Tofino votes to opt in to B.C.'s new short-term rental restrictions, despite exemption

Tofino, B.C., is pictured. (Getty Images)

Tofino's district council has voted to opt in to B.C.'s new short-term rental regulations, despite previously being exempt from them.

The vote passed 5-2 at a meeting Tuesday night, with councillors saying urgent action is needed to protect the town's current housing stock.

Coun. Duncan McMaster, who put forward the motion to opt in to the regulations, said the "commercialization of real estate" has turned homes into short-term rentals.

"This has resulted in a lack of homes to purchase and a lack of long-term rental accommodations," he said, adding he feels there is a "strong possibility of Tofino turning into a short-term rental ghetto."

While all councillors were in favour of taking action against short-term rentals, some disagreed with immediately opting in to a province-mandated restriction.

"I personally believe the opting in doesn't go strong enough," Coun. Tom Steere said during the meeting. Steere said he didn't think the legislation would help the city achieve its housing goals, adding he thinks the city has better tools to regulate short-term rentals, like zoning.

Impact to housing?

Community member Tia Traviss spoke before council at Tuesday's meeting saying she doesn't believe the new legislation will have the impact council is hoping for.

"If it would do something that would actually be helpful I would be all for it," Traviss said. "We all want values to go down, we all want housing and rentals to be affordable and in abundance, but nobody has ever said anything that would lead us to believe the legislation would help, so why are we considering it?"

Traviss said she spoke to some local condo owners and only a few plan to rent out their properties to long-term tenants. Currently, Tofino is exempt from B.C.'s speculation and vacancy tax.

Instead, Traviss proposed a limit to short-term rental licences, saying that would give some lenience to current homeowners who rely on their short-term rentals to make mortgage payments, while ensuring future homebuyers know "what they're getting into."

Housing Minister Ravi Kahlon said in a statement Wednesday that he applauds council's decision.

"We’ve heard from tourism and hospitality businesses in Tofino that they are struggling to operate because there isn’t enough housing for local workers," his statement said. "By passing a motion yesterday to request opt in to our short-term rental legislation, 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."  

B.C.'s Short-Term Accommodations Act takes effect May 1, and includes a principal residence requirement. Renting out one secondary suite within a principal residence will also be allowed.

When the legislation was announced, officials estimated there were 28,000 short-term rentals operating across the province.

While Tofino has decided to opt in to the province's legislation, Victoria's mayor is hoping the government will delay the implementation of the new rules. 

Marianne Alto said she supports the restrictions, but thinks businesses should have more time to prepare, especially with summer bookings already being made.

"We’re approaching that high season in Victoria, being the summer of course, the idea was to provide these folks one more high season before they become long-term housing providers," Alto said Tuesday.

But Kahlon said Tuesday that people have already had plenty of time—and Victoria is not getting a break on the rules.

"People are struggling for housing in our community right now," Kahlon said. "There (are) people struggling in Victoria right now to get access to housing, and most people would say, 'Why are we taking so long to do this?'"

Tofino's district staff will submit its request to be included in the legislation by March 31.

With files from CTV News Vancouver's Robert Buffam