In an effort to address the ongoing housing crisis, British Columbia has introduced new regulations targeting short term rentals. Effective May 1, 2024, these rules aim to return more homes to the long term rental market and ensure that housing is available for residents rather than being used primarily for short-term stays.

British Columbia’s new regulations on short-term rentals are significantly impacting property investors. The Short-Term Rental Accommodations Act aims to tackle long-term rental housing shortages. It restricts short-term rentals to a host’s primary residence and one additional suite or accessory dwelling unit. This has resulted in a noticeable drop in short-term rental listings and may be a key factor to consider when purchasing an investment property.

This has resulted in a noticeable drop in short term rentals being listed. For property investors, this translates to several key changes:

• Increased Supply of Long-Term Rentals: More properties are being shifted back to the long-term rental market, potentially stabilizing or even lowering rental prices.
  
• Potential Decrease in Property Values: Some investors are opting to sell their properties, leading to a more saturated market in certain areas.
  
• Higher Compliance Costs: Investors now need to obtain provincial registration numbers and business licenses, and face higher fines for non-compliance.
  
  These changes are prompting some investors to rethink their strategies, especially those who heavily depended on short-term rental income. 

Key Changes in the Legislation

The new short term rentals regulations include a principal residence requirement. This means that short term rentals are now limited to the host’s principal residence. This rule applies to urban communities in BC, where the population exceeds 10,000 people. Hosts can still rent out one additional unit, such as a secondary suite or laneway home. However, the primary focus is on ensuring that the main residence is occupied by the owner for the majority of the year.

Compliance and Enforcement

To ensure adherence to these new rules, the province has established a Compliance and Enforcement Unit within the Ministry of Housing. This unit is responsible for monitoring and enforcing the regulations. To ensure adherence, the province has established a Compliance and Enforcement Unit within the Ministry of Housing. This unit is responsible for monitoring the regulations.

They will ensure that short term rental hosts comply with the new requirements. Hosts must display a business license in areas where local governments require it.

Impact on the Housing Market

The primary goal of these regulations is to increase the availability of long-term rental housing. By limiting short term rentals to principal residences, the government hopes to reduce the number of homes that are taken off the market for short-term stays. This move is expected to help alleviate the housing shortage and make it easier for residents to find affordable housing..

What This Means for Hosts

For hosts, the new rules mean stricter guidelines and the need to ensure their properties comply with both local and provincial regulations.

Navigate British Columbia Short Term Rentals Rules with Precise Real Estate Group

If you have any specific questions about these new regulations or how they might affect you, reach out to Precise Real Estate Group! 

View our Rental Property Management page for more information on our licensed rental property management services.

Visit the Government of BC host information website for the most up to date information.