Short-term rentals will only be permitted in principal residences and require a business license, according to new City of Vancouver regulations.
The City’s proposed plans to curb Airbnb rentals were introduced July 5 and will be voted on by council next week. If passed, regulations will prevent owners from listing secondary suites, such as basement units or laneway homes. The new policy builds upon preliminary plans announced last year. The City hopes the restrictions will keep secondary residences in reach of long-term renters.
“Housing is first and foremost for homes,” Mayor Gregor Robertson said in a release. “By regulating short-term rentals, the City is protecting long-term rental stock – which, with a 0.8 per cent vacancy rate, every home counts.”
Owners will be able to apply for a business license to rent out their primary residence for a fee of $49 per year, plus a one-time $54 activation fee. The city will only allow rentals will a valid business license number to be displayed on Airbnb.ca and similar sites.
The City predicts that 70 per cent of current rental listings will be legalized under the new rules and restrictions.
“Vancouver’s approach to short-term rentals strikes a balance that will ensure the best use of all our housing,” Robertson said.
Airbnbs and Expedia listings will be subject to a 3 per cent transaction fee collected by the city to fund the licensing program.
The City is also recommending that rental owners pay all federal and provincial taxes. City staff urges government to enforce sales and income tax measures.
Regulations will come into effect by April 2018 if passed by council on July 19.
