Licence to host: Councillors discuss regulating Airbnbs in Yellowknife

Yellowknife is one step closer to regulating short-term rentalslike Airbnb.

The city'sMunicipal Services Committee discussed a proposed bylaw put forth by Kerry Penney, director of the Department ofPolicy, Communicationsand Economic Development, on Monday.

The proposal suggests hosts forAirbnband other short-term rentals get a $100 business licence every year. They would also have to comply with any territorial legislation applicable to businesses, like yearly fire code inspections.

The hostswould also have to display their business licence numberin all advertisements, includinglistings on websites like Airbnb or local the classified siteYKTrader.

If a short-term rental host fails to display their business licence number, it could result in a fine of up to $1,000 per day.

Though this might seem onerous to people hoping to rent out an extra bedroom for a few weekends over aurora season, Penney said that ultimately, a business is a business.

"We don't differentiate other types of businesses this way for example, if you cut hair, you can't say, 'I only cut hair two weeks of the year, I don't need a licence,'" said Penney.

The city has been looking into regulating short-term rentals since 2016. Some residents worry unregulated and unchecked Airbnbs could strain existing resources, like street parking or housing availability.

• Amid hotel room shortage, Yellowknife tourists sleep in tents and cars
• Now hiring: A bartender at one of the most remote hotels in the North

Councillors agreed on the positive impact Airbnb has on Yellowknife's burgeoning tourist industry. The proposal said Airbnband other short-term rentals can provide more affordable accommodation, a more "local"experience, and provide extra convenience for travellers.

Coun.Julian Morse was quick to guard against stifling Airbnb in Yellowknife. He maintained there were still unanswered questions in the proposalwould family homes have to follow business bylaws, like having sprinkler systems?

"Are we just pushing people out of that market or are we going to bring our standards down to reflect realities?" he said.

What constitutes a short-term rental?

A key concern for the future of the bylaw is the need for a clear definition of what a short-term rental is. Penney said while definitions have yet to be finalized, any licensing is unlikely to affect seasonal workers who sign a lease.

In other jurisdictions across Canada, short-term rentals are defined by the number of nights a guest stays typically, anything less than 30 nights is short-term.

But these definitions are important to people like Faith Embleton, who co-owns the Embleton House alicensed bed and breakfast in downtown Yellowknife.

She said bed and breakfasts are important to distinguish from ad hoc accommodation, like those found through Airbnb.

People expect a certain level of service and professionalism from a B&B that cannot be guaranteed in an Airbnb, said Embleton.

"I don't want short-term rentals being called bed and breakfasts, when I take great pride in being what I am. On the same token, I don't want to turn my bed and breakfast into a short-term rental. I know it's more than that," she said.

Widespread support for regulation

A public survey done by the city found that over 59 per centof residents wanted Airbnbhoststo have a business licence.

Janine Jenkin is a new host on Airbnb in Yellowknife. She said, through the Airbnb messaging system, that she's OK with the implementation of the city bylaw for Airbnb hosts to geta business licenceand she expects it would have a minimal impact on her business.

• Rental office backlogs make renting in N.W.T. risky business, says landlord

In an emailed statement to the CBC, the public policy manager of Airbnb Canada Alex Dagg said, "Airbnb welcomes the City of Yellowknife's move toward regulating home sharing and we encourage them to embrace an approach that maintains flexibility for families."

The proposal will go before council on July 23, with a recommendation on how to proceed from the councillors.

If approved, the city will soon start consultations with stakeholders and the general public to refine the proposal.