New Short-Term Rental Regulations Take Effect in British Columbia on May 1

The British Columbia government is set to implement new regulations for short-term rentals, effective May 1, 2024. The regulations aim to address the loss of long-term rental homes due to the growth of short-term rental platforms like Airbnb and VRBO.

Under the new rules, short-term rental hosts will be required to comply with local government regulations and a provincial Principal Residence Requirement. Hosts can only operate short-term rentals on their primary residence, with limited exceptions for additional units like a guest house. They must also display a valid business license number on their listings if required by the local government.

The province is establishing a Short-Term Rental Compliance Enforcement Unit to investigate non-compliance, with penalties ranging from $500 to $10,000 per day for violations. Short-term rental platforms will be required to add a field for hosts to display their business license, provide the province with host information, and submit monthly data.

Why this matters: The new regulations are part of the province's 'Homes for People' action plan to tackle the housing crisis and deliver more affordable homes in British Columbia. The government aims to free up more long-term rental housing by turning short-term rentals back into homes for people who live and work in local communities.

The regulations will apply to over 60 communities with populations over 10,000, as well as 17 smaller communities that have opted in. Strata hotels and motels operating as hotels before December 8, 2023, will be exempt. Local governments can still use their own bylaws to further regulate short-term rentals.

Visitors staying in short-term rentals after May 1, 2024, are encouraged to check with their hosts to ensure compliance with the new rules, but will not face any fines themselves. The province estimates that at least half of the over 19,000 entire homes currently listed as short-term rentals could return to the long-term rental market under the new regulations.

Despite some pushback from homeowners and the tourism industry, the government is confident in its legal authority to regulate the housing sector in this way. "The overall message is to prioritize housing for families over speculative investments," said a government spokesperson. The changes have also led to an increase in hotel construction in tourist areas like Vancouver.

Key Takeaways

• BC to implement new short-term rental regulations from May 1, 2024.
• Hosts must comply with local rules, have a business license, and list on primary residence.
• Penalties up to $10,000/day for violations, platforms must add license fields and provide data.
• Regulations aim to free up long-term rental housing by turning short-term rentals back into homes.
• Over 60 communities with 10,000+ population and 17 smaller communities will be affected.