Understanding New Rules for Short-Term Rentals in British Columbia

Introduction:

Short-term rentals, such as those on Airbnb, VRBO, Expedia, and FlipKey, have become increasingly popular in British Columbia and worldwide. But this growth has caused problems, including a shortage of long-term rental housing. To tackle this issue, British Columbia has introduced the Short-Term Rental Accommodations Act, bringing in new rules. In this blog post, we’ll break down these rules in a simpler way, making it easy to understand their impact on housing.

Short-Term Rental Accommodations Act:

British Columbia is facing a housing crisis, especially the lack of affordable housing, including long-term rentals. The rise of entire home short-term rentals makes it even harder for people to find long-term housing. Many local governments have tried to regulate short-term rentals, but enforcing these rules has been tough. So, they’ve asked for more help from the provincial government.

The new rules aim to do three things:

1. Empower Local Governments: These rules give local governments more authority to enforce short-term rental laws effectively.
2. Return Homes to Long-Term Market: They want to make sure that short-term rental units become long-term rentals, giving more options to residents.
3. Establish Provincial Oversight: They aim to create a provincial role to keep rules consistent across the province.

Who Do the New Rules Apply To?

These rules apply to all short-term rentals offered to the public. This includes those listed on Airbnb, VRBO, Expedia, and FlipKey. They also include listings on websites like Facebook Marketplace, Kijiji, and Craigslist. But they don’t apply to reserve lands, Nisga’a Lands, Treaty Lands of a Treaty First Nation, or traditional hotels and motels.

Key Changes to the Rules:

1. Stronger Local Government Tools:

• Increased Fines and Tickets: Regional districts can now set fines of up to $50,000 for rule-breaking, matching what municipalities can do.
• New Business Licensing: Regional districts can now regulate and license short-term rentals, much like municipalities. Hosts may need to show a valid business license number.
• Platform Accountability: If a listing doesn’t have the right business license, the short-term rental platform must remove it when asked by the local government.

1. Returning Homes to Long-Term Market:

• Principal Residence Requirement: This means short-term rentals are limited to the host’s main home plus one more living space. This rule applies to many municipalities with 10,000 or more people. Some areas and accommodations might not have to follow this rule.
• Exempt Areas: Local governments can choose to “opt in” or “opt out” of the principal residence requirement, depending on vacancy rates and local needs.
• Local Bylaws: Hosts must still follow local rules, which can be stricter, depending on local needs.

1. Establishing Provincial Oversight:

• Provincial Registry: A short-term rental registry will be set up to ensure hosts and platforms follow the rules. Hosts need to show a provincial registration number on their listings.
• Provincial Compliance and Enforcement Unit: This unit will check if rules are followed, give orders, and impose penalties for violations.

Timeline for Implementation:

These rules will be rolled out over two years:

• Immediately after Royal Assent: Increased fines and business licensing for regional districts.
• May 1, 2024: Principal residence requirement and changes to legal non-conforming use rules.
• Summer 2024: Data sharing.
• Late 2024: Provincial registry launch, requiring platforms to remove listings without valid provincial registry numbers.

Definitions:

• Short-Term Rental: Accommodations offered for less than 90 days, often advertised on platforms like Airbnb, VRBO, Expedia, and FlipKey.
• Principal Residence: Where an individual lives most of the year.
• Platform Service: Helping promote and process reservations and payments for short-term rentals.
• Secondary Suite: A separate living unit within a dwelling.
• Accessory Dwelling Unit: A separate living unit on the same property as a dwelling.

Short-Term Rentals vs. Tenancies:

Most short-term rental bookings aren’t covered by the Residential Tenancy Act. But in some cases, they might be. If you’re unsure about the rules, it’s a good idea to consult a lawyer.

Conclusion:

These new rules aim to balance the sharing economy with the need for long-term housing. By regulating short-term rentals and returning homes to the long-term rental market, the government hopes to ease the housing crisis and make housing more affordable for everyone. Keep an eye on these changes, as they will significantly impact the future of housing in British Columbia. And remember, if you have questions about your rental situation, it’s always wise to seek legal advice.

Please contact Jared Gibbons, your local realtor, should you have any questions!