Broad opposition grows against short-term rental properties
Residents and city councillors object over safety, taxes and housing shortages
Victoria city council is looking at possible changes to regulations surrounding short-term vacation rentals, which is something at least one citizen’s group says is needed.
City council voted in committee last week to send two motions to council for a vote on Thursday. They have asked city administrators to prepare bylaws to prevent short-term rental units in new buildings and for amendments to downzone existing strata apartment units.
The use of a downtown residential apartment as a short-term vacation rental unit would no longer be permitted under the zoning.
Coun. Geoff Young said owners of these functioning “mini hotels” pay residential property taxes instead of business taxes that are about three times higher. It means lost revenue for the city.
Another issue is operators of short-term rental units, also known as Airbnbs, don’t collect the three per cent hotel tax that is used to market Victoria as a tourist destination.
Young said he was told of one person buying three units in a downtown strata apartment building and subsequently showing up at a meeting of Tourism Victoria to see if he could get free promotion for his vacation rental units.
Coun. Ben Isitt points out that apartment units used primarily as short-term rental units are homes removed from the city’s overall housing stock. He views that as bad news at a time when Victoria is facing a serious housing shortage.
Isitt said the city’s planning department estimates as many as 300 to 400 apartments of the 1,700 units in downtown Victoria are being used year-round as short-term rental units. “The goal is to get those units back into the housing supply,” he said.
Eric Ney, part of a group called Citizens Coalition Against Short Term Vacation Rentals, is upset by the city licensing or even allowing short-term rentals in residential buildings
“I find it very offensive that the city believes it has the right to give a commercial business licence to a strata owner to operate a commercial hotel in an otherwise residential strata,” he said.
“I say: ‘You don’t have the right to force me to live in a hotel-like environment.’ ”
Residents of downtown stratatitle apartment buildings say short-term vacation renters mean more strangers in and out of their buildings, tourist parties and extra wear, tear and breakage on common areas such as foyers and elevators.
City administrators have raised red flags over any move to downzone properties or remove an already permitted use. There might be problems passing legal challenges and would be difficult to enforce.
Isitt said a change in zoning would not have any immediate effect because existing shortterm rental units could likely continue as legal, non-conforming units. But over time, as units are sold and strata associations exert influence, they will be phased out.
“It’s encouraging a transition and change in behaviour,” Isitt said.
Young said when experienced civic administrators advise caution, he is inclined to listen.
Despite his concerns about short-term rentals, he believes it would be prudent to go slowly, perhaps with a regulatory approach, first. Once short-term rental units are required to have business licences, pay business taxes and conform with business regulations, then the owners are more likely to rent them as residences or just sell.
Young also would like to hear from more people about the issue.
“We should maybe take the time to consider a little bit before we undertake this massive downzoning,” he said.