Kelowna council to crack down on Airbnb

Kelowna’s planned crackdown on short-term rentals like those provided by Airbnb and other online services begins today at City Hall.

Basement suites, carriage homes and investment properties could not be offered for short-term rentals in most areas of the city under the proposed rules.

And people in most areas could not offer an entire home for short-term rental unless they live there for at least eight months of the year.

The rules against short-term rentals in most areas of the city are aimed mainly at ensuring as much housing stock as possible is available for long-term renters.

If the new rules are passed by council, the city plans to hire a contractor to scour websites and identify illegal short-term rental properties.

The owners could be fined.

The proposals have aroused opposition from those who see short-term rentals as a desirable new form of travel accommodation, and one which generates additional revenue for homeowners.

Almost 90,000 people stayed at Airbnb properties in Kelowna last year, the company says, providing homeowners with $15 million in extra income.

The approximately 1,300 Airbnb hosts in Kelowna earned, on average, about $9,500 each in supplemental income in 2018.

Last week, Coast Capri Hotel general manager Dale Sivucha, newly elected president of the Kelowna Hotel and Motel Association, said he wasn’t too worried about services like Airbnb.

“There’s been a lot of talk about short-term rentals like Airbnb and VRBO (Vacation Rentals by Owner),” Sivucha said.

“But, really, they are having a small impact on the hotel industry here right now.

“They have marginal share and it will likely become less as Airbnb and VRBO operators have to get a business licence, pay taxes, and have more in-depth contracts signed.”

About two million tourists are said by Tourism Kelowna to visit the city each year.

Cities have taken a variety of approaches toward short-term rentals, with some choosing to be hands off and others imposing many restrictions.

Kelowna’s proposed approach is highly regulatory in nature, requiring zoning amendments, changes to business licensing, and the addition of new municipal staff.

Since the proposed rules were first considered by council late last year, a few changes have been made by staff.

A key one is a reversal that would allow short-term rentals in some downtown high-rises that have either been approved or are under construction.

Short-term rentals would permitted in buildings such as the 25-storey Brooklyn and the 20-storey Ella high-rise.

An original proposal, still in place, is to allow short-term rentals in many developments along Sunset Drive in the downtown north end, in the McKinley Beach neighbourhood, and around Kelowna General Hospital.

If, as expected, council gives first reading to the short-term rental proposals at today’s meeting, the package of regulatory changes would move to a public hearing where interested members of the community could have their say before a final decision is made.