Metro Vancouver Hotel & Short Term Rental Market Discussion

[GenWhy?]

Originally Posted by chowhou

Oops my mistake, I thought we were talking about the same thing. Both are $1000 it would seem. I'm in the same boat then; The C/B of not bothering with a license seems way too high if the fine for not getting a $1000 license is... $1000.

Whoops myself didn't read your or Changing's response. I was like "what's going on!"

[SpongeG]

I saw a video the other day and it was a younger person, looked Gen Z older side of Gen Z or millienial, either way her rant was about how she refuses to use Air BNB and will choose hotels cause she is tired of the extra fees that work out more than a hotel room, and she doesn't want to stay in someones IKEA decorated money making room making some rich homeowner richer when she can't even get on the property ladder etc.
This all seems to time well with more cities enforcing and establishing rules on short term rentals.

[NewfBC]

Originally Posted by SpongeG

I saw a video the other day and it was a younger person, looked Gen Z older side of Gen Z or millienial, either way her rant was about how she refuses to use Air BNB and will choose hotels cause she is tired of the extra fees that work out more than a hotel room, and she doesn't want to stay in someones IKEA decorated money making room making some rich homeowner richer when she can't even get on the property ladder etc.
This all seems to time well with more cities enforcing and establishing rules on short term rentals.

Just another young girl on TikTok..

Ron.

[chowhou]

Originally Posted by SpongeG

[...] and she doesn't want to stay in someones IKEA decorated money making room making some rich homeowner richer when she can't even get on the property ladder etc.

Where does she think your money goes when you stay at a hotel? Here's a hint, the Hilton, Marriott, and Pritzker (Hyatt) families also have a few "rich homeowners".

[FarmerHaight]

Originally Posted by SpongeG

I saw a video the other day and it was a younger person, looked Gen Z older side of Gen Z or millienial, either way her rant was about how she refuses to use Air BNB and will choose hotels cause she is tired of the extra fees that work out more than a hotel room, and she doesn't want to stay in someones IKEA decorated money making room making some rich homeowner richer when she can't even get on the property ladder etc.
This all seems to time well with more cities enforcing and establishing rules on short term rentals.

I don't agree with everything this younger person was saying, but when we recently travelled to NYC every "cheap" Airbnb seemed incredibly shady (few reviews, poor-quality photos) and every attractive Airbnb was about the cost of a hotel.

We stayed in a "hostel" (really more like an SRO BnB). The location was prime, the price was lower than all but the lowest Airbnbs, there were plenty of solid reviews assuaging our hesitations, and we met some really nice fellow travelers from Montreal, Munich, and elsewhere.

I think Airbnb is similar to Uber - good concept for customers, a nice way for hosts and drivers to make some extra scratch - but the negative impacts are severe when they become too prevalent in any city.

[SpongeG]

Part of it is that I've watched youtubers for years and pre-pandemic almost any given youtuber stayed at Air BNB, and now they all or most seem to be opting to stay at hotels, they don't make their hotel stay into a statement or anything but it's a noticeable shift that they choose hotels over AirBNB's now.

Just an observation.

If you watch YouTubers, we are researching a trip for next month and every single one we watch they all do the same things, they all go to X restaurant to have the famous X food, they all go to the same museum or the same park and they all do the exact same things but they try to present it in a way that they are not tourists but "travelers" and its quite funny cause they are just following the herd.

[WarrenC12]

Originally Posted by chowhou

When there's significant money on the table, it shouldn't be too crazy to have someone who has the responsibility of browsing AirBnB + Craigslist + VRBO + alternatives.

People are doing that for free and posting violators on twitter.

I have emailed back and forth with Vancouver staff responsible for this. After reporting a case they provide zero updates (privacy reasons cited) and the unit I complained about is still running strong 6 months later. I have no idea if they have been cited, inspected, fined, or most likely: ignored.

[WarrenC12]

Originally Posted by chowhou

Depends whether your goal is to extinguish STRs or to profit off them. I'm still not convinced there's absolutely no place for STRs in Vancouver.

The rules on paper are very reasonable. People are doing it illegally without a license, or getting the license and violating the terms.

[WarrenC12]

Originally Posted by whatnext

That's the rule that is supposed to apply in Vancouver. How many here thinks this "host" actually lives in this home:

No, not present, but they live there. If you go on vacation for 2 weeks and want to rent your home while you're away, that's what is allowed in Vancouver.

[FarmerHaight]

Originally Posted by SpongeG

If you watch YouTubers, we are researching a trip for next month and every single one we watch they all do the same things, they all go to X restaurant to have the famous X food, they all go to the same museum or the same park and they all do the exact same things but they try to present it in a way that they are not tourists but "travelers" and its quite funny cause they are just following the herd.

Most travel content (YouTube, blogs, books, etc.) have always leaned towards regurgitating the most popular attractions. This is why I prefer travelling to walkable cities because I can get lost in a neighborhood and avoid driving around a city, ticking off tourist boxes as I go.

I think if you look hard enough you can find content creators who cater to more than just tourists (avoid travel bloggers at all costs). E.g., for our NYC trip we took some restaurant recommendations from a apartment broker who mostly creates content for people moving to the city, so he provides a mix of the tourist mainstays but also a lot of hidden gems in off-the-beaten-path neighbourhoods.

Also, if you're traveling to the United States I recommend using Yelp for food recommendations over anything else. The service has a higher barrier to entry than Google, so I find most reviews are more detailed and intentional. And sorting by rating instead of by recommended in any given neighbourhood usually helps me find some less popular gems.

[whatnext]

In case anyone requires proof on how negative the effect of AirBnB has been on Vancouver's housing costs;

19% decline in B.C. housing due to short-term rental shift: study
By Darrian Matassa-Fung Global News
Posted September 20, 2023

A McGill University professor has found some eyebrow-raising numbers regarding short-term rentals in B.C.

David Wachsmuth conducted a study dissecting the influence of commercial short-term rental growth on B.C. housing availability and costs.

“The report underscores the need for the Province of B.C. to implement a province-wide short-term rental registry and platform accountability measures to save tenants billions in rent and address housing supply, attainability, and affordability,” the study said.

The study found that more than 16,000 homes shifted from residential to dedicated commercial (investor-owned) short-term rental in 2022, signifying a 19.1 per cent decline in housing availability across the province.

The study says the rapid surge of short-term rentals in 2022 contributed to a 28 per cent rise in rent costs.

It is estimated that B.C. tenants bore an extra $2 billion in rent costs between 2016 and 2021 due to the vast expansion of short-term rentals.....

https://globalnews.ca/news/9973396/d...-term-rentals/

[GenWhy?]

Not sure what other cities / town's rules are but if they were the same as Vancouver's that would be a start, with enforcement:

-Be an entire home, or a room within that home, that is rented for less than 30 consecutive days at a time
- Only be operated from your principal residence – the home where you live, as an owner or tenant, and use for bills, identification, taxes, and insurance
- Be a laneway or secondary suite ONLY if the operator lives there and it is their principal residence (not permitted if the operator lives in the primary dwelling unit on the property)
- Be licensed ONLY to the person who resides in the property
- Be managed and marketed by a property management company with a valid property management business licence

[chowhou]

Originally Posted by whatnext

The study says the rapid surge of short-term rentals in 2022 contributed to a 28 per cent rise in rent costs.

BC rents are up 11% YoY, so is this study suggesting that without AirBnB rents would have decreased around 17%?

Press F to doubt.

[WarrenC12]

Originally Posted by GenWhy?

Not sure what other cities / town's rules are but if they were the same as Vancouver's that would be a start, with enforcement:

-Be an entire home, or a room within that home, that is rented for less than 30 consecutive days at a time
- Only be operated from your principal residence – the home where you live, as an owner or tenant, and use for bills, identification, taxes, and insurance
- Be a laneway or secondary suite ONLY if the operator lives there and it is their principal residence (not permitted if the operator lives in the primary dwelling unit on the property)
- Be licensed ONLY to the person who resides in the property
- Be managed and marketed by a property management company with a valid property management business licence

The tricky part is proving a person does or doesn't actually reside at the property. You can declare something your PR for tax purposes, have all utility bills sent there in your name, etc., but actually reside somewhere else and airbnb your place year round while you live with a partner being the typical scenario.

[FarmerHaight]

Originally Posted by WarrenC12

The tricky part is proving a person does or doesn't actually reside at the property. You can declare something your PR for tax purposes, have all utility bills sent there in your name, etc., but actually reside somewhere else and airbnb your place year round while you live with a partner being the typical scenario.

Sure, there are ways to get around any rule. But I don't really have an issue if someone tries to skirt the rules to simply list one property on Airbnb. The problem is the host who own six condos in the same building.

A recent article from The Atlantic said, "The standard Airbnb host still has an average of just 1.5 listings, ...but “mega-hosts”—larger companies or wealthy individuals with 21 or more properties that throw their significantly more substantial resources behind them—now make up 30 percent of active listings." I think listing a false address may allow you to list one unit on Airbnb, but it should make things more difficult for these "mega-hosts."

[WarrenC12]

Originally Posted by FarmerHaight

Sure, there are ways to get around any rule. But I don't really have an issue if someone tries to skirt the rules to simply list one property on Airbnb. The problem is the host who own six condos in the same building.

A recent article from The Atlantic said, "The standard Airbnb host still has an average of just 1.5 listings, ...but “mega-hosts”—larger companies or wealthy individuals with 21 or more properties that throw their significantly more substantial resources behind them—now make up 30 percent of active listings." I think listing a false address may allow you to list one unit on Airbnb, but it should make things more difficult for these "mega-hosts."

Aren't those just property management companies running the units for individual investors?

[chowhou]

Originally Posted by WarrenC12

Aren't those just property management companies running the units for individual investors?

No you don't understand, "Mark" who "owns" 21+ properties (>$21M net worth) is spending every single day cleaning, preparing, advertising, and filtering guests for his AirBnBs because the grind never ends! Logic goes right out the window during any conversation about emotional topics like this, Atlantic writers are no exception.

[FarmerHaight]

Originally Posted by chowhou

No you don't understand, "Mark" who "owns" 21+ properties (>$21M net worth) is spending every single day cleaning, preparing, advertising, and filtering guests for his AirBnBs because the grind never ends! Logic goes right out the window during any conversation about emotional topics like this, Atlantic writers are no exception.

I don't think there is just one model for being a "mega-host". E.g., I used to manage Airbnbs in Saskatoon when I was in university. I managed six different units for one property owner. Two of the units were in the same condo development.

[FarmerHaight]

BC government reveals new sweeping policies to crack down on short-term rentals

Moving forward, short-term rentals will only be permitted in properties that are classified as the principal residence of the host, with the principal residence also containing a secondary suite such as a basement unit, laneway home, or garden suite. Hosts can still rent out their home when they are away, or a secondary suite if permitted by local bylaws.

Furthermore, this principal residence requirement is only required within municipalities with a population of 10,000 or more. Regional districts and resort municipalities, such as Whistler and Sun Peaks, are also exempt.

This principal residence policy is only optional for municipalities with a population under 10,000, except for small jurisdictions adjacent to large municipalities. Small communities adjacent to larger municipalities are defined as smaller communities less than 15 km away from a larger community with the principal residence requirement.

Larger communities with a population of over 10,000 but have a rental vacancy rate above 3% — considered a rate that is in the health range — can also opt out. Moreover, any jurisdiction that is exempt can opt in if the local government chooses to do so.

The new policies related to the principal residence requirement will come into effect on May 1, 2024.

By late 2024, the provincial government will establish its own provincial host and platform registry.

Short-term rental listings will need to include the business license number provided by the local government and the provincial registry number.

Furthermore, the provincial government will create its own compliance and enforcement unit for short-term units to track compliance, issue orders, and administer penalties for violatons.

Municipal governments will be able to increase their non-compliance fines from the existing maximum rate of $1,000 per day to up to $3,000 per day, based on each infraction.

The maximum penalty that can be levied by regional districts will be increased from the current maximum of $2,000 to up to $50,000. Regional districts will also have the new ability to issue business licenses to regulate short-term rentals in rural areas.

These new fines and enforcement tools for local governments will come into effect as soon as the legislation receives Royal Assent.

Short-term rental platforms will be required to provide data to the provincial government on their host’s listings, with this information used to support tax auditing and also shared with local governments to assist with enforcement and compliance efforts. No private information about hosts will be released publicly.

Under the new regulations, the platforms will have to remove a host listing within days when there is no valid local government business license or provincial registration in place.

The platforms will be required to share their data with the provincial government starting in Summer 2024.

[jollyburger]

North Vancouver residents sound off on short-term rental rules

As of Oct. 4, district staff had identified 1,018 short-term rental listings (up from 832 in May and almost double the count done in January), or about three per cent of the total number of homes in the district.

Almost 90 per cent of those listed are for the entire dwelling unit, rather than just a single room shared in an owner’s home.

Under the proposed rules, hosts would only be granted a licence if they are offering their own principal residence for short-term rentals. The rule would also apply to secondary suites, so hosts could not offer basement apartments or coach houses unless they live in them.

“[It] is intended to help manage the neighbourhood impacts associated with short-term rentals and help ensure housing in the district is available for long-term renters and residents,” said Ryan Gilmore, district planner.

https://www.nsnews.com/local-news/no...-rules-7683597