Short Term Vacation Rentals Metchosin Council Workshop January 9, 2018
The commercial accommodation of guests in a private residence What is an for less than 30 days. Includes entire dwelling unit, or portion of (rooms, suites, entire STR? house). Considered a commercial use.
The accommodation of guests in a private residence for more than What is NOT 30 days. an STR? Depending on bylaw, bed and breakfast may or may not be classified as an STR.
All zones allow a dwelling unit, and in most cases two dwelling units (primary dwelling and secondary suite or secondary detached suite) 1 or more rooms for the use of 1 family as a housekeeping unit What is containing cooking, eating, living, sleeping and sanitary facilities but limited to only 1 kitchen or set of cooking facilities; includes a permitted in manufactured home. Metchosin? Metchosin allows use of dwelling units by 1 family. As long as a dwelling unit is being used by a family or by 3 people rooming together, then there is nothing prohibiting tenure of shorter than 30 days. Boarding of not more than 4 persons is permitted as an accessory use of a dwelling unit. an individual other than a member of the family occupying the dwelling unit or a part thereof who, for a consideration, is furnished sleeping accommodations and may be furnished meals or other services as part of the consideration; excludes the preparation of meals in sleeping areas. No regulations regarding time limits, and no business licence What is requirement. permitted in Bed and breakfasts are permitted as a home business Metchosin? up to 6 people but no more than 3 bedrooms only a portion of the dwelling can be used as the bed and breakfast. a secondary suite or detached suite cannot be used for bed and breakfast the business must be operated by the resident business licence is required.
Nuisance Bylaw cannot make any noise or sound which disturbs the quiet peace, rest, enjoyment, comfort or convenience of the neighbourhood or of persons in the vicinity; allow property of which he is the owner, tenant or occupier of, to be used so that a noise or sound which originates from that property disturbs the quiet peace, rest enjoyment, comfort, or convenience of What is the neighbourhood or of persons in the vicinity permitted in Business Bylaw Bed and breakfast business - $35 fee Metchosin? In the past rental of home or suite not considered a business (formerly local governments were prohibited from requiring a business licence) some municipalities now charge a business licence fee to property owners who rent their homes or suites (e.g. Burnaby and Vancouver).
Two searches at different times of the year resulted in 16 and 17 Scale of STRs different listings on two different rental websites For comparison purposes, the City of Victoria estimates there are in Metchosin 1,500 STR units in the City
Larger groups of renters are who have not been respectful of neighbours, and have evening parties, loud music, games, etc. Parking issues What are the Multiple vacation rentals in specific neighbourhood concerns for No resident or contact to monitor or respond to complaints or Metchosin concerns from neighbours (difficulty holding owners accountable) Impact on the character of the neighbourhood when it is occupied residents? by vacationing public rather than residents Visitors’ lack of understanding of local issues (awareness of wildlife (bears, placing garbage out that attracts bears), water safety, etc.) Removal of rental stock – units that may otherwise be used as long term rentals, are instead being used as short term rentals, reducing the availability of affordable housing Un-level playing field for bed and breakfast or hotel owners. Lack What other of regulations and taxes in comparison to hotels, where owners are responsible for: concerns are responding to complaints there with implementing fire codes and regulations levying hotel tax, and STRs? paying commercial property taxes. Insurance - some residential insurance policies are void if commercial activities like short-term renting takes place. This includes both property damage and liability insurance. Places having hard time with them include: tourist destination spots (summer or winter resort towns) concerns regarding fair rates/competition between bed and What other breakfasts and hotels, particularly regarding taxation or where there is a tourism fee or contribution (marketing, economic development, concerns are etc.) areas with low rental vacancy rates or in need of affordable housing there with for local workers STRs? Victoria, Nelson, Tofino, Revelstoke, Whistler, Vancouver, Kelowna, Penticton, Rossland, Sun Peaks, Kamloops, some Islands Trust communities, Sechelt, and Fernie have or are considering regulations Different regulations with respect to: Zoning where allowed process for approval (allowed in various zones vs. rezoning) Bedrooms or whole units, how many bedrooms Licence regulations What are regulations fee structure others doing? licence caps Enforcement several places are undertaking proactive enforcement strategy
STRs were previously allowed in entire residential units where “transient accommodation” was a permitted use (mostly in downtown Victoria) Now removed as a permitted use (affects 1,700 residential units) Creates legal non-conformance for existing STR operators STRs of no more than 2 bedrooms in a single family dwelling where the unit is occupied by the operator (home business) Victoria continued to be permitted Short term rentals of secondary or garden suites not permitted Proposed to add STRs as permitted use (portion or whole unit) in a principal residence, and to allow rooms in condos, townhouses, secondary and garden suites Business licences required ($200 to $2,500 – still to be determined) Proactive enforcement (staff and third party agency to monitor) STRs permitted in many zones (11 different zones) STRs must be operated by a resident Business licence (fees are $450 plus $150 for each extra bedroom) Proactive enforcement (owners must display business licence number on any marketing or advertisements) Tofino “host compliance” software Identify where no business licence, or where not permitted by zoning, or no primary resident Home inspections Licence fees are based on enforcement costs 65 tickets issued in 2017
What didn’t want Spot rezonings and public hearings Unenforceable limits (i.e. 90 days per year) Where 1 or 2 guest rooms (3 or more requires rezoning) Entire dwelling or suite No more than 3 STRs on one block B&B considered an STR (existing B&Bs grandfathered) Licences Year round licences (cap of 110) – fees between $200 and $800 Nelson Summer (May to August), cap of 40 – fees between $110 and $400 31-day licences – 1 per year per property - $160 Requirements Ownership and primary residency required (except for summer licences, to allow for rental of student housing) Inspections every 3 years ($30 fee) 24/7 local contact required (within 30 km) Membership in local tourism association $500 security deposit – used if have to investigate complaints (and must be replenished) STR is rental of an entire residential unit (single family or secondary suite), not room rental. Rezoning required before STR approved $1,800 rezoning and advertising fee Council evaluates each application individual merits Can attach conditions to the approval Revelstoke 59 public hearings in first year (16 denied) If successful, rentals limited to 120 rental nights per year STR licences capped at 125 beds Business licence required Fee is $200 plus $5 per bedroom Triggers building and fire inspections 24 hour contact info required
Do we want to Allow? Prohibit? If allowed, do we want to regulate Where? (zones, unit types, suites) What regulations? Process to approve Options Business licences Fees Inspections Resident requirements Local contact numbers Quoting business licence numbers in advertising Enforcement approach?
Staff Next steps Council