B.C. increases violation fines, will require data sharing for short-term rentals

B.C. has put in place new legislation to help municipalities regulate short-term rentals on sites like Airbnb, which provincial and municipal leaders say is affecting the availability and price of long-term housing.

The new rules passed first reading in theB.C. Legislature Monday and include increasing fines forhosts breaking local municipal bylaw rules to $3,000 per infraction, per day,from $1,000.

All short-term rental platforms will also be required to share data with municipalities to improve local enforcement, although no private information about hosts will be released publicly.

In addition, all short-term rental platforms will have to include the business licences and registration numbers of listings where they are required by a local government, and mustremove listings without those requirementsquickly.

The province says the new rules, which will come into effect in stages from now through late 2024, are meant to create a minimum regulatory standard for housing available for rent for fewer than 90days.

WATCH | B.C. housing ministersays rules meant to target multi-listing hosts:

B.C. housing minister issues warning to short-term rental operators skirting rules

10 months ago

Duration 0:43

Housing Minister Ravi Kahlon says news rules to regulate short-term rentals in B.C. are meant to target short-term rental hosts with multiple listings, often for homes where they don't live.

B.C. Housing Minister Ravi Kahlonsaid the rules are meant to target operators who rent out multiple unitsover the short-term in residences where they do not live themselves.

"Operators with multiple listings are taking homes off the long-term market to make big profits while people pay the price it can't go on like this," he said.

Short-term rental listings on onlineplatformssuch as Airbnb, VRBO, Expedia and FlipKeyhave expandedrapidly since the COVID-19 pandemic and are now at an all-time high, according to the province.

The province said there are around28,000 daily active short-term rental listings in B.C., which is an increase of 20 per centfroma year ago. Data indicates that more than 16,000 entire homes are being listed as short-termrentals for the majority of a calendar year, according to provincial officials.

The legislationlimits short-term rentals to within a host's home, or abasement suite or laneway home on the property where they reside.

More than a dozen resort municipalities, mountain resort areas, electoral areas including theGulf Islands, andmost municipalities with a population under 10,000 peoplewillinitially be exempt from aprincipal residence requirement but can opt in if the local government decides to.

Some municipalities such as Vancouver already have more stringent rules but struggle to enforcethem. The city defines short-term rentals as those that areshorter than30 days.

"We have said we need more support when it comes to enforcement and we arepleased to see the province introduce these changes, with more significant consequences forthose who seek to abuse the system," said Vancouver Mayor Ken Sim as part of a provincial release.

The new changes also include a new provincial short-term rental compliance and enforcement unit, but the province did not provide a timeline or budget for that. It said it would be modelled after the Residential Tenancy Branch's unit, which has 10 members.

WATCH | The Mayor of Victoria reacts to new rules for short-term rentals:

Victoria mayor welcomes provincial legislation to better regulate short-term rentals

10 months ago

Duration 0:44

Mayor Marianne Alto says provincial legislation that will increase fines for short-term rental violations and require operators to register with the province will help cities like Victoria address the province's housing crisis

The province said the increased fines for municipal bylaw infractions went into effect on Monday after immediately achieving royal assent. The legislation also now allowsregional districts to require business licences from hosts in communities where there was no mechanism for it before.

On May 1, 2024, the principal resident requirement will come into force along with the requirementfor business licences to be displayed on platforms. Also in effect on May 1, 2024 are changes that close loopholes that allowed short-term rental hosts to operate under pre-existing municipal rules.

Next summer, short-term rental platforms will have to share data with the province and a provincial registry for platforms will be mandatory by late 2024.

David Wachsmuth, the Canada research chair in urban governance at McGill University, said in a statement that the new policy will set a new Canadian standard.

"These are sensible, evidence-based rules that are going to prioritize the needs of B.C. residents and get available rental housing back on the long-term market where it belongs.''

Not the solution, says Airbnb

Helping municipalities better regulate short-term rentals was part of Kahlon's mandate letter from December 2022.

Short-term rentals in cities like Vancouver, Victoria and Kelowna have come under scrutiny for several reasons including the argument that they siphon housing from municipalities already struggling to provide long-term, stable rentals to residents.

Airbnb says its platform allows residents in cities with expensive real estate to help pay their mortgages. It does not agree with studies that show short-term rentals contributeto overall rent increases.

Alex Howell, a policy manager with Airbnb in Canada, said the new rules will harm property owners trying to afford life in the province and communities that rely on revenue fromtourism.

WATCH| Top three changes:

Stronger Airbnb regulations coming to B.C.

10 months ago

Duration 1:09

B.C. announced new legislation to help municipalities regulate short-term rentals on sites like Airbnb, which provincial and municipal leaders say affects the availability and price of long-term housing. CBCs Justin McElroy shares three things you need to know.

"The B.C. government's proposed legislation won't alleviate the province's housing concerns, instead it will take money out of the pockets of British Columbians, make travel more unaffordable for millions of residents who travel within B.C., and reduce tourism spending in communities where hosts are often the only providers of local accommodations."

Airbnbdoesn't agree with the province that the top 10 per cent of hosts in B.C. earn nearly 50 per cent of short-term rental revenue.

The companysaid on Monday that the majority of hosts in B.C.,approximately 83 per cent, share just one home. It also referenced a Conference Board of Canada report from lastweek thatAirbnb activity at the current levelshas not generated an economically meaningful increase in rents across Canada's major cities.

"The reality is, Airbnb listings in B.C. represent less than one per cent of the overall number of dwellings, and if every short-term rental was put back on the market, it wouldn't scratch the surface of the number of houses needed," a company statement said.

'Give me a break'

Speaking on Monday morning,Ebytold CBC Newsshort-term rentals are contributing to the province's housing crisis.

"I mean, give me a break," he said."Not a single person finds it credible in British Columbia in any way that short-term rentals haven't eroded long-term rentals in this province.

"Bottom line is when people own multiple condos andare renting them out as private hotels in our province when we are desperate for long-term housing for people, it's just not acceptable. So we're going to deal with it."