B.C. rejects Prince George's request to be exempt from upcoming short-term rental rules

View of downtown Prince George is seen from L.C. Gunn Park in this photo shared by the city on Dec. 1, 2023. (City of Prince George/Facebook)

A B.C. city that requested an exemption from the province's upcoming short-term rental rules has been denied.

The City of Prince George sent a letter to Minister of Housing Ravi Kahlon late last month asking to be added to the exemption list for new rental rules, which come into effect on May 1. As of that day, most B.C. communities with a population of more than 10,000 will have a principal residence requirement, which will limit short-term rentals to a person's primary home, plus one secondary suite.

But the new legislation allows municipalities with a population of more the 10,000 – as of 2021's census – to request an opt-out of the rules, as long as they can show they had a rental-vacancy rate of three per cent or higher for the two previous years.

Less than three weeks after sending a letter to Kahlon, the city received a response, rejecting their request.

Kahlon’s letter acknowledged a “recent loss of motel accommodation space” in Prince George and a rental-vacancy rate of 3.7 per cent in 2022, according to Canada Mortgage and Housing Corporation data, but noted the city's rate fell short the following year, when it hit 2.8 per cent.

Prince George officials tried to suggest the 2023 CMHC data for three-bedroom and row houses wasn’t statistically reliable, and that excluding those would allow the city to meet the opt-out threshold, but Kahlon was not convinced.

• Read more: 6 in 10 B.C. residents support new short-term rental restrictions

"It is important that we prioritize the goal of housing to the long-term housing market in communities where there are rental housing shortages," Kahlon's letter said. "Short-term rentals can still occur in people's principal residences, including up to one suite or accessory dwelling unit, and we may well see growth in this type of accommodation." 

"It is important that we prioritize the goal of housing to the long-term housing market in communities where there are rental housing shortages," Kahlon's letter said. "Short-term rentals can still occur in people's principal residences, including up to one suite or accessory dwelling unit, and we may well see growth in this type of accommodation."

When the legislation was announced last fall, officials estimated there were 28,000 short-term rentals operating across the province. The province said that marked a 20 per cent increase from the year before, adding data suggested more than 16,000 "entire homes" were listed as short-term rentals for most of the calendar year. According to CMHC data for 2023, the provincial vacancy rate is 1.2 per cent.

While Prince George aimed to be exempt from the restrictions, some municipalities are trying to opt in. Earlier this month, Tofino's district council voted in favour of asking the province to be added to the list of communities required to follow the new legislation. 

Kahlon issued a statement following that 5-2 vote, saying "Tofino city council has made an important decision to protect homes for the people who keep the community going, while ensuring that short-term rentals are still available at principal residences for people who want to visit."

A spokesperson from the City of Prince George said the matter may be discussed by council next Monday.