Highlights of the presentation include:
- West Kelowna's DRAFT regulations for Short Term Rentals;
- September 29, 2020 Council directed staff to prepare a DRAFT Regulations program for Short Term Rentals
- Council asked that regulations be based on regionally consistent practices;
- Council asked that the public be engaged prior to bylaw amendments;
- Council identified enhanced and proactive enforcement should be included in the program;
- Council chose to combine options of Best Practices within the region with Stakeholder Engagement and Enhance Enforcement Options;
Guiding Principles:
- November 24, 2020 Council reviewed and directed staff to engage the community based on the Draft Regulations developed;
- Short Term Rental regulations guided by regional goals, current context in West Kelowna and previous discussions with Council;
- Guiding Principles:
- Mitigate Negative Neighbourhood Impacts;
- Protect Long Term Rentals;
- Recognize Importance of Short Term Rentals for Tourism;
- Comprehensive Licensing, Compliance and Enforcement.
Policy and Bylaw Review
Zoning Bylaw
- Vacation Rentals (Short Term Rentals) Prohibited in all Zones currently;
- Agri-tourism Accommodations permitted in A1 - Agricultural Zones;
- Bed and Breakfasts permitted in Agricultural (A1), Rural Residential (RU1 - RU5) and Residential (R1 and R1L) Zones;
- Resort Apartment and Resort Townhouse Uses permitted in the C6 - Tourist and Resort Commercial Zone and CD2 Zone (The Cove);
- Key Difference with a Bed and Breakfast is the expectation that the operator/host is on-site during a guest's stay;
Zoning Bylaw No. 0154 Regulations
- Bed and Breakfast Regulations at a Glance:
- Permitted in Single Detached Dwelling;
- Not permitted on properties with Secondary Suite or Carriage House;
- Occupancy limit: up to 4 guests per room (no more than 8 guests);
- Operator: must be occupant;
- Multiple bookings permitted;
- Parking requirements;
- Business Licence required;
- Compared to Agri-Tourist Accommodation Regulations:
- Permitted within a Single Detached Dwelling;
- All or part of the parcel shall be classified as farm;
- Parking requirements;
- Business Licence required;
Regional Practices
- Reviewed regulations that have been adopted or are under consideration in other municipalities;
- Regional Municipalities: Kelowna, Lake Country, Penticton;
- Other BC Municipalities include: Gibsons, Nelson, Pemberton, Squamish and Tofino;
- Consistent regulation components include:
- Requiring a business licence;
- Principal residence requirements for operation;
- Requirement of on site parking;
- Maximum occupancies (# of bedrooms/# of guests);
Proposed Short Term Rental Regulations
- Proposed to be permitted in Rural Residential (RU1 - RU5) and Residential (R1 and R1L) Zones;
- Same zones which permit Bed and Breakfasts;
- Not proposed for A1 Zone as Bed and Breakfast and Agri-Tourism Accommodation already permitted;
- Will not affect permitted uses of Resort Apartment or Townhouse;
- Proposed that Short Term Rentals:
- Are only permitted in Single Detached Dwellings;
- Must be operated by the occupant of the dwelling;
- Have a maximum occupancy of 6 guests (3 bedrooms);
- Require off-street parking (1 space per 2 bedrooms);
- Snapshot of Proposed Short Term Rental Regulations:
- Permitted within a Single Detached Dwelling;
- Not permitted on properties with Secondary Suite or Carriage House;
- Up to 3 Guest Rooms (no more than 6 guests);
- Operator must be the occupant of the Single Detached Dwelling;
- Only 1 booking at at time permitted;
- On-site parking required;
- Business Licence is required;
- New definition being proposed for Short Term Rental: means the accessory use of a single detached dwelling, or a portion of it, that provides temporary accommodation for paying guests for a period of less than 30 days but does not include Bed and Breakfast.
- Bed and Breakfast key differences:
- The expectation that a B&B is hosted by the operator;
- There may be multiple bookings;
- B&B's maximum occupancy is 8 guests (up to 4 rooms);
Business Licencing
- Business Licence Required: fee to be determined with goal to offset program costs;
- Required Permissions: Proof of Owner Consent and or Strata Permission;
- Proof of Principal Residence: Through Homeowner Grant, Drivers Licence or Government Records;
- Annual Self Evaluation Safety Audit: Initial Licencing Inspection by Fire Department;
- Identified Local Contact: to respond to issues while operator is away;
- Good Neighbour Agreement: signed by operator to acknowledge expected code of conduct;
- Short Term Rental Operators Must:
- Operate only within a licenced dwelling;
- Display their licence number;
- Display the Fire Safety Plan;
- Only have one booking at a time;
Bylaw Compliance and Enforcement - Resources and Measures
- Additional Staff Resources:
- New position of Business Licencing Supervisor;
- Review of 0.5 FTE Business Licence Clerk for full time status for 2022 (1.0 FTE);
- Casual clerk during intake period as required;
- Enhanced Enforcement Measures:
- Regulations within Zoning and Business Licencing Bylaws;
- 11 new offences and fines between $100 and $1,000;
- Increased maximum daily fine in MTI Bylaw from $500 to $1,000;
Bylaw Compliance and Enforcement - Third Party Contractor
- Identification of Short Term Rental Properties:
- Third party contractor to identify listings on multiple sites;
- Ongoing identification of new listings;
- Proactive Enforcement:
- Third party contractor to send automated compliance letters;
- Second letter send within 30 days;
- Refer file to Bylaw for enforcement action if compliance is not achieved;
Public and Stakeholder Engagement
- Gather feedback and provide a lens from residents;
- Neighbourhood Associations will be invited to participate;
- Community and Industry stakeholders have been identified;
- All three Council Committees will be engaged for comments;
- Ongoing input from internal departments will be required;
- Online Questionnaire launched November 30 to ask: What did we get right?
- Questionnaire is available until January 3, 2021;
- Website is: westkelownacity.ca/shorttermrentals.
Next Steps
- Public and Stakeholder Engagement - November 30, 2020 to January 3, 2021;
- Review of Engagement results - January 2021
- Refinement of Proposed Regulations - January/February 2021;
- Bylaw Amendments - Starting February 2021:
- 1st and 2nd Reading;
- Public Hearing;
- 3rd Reading;
- Adoption;
- Goal would be to have regulations in place for the start of the tourism season of April/May 2021.
Highlights of the discussion include:
- Talk about advertisement for short term rental would it include permit number at that time? It is proposed that a requirement for business licence would be that the operator include the business license number through any advertising of their rental. To assist bylaw and business licence in determining compliant properties or non compliant properties.
- Is there any short term rental regulations that would put bed and breakfast and hotels at a competitive disadvantage - tax vs no tax? City of West Kelowna does not have hotel tax in place at this time. Municipal and Regional District Tax (MRDT) in consultation with accomodation stakeholders and majority of operators and rooms agreeing to implement such a tax. Provincially regulated tax that the City of West Kelowna has not opted into at this time. Online accommodation platform tax currently only collected through AirBnB through the province to collect that tax. Anyone operating or providing goods and services will have to apply and remit taxes. At this point and time there is no mechanism to collect online platform bookings through VRBO or AirBnB.
- Designated areas for short term rentals and what the criteria would be for that? Would it go to a public hearing for the community to be involved? Current regulations are not proposing any specific area or licence restrictions. It could be implemented by limiting the number of licences within a geographic area or neighbourhood or as a percentage based on the number of homes per block or street. Was identified as a tool through a few municipalities but not a consistent tool within BC. Any draft regulations will be sent forward to Council for consideration at first and second reading and then a public hearing will be held on any of the proposed regulations.
- Strong recommendation to limit the number of business licences issued for a neighbourhood. For example Casa Loma could have a higher number of rentals being close to the beach and boat launches.
- September 29 Council made a decision and to what extent was residents of West Kelowna asked if they were in favour of short term rentals or not? In Fall 2019 there was a delegation where a resident presented concerns in the community. Council identified the needs for research of short term rentals. Staff provided information on current state of short term rentals in the community, regional regulation comparison and presented options for Council to consider: to continue to prohibit or to regulate short term rentals. Council directed staff to develop regulations for short term rentals and to engage the community once the rough draft was prepared. No public hearing to date because of no bylaw amendments at this time.
- Completed survey, it doesn't canvas the opinion of if you are in favour of short term rentals or not. Have there been concerns with the survey? Results will be reviewed once the survey is completed. Council has made the decision that they would like to see regulations on Short Term Rentals and Council is asking for strictly feedback on the short term rentals.
- Is there ability to prevent multiple survey results? Tool is being hosted through Engagement HQ Bang the Table. Don't have the answer at this moment. The survey could be completed multiple times - which could be stacked if someone wanted to.
- How were the fine and permit amounts determined? Are they too low and not protecting the neighbourhood. The proposed fines are based on current fines for similar business licence regulations. Current limitations of $500 per day. Proposed to increase to $1000 per day for more severe or ongoing infractions which is maximum allowed.
- Fines are pretty low, it should be the cost of doing business. Fines should be equal or greater to the cost of the nightly rental.
- 2 night stay in some neighbhour hood is $1500. Wish that the fine was relevant to the cost of the stay.
- Shot Term Rentals are defined as an accessory use - what does that mean? Proposed that Short Term Rental would be accessory or secondary use to a residential property - A secondary use to a primary residence.
- So many the owners do not live there and it is rented out for the entire summer. Why wouldn't we make a requirement that the owner be present when they are renting the place out? It is proposed that short term rentals are a accessory use, the key difference is that the operator may be away where a bed and breakfast is hosted. If there were no provisions for the owner to be away then it would be permitted already as a bed and breakfast.
- Consideration that a limit to the number of days per year that you can have the short term rental ex. 60 days. Is there any context around maximum number of days to avoid a commercial business? It was seen in a few municipalities to have certain criteria for how many days the rental could be booked for or different tiers (30 days or summer months only). A restriction for the number of nights but it was not a consistent regulation.
- Suggestion that there needs to be a cap in the number of dates permitted.
- Definition around the principal residence? Owner needs to provide proof of their principal residence such as home owner grant, drivers licence or government records. Consistent with other municipalities.
- Can an operator only be a person or can it be a corporation? Kelowna has a prohibition against corporations, it is not considered in our draft regulations, although could be included. The owner must be the occupant in our current draft regulations.
- Need to define owner/occupant being away.
- Currently bed and breakfasts - how is it checked that the person lives on site? No specific regulations other than operator must be the occupant of the dwelling unit. No specific regulations on how that would be confirmed. Probably on a complaint basis and bylaw enforcement would investigate as they arise.
- If the operator owns 4 houses - how do regulations determine owner occupant? Operator needs to prove that it is their principal residence. If a person owns multiple properties, the homeowner grant can only be claimed for one property.
- Consideration to strengthen the powers of the bylaw officers? Currently proposed regulations would work within current bylaw parameters. Would be able to increase the ticketing. This current project scope is not advocating to increase powers or authority to bylaw officers.
- How is real time enforcement happening? For example party at Short Term Rental at 11pm? Based on understanding, if there is a complaint, Bylaw officers would attend and speak to people onsite. There would be a local contact identified if owner was not on site. Local contact or owner would address any concerns or infractions taking place. If there was non compliance, tickets would be issued depending on the infraction - in person or by mail. Compliance not achieved there is a graduated proposed short term rental offence - first offence $250 daily, second offence is $350 daily and ongoing would be $500 or $1000. Requirements and processes that may involve the courts. Bylaw Compliance and Enforcement department would be best to address those specific concerns.
- Review of other jurisdictions, imposed a minimum stay of 3-5 nights to mitigate options of party houses on Friday or Saturday nights? Minimum night stay was not something that was identified in the regional review.
- Number of places on AirBnB that had 3-5 night minimum, but now during this season it is a 30 day minimum.
- In the potential licencing numbers, pre COVID 420 listings for short term rentals, expected to reduce to 125 if regulations brought in. Would the other 270 just go away? Data numbers listed were from the City of Kelowna from pre and post regulations. We thought those were comparable because our proposed regulations are similar to the City of Kelowna.
- Costs to run the program adds a supervisor and a clerk and third party contractor. Will we be in the hole through licencing? There is no set fee currently there was a range of licence fees that were across the province. Current CWK Business Licencing fees range between $60 to $350. It is not anticipated that licencing fees would completely cover the costs of the compliance and enforcement program but to offset the program which is a decision for council to make.
- Should be a total offset but that is a decision for Council.
- Do the reduction of numbers come with regulations being in place? The initial reduction in the number of listings were seen in Kelowna were due to conditions and regulations and processes of licencing Short Term Rentals.
- A drop in numbers when a licence is brought in because now they have to pay taxes. Right now it is the wild west because it is cash in everyone's pocket.
- Bed and Breakfast requires special home owners insurance, however short term rentals don't have to have that option. If there was a fire with short term rental, their insurance would be voided.
- Most people with rentals just say that people are coached what to say - you're a relative.
- Hiring a casual clerk but not extending the hours of the bylaw officers? A lot of short term rental issues happen between 6pm and midnight. For example maybe even just through the tourist season? Bylaw Compliance and Enforcement program was developed through the Bylaw Department. It was identified that a casual clerk could assist if there was an increase in the number applications and on an as required basis. No proposal to change the operational hours. Anticipated that most of the compliance will come through the licencing program and third party contact. If voluntary compliance is not received then it will be passed to bylaw and compliance officers.
- Maximum number of guests allowed in the rentals - is there a limit on invitees? For example if it has a swimming pool and they invite additional people over. There is currently not a proposed regulation for invitees which is similar to our bed and breakfast regulations.
- If the Business Licence Supervisor is hired, they will have the power to suspend or revoke licences within a reasonable time. What is a reasonable time? Determined on a case by case basis by the Supervisor.
- Good neighbhour agreement provision to allow bylaw officer to enter? Short Term Rental operator has gone through the business licensing process, they allow city staff to enter the property for inspections. Operator outside of approved business licence then it would be similar to current system of short term rentals being prohibited and officers needing to speak to owner.
- Why is the requirement for licence to be displayed inside the premises vs outside? Licence number to be displayed on marketing materials and displayed within the short term rental for when Business Licensing Officer or Bylaw Officer attends the premises.
- Would there be a list of authorized short term rental facilities publicly available? Similar to Bed and Breakfast regulations, they are not required to display their licence outwardly. City would have record of all licenced short term rentals. Business Licencing department could confirm if they were licenced or not.