BC Real Estate Association urges province to rethink short-term rental rules ahead of summer tourism season

B.C.’s summer tourism season is just weeks away, and the province is now under pressure to adjust its short-term rental (STR) laws.

The B.C. Real Estate Association (BCREA) is calling on the province to revisit elements of its Short-Term Rental Accommodations Act, warning that the current approach is creating “unintended consequences” for communities that rely heavily on tourism and temporary accommodation.

“To be clear, nobody is asking to strike down the legislation,” said Trevor Hargreaves, BCREA senior vice president of government relations and policy.

“What we want to see is a more careful balance between community need and housing availability measures.”

With fewer Canadians expected to travel to the U.S. this summer, towns across B.C. are preparing for a surge in domestic tourism. But Hargreaves believes limited accommodations could become a major bottleneck, especially in areas where hotels are already at or near capacity.

Under current regulations, STRs are largely limited to an owner’s principal residence and one secondary suite. Municipalities can only apply for an exemption if their rental vacancy rate exceeds three per cent for two consecutive years — a threshold few tourism-driven communities can meet.

The policy has left many popular B.C. destinations unable to offer the same volume of short-term accommodation once available.

Meanwhile, cities that had designated STR zones or specific buildings for short-term use are now bound by the stricter provincial limits.

In places like the Okanagan, Hargreaves said there’s been a big drop in tourism numbers — not just because of wildfires or a downturn in the wine industry — but because of a lack of accommodation.

In a letter to the B.C. government, the BCREA outlined four key recommendations Tuesday:

• Return zoning control to local governments so they can reinstate short-term rental zones to meet seasonal demand.
• Expand and clarify exemptions for strata hotels and fractional ownership properties, which the BCREA says are caught in confusing regulations.
• Allow STR exemptions near major hospitals, particularly in Northern and Interior regions where visiting healthcare workers depend on short-term stays.
• Create blanket exemptions for the film and television industry, which has struggled to house cast and crew under the new rules.

The provincial government introduced the Short-Term Rental Accommodations Act last year to address the ongoing housing crisis, arguing STRs reduce the supply of long-term rentals and inflate prices, particularly in high-demand areas.

The legislation includes a provincial registry for STR hosts, enhanced enforcement powers for local governments, and significant fines for non-compliance.

“At the end of the day, it’s been approached in a very black-and-white manner, and while housing is very important at this point in time, I think it’s a fair argument that so is community well being, and certainly so is our economic well being across the province,” said Hargreaves.