Provincial short-term rental regulations take effect May 1, more details announced

With the new regulations to limit short-term rentals in B.C. coming online next month, the province has released further details.

The Short-Term Rental Accommodations Act takes effect May 1, for communities across the province, including Vernon and Kelowna.

The new rules are as follows:

• The Principal Resident Requirement: Short-term rentals can only be offered in the principal residence of a host, plus one additional unit, secondary suite or lane way home/garden suite on a property in a community with a population greater than 10,000 people. This requirement will function province-wide for communities, though local government will still be able to use more restrictive bylaws.
• Strata hotels and motels that have been operated in a manner similar to a hotel or motel before December 8, 2023, and meet select criteria moving forward, will be exempt from the Principal Residence Requirement.
• Non-conforming use of property will no longer apply to short-term rentals,
• If a business licence is required by the local governments, then short-term rental hosts will be required to display a valid business licence number on their listing. Local governments will be able to request a platform remove listings that do not display a valid licence.
• Short-term rental platforms will be required to share data with the province.

The province also says short-term rental platforms will be required to add a field for hosts to display their business license; will be required to provide the province with the name and contact information of the host; need to provide data to the province on a monthly basis, stating June 17; and remove listings at the request of the province or local governments.

A short-term rental data portal has been created to support local governments with monitoring and enforcement of regulations.

The Provincial Short-Term Rental Compliance Enforcement Unit will be phased in starting May 1. The unit will be able to investigate allegations of non-compliance, which may result in monetary penalties ranging from $500 to $5,000 per day for hosts, and up to $10,000 per day for corporations, depending on the infractions. Those breaking the rules may also be issued compliance orders and could have their listings removed from platforms.

The province noted people who have short-term rentals booked for after the new regulations come into effect should contact the host to ensure the property complies with the rules, though noted the responsibility to follow the rules is on the host, and visitors will not be penalized for staying in a non-compliant property.

The intent of the policy is to address how the short-term market is taking away long-term homes for people.

“The effect of short-term rental apps like Airbnb, VRBO and others has been the loss of thousands of long-term rental homes in the midst of a housing crisis, driving up the cost of housing for British Columbians,” Premier David Eby said.

“That’s why our government has created balanced new rules to crack down on speculators who are effectively operating mini hotels, while also ensuring homeowners can still rent out spaces in their principal residence. As we’ve already seen, these new rules are turning short-term rentals back into homes for people who live and work in our communities.”

The province noted a recent analysis of short-term rentals in B.C. showed that more than 19,000 entire homes in the province were being listed as short-term rentals for the majority of a calendar year, and that 10 per cent of hosts earn nearly half of all revenue.

“We are in a housing crisis that requires strong action to deliver more housing for the people who live and work in our communities,” Housing Minister Ravi Kahlon said.

“The changes passed last fall to tackle the growing short-term rental challenges are already bringing more long-term homes back onto the market. As the rules for hosts and platforms come into effect, we are taking another strong step to deliver more long-term homes for people in communities throughout B.C.”