New Short-Term Rental Regulations in BC
Effective May 1, 2024, the Province of British Columbia has new short-term rental rules. Under the new rules, short-term rental platforms will be required to share information about short-term listings with the Province, which they can then share with local governments. The Province is implementing a provincial principal residence requirement which will limit short-term rentals to:
- The host’s principal residence
- Plus one secondary suite or accessory dwelling unit
Non-conforming use
Protections for non-conforming use of property will no longer apply to short-term rentals. In some areas, these protections have historically allowed hosts to continue to use their property for short-term rentals even when it was against the new rules set by the local government.
Also, the new provincial principal residence requirement will come into effect. This means that regardless of local zoning bylaws, the principal residence requirement will apply in designated communities.
Increased fines and tickets
- Fines that can levied by local governments are expected to increase from $1,000 to $3,000, which can be imposed per infraction, per day.
- The Local Government Act will also be amended to increase the maximum penalty that can be levied by regional districts from a maximum of $2,000 to up to a maximum of $50,000 for prosecutions under the Offence Act.
Provincial registry
The Province will establish a short-term rental registry. This will help ensure that short-term rental hosts and platforms are following the rules and provide local governments and the Province the information needed to follow up when they don’t.
Hosts will be required to include a provincial registration number on their listings. They will also have to include their business license number if a business license is required by the local government. Platforms will be required to validate registration numbers on host listings against the Province’s registry data.
Timeline
The regulations and responsibilities under the proposed Act will come into effect at different times over the next two years through a phased approach.
- Immediately after Royal Assent: Increased fines and tickets, business licensing authority for regional districts.
- May 1, 2024: Principal residence requirement (including definition of exempt areas or accommodations), changes to legal non-conforming use protections.
- Summer 2024: Data sharing.
- Late 2024: Provincial registry launch, requiring platforms to remove listings without valid provincial registry numbers.
REBGV Short Term Rentals and Airbnb Update
- “short-term rental accommodation service” - less than 90 consecutive days, property and host, no platform.
- “short-term rental offer” - offer by a supplier host to provide short-term rental accommodation services.
- Craigslist and similar marketplace are not platforms part of the legislation.
- ADUs can be their own short-term rental, even if it’s not host’s primary residence, though this does not apply to the City of Vancouver.
- Third-parties may market or manage a STR on behalf of a licensed STR operator with a Property Manager business license to provide that service.
- 83% of hosts share one property in the CoV.
- 80% of BC short-term rental areas do not have any hotels. There are more short-term rentals than hotel accommodation.
- Over 1 million booked an Airbnb in the last 12 months.
- Consequently, hotel prices go through the roof. Up 8% year-over-year after restrictions came into place in other cities. New regulations will have an impact on the tourism economy.
- Supply goes underground to marketplaces that don’t have insurance, review systems, etc.
- Rent prices increase, vacancy rates remain the same. No compelling evidence that Airbnb activity has a material impact on the housing market and rental rates.