City looks to curb short-term vacation rentals in downtown condos

City staff caution that zoning is a blunt tool and enforcement will be difficult and costly

Victoria will explore options to restrict short-term vacation rentals in downtown condos amid concerns that an increasing number of the buildings are being turned into de facto hotels.

But city staff caution that effecting meaningful change will be a complex process, with enforcement both difficult and costly to undertake.

Such rentals are permitted in some parts of downtown. Councillors and staff have been trying to develop policies to regulate shortterm vacation rentals in all areas of the city.

There’s no unanimity among downtown condo owners about whether short-term vacation rentals are a problem.

While strata councils wrestle with problems of building security, noisy parties and tourists who don’t know building rules and can’t find the garbage drop-off, some owners view renting their condos to visitors as an integral part of financing their investment.

Some councillors suggested Thursday that the city should consider zoning changes to restrict vacation rentals.

But Jonathan Tinney, the city’s director of sustainable planning, said zoning is a “blunt tool.”

Even if the entire downtown were rezoned to prohibit such rentals, the impact would be questionable as existing rentals would be grandfathered and permitted as a legal non-conforming use, he said.

Tinney said strata councils have the authority to seek rezoning to prohibit vacation rentals within their buildings — but it’s not easy, as the application requires the approval of all owners.

Another option is for strata councils to amend their own rules, he said. Such a change requires the support of three-quarters of owners.

“Just because the city permits it, doesn’t mean the strata council doesn’t have the ability to provide rules that limit it within their particular property,” Tinney said.

Staff have recommended requiring condo owners to take out a business licence for vacation rentals. That would generate cash through fees and help with developing regulations through the gathering of information about the vacation rentals market.

Councillors Thursday asked staff to report back on options, including the possibility of an optin process where the city would initiate a rezoning if more than 50 per cent of owners in a building requested it.

Staff were also asked to examine the consequences of limiting the number of short-term vacation rentals downtown.

“I think there’s a sizable body of opinion among downtown residents that they want to move in this direction,” said Coun. Ben Isitt.

“I, personally, am persuaded by these residents who say: ‘I don’t want to live in a hotel,’ ” he said, a comment echoed by Coun. Geoff Young.

Young said the B.C. Assessment Authority should be charged with determining whether a condominium unit is being used for residential or transient use.

If a building were to become strictly residential, units being used as vacation rentals would have to declare their non-conforming status. It could be taxed at the higher commercial rate, he said.

“It also would trigger any requirements for business licences or transient hotel tax. In other words, the non-conforming unit has to make itself known to maintain those rights.”

Coun. Marianne Alto said just because she supported getting the information didn’t necessarily mean she will support restricting short-term vacation rentals. “I’m still receiving lots of comments, as I’m sure we all are, on many sides of this particular issue,” Alto said.

Councillors last week received a 1,100-name petition seeking to prohibit vacation rentals as an alternative to hotel accommodation in all neighbourhoods.