Victoria goes to court to ban company from managing Airbnbs anywhere in city

The City of Victoria is going to court to permanently ban a local property management company from runningshort-term rentals anywhere in the city, claiming the business has been advertising and operating Airbnbsin a popular area of the downtown core without the properlicences.

Court documents say Amala Vacation Rental Solutions and its CEO arestill managingfour condos all within a few blocks of each other in the heart of the provincial capital's tourist area as short-term Airbnbswithout permission,despite having been written more than a dozen tickets over the years.

The alleged violations "demonstrate that the respondents are unwilling to refrain from the unlawful acts and are a clear case of flouting the City's bylaws," read one of fourpetitions filed in B.C. Supreme Court on Wednesday.

The filings are the latest legal fights over short-term rental lawsin B.C.Amala'sCEO,Angela Mason, is one of hundreds of propertyowners and managerscurrently taking the provincial governmentto courtover new lawswhich they say could ruin their businesses.

In an email Friday, Mason said an inquiry from CBC News was the first she'd heard of the city's court action against her. She said any property under Amala management "in 2024 has held the appropriate licenses and adhered to building bylaws and its rental use."

"This is not the first time our company has been bullied by the city's [short-term rental]bylaw department. This is not a group that is interested in working with business licence holders to find solutions."

Downtown hotspot

The city's court documentslistfour Airbnbs:a studioon Pandora Avenue, a two-bedroom condo on Herald Streetand a pair of one-bedroom condos on Yates Street and Fisgard Street.They're within roughly one kilometreof each other;two are across an alley from each other.

The area is a hotspot for visitors, packed withshops, bookstores, restaurants and cocktail bars within walking distance of landmarks like the Inner Harbour and the B.C. Legislature.

Amala, which Mason founded in 2016, manages short-term rentals for property owners in the downtown Victoria area.

Short-term rentals, like those listed onAirbnb or Vrbo, have beenrestricted underVictoriabylaws since 2018. Property owners can't rent homes for fewer than 30 days without a short-termrental licence from the city.

The city's court documents say Amaladoes not have licences for the four downtown condos plus, the city say theyare in a zoningarea that doesn't allow any short-term rentals.

The city says it has been trying to teach Amala about its rules since around 2020. Its petitionssay Masonsigneda letter in September admittingshe'd broken the bylawsafter the city wrote her more than a dozen tickets that spring, but that the four properties are still advertised on Airbnb.

In her email, Mason said the court action is "not the first time our company has been bullied by the city's [short-term rental]bylaw department."

"This is not a group that is interested in working with business licence holders to find solutions," she wrote.

The city is asking for a court order permanently banning Amala from running the condos or any other homes, anywherein the city as short-term rentals. It's also asking for a court order giving city employees the right to go into the condos for daytime inspections fortwo years, so long as they give the owners a day'snotice.

The city declined further comment.

Fight with the province

On top of the case with the city, Mason is alsochallenging a new B.C. law restricting short-term rentals to a homeowner's principal residence. It meansshort-term rentals, likethose offered on Airbnb, have to bewithin a host's home, or a basement suite or laneway home on the property.

The Short-Term Rental Accommodations Act took effect on May 1 and appliesinmore than 60 communitiesacross the province.

WATCH | Property owners seek compensation:

Property owners seek judicial review of new short-term rental rules

4 months ago

Duration 1:27

A group of property owners offering short-term rentals is seeking a judicial review into new provincial rules. As Meera Bains reports, they also want final compensation and a court injunction to delay enforcement of new regulations limiting short-term rentals.

The government says the law is meant to stop short-term rentals from "taking away homes people need." In an interview last winter, Housing Minister Ravi Kahlonsaid Airbnbproperty managersshouldfind new jobs.

Mason, Amalaand the West Coast Association for Property Rights filed a petition against the lawin April; asking a judge to decide whether the province had the authority to pass the act.

In the filing, Amala said it hadlaid off more than half of its previous 32 employees and cut seven contractors by April because of the new rules announced in October. The companysaid the number of short-term rentals under its management had dropped by a quarter, down from 90 to 65.