Airbnb owners take province, City of Victoria to court over B.C. short-term rental ban
A group of disgruntled short-term-rental owners in Victoria upset about recent changes restricting Airbnbs announced this month that it is taking the province and the City of Victoria to court in a last-ditch effort to stay open.
The West Coast Association for Property Rights, also known as Property Rights BC, has filed a petition in B.C. Supreme Court after the province announced it would ban most short-term rentals that are not an owner’s principal residence as of May 1, 2024. The province has stated the ban is to free up tens of thousands of these units across the province for the housing market, and is one of several recent initiatives from the B.C. provincial government to tackle the housing shortage.
“We believe the provincial government has overstepped their legal authority in imposing legislation that negatively impacts licensed and lawfully operating businesses and property owners,” association president Orion Rodgers told the Times-Colonist. “We have listened to the concerns from our affected members and other stakeholders and support them and their decision to bring legal action against this unjust act.”
Impacts of the B.C. Short-Term Rental Ban on Local Property Owners
The petition to the court aims to preserve previous rights to own and operate legal short-term rental units, Rodgers added.
The group is asking for enforcement by the province and the city to be delayed and is seeking compensation if the province proceeds with its plans to reduce the number of short-term rentals.
According to the provincial government, the legislation is a response to B.C.’s growing short-term rental market, now at an all-time high, which is diverting thousands of long-term rental homes onto the short-term market. Currently, there are approximately 28,000 daily active short-term rental listings in B.C., an increase of 20% from a year ago. Data indicates that more than 16,000 entire homes are being listed as short-term rentals for the majority of a calendar year.
“Anyone who’s looking for an affordable place to live knows how hard it is, and short-term rentals are making it even more challenging,” said Premier David Eby when the legislation was passed in 2023. “The number of short-term rentals in B.C. has ballooned in recent years, removing thousands of long-term homes from the market. That’s why we’re taking strong action to rein in profit-driven mini-hotel operators, create new enforcement tools and return homes to the people who need them.”
Economic Consequences of the B.C. Short-Term Rental Ban
Owners of short-term rental units have been fighting against the new legislation for months, alleging it was brought in without adequate consultation. Owners who have tried to sell their units say there’s a glut on the real estate market, making sales difficult. They said many owners only have one or two units and rely on the properties as retirement investments and for income.
Victoria Mayor Marianne Alto supports the legislation and says it will have appositive impact on housing affordability in the city.
“I’m delighted to see the provincial government stepping in to regulate short-term rentals across British Columbia,” she said last year when the legislation was passed. “Having provincial policies, oversight, data-sharing requirements and enforcement measures will support municipal efforts to manage short-term rentals to create more homes for British Columbians. Victoria has robust short-term rental regulations, but we welcome the certainty that comes with a province-wide plan to move more units into long- term homes.”
Do you have questions about the real estate market? The legal experts at Clark Woods LLP are happy to assist with your real estate and conveyance needs. Call 604-227-9153 today to setup a consultation or visit our real estate page for more information.