oday, we have some significant developments in the world of short-term rentals in British Columbia. If you're a host, a condo owners, or prospective buyer, you'll want to read this.
Currently, there are approximately 28,000 daily active short-term rental listings in B.C., marking a 20% increase from just a year ago. More than 16,000 entire homes are listed as short-term rentals for most of the year. This has raised concerns for Municipalities and the Provincial government about the impact on the housing market.
In Victoria, a city known for its strong tourist sector, around 1,600 units are operating under the legal non-conforming clause, which essentially exempts certain buildings and homes from city bylaws.
This clause has allowed short-term rentals to flourish, even though this use was removed from the cities Zoning Bylaw back in September 2017. My database shows 22 buildings downtown Victoria that rely on legal non-conforming use (also known as granfathering). These buildings previously had the zoning and the strata bylaws permitted short rentals, and were allowed to continue to operate even after the city introduced a bylaw in 2018.
A principal residence requirement. You can only host in your primary residence (where you ordinarily reside). For example, a home with a basement or separate dwelling unit (carriage house, yurt, treehouse, modular container). Or a 2-bed condo where you would only rent 1-bedroom and share common living space with your guests.
This will apply in cities with a population of over 10,000. Cities with a vacancy rate of over 3.00% can submit a request to the province to opt out. The vacancy rate in Greater Victoria is currently around 1.4% (CMHC October 2022).
Municipal ticket fines are going to increase from $1,000 to $3,000 per infraction, per day. Also, regional districts can now impose fines of up to $50,000 for violations under the Offence Act. Short-term rental platforms will be required to share data with local governments for compliance and tax auditing.
To ensure these changes are enforced, B.C. is introducing a provincial host and platform registry. Listings must include local government business license numbers and, when launched, a provincial registry number
Platforms like AirBnB, VRBO, MisterBnB, and others will be required to provide certain information about listings to the Province on a regular basis, and allow the Province to share data with local governments to support bylaw enforcement.
Means the service of accommodation in the property of a property host, in exchange for a fee, that is provided to members of the public for a period of time of less than 90 consecutive days or another prescribed period.
Units in Victoria that rely on the legal non-conforming status (grandfathering) will be targeted. The province will revoke this by amendment to the Municipal Charter as of May 1st, 2024. Yes, this is an unprecedented loss of property rights.
There are 14 resort regions in the province that will be exempt. These are typically tourism dominant communities with less than 10,000 residents. They include:
A number of owners have decided to sell their units, rather than go into the long-term rental pool. Long term rentals often would not cover the holding costs of the property, and have their own complications due to the nature of RTB regulations.
There has been a sharp rise in condo listings, giving Buyers ample choice, and negotiating advantage to buy a property in the Capital City. View the active listings on our website.
Dustin Miller is the managing broker of 8X Real Estate. When he's not on the road, he is on his computer looking at real estate. You can often find Dustin at his office enjoying a bowl of won-ton soup.
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