Tourist towns closing door on short-term home rentals

Canmore and Banff are cracking down on illegal short-term vacation rentals found on sites such as Airbnb and VRBO.

Under Canmore’s land-use bylaws, operating a tourist home or short-term rental is currently illegal in the vast majority of residential areas. The practise is allowed if the property is in a commercial or mixed-use area, with a business licence.

The short-term rental homes are being partly blamed for the shortage in the availability and affordability of housing for the town’s residents.

“When people make the choice to rent a suite in their home — or their entire unit — for short-term stays, it reduces the options for local workers to rent something for a longer period,” Mayor John Borrowman said in a statement to Postmedia.

Borrowman added the town has seen an increase in complaints about illegal rentals since launching an awareness campaign to “help homeowners understand that putting their house on Airbnb or VRBO is not generally allowed.”

As well, those with an authorized tourist home in Canmore pay a higher property tax — approximately triple the residential rate. Unauthorized homeowners renting through Airbnb only pay the residential rate, which gives them an unfair advantage.

Owners found operating an illegal rental could be fined up to $5,000.

Meanwhile, Banff has been enforcing bylaw regulations on the unauthorized use of residential homes as short-term rentals since 2014. To date, there have been 19 homes found to be breaking landuse bylaws because they’re not a registered “Bed and Breakfast Home” with an associated business licence.

In all cases, the listings have been removed.

Banff residents registering their homes on Airbnb would also violate Parks Canada’s eligible residency restrictions, or “Need to Reside” provision, which dictates that to live in the town, you must also be employed in Banff.

The Community Housing Strategy in Banff is also calling for a public education program similar to the one in Canmore. which would be directed at educating residents and homeowners on the land use bylaws.

Banff Mayor Karen Sorenson refused to comment when reached by Postmedia on Tuesday.

A quick search for rentals in Canmore and Banff on Airbnb showed more than 300 options available for each, with the average price per night being $219 and $253 respectively.