B.C. provided clarity for short-term rentals operating in strata hotels and motels Wednesday, and Housing Minister Ravi Kahlon said he’s grateful to Vernon mayor Victor Cumming for his role in shaping the new regulations.
Upcoming regulations from the province will exempt strata hotels and motels from B.C.’s principal-residence requirement for short-term rentals, which is set to come into effect in many B.C. communities on May 1.
When the Short-Term Rental Accommodations Act was introduced last fall, the province exempted strata hotels and motels. The province provided details March 27 about the exemption to provide more certainty ahead of the spring and summer tourist seasons.
The new rules — expected to come into force in April subject to government approvals — are expected to include an exemption from the principal-residence requirement for certain strata-titled hotels and motels, so they can continue to operate.
Strata hotels and motels are facilities made up of individually owned strata lots, where accommodation is provided in a manner similar to a hotel or motel. These units are often managed and rented out by the strata hotel or motel, rather than by the individual.
Speaking to Black Press Media, Kahlon said he appreciates the work Vernon’s mayor has done with the province as it fine tunes the regulations.
“I’m grateful for the advocacy of the mayor of Vernon who also has been working closely with us,” Kahlon said.
The housing minister said Wednesday’s information from the province will ensure that strata hotels and motels can continue to support tourism, and highlighted Parksville, Kelowna and Vernon as cities in which this will be particularly beneficial.
“I think we’ve got to a good outcome which is the strata hotels can continue to operate, support tourism and the rest of the housing that we need will continue to come back to people in our communities.”
Kahlon said the province intended for strata hotels and motels to be unbound by the legislation around short-term rentals when that legislation was first introduced last fall.
“We took our time to put regulations in place because strata hotels have very complex and varied economic models,” the housing minister said.
According to the province, it is expected that an existing strata hotel or motel will be exempt from the principal-residence requirement if one of the following two options applies:
1. Before Dec. 8, 2023, accommodation was being provided in a manner similar to a hotel or motel and on Dec. 8, 2023, the strata hotel or motel had and continues to have all of the following, which are provided in a manner similar to a hotel or motel:
• a staffed front desk on site;
• one or more employees or contractors that provide housekeeping services for overnight accommodations; and
• a platform providing services available exclusively for the use of owners offering short-term rentals at the property.
2. Before Dec. 8, 2023, accommodation was being provided in a manner similar to a hotel or motel, and more than one strata lot on the property is not able to be used as a principal residence by anyone due to a restriction under zoning; a rental management agreement between the manager and an owner of a strata lot; or a restrictive covenant or a covenant under section 219 of the Land Title Act.
The exemption for strata hotels and motels is expected to apply to all units on the property, making for consistent treatment of all of the units for the entire property, the province said Wednesday.
The goal of the short-term rental legislation is to provide more long-term homes for people, as the province says the rise of short-term rentals of entire homes is taking away “much needed” homes for British Columbians and making it more challenging to find affordable long-term rentals.
Kahlon said the number of units that would be impacted by the new regulations is unknown at this time.
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