In a bid to reclaim units for the long-term rent market and rectify the escalating issue in the province, British Columbia is introducing harder-hitting legislation around short-term rentals. The new ordinances will potentially triple penalties for hosts flouting the law while incorporating various new stipulations for operators.
The new legislative piece, dubbed the Short-Term Accommodations Act, was unveiled by Premier David Eby alongside Housing Minister Ravi Kahlon. The premier underscored the need for such regulation, citing the rampant increase of short-term rentals that he described as ‘out of control’. Eby outlined that the primary aim of the proposed legislation is to combat the spread of profit-driven operators in the industry, emphasizing that a vast number of homes previously available for rent or purchase are now off the market.
In a rental market grappling with steep prices and severe shortage of vacancies, it’s estimated that there are roughly 28,000 short-term rentals scattered across communities in British Columbia. The provincial authorities project that a substantial proportion of these rentals are managed by profit-oriented operators rather than individuals letting their own homes or vacation properties; it’s also suggested that half of these rentals are defying municipal laws.
The Short-Term Accommodations Act, set to enact more stringent rules, primarily proposes a surge in fines for illegal operators, lifting the penalty from $1,000 to $3,000 per violation daily. Additionally, it establishes the provision for regional districts, previously lacking authority to license or regulate businesses, to oversee short-term rentals.
By May 2024, the legislation plans to enforce a principal residence requirement for short-term rentals, indicating that only those houses where people live most of the year can be rented short-term. This also extends to the rental of one secondary suite within a principal residence.
Designed to predominantly apply to cities with over 10,000 inhabitants, the principal residence rule comes with a few exceptions granted to tourist hotspots like Whistler, Tofino, and Osoyoos. Also, cities sustaining a healthy vacancy rate exceeding three per cent can seek exemption.
Subsequent to the principal residence requirement, another key change scheduled for May 2024 is the compulsory display of municipal business license numbers on rental adverts on platforms like Airbnb and VRBO.
By summer 2024, rental platforms must furnish host-related data to the province. Further, by the end of the year, a provincial registry will be in place, necessitating registration of short-term rental operators and ensuring non-compliant listings are removed. This requirement will be bolstered by a dedicated team for ensuring provincial compliance and enforcement.
However, the new legislation has met with some criticism, particularly from Airbnb, who argue that the Act will not alleviate the housing crisis but rather strip residents of income, inflate accommodation costs for visitors, and harm tourism revenue. Despite these criticisms, the province insists that these measures are necessary to regulate the short-term rental market, which it sees as increasingly prohibitive to those seeking long-term housing.
