The Town of Sidney is making short-term rentals in homes legal, but only if the property owner or a tenant lives in the home full time.
Such rentals, allowed to a maximum of 31 days, will also be permitted while the full-time resident is on vacation.
Mayor Steve Price said the main goal of the bylaw amendment is to preserve long-term rental housing stock. “With a nearly zero per cent vacancy rate, every available unit counts towards offering long-term rental housing.”
Because of the low vacancy rate, existing unauthorized short-term rentals were likely affecting the availability of long-term rental units, the town said in a statement.
Individual strata councils will have the final say on whether short-term rentals are allowed in townhouses or condominium buildings, the town said.
Coun. Peter Wainright, speaking in favour of the new rules, told council he has heard from homeowners who are in tight financial straits when it comes to paying the mortgage, and risk losing their home without revenue from short-term rentals.
Wainright said the town has also heard from people who say their short-term rentals have attracted people to the community, leading to economic benefits.
It’s an issue municipalities throughout the capital region have had to grapple with, thanks to the surge in popularity of online booking sites, such as Airbnb.
Hotels concerned about the new rules have urged stronger regulation, including a requirement that owners of short-term rentals pay commercial tax rates and have a business licence, Wainright said, adding the business licence is a separate issue and should be left for the incoming council to deal with.
Short-term rentals were previously only allowed in hotels, motels and bed-and-breakfasts, but have been steadily growing in the community.
Under the new rules, only one short-term rental is permitted per property and no more than two bedrooms can be rented.
No cooking facilities are permitted inside a bedroom of a short-term rental.
The property must be continuously occupied by an owner or a tenant.
New rules cover most of Sidney’s residential areas. Existing short-term rentals outside a permitted area are not allowed to continue operating.
Coun. Cam McLennan said a number of residents had complained about short-term rentals, including a man who owns one side of a duplex while the owner of the other side lives elsewhere in the capital region and rents his unit out. Every weekend, the man said, the short-term visitors hold a party.
“[The duplex resident] really had no recourse.”
Sidney resident Wendy Ewing said in a letter to council that a nearby short-term rental was “troublesome, due to party noise, parking problems, and rude renters.”
