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.
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.”
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
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
