Understanding the Short-Term Rental Accommodations Act in BC

In an effort to increase the supply of long-term residential housing, the BC Government has introduced the Short-Term Rental Accommodations Act, which will have substantive effects on many individual homeowners.

Key Legislative Changes

The legislative changes include:

• Short-term rentals are limited to the host’s principal residence plus one secondary suite or accessory dwelling unit (ADU) in most major BC communities.
• Empowering regional districts to license short-term rentals located outside municipalities.
• Data sharing from short-term rental platforms to monitor and enforce the rules.
• Removal of legal non-conforming use or grandfathering of historical short-term rental use.
• Creation of a provincial registry for short-term rentals and a compliance and enforcement unit.

These rules exclude hotels, motels, strata hotels, timeshares, fishing lodges, First Nations reserve lands, and modern treaty lands.

Impact on the Nanaimo Real Estate Market

The new legislation will affect real estate across British Columbia, including Nanaimo. Here are some common questions and answers for REALTORS® and homeowners:

Q: How do we advise clients who currently own short-term rental accommodations?
A: Clients should be aware that the new provincial Short-Term Rental Accommodations Act will come into force as of May 1, 2024. This Act is in addition to any municipal rules and strata bylaws that already apply. Clients should examine whether their use complies with the new law.

Q: How do I advise buyers looking to purchase short-term rental accommodations?
A: Buyers should be aware that laws are constantly changing, and current permitted uses may change. They should conduct due diligence to determine if the target property will support short-term rental use.

Q: One of my clients purchased a pre-sale condo and intends to use it for short-term rentals. With the introduction of the legislation, do they now have a new right of rescission for a material change after their initial 7-day rescission right has passed?
A: This will depend on the nature of the pre-sale condo development, the contract, and the disclosure statement applicable for that unit. Affected buyers should seek immediate legal advice specific to their situation.

Conclusion

These legislative changes will affect buyers, sellers, strata corporations, and developers differently depending on each client's unique circumstances. REALTORS should ensure that their clients obtain legal advice specific to their respective circumstances.

For more information on how these changes affect BC's real estate, visit BCREA and BC Financial Services Authority.

For a comprehensive market report, click here.

To inquire about sold properties, contact us directly at 250 961 0001.

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