A WIN FOR BRITISH COLUMBIANS:Â
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:Â
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. Â
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.