Thousands of illegal short-term rentals still operating in B.C.

Three months into B.C.'s new Airbnb rules, the NDP government says nearly half of properties listed in communities that keep the data still aren't licensed.

“That’s a lot of housing that could be available for people who are struggling in our communities,” said Housing Minister Ravi Kahlon on Monday.

In the seven municipalities across B.C. where business licences are required for short-term rentals, 22,406 properties are listed, but fewer than 12,000 business licences have been issued

“There’s a significant amount of properties right now that are listed on platforms that don't have local government business licence approvals already,” said Kahlon.

In Victoria alone, the city says it's investigating more than 560 properties actively advertised that don't have a licence.

But property rights advocates, including Orion Rodgers, the head of the Property Rights Association of B.C., call the numbers misleading – noting some properties are advertised on multiple sites.

“One property could have three different listings, and that could be reflected in this higher number,” said Rodgers.

Nathan Rotman with Airbnb challenges whether the new rules that limit short-term rentals to a primary residence or property will provide more affordable housing. He notes similar restrictions for a primary residence were already in place in Vancouver several years ago.

“Rents in Vancouver continued to increase throughout 2018, 2019 – short of the pandemic – and ever since,” said Rotman

Those who bought units as retirement nest eggs and can no longer can rent them out short term also cry foul.

“I’m just really shocked that in Canada, in British Columbia, you can make an investment in your community and in your future for your family and it can be ripped away like this,” said 62-year-old Suzanne Little, who says she has had to delay her retirement plans indefinitely as the income from her property is suddenly no longer available.

Those caught breaking the new rules could face steep fines of up to $5,000 a day for an operator and $10,000 a day for a platform.

The province says it’s issued 1,000 notices or warnings for illegal listings, but hasn't issued any fines yet.