Vancouver Increases Short-Term Rental Licence Fee to $1,000, Focusing on Enforcement
Vancouver, one of Canada’s major cities, has recently decided to raise the short-term rental licence fee to $1,000 for the year 2024. The current fee stands at $109, making this a significant increase. The decision was reached after council members considered a report suggesting a fee increase to $450 in 2024. However, councillor Lenny Zhou successfully convinced his colleagues that stronger enforcement was necessary, leading to the approval of the higher fee.
Zhou, who has been actively working towards eliminating illegal short-term rentals, emphasized the need for increased enforcement alongside the fee hike. He expressed concerns about the rampant presence of unregulated operators and believed that simply raising the fees without adequate enforcement measures would not be effective.
While Zhou described the $1,000 fee as somewhat arbitrary, he estimated that it would generate approximately $2.7 million. He assured property owners that the aim was not to discourage legal short-term rentals, as the additional income from such rentals could help with mortgage payments. Zhou emphasized that the new fee was only $550 more than the amount recommended by staff, stating that it could easily be earned in just two days.
Comparatively, other cities in British Columbia have higher short-term rental licence fees. Kelowna charges $345, Squamish requires $500, and Nelson ranges from $200 to $800. The discrepancy in fees led councillor Peter Meiszner to argue that Vancouver’s housing crisis necessitated a higher fee to regulate short-term rentals effectively.
The decision to increase the fee comes amid residents’ growing concerns about the impact of short-term rentals on the availability of long-term housing. The provincial government is expected to introduce legislation in the near future to provide local governments with better tools for regulating short-term rentals. Housing Minister Ravi Kahlon acknowledged the challenges posed by this form of accommodation, particularly in tourism-dependent communities where a shortage of housing for local workers has become a pressing issue.
Since April 2018, Vancouver has been implementing regulations for short-term rentals. The bylaw requires those providing temporary accommodation in their principal residence to obtain a business licence. The rental period must be less than 30 consecutive days. According to the City of Vancouver’s website, as of September 7, 2023, there were 4,439 active short-term rental listings in the city. The city has taken action against unlicensed operators, including suspending business licences, issuing violation tickets, and referring cases for prosecution.
Airbnb is currently the largest platform for short-term rentals in Vancouver, accounting for at least 82% of all active listings. Expedia, including VRBO, is the second-largest platform, followed by Flipkey, owned by TripAdvisor. A report from 2022 revealed that downtown Vancouver, the West End, and Kitsilano were the most popular neighborhoods for short-term rentals in 2021, with a combined total of 986 listings on various platforms.
With the increase in the short-term rental licence fee, Vancouver aims to address the housing crisis and ensure stronger enforcement measures against illegal operators. The additional revenue generated from the higher fee will be dedicated to hiring more staff for enforcement purposes. This move aligns with the city’s efforts to strike a balance between the benefits of short-term rentals and the need for affordable long-term housing solutions.
