There has been a proliferation in the short-term rental (STR) market with varying impacts on long-term rental availability in different communities. The rise in popularity of the short-term-rental industry has contributed to a loss of long-term rental housing stock, the rise in rental rates, negative impact of neighbourhoods, property damage and crime, as well as contributing to a housing shortage that directly impacts our industry’s workforce crisis. Many communities, especially resort communities, have been blindsided by this sudden rise in popularity of property sharing platforms like Airbnb and VRBO, and are now witnessing the disappearance of long-term rental housing stock.
Many communities are slowly starting to implement short-term rental regulations and new bylaws. However, changes to bylaws and regulations need enforceability to monitor or enforce the newly instated regulations.
It is the BCHA’s position to ensure strict STR regulations are maintained in communities where they are already established and to encourage other communities, through various lobbying efforts, to adopt the same regulations in turn.
The BCHA recommends that the following measure are taken:
A WIN FOR BRITISH COLUMBIANS:
BC’s Bill 35, the Short-Term Rental Accommodations Act, was enacted in May 2024. The Act aims to address housing availability by implementing a provincial principal residence requirement, limiting short-term rentals to a host’s principal residence and, if applicable, one secondary suite or accessory dwelling unit on the same property. This measure is intended to return more units to the long-term rental market. This legislation benefits tourism by exempting strata hotels, timeshares, and ski resorts and relieving housing pressures experienced by hotel employees.
ON THE FEDERAL LEVEL:
In the Federal Government’s Fall Economic Statement, announced in November 2023, new measures were introduced to address non-compliance in the short-term rental market. As of January 2024, property owners who fail to comply with provincial or municipal regulations are no longer eligible to claim tax deductions for certain expenses, such as mortgage interest, property taxes, and insurance, against their rental income.
Additionally, the $50 million Short-Term Rental Enforcement Fund has been established over three years, starting in 2024, to support municipalities in enforcing short-term rental restrictions.
These policies aim to return a significant portion of housing stock from the short-term rental market to the long-term rental market. This shift is expected to benefit the hospitality sector by increasing hotel occupancy rates and supporting workforce recruitment and retention through improved access to affordable housing for industry employees.
ON THE MUNICIPAL LEVEL:
Supported by the efforts of the BCHA, bylaws have been implemented in communities across British Columbia such as Vancouver, Sechelt, Ucluelet, however more stricter regulations are required for maximum impact. For example, Bylaws to allow and regulate short-term rentals in Kelowna are in effect and anyone operating a short-term rental must apply for and be issued a business license by July 1, 2019. Under the rules, a homeowner or primary resident can legally rent their principal residence for periods of 29 days or less. Select tourist areas will continue to allow short-term rentals outside of an operator’s principal residence. The BCHA will continue to work with other municipalities to implement bylaws that uphold our recommendations.
Are you passionate about responsible home-sharing and the well-being of your community? Join us in making a meaningful difference by taking action today!
STEP 1: Explore our Regulatory Toolkit for insights.
STEP 2: Contact your municipality using this link and set up an in-person meeting: https://www.civicinfo.bc.ca/municipalities
STEP 3: Voice your concerns and advocate for 4 key recommendations:
STEP 4: Mobilize your community members.
Join us April 14-15 in Nanaimo for two days that sharpen your outlook and expand your network. With standout keynote speakers and focused education sessions, this is where BC’s hotel community gains its edge for the year ahead.
