Kelowna looks to implement more restrictive rules for short-term rentals

Photo: CTV-file photo

The City of Kelowna is going to get tougher on short-term rentals.

That was the wish of city council during a review of bylaws first enacted to regulate the short-term rental industry in 2019.

During the review, staff told council while the number of business licenses issued by the city has nearly doubled from 2020 to 1,139, however several hundred continue to operate illegally.

And, the number of complaints from residents continue to come in.

"Parking remains contentious, noise complaints remain high in certain neighbourhoods," said development planning manager Terry Barton in his presentation to council.

He says the number of sleeping units per dwelling and the maximum number of bookings at the single residence also remain common complaints.

Barton says while a majority of short-term renters do follow the rules and regulations set out in 2019, there are still a lot that don't.

"And, it's those that don't that provide a negative tone over the overall program.

"Illegally operating STR's are likely always to exist within the community as they are profitable and there is money to be made. This will always require a degree of enforcement regardless of the specific regulations."

When council adopted the bylaws governing short-term rentals, it acknowledged a concern over protecting the valuable long-term rental stock in the city.

Coun. Luke Stack says that continues to be a concern.

"That's our objective but I don't think we're being successful at it. I think this is impacting long-term housing," said Stack.

"We've heard that from consultants across the country. Wherever short-term rentals come into play the long-term housing stock is the loser and that complicates our issues with housing and the price of housing."

During the review, staff gave council three potential options for changes within the program from minor tweaks to major changes to a bylaw banning them from all parts of the city.

While staff recommended just minor changes, council sought to be more restrictive than it is right now, opting for major changes to the bylaw including the potential for limiting use within townhouses and apartments and increasing the price of a business license and also increasing the fines levied against those who do not comply with the bylaw.

In terms of fees and penalties, Barton says those are restricted to cost recovery and are not to be punitive according to the Community Charter.

"We're in the middle of not just an affordability crisis by a housing availability crisis so, absolutely we have to go more restrictive," said Coun. Gord Lovegrove who pointed out one of the most restrictive municipalities in the province is another tourist town, Whistler.

"I think the previous council did a good start...but don't forget this is only five years old. If we banned them outright like Whistler has, people could still do long-term rentals for 29 days and above and still make money.

"This is a five-year-old bylaw to try and slow it down, but I think we have to tap the brakes again."

Mayor Tom Dyas said the city has to strike a balance between people being able to supplement their income and neighbour's right to enjoy their property.

"When we are looking at being a little more restrictive in a number of initiatives we are going to look at moving forward, a lot of this has been brought forward because of abuses that have happened with individuals who have been affected by these abuses," said Dyas.

A new series of potential bylaws are expected to be brought back for council consideration in the fall.