Licensing Airbnbs requires ‘a fine balance’
It’s going to require a balancing act to regulate the thousands of active short-term rentals such as Airbnbs without stifling an emerging economy, says an inner-city councillor.
In a report going to city a committee this week, bureaucrats are recommending changes to the way short-term rentals in Calgary operate by introducing a tiered business licence regime for tourist accommodations in 2019.
The report didn’t outline potential prices for such licences, but revenue collected from fees is expected to cover the cost of new inspectors and safety codes officers, whose pay would total more than $600,000 per year, according to administration.
The report states that added regulations would help protect renters and property owners under city bylaws by “ensuring accommodation meets minimum standards,” while revising the lodging house category of licence to “clarify the definition” of the already heavily regulated properties.
Coun. Druh Farrell’s Ward 7 has the highest concentration of active short-term rental listings at 676, making up just shy of 18 per cent of all such rentals in the city. She said there’s “a fine balance” when it comes to introducing short-term rental licensing to ensure the budding portion of the city ’s hospitality industry continues to grow.
“We don’t want to stymie emerging trends,” she said. “There are opportunities with a shared economy. It’s new — it’s like Uber, it’s like Napster. That doesn’t mean they should be unregulated.”
Farrell said the added regulations would help safeguard against renters booking “an Airbnb for one night to have a party.”
In one such instance, owners of an Airbnb in Sage Hill saw their rental home destroyed in 2015 during what police described as a “drug-induced orgy.”
Those same regulations would also ensure condo boards are aware when unit owners are running a business out of their suites.
Coun. Ward Sutherland, who kick-started the potential changes with a notice of motion last year, told Postmedia in October the majority of renters manage to operate without disturbing their neighbours.
But there have been reports of homes renting out multiple units simultaneously, weekend apartment rentals that turn into rowdy pool parties, and cul-de-sacs turning into parking lots as confused renters bang on neighbours’ doors in search of their accommodations.
“So for some condos, for example, there might be a number of these (short-term rentals) in one building, and we want to ensure that the landlord is responsible ... and a good neighbour,” Farrell said, adding she lives across the street from two short-term rentals without any issues.
In the report, city administration recommends spending $30,000 on a targeted engagement campaign and one-time technology upgrades to the licensing systems, as well as hiring two fire safety code officers and two business licence inspectors with combined salaries of $676,000.
Equipment for the new fire safety hires would cost an additional $69,000.
Other potential options suggested for council’s consideration are to seek public engagement on the emerging industry or maintain the status quo.