The City of Vancouver is investigating the operation of 17 short-term rental units in a Kitsilano apartment block.
There are 17 Airbnb listings in the New York Apartments at 2341 York Ave. near Kitsilano Beach. The two-storey building has 29 units, according to its owner, and is zoned as a medium-density residential development.
In Vancouver, all rental tenancies must be at least 30 days except in hotels and licensed bed and breakfasts, but the vast majority of Airbnb hosts violate this regulation. In online reviews, many users say they stayed at the New York for just a few days.
The building was sold last July for $3.8 million to Nevin Sangha of Carrera Management Corp. Sangha said his firm manages around 300 conventional rental units in the Lower Mainland, and stressed that the New York is the firm’s only building using Airbnb.
The reason for the Airbnb units, he said, is because his staff has struggled to rent out the New York’s SRO units using traditional methods such as Craigslist.
“They’re SROs so they’re pretty hard to rent out the way they are,” said Sangha, adding, they’re “not what the market’s looking for so the Airbnb seems to make more sense for them.”
Tenants of the New York’s sleeping rooms – SROs averaging 110 square feet – share four parking stalls and common washrooms, showers and baths. The building also has a penthouse and several one- and two-bedroom units. Units are listed at between $60 and $169 per night.
Sangha said the firm spent close to $1 million restoring the New York after “much-deferred maintenance” left some units uninhabitable.
He’s working with an architect to prepare an application to convert some of the SROs into conventional rental units and his firm hopes to attract potential long-term tenants such as students, he said.
Sangha said he understands there are critics of Airbnb but said many of the units get 30-days stays. He said city staff visited the building three times and took no issue with the short-term rentals.
“It’s a lot of work, and it’s in our best interest to go with the longer-term tenants,” he said. “We don’t make any real returns on the short-term tenants because there’s a lot of labour.”
In an emailed reply to questions, the city said it received a complaint through its 3-1-1 phone line about alleged multiple short-term rental units at the New York. It is investigating the rental use.
“There is a valid residential rental business licence for a rooming house with up to 24 sleeping units,” the city said. “However, in Vancouver, all rental tenancies must be at least 30 days except in licensed bed and breakfasts.”
The New York’s Airbnb use isn’t unique.
Iain Marjoribanks, a student with the University of B.C.’s school of community and regional planning, tallied more than 3,400 active Airbnb listings in Vancouver last December. His research found that 99.3 per cent of Airbnb stays in Vancouver are shorter than 30 days.
“The majority of Airbnb’s listings, bookings, and revenue [italics his] appears to come from a minority of ‘commercial’ hosts: property managers who list one or several full houses, apartments, and rooms on a long-term commercial basis,” he said in his report.
The city is working to address concerns about the impact of short-term rentals on the rental market. Last year, Vancouver had the lowest vacancy rate in Canada at 0.6%, according to a staff report.
In an email, the city said: “Council has directed staff to review the City’s current regulations and enforcement practices for short-term visitor rentals, and propose changes to prevent negative impacts on the supply and affordability of rental housing for Vancouver residents. Work is underway and council will consider options in the fall.”
In a motion filed in April regarding the regulation of short-term rentals such as Airbnb and VRBO, Councillor Geoff Meggs said: “It is probable that many of these units are being offered in violation of the zoning and development bylaw with a negative impact on vacancy rates, building security and public safety considerations.”
