Short-term Rentals – BC government restrictions
In October 2023, the BC government passed Bill 35: Short-term Rental Accommodation Act, banning most short-term rentals, except those in principal residences. The goal is to turn short-term rentals ( airbnb ) into long-term homes for people.
Short-term rental listings on online platforms (which may include, for example, Homes on Airbnb, VRBO, Expedia, Tripadvisor) have expanded rapidly over recent years. Recent data indicates a persistent surge in B.C.’s short-term rental market, reaching unprecedented levels since the onset of the COVID-19 pandemic. This surge has led to a significant shift, diverting thousands of long-term rental homes into the short-term market. Currently, the region boasts approximately 28,000 daily active short-term rental listings, reflecting a notable 20% increase from the previous year. Moreover, the data highlights that over 16,000 entire homes are listed as short-term rentals for the majority of the calendar year.
The legislation focuses on three key areas:
- increasing fines and strengthening tools for local governments
- returning more short-term rentals to long-term homes
- establishing provincial rules and enforcement
Revising the management and oversight of short-term rentals will result in the return of thousands of homes to the market in the next few years. This initiative grants smaller and tourism-reliant communities the flexibility to choose whether to implement principal residence requirements based on housing pressures in their respective areas.
This legislation will not apply to hotels and motels. Regulations are also being drafted to exempt additional types of properties, for example, timeshares and fishing lodges, which are not intended to be covered under the scope of the legislation.
Communities with principal residence requirement
Communities where the principal residence requirement will be applied are listed below – communities with a population of more than 10,000 people and those immediately adjacent to them.
Communities adjacent to larger municipalities are defined as smaller communities less than 15 kilometres away from a larger community with the principal residence requirement.
When regulations are released, it is intended that communities over a 3% vacancy rate (using the most current data available) may request an exemption from the principal residence requirement.
Timeline of legislation for Short-term Rentals (airbnb)
The proposed legislation and accompanying regulations will come into effect in a phased-in approach.
Phase 1 – Increasing fines (immediately after the legislation is passed and receives royal assent)
- Fines
Forthcoming regulations are intended to increase fines under the municipal ticketing information (MTI) system in the Community Charter and Vancouver Charter By-law Enforcement Ticket Regulations from $1,000 to $3,000 per infraction, per day.
Increase the maximum fine regional districts can set for prosecutions of bylaw offences to $50,000 (consistent with the maximum fine for municipalities under the Community Charter). - Regional districts
Amend the Local Government Act to provide regional districts with the authority to create businesses licences for short-term rentals (airbnb).
Phase 2 – Releasing short-term rental units to long-term use (May 1, 2024)
- Enacting the principal residence requirement
Require short-term rentals (airbnb) to be provided in the principal residence of a host only, plus one secondary suite or laneway home/garden suite on the property in communities with a population over 10,000 people. - Removing legal non-conforming use clause
Remove legacy protections of non-conforming use of property in the Local Government Act and Vancouver Charter so they do not apply to short-term rentals (airbnb).
Phase 3 – Introducing platform accountability measures (summer 2024)
- Requiring that short-term rental platforms include businesses licence numbers on listings where they are used by a local government, and to remove listings without them quickly to ensure local rules are being followed.
- Requiring platforms to provide certain information about listings to the Province on a regular basis and allow the Province to share information with local governments to support bylaw enforcement.
Phase 4 – Creating provincial oversight (late 2024)
Creating a registry and requiring all short-term rental hosts to register their short-term rental properties, and require platforms to register their business operations with the Province.
To learn more visit: BC gov. short-term rentals
NOTE: There are asterisks (*) on communities that currently have a vacancy rate above 3% using 2023 CMHC data.
Communities currently exempt from this list may be added if local governments request to join or opt into the principal residence requirement.
The communities with a population of more than 10,000 people (in order of population size) are as follows:
- Vancouver
Surrey
Burnaby
Richmond
Abbotsford
Coquitlam
Kelowna
Township of Langley
Saanich
Delta
Nanaimo
Kamloops
Chilliwack
Victoria
Maple Ridge
District of North Vancouver
New Westminster
Prince George*
Port Coquitlam
City of North Vancouver
Langford
Vernon
West Vancouver
Mission*
Penticton
West Kelowna*
Campbell River
Port Moody
North Cowichan
City of Langley
Courtenay
Squamish
White Rock
Fort. St. John*
Cranbrook
Salmon Arm
Pitt Meadows
Colwood
Port Alberni
Oak Bay
Esquimalt
Central Saanich*
Lake Country
Sooke
Comox
Powell River
Parksville
Dawson Creek*
Sidney
Prince Rupert*
North Saanich
Summerland
Terrace
View Royal
Coldstream
Nelson
Williams Lake*
Sechelt
The following are adjacent communities and will have the primary residence requirement:
- Qualicum Beach
Metchosin
Duncan
Cumberland
Highlands
Anmore
Pouce Coupe*
Belcarra
Resort regions will be exempt from the principal residence requirement but can opt in if local governments choose to do so. There are 14 resort regions in the province:
- City of Fernie
Town of Golden
Village of Harrison Hot Springs
District of Invermere
City of Kimberley
Town of Osoyoos
Village of Radium Hot Springs
City of Revelstoke
City of Rossland
Sun Peaks Mountain Resort Municipality
District of Tofino
District of Ucluelet
Village of Valemount
Resort Municipality of Whistler
Check our other blogs under Real Estate 101 – that might give you answers about buying or selling a home.
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