Enforcement of Victoria’s new regulations governing short-term rentals will begin this summer.
After a lengthy public hearing this week, city councillors approved a two-tiered fee structure and bylaws establishing new regulations for short-term vacation rentals offered through platforms such as Airbnb.
Coun. Ben Isitt said the new rules fill a regulatory vacuum that has allowed housing units to be converted into “ghost hotels.”
Homes that were converted into ghost hotels can now help meet the housing needs of students, working people, senior citizens and others belonging to the three-fifths of the local population who are not fortunate enough to own a single residential property, let alone a second, third or fourth, Isitt said.
Under the new rules, which kick in next month, people operating short-term vacation rentals will have to pay annual business fees of $150 or $1,500.
The city plans to hire a third party to watch for vacation rentals being operated contrary to zoning (such as in residential neighbourhoods) or regulations. That is expected to take about three months to get underway.
Admitting the new regulatory regime is not a silver bullet for housing affordability, Coun. Jeremy Loveday said it will help.
“This is a small piece of the housing affordability puzzle. If we can get units back into the housing market, that will have an impact and that will have an impact on our vacancy rate in the right direction,” Loveday said, noting the regulations are flexible.
“This isn’t about crushing short-term vacation rentals. This isn’t about stomping out the sharing economy,” he said.
Only Coun. Marianne Alto voted against, after trying unsuccessfully to have consideration of the bylaws postponed to allow for more consultation.
Alto said the changes represent “a very small part” of what is needed to address the housing-supply crisis in the city and the new regulations will be no magic fix.
“I think it’s unrealistic to think and even based on tonight’s anecdotal evidence, if you want to call it that, and the many stories we’ve heard over the last two years, that it’s reasonable to expect that all of these units will be converted into long-term housing,” Alto said.
Under the new fee structure, people who list their entire principal residence occasionally — for example, when they are on vacation — or rent a single room or two within their home, would pay $150 a year.
Non-principal residences, including investment properties and second homes, would be subject to a $1,500 annual fee.
Use of secondary suites within homes in residential neighbourhoods as short-term rentals is not permitted.
Several people complained the $1,500 fee is excessive — more than is paid by a major hotel and amounting to a 1,200 per cent increase.
Proposed regulations will require short-term rental operators to obtain a business licence, to comply with requirements such as displaying a business licence number in all advertisements, and to adhere to all city bylaws, including noise and nuisance bylaws.
Under the draft bylaw, operators would be required to:
• Supply proof of principal residence.
• Meet the business licence requirement and pay business licence fees.
• Provide a letter from the strata council that the rental is not contrary to strata bylaws.
• Provide a letter from the property owner as proof of permission to operate a short-term rental.
• Be in compliance with city bylaws.
• Post the business licence number in all short-term rental advertisements.
• Name someone to manage the property if the principal resident or owner is absent.
Voting in favour of the bylaws were Isitt, Loveday and councillors Charlayne Thornton-Joe and Geoff Young.
Coun. Chris Coleman was absent.
Mayor Lisa Helps and councillors Pam Madoff and Margaret Lucas recused themselves so as to avoid any appearance of conflict.
