Short-term rental platforms that violate B.C.’s pending regulations can face administrative penalties of up to $10,000 per day, officials announced Thursday.

Investigations into non-compliant companies and individual hosts will be conducted by a provincial enforcement unit, which will launch once the new rules take effect on May 1.

The Ministry of Housing said daily penalties will range from $500 to $5,000 for hosts, depending on the infraction, and reach as high as $10,000 for corporations.

Speaking at a news conference in Langley, Premier David Eby reiterated that the purpose of the province’s regulations is to open up thousands of potential long-term housing units that are currently being offered year-round on apps such as Airbnb and VRBO.

“The commitment that we have as government is to ensure that the housing stock that we have – the homes that are actually built – are available for people who are looking for a place to live,” Eby said.

The premier acknowledged his family, like many others in the province, has benefited from the availability of short-term rentals, and stressed that those types of accommodations will not be banned outright next month.

But the government previously calculated there were 19,000 whole homes being used exclusively as short-term rentals last year.

“I can tell you there are 19,000 families and individual that are looking for a place to live … right now that are in competition with people who are looking to operate homes like hotels,” Eby said.

The upcoming regulations

Under the new rules, hosts can still rent out their primary residence, as well as one “additional unit, secondary suite or laneway home” on the same property, according to the ministry.

Those rules apply in every B.C. community with more than 10,000 residents, and to any others that opt in – as several already have, including Tofino, Pemberton, Osoyoos and Bowen Island. The rules will take effect in those smaller communities in November.

And once the regulations take effect, Housing Minister Ravi Kahlon stressed that guests themselves “will not face any fines.”

“We encourage people to continue to explore beautiful British Columbia, and stay in legal short-term rental accommodations,” Kahlon said.

Officials have recommended anyone planning to stay in a short-term rental on or after May 1 reach out to the host to confirm that the unit will be in compliance.

It’s unclear which violations will potentially cost platforms $10,000 per day. The government has said companies will be required to share user data to help municipalities and the province conduct their own enforcement, as the regulations also give local bylaw officers the ability to impose fines of up to $3,000 per day on hosts.

Platforms will be expected to remove listings from non-compliant users under some circumstances as well.

Airbnb touts economic benefits

The announcement from officials came hours after Airbnb shared an “economic analysis” estimating that the platform generated more than $2.5 billion in economic benefits across the province last year.

According to the company, for every $100 a guest spent on an Airbnb rental, they spent about $229 on other local goods and services.

“B.C.’s new short-term rental law is going to significantly impact the province’s tourism sector, just as peak tourism season arrives – taking extra income away from residents, limiting accommodation options for guests, and potentially putting at risk billions in tourism spending and economic impact,” Nathan Rotman, Canadian policy lead at Airbnb, said in a statement.

But officials have claimed the pending rules are already having a positive effect on housing availability – addressing a major crisis in the province – as former hosts choose to either become landlords or put their properties up for sale.

Kahlon said some companies, such as Expedia and Booking.com, have been “actively working to get ready for the coming changes,” and that he’s hopeful other platforms will follow suit by May 1. 

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New short-term rental rules that will deliver more homes for people are set to come into effect on May 1, 2024, as the Province releases additional information to guide hosts, platforms and visitors through the changes.

“The effect of short-term rental apps like Airbnb, VRBO and others has been the loss of thousands of long-term rental homes in the midst of a housing crisis, driving up the cost of housing for British Columbians,” said Premier David Eby. “That’s why our government has created balanced new rules to crack down on speculators who are effectively operating mini hotels, while also ensuring homeowners can still rent out spaces in their principal residence. As we’ve already seen, these new rules are turning short-term rentals back into homes for people who live and work in our communities.”

The new rules are aimed at reining in the growing short-term rental market that is taking homes off the market. Analysis from short-term rental data analytics company AirDNA, from March 2024, shows that more than 19,000 entire homes in B.C. are being listed as short-term rentals for the majority of a calendar year. Data from a McGill University professor about short-term rentals in B.C. also shows in June 2023 that the top 10% of hosts earn nearly half of all revenue.

“We are in a housing crisis that requires strong action to deliver more housing for the people who live and work in our communities,” said Ravi Kahlon, Minister of Housing. “The changes passed last fall to tackle the growing short-term rental challenges are already bringing more long-term homes back onto the market. As the rules for hosts and platforms come into effect, we are taking another strong step to deliver more long-term homes for people in communities throughout B.C.”

The new rules that will take effect May 1, 2024, are:

• The Principal Residence Requirement, meaning short-term rentals can only be offered in the principal residence of a host, plus one additional unit, secondary suite or laneway home/garden suite on the property in communities where populations are greater than 10,000 people.
• The Principal Residence Requirement will function as a provincewide floor for communities with populations of more than 10,000 people, but local governments will still be able to use existing bylaws and introduce additional bylaws that are more restrictive.
• The Principal Residence Requirement will come into effect in more than 60 communities throughout B.C. 
• Strata hotels and motels that have been operating in a manner similar to a hotel or motel before Dec. 8, 2023, and that meet select criteria moving forward, will be exempt from the Principal Residence Requirement.
• Non-conforming use of property will no longer apply to short-term rentals. Under previous legal non-conforming use protections, if an existing use of land or a building did not conform to the new bylaw, it would have generally continued with legal non-conforming use. 
• Short-term rental hosts will be required to display a valid business licence number on their listing, where a business licence is required by a local government.
• Short-term rental platforms will be required to share data with the Province.
• Local governments can request that a platform remove listings that do not display a valid business licence.

In addition to the short-term rental rules going into effect, 17 communities initially exempt from the legislation have requested to opt in to the Principal Residence Requirement. For those communities, the new short-term rental rules will take effect on Nov. 1, 2024. A full list is included in Backgrounder 2.

A first-of-its-kind in Canada, the short-term rental data portal has been created to support local governments with monitoring and enforcement of short-term rental regulations and will allow local governments to have the platform companies remove listings that do not comply.

The Provincial Short-Term Rental Compliance Enforcement Unit, which will be phased in beginning May 1, will also be able to conduct investigations into alleged non-compliance, which may result in administrative monetary penalties and compliance orders. Administrative penalties for hosts breaking the rules can range from $500 to $5,000 a day per infraction, and up to $10,000 per day for corporations, depending on the infraction. Visitors and guests will not face any fines. The unit will also facilitate data sharing and requests to platforms to remove listings.

Visitors with stays booked after May 1, 2024, at short-term rentals are encouraged to check with their host directly to confirm the host is complying with their local government regulations and with B.C.’s new short-term rental rules.

Full requirements for hosts and platforms to comply with the new rules have also been released and are available in Backgrounder 1 and here: https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals

Turning more short-term rentals into long-term homes is part of the Province’s Homes for People action plan. Announced in spring 2023, it sets out further actions to deliver the homes people need faster, while creating more vibrant communities throughout B.C.

Quotes:

Walt Judas, CEO, Tourism Industry Association of British Columbia (TIABC) –

“TIABC applauds the government for listening to the tourism sector and introducing regulations that will address housing shortages in visitor-dependent communities and give municipalities the tools they need to manage short-term rentals. From our perspective, the Province has found the right balance to provide more permanent homes for workers in tourism and other sectors, while also ensuring a range of accommodation options for visitors.”

Ken Sim, mayor of Vancouver –

“These short-term rental rules are vital in tackling the housing crisis not just in Vancouver, but across British Columbia. We’re eager to implement these new tools and collaborate with platforms to ensure short-term rentals in Vancouver align with these regulations. These measures lay the groundwork for a more sustainable and equitable housing landscape where Vancouver residents can thrive.” 

Learn More:

To learn more about the rules that take effect May 1, 2024, visit: www.gov.bc.ca/ShortTermRentals

To learn more about government’s Homes for People action plan, visit: https://news.gov.bc.ca/releases/2023HOUS0019-000436

To learn about the steps the Province is taking to tackle the housing crisis and deliver affordable homes for British Columbians, visit: https://strongerbc.gov.bc.ca/housing

Two backgrounders follow.  

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A sharp uptick in gas prices is fuelling road rage in some parts of Canada on Thursday.

Many motorists filling up at the pumps are facing higher prices — some up as much as 22 cents from yesterday in parts of Ontario, for instance.

Data from GasBuddy’s live gas price tracker shows prices were 10.9 cents higher across Ontario for an average of $1.73 per litre by 4 p.m. Eastern Thursday, as compared to the previous day’s average.

Prices for gas rose by a similar degree in Toronto, but in southwest Ontario towns such as Sarnia, GasBuddy says the cost of gasoline has jumped 22.3 cents to $1.79 per litre as of 4 p.m. Other Ontario municipalities near the U.S. border such as Chatham and Windsor also saw double-digit jumps in the price of gas.

Ontario Premier Doug Ford shared his frustrations about the gas price hike on Thursday. Analysts had predicted prices would rise overnight due to a changeover to summer gasoline blends from winter fuel.

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“You go out last night and you’re sitting there for 20 minutes in the line up to get gas, you know, and it’s unacceptable. Everywhere I was going, it was about a buck, 59. You wake up this morning and it’s $1.80. You know, it’s absolutely disgusting,” Ford said during an appearance in Oakville, Ont.

Quebec drivers were also seeing prices rise on Thursday, with a hike of 7.5 cents taking the province’s average cost past $1.80 a litre, according to the gas data. Montreal gas prices hit an average of $1.88 per litre as of 4 p.m., an 8.9-cent hike from Wednesday.

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“Of course it will have an impact on our budget. So for normal people, regular people, families, it’s going to be tough,” Montreal Mayor Valérie Plante said Wednesday ahead of the price surge.

Gas prices in British Columbia were meanwhile inching towards the $2 per litre mark, rising 1.4 cents to an average of $1.95 as of 4 p.m. Eastern.

Prices were also a few cents higher in Newfoundland and Labrador and New Brunswick on Thursday, but were largely steady in the other Atlantic provinces and in the Prairies.

Dan McTeague, president of Canadians for Affordable Energy, told Global News that Western Canada and some U.S. markets made the switch from winter to summer gasoline about a month ago. Those regions are tied to the Chicago comprehensive prices while most of Ontario’s prices are tied to what happens in the New York Harbour, which switched to the summer blend on April 16, he said.

Winter gas is cheaper than summer blends because it contains higher butane levels — an inexpensive but volatile element which lowers the cost of fuel, Patrick de Haan, head of petroleum analysis at GasBuddy, told The Canadian Press.

The cost of producing summer gas is higher because butane levels are reduced to meet Canadian environmental regulations and lower emissions.

Where do gas prices go from here?

On a national basis, the price of gas was on average $1.74 per litre as of 4 p.m. Eastern. That’s up 6.5 cents from Wednesday and 18.7 cents higher than the average in March, according to GasBuddy.

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De Haan said Thursday that pump prices are expected to come down in July.

McTeague told Global News that where gas prices go from here depends in part on volatility in the Middle East, where attacks on any given day can send shocks into the global price of oil.

He said it’s unlikely for Ontario to hit $2/litre this summer, but those prices may be in the cards for Quebec. In much of Western Canada, “what you see is what you get,” with prices expected to hold around current levels, he said.

But for those who missed out on fuelling up before the overnight spike, McTeague also predicted gas prices would drop back another five cents in Ontario and Quebec on Friday.

Statistics Canada cited higher gas prices as fuelling a slight uptick in inflation last month, which accelerated to 2.9 per cent annually from 2.8 per cent in February. Prices were rising at a faster rate in Western Canada in March, StatCan noted.

Higher global crude oil prices are traced to geopolitical conflicts stymying production, the agency said earlier this week.

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‘Virtually zero chance’ of seeing gas cost $1 per litre in Canada again: report

De Haan told Global News earlier this month that geopolitical strife like Russia’s war on Ukraine, more expensive summer gas, increased demand for summer travel and maintenance at refineries would keep prices elevated.

“It’s becoming more obvious that with every yearly increase, it’s becoming less and less likely that we would see a sub-dollar-a-litre-price,” De Haan told Global News.

Canada’s price on carbon also rose earlier this month, rising $15 to $80 a tonne in provinces that have adopted the federal regime. The hike was expected to add about three cents to the cost of gasoline for Canadians.

This past Monday, some Canadians living in provinces with the federal carbon price received the first quarterly rebate tied to the program.

– with files from Global News’ Jacquelyn LeBel, Gabby Rodrigues, Nathaniel Dove, Aaron D’Andrea, Kalina Laframboise and The Canadian Press

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