a province-wide floor for communities with populations of more than 10,000 people, but local governments will still be able to use existing bylaws and introduce additional more restrictive bylaws .
- The Principal Residency Requirement will come into effect in more than 60 communities across BC
- Strata hotels and motels that have been operating in a hotel or motel-like manner prior to December 8, 2023, and that meet selection criteria going forward, will be exempt from the Principal Residence Requirement.
- Non-conforming use of property will no longer apply to short term rentals. Under previous legal non-conforming use protections, if an existing use of land or building did not comply with the new bylaw, it would generally have continued with a non-compliant legal use.
- Short-term rental hosts will be required to display a valid business license number on their listing, where a local government requires a business license.
- Short term rental platforms will be required to share data with the Province.
- Local governments can ask a platform to remove listings that don’t show a valid business license.
In addition to the short-term rental rules coming into force, 17 communities that were initially exempt from the legislation have asked to join the Principal Residency Requirement. For those communities, the new short-term rental rules will go into effect on November 1, 2024. A full list is included in Backgrounder 2.
The first of its kind in Canada, the short-term rental data portal has been created to support local governments in monitoring and enforcing short-term rental regulations and will allow local governments to get the platform companies to remove listings that do not conform.
The Province’s Short Term Rental Compliance Enforcement Unit, which will be phased in beginning May 1, will also be able to conduct investigations into alleged non-compliance, which could result in administrative financial penalties and compliance orders. Administrative penalties for hosts who violate the rules can range from $500 to $5,000 per day per violation, and up to $10,000 per day for corporations, depending on the violation. Visitors and guests will not face any fines. The unit will also facilitate data sharing and requests to delisting platforms.
Visitors with stays booked after May 1, 2024, on short-term rentals, are encouraged to check with their host directly to confirm that the host is in compliance with their local government regulations and the new BC short-term rental rules.
Full requirements for hosts and platforms to comply with the new rules have also been released and are available in Backgrounder 1 and here: https://www2.gov.bc.ca/gov/content/housing-tenancy/short- term-rentals
Turning more short-term rentals into long-term homes is part of the State’s Homes for People action plan. Announced in the spring of 2023, it sets out further actions to deliver the homes people need more quickly, while creating more vibrant communities across BC.
Quotes:
Walt Judas, CEO, Tourism Industry Association of British Columbia (TIABC) –
“TIABC applauds the government for listening to the tourism sector and introducing regulations that will address housing shortages in communities that rely on visitors and give municipalities the tools they need to control rents short term. From our perspective, the Province has found the right balance to provide more permanent homes for workers in tourism and other sectors, while also ensuring a range of accommodation options for visitors.”
Ken Sim, mayor of Vancouver –
“These short-term rental rules are essential in addressing the housing crisis not only in Vancouver, but across British Columbia. We are eager to implement these new tools and collaborate with platforms to ensure short term rentals in Vancouver are in line with these regulations. These measures lay the foundation for a more sustainable and equitable housing landscape in which Vancouver residents can thrive.”
Learn more:
To learn more about the rules that come into effect on May 1, 2024, visit: www.gov.bc.ca/ShortTermRentals
To learn more about the government’s Homes for People action plan, visit: https://news.gov.bc.ca/releases/2023HOUS0019-000436
To learn about the steps the Province is taking to address the housing crisis and provide affordable homes for British Columbians, visit: https://strongerbc.gov.bc.ca/housing
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