B.C. Interior Realtors want short-term rental rules loosened

Realtors want rules loosened

Photo: Ivan Radic / Flickr

Realtors in the B.C. Interior want the province to loosen restrictions on short-term vacation rentals.

Realtors in the B.C. Interior are calling on the provincial government to loosen restrictions on short-term vacation rentals.

The Association of Interior Realtors released a report Monday prepared by Real North Strategies, a firm specializing in housing sector advocacy.

The report makes the argument that short-term rental restrictions are harming the tourism sector and reducing temporary workforce housing.

“Since the inception of the new regulations on short-term rentals we’ve been hearing of issues in every corner of our association,” said Kadin Rainville, Association of Interior Realtors president.

Right now in most cities, short-term vacation rentals like Airbnb and VRBO are allowed only on the property of a homeowner's principal residence.

The report is asking the B.C. government to allow municipalities to designate tourism zones that are exempt from that requirement. Exemptions should also be granted around essential worksites and healthcare centres, according to the report.

Realtors would also like to see regulations aligned with seasonal tourism needs by allowing communities to opt-out more quickly of the provincial regulations—which is permitted when vacancy rates are above three per cent for two consecutive years.

The group also wants strata hotel and fractional ownership properties to be exempt from the rules.

“We understand the impetus behind the legislation, we have critical housing issues in this province,” said Rainville.

“That said, we need to make sure policy is balancing these housing issues with economic well-being of interior communities. Our recommendations are really asking for a little more flexibility in the rules to allow for that balance.”

The report makes the claim that the short-term rental restrictions have not helped with housing affordability.

“Since the legislation was introduced, rent prices across the province have continued to rise significantly,” said the report.

But stats shared by the provincial government at the end of April show that is not the case. Rentals.ca data shows asking rates for long-term rentals are down 6.1% across B.C. since the short-term rental legislation was introduced. CMHC data shows provincewide vacancy rates are up from 1.2% in 2023 to 1.9% in 2024.

Last week, the BC Real Estate Association made its own call for the province to bring in tourism-related exemptions to short-term rental rules.

In response, Housing Minister Ravi Kahlon said the province would be moving ahead with the rules, which will force platforms to cancel bookings at unregistered rentals starting June 23.

“The suggestion that we provide exemptions would make sense only if we had a complete ban on short-term rentals, but that’s not the case,” Kahlon said in an interview with Business in Vancouver.

“Short-term rentals are available in communities throughout the province. They are available in small communities through B.C. In fact, there’s a lot of communities that don’t even have the principal residence requirement put on them.”

He also said communities continue to have hotel capacity, and that there’s a “clear path” for affected municipalities to opt out of the principal residence requirement if their vacancy rate exceeds three per cent for two years.

“If you’ve got a limited supply of housing, let’s prioritize it for our people,” Kahlon said.