Property owners in British Columbia say new rules aimed at increasing long-term rental supply fail to consider the consequences for smaller mom-and-pop operators, who may stand to suffer significant financial losses.
The rules, which go into effect on Wednesday, will limit short-term rentals, such as those offered on Airbnb, to within a host’s home, or a basement suite or laneway home on the property where they reside.
The rules apply in more than 60 communities across the province.
Earlier this month, more than 300 owners filed a petition in the Supreme Court of B.C., challenging the legislation, claiming the rules aren’t legal.
The petitioners — West Coast Association for Property Rights (WCAPR), Amala Vacation Rental Solutions and its CEO Angela Mason — are seeking a judicial review to determine whether the province had the authority to pass the Short-Term Rental Accommodations Act (STRAA) and, if so, whether it was fair and lawful.
“I think they should have just focused on illegal operators and left the licensed and lawful operators alone,” said WCAPR executive director Orion Rodgers.
The government hopes the changes will increase long-term housing stock in cities where residents struggle to find appropriate housing.
“We’ve got people in our community who can’t afford rent, or even find a place to live, because we’re seeing more and more of our housing stock move toward short-term rental,” said B.C. Housing Minister Ravi Kahlon.
“This is a phenomenon that’s being felt across North America, especially communities that tourism is dependent on.”
Figures gathered by the province in March showed more than 19,000 entire homes being listed as short-term rentals.
Kahlon says the government is launching a program to help inform property owners looking to create long-term rentals.
Some owners seek exemptions
A Delta, B.C., resident told CBC News that his future has potentially been affected by the new rules.
“The government flipped the script on us without consultation,” said Chad Euverman, who conducts short-term rentals out of his second property in Kelowna’s McKinley Beach neighbourhood.
He says he planned to eventually retire on the property, but the new rules have forced him to “gauge” his options.
“There should have been a grandfathered-in rule,” he said.
“My property is fairly luxury … The average person who’s struggling to find housing will not be able to afford it. So my only other option is to sell.”
B.C.’s new short-term rental rules go into effect May 1. Read more about what they are and how they are being received around the province:
Municipalities opt in
Amid the outcry, 17 smaller municipalities have opted in to the legislation, despite being exempt, including the District of Kent, Tofino, Gabriola Island, Bowen Island, Osoyoos and Pemberton, and several electoral areas.
“It’s about balance,” said Andrew Leonard, the mayor of Bowen Island, a small island municipality that lies about three kilometres off West Vancouver and is home to more than 4,000 residents.
Leonard says the changes will affect “about 30 to 40 properties” on the island and will “set the tone for the future.”
“We did see a steady spike in business licences going toward short-term rentals. And if that trend continued … we would see major impacts on neighbourhoods and the island,” he said.
Couple considers switch to short-term rental
Meanwhile, some other owners in communities where the new rules don’t apply suggest they might benefit from reduced competition in the short-term rental market.
Since 2020, Becky Taylor and husband Aaron Macri of Saanich, B.C., have rented their one-bedroom basement suite in Cedar Hill to an “amazing” long-term tenant for below market value. While they say they enjoy the stability that comes with a long-term tenant, the changes have them considering a different approach.
“All of a sudden our unit is going to be very popular for short-term rental because we’re allowed to have one,” Taylor said.
“We would be able to make a consistent income with a short-term rental whereas before that felt a little bit up in the air.”
They say their long-term tenant is welcome to stay as long as she likes, but she will be their last, as they explore more short-term stays.
“Between things like increased tenant rights … and the ban on short-term rentals, it would be irresponsible of us to not switch to a short-term rental,” said Macri, who has been a long-term landlord since buying the house in 2011.