Tofino looks at opting-in to restrict short-term rentals

It could be tougher or more expensive to find a place to vacation at one of Vancouver Island’s top destinations.

Municipal politicians in the District of Tofino are looking at opting into the provincial government’s new restrictions on short-term rentals.

B.C.’s short-term rental laws take effect May 1, which will limit rentals to the host’s principal residence and a secondary suite.

Some 14 resort municipalities, along with the Gulf Islands, and most municipalities under 10,000 people are exempt from the principal residence requirement, however, those municipalities can “opt-in” — what Tofino is looking at doing.

But those who rent their places on sites like Airbnb are pushing back ahead of Tuesday’s council meeting.

Michael Vogel says it would be a mistake to put many of the units, like the one he owns in Tofino, into the long-term rental stock.

“It wouldn’t make sense for people to live there,” he told CityNews. “There’s only one bathroom, there’s no closet. They’re not really practical if you have a lot of belongings, so they would really only maybe support one person and not in any kind of meaningful way. Whereas, if they’re hosting four or five people, there’s a lot of spin-off in the town.”

Vogel believes that instead of creating more affordable, long-term rentals for local residents, the ban will actually mean fewer places will be available as some owners would rather see them stay empty and leave them as primary vacation homes.

“Now it’s empty. … The tourists aren’t there to contribute and it’s empty. It doesn’t actually convert into any type of housing,” he added.

With approximately 28,000 short-term rentals in B.C., research from McGill University in 2023 showed that more than 16,000 “entire homes” have been pulled from the housing market to be used as short-term rentals.

“Instead of providing housing for people and communities who need it the most, many of these thousands of homes are being used as investment properties,” Housing Minister Ravi Kahlon noted in October when the legislation was announced.

The province explained at that time that the STR market in B.C. is dominated by a small segment of profit-driven operators (mini-hotel operators), with the “website Inside Air BnB Vancouver [finding] 12 operators in Vancouver have 30 listings or more, with one operator hosting 123 separate listings.”

“Research studies and ministry data show that STRs are diverting thousands of long-term rental homes onto the short-term market, taking away homes people need, and in many communities, adding to the challenge of finding an affordable place to rent,” the province said.

Vogel believes the District of Tofino “means well” by looking at changing the bylaws, and “is an important discussion to have.”

“But I think that sort of unhinged emotional thing of ‘well we have to get rid of Airbnbs’ doesn’t quite make sense in Tofino.”