Four years on, B&B operators still awaiting short-term rental review
When Debbie and Bill Judt tried to open a bed and breakfast in their Saskatoon home seven years ago, they had to defend their plan at two town hall meetings.
The couple, who operate Glacier Park Bed and Breakfast, estimate they spent $8,000 on the process and renovations to make their home suitable to host paying guests.
Since they started operating, the market has changed considerably with the tide of short-term accommodations advertised through online sites such as Airbnb and VRBO.
Most of the online suites have not undergone the same scrutiny the Judts faced, and their owners have not been required to pay for a business licence.
“When we started, we had to go through a complete discretionary use (approval procedure) and it took us nine months,” Debbie said in an interview at their College Park bed and breakfast.
The City of Saskatoon plans to release the results of a review of short-term accommodations in June, just shy of four years after licensed bed and breakfast operators raised concerns at city hall.
Jo-anne Richter, the city’s acting director of community standards, said in an email that the review has taken so long because of other files, such as preparing for legalized recreational cannabis and establishing ride-sharing rules.
The city conducted an online survey on short-term accommodations in the fall of 2017.
Richter noted the city does not require people who rent property on a long-term basis to obtain a business licence. The city does requires those who run a bed and breakfast or a hostel to get a business licence.
“As is the goal with any bylaw, the city strives toward compliance rather than enforcement and it is usually complaint-based,” Richter said.
The city’s business licence bylaw states that all businesses, including home-based businesses, need a licence. The definition of a business includes any commercial undertaking or any activity providing services.
There are 10 licensed bed and breakfast operators remaining in Saskatoon, according to the city.
The Judts said that’s down from about 17 when they first began operating.
In an emailed statement, an Airbnb spokesperson said there are about 300 Saskatoon properties offered for rent through the website. A city report from late 2015 estimated the number of Airbnb accommodations at 90.
“Airbnb has previously shared data about our community with the City of Saskatoon that demonstrates how responsible home-sharing strengthens neighbourhoods and generates meaningful economic impact for the province and our hosts,” Alex Dagg, public policy manager for Airbnb in Canada, wrote in the email.
VRBO, another online company offering short-term rentals, shows 80 rental properties in Saskatoon.
Veteran Coun. Darren Hill is among the people who offer a suite for rent on Airbnb. Hill said he offered to pay for a business licence when he began renting a suite in his City Park home nearly two years ago, but was advised by city staff to wait until the review was complete.
Hill, who chairs the planning, development and community services committee that will receive the report in June, said he plans to declare a conflict of interest in the matter. That means he will not participate in debates or votes on the review at the committee or council level.
Hill added his experience hosting guests in his home has been “100 per cent positive” and he takes steps to make sure his guests do not disturb neighbours.
The Judts said they are not upset nearly four years have passed since 10 bed and breakfast operators, including themselves, wrote to city hall concerned about the lack of regulation for short-term rentals.
“I think Airbnb caught them all by surprise,” Debbie said.
When the retired couple started the bed and breakfast, hotels used to call the Judts to see if they could accommodate guests because there were not enough hotel rooms.
The Saskatoon market has changed since then, with the addition of hotels and the online explosion of short-term rentals.
The Judts have felt the effects. They decided that 50 per cent occupancy was ideal for their threeroom operation, but they’re now operating at about 20 to 25 per cent.
When the Judts began, the pro cess included inspections by the fire department and for health concerns. Their neighbours within 100 metres were surveyed and if someone raised a concern, a townhall meeting was held.
The couple said they are happy to be able to advertise that they are fully licensed and inspected. They want to cater to the market that is willing to pay more for comfort, a full breakfast and a higher level of service.
They also believe the city needs to introduce a requirement for business licences for all shortterm rentals.
“I think the only way it can be level is if everyone pays (for) a licence and pays their taxes,” Debbie said. “I have too many neighbours that pay for things under the table. It drives me crazy.”