Since new restrictions on short-term rentals were put in place last May, owners of 1,500 units throughout the province have been informed that they are not in compliance, B.C. Housing Minister Ravi Kahlon says.
Most owners immediately moved into compliance once reached by the province’s 11-person enforcement team, but 75 cases remain under investigation and could result in fines of up to $5,000 per day if they are deemed to be contravening the rules, Kahlon said.
Under the new regulations, owners can only rent out their primary residence or a unit on that property, such as a laneway house or secondary suite. They are required to register with their local municipality and maintain a valid business licence.
About 1,300 of the 1,500 non-compliant cases stemmed from public complaints, Kahlon said.
The ramped-up enforcement comes as the province is preparing to launch a registry of all short-term rentals in B.C. The registry will require platforms such as Airbnb to remove listings that have not registered with the province.
“The good news is we’re not only seeing rents come down around the province, we’re seeing a 10 per cent reduction in full homes being listed as short-term rentals,” said Kahlon. “They are now being made available, either through sale or as long-term rentals. Phase two enforcement starts in the coming months.”
While the province has touted the new rules as a way to bring more housing onto the market at a time when availability is low across much of the province and rents are becoming increasingly unaffordable, critics have slammed the “unintended consequences” of the restrictions.
Gavin Dew, the B.C. Conservative critic for jobs, economic development and innovation, said many British Columbians had bought properties for the purpose of using them for Airbnbs, only to have to sell them at a loss because of the new restrictions.
He said the tourism sector has suffered as there are not enough hotel rooms in places such as Kelowna and many people cannot afford the high rates they charge. Short-term rentals had been used to help fill the gaps.
“In Kelowna, when I was knocking on doors, short-term rentals would come up every four or five doors that I knocked on, and the feeling people had was that the short-term rental ban had been a major contributor to absolutely cratering tourism,” said Dew of his experience during the October election campaign.
“What it really comes down to, for me, is unintended consequences. … What this government doesn’t understand is that when you squeeze a balloon in one place, it’s bigger in another, and then you squeeze it there, and you squeeze somewhere else, and eventually it pops.”
Restaurants, wineries and other businesses have been affected, with high school students unable to find a job amid flat employment rates and many business owners having to close, the Conservative MLA said.
In some cases, it is district or municipal regulations that are causing headaches for hosts.
Jay Bert, a resident of the Nanaimo Regional District, said he didn’t realize short-term rentals were not allowed in his area until the platform he was using to list the three-bedroom carriage house on his and his wife’s property reached out to them.
Bert’s short-term rental was compliant under the provincial rules but not under the local government restrictions that ban short-term rentals in certain areas of the district.
He said he understands the headaches that families, particularly those with young children, face when looking for affordable hotel rooms when travelling.
“For my wife and I, we have three kids, to stay in a hotel is a nightmare because the world’s built for a family of four, and so it’s always an upsell to have to either pay for a family room or two adjoining rooms, which can be very expensive,” said Bert.
“We had only been up and running for two years now, and it was going great. We had it all dialled in. It was really lovely. We had guests from all over the world. We were meeting people, and we were providing a service that benefited people.”
Now the couple has to figure out what to do with a space that has been decked out for short-term rentals. They are wary about committing to a long-term rental after hearing horror stories about problem tenants.
Dew said many people are in the same boat, pointing to the Aqua building in Kelowna. It was explicitly zoned for short-term rentals, with people buying units for that purpose, and they have to figure out what to do now that it is no longer an option.
While he gets some of the concerns, Kahlon pointed out that there are still thousands of Airbnbs in operation legally across the province and that the primary goal is to create more housing stock, not to take away opportunities for short-term rental owners.
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