Photo: Stuart Bish

With a growing and complex market of vacation rentals, Penticton city staff are recommending bylaw amendments to better manage those rentals.

In a report addressed to council, staff are proposing to implement enforcement software for short-term vacation rentals, and to limit the amount of new units that can be used for vacation rentals.

The enforcement software proposed, called 'Host Compliance," helps municipalities understand the scope of the short-term rental activity in their community, and enact short-term rental regulations to minimize nuisances, staff said.

The second change being requested is to limit the number of new units that are allowed to be used for vacation rentals, which would be grandfathered in. 

Staff believe the changes would mitigate three "problematic trends" popping up with its current business license application process for vacation rentals. 

One of those trends is nuisance complaints, commonly from high-occupant vacation rentals.

Another concern is a perceived reduction in long-term rentals available due to vacation rentals. Staff also noted "many newly-created dwelling units are being advertised and licensed as vacation rentals. This is removing potential affordable dwelling units from the community housing stock."

Finally, the city is concerned that a high percentage of vacation rental applications include non-compliant or unauthorized renovations. 

"This not only results in potential risk to the occupants, but lost revenue to the city in permit fees as well as undervalued property assessments," staff said in their report.

It was also noted by staff that the number of vacation rental advertisements in Penticton has increased from 40 to "well over 300."

Council members will debate the proposed changes during Tuesday's regular council meeting.