British Columbia, renowned for its picturesque landscapes and vibrant cities, has long been a popular destination for tourists seeking a unique and immersive experience. Over the years, the rise of short-term vacation rentals has reshaped the hospitality industry and provided both travelers and homeowners with new opportunities. However, recent bylaw changes in British Columbia have brought significant shifts to the short-term rental landscape, particularly when it comes to Airbnb-style accommodations. In this article, we’ll explore the implications of these bylaw changes and their impact on the ban on Airbnb rentals in the province.
Understanding the Bylaw Changes:
In an effort to address concerns related to housing affordability and the impact of short-term rentals on the rental housing market, British Columbia introduced amendments to the Residential Tenancy Act and the Strata Property Act in 2018. These changes granted municipalities the authority to regulate short-term vacation rentals within their jurisdictions, allowing them to enact bylaws that specifically address this issue. You can see the rules here: New rules for short-term rentals
Ban on Airbnb Rentals:
The most significant bylaw changes introduced by various municipalities in British Columbia have involved the ban or strict regulation of Airbnb-style rentals, often defined as short-term rentals of less than 30 days. Short-term rentals are now only allowed in a person’s principal residence plus one secondary suite or an accessory dwelling unit (ex: laneway house, garden suite). This takes effect on May 1, 2024. Here’s an overview of how these changes affect Airbnb rentals in the province:
- Strata Corporations: Many strata corporations, which govern condominiums and apartment buildings, have introduced bylaws to ban or restrict short-term rentals within their properties. These restrictions aim to address concerns related to security, noise, and the transient nature of short-term guests. Owners who wish to continue renting their units on platforms like Airbnb may need to seek approval from the strata council or comply with specific regulations.
- Municipal Bylaws: Several municipalities in British Columbia have implemented their own bylaws to regulate short-term rentals. Some municipalities, like Vancouver, have introduced strict regulations, such as requiring hosts to obtain a business license and restricting the rental of secondary suites or laneway houses. These bylaws are designed to address the housing crisis by ensuring that residential properties are primarily used for long-term rentals.
- Resort Municipalities currently exempt include the following: City of Fernie, Town of Golden, Village of Harrison Hot Springs, District of Invermere, City of Kimberley, Town of Osoyoos, Village of Radium Hot Springs, City of Revelstoke, City of Rossland, Sun Peaks Mountain Resort Municipality, District of Tofino, District of Ucluelet, Village of Valemount, and the Resort Municipality of Whistler.
- Penalties and Enforcement: Many municipalities have established penalties for hosts who do not comply with the new regulations. These penalties can include fines for both the host and the platform, like Airbnb, if they list or facilitate unregulated rentals. Enforcement measures are in place to ensure that the bylaws are adhered to.
The Impact on Housing Affordability:
One of the primary motivations behind the bylaw changes in British Columbia is the concern about housing affordability. Short-term rentals can reduce the availability of long-term rental units, driving up prices and limiting housing options for residents. The bylaws are designed to preserve the long-term rental housing stock and provide more housing options for those who call British Columbia home.
The Airbnb Response:
Airbnb has been actively engaged with municipalities in British Columbia to address the regulatory changes. In some cases, they have taken steps to ensure that hosts are aware of and comply with local bylaws. Airbnb has implemented measures to prevent listings that do not adhere to regulations from being booked, and they have partnered with municipalities to collect and remit local taxes.
Navigating the Changes:
For hosts and travelers, these bylaw changes mean adapting to a new landscape of short-term vacation rentals in British Columbia. Here are some key considerations:
- Know the Local Regulations: Before listing a property or booking a rental, it’s crucial to be aware of the specific regulations in the municipality where you plan to host or stay.
- Seek Legal Advice: Hosts and strata property owners should consider seeking legal advice to ensure compliance with bylaws and navigate any necessary approvals or exemptions.
- Alternative Platforms: While Airbnb is the most well-known platform, alternative platforms may operate within the boundaries of the bylaws in certain areas. Exploring these options can help hosts continue offering short-term rentals.
- Long-Term Rentals: In response to the bylaw changes, some homeowners are transitioning from short-term to long-term rentals. This can provide a stable source of income and support housing affordability goals.
The recent bylaw changes in British Columbia, particularly the ban or strict regulation of Airbnb-style rentals, reflect the province’s commitment to addressing housing affordability and ensuring the availability of long-term rental housing. While these changes impact hosts, travelers, and short-term rental platforms, they aim to create a more sustainable and affordable housing market in this beautiful region of Canada.
What does it mean for our Real Estate Market? It’s too soon to say. It’s a tough pill to swallow for many investors who bought their properties based on the income they forecasted through Airbnb. Those properties won’t be able to generate enough income through longer term rental options. This implies that those units will not become rentals, but, will be coming on the market. For those that are looking to buy, stay tuned! For those Investors looking to sell, you already have your units staged, so that’s a leg up on the competition!
About the Author:
Navigating the Changing Landscape: Recent Bylaw Changes in British Columbia and the Ban on Airbnb Rentals was provided by Regan Pyke, a Vancouver Realtor and a leader in the field of sales, marketing, and real estate investing. Regan can be reached via email at [email protected] or by phone at 778-228-2448.
Thinking of buying or selling your Vancouver West, Kitsilano Home, you know where to find me 😉
