Amendments to short-term rental regulations not set up to discourage STR: city planner
By Timothy Schafer
One year after the city introduced short-term rental legislation it has amended the rules governing them, but no overt move has been made to retain long-term rental housing stock.
City council recently passed adoption of several amendments to the regulations without discussion of how the regulations have impacted long-term housing stock in the interim.
Instead, the city streamlined the rules regarding obtaining permits and permission to operate a short-term rental in Nelson, not encouraging homeowners to put the apartments and homes on the long-term rental market.
But the amending bylaw reflected the council direction provided at the June committee-of-the-whole meeting, city planner Alex Thumm explained in his report to council.
“The proposed amendments will reduce total fees and create more licence options for (short-term rental) operators and enforcement flexibility for staff,” wrote Thumm. “The proposed amendments will improve administrative efficiency, in particular for utility billing for secondary suites.”
Fees were set at a cost-recovery level, with a slight reduction in total fees proposed.
The bylaw was not set up to discourage short-term rentals and increase the number of long-term rentals, said Thumm, nor does it deal with the philosophies surrounding an almost non-existent vacancy rate in Nelson.
He said if a homeowner obtains a business licence successfully and meets the principal residency requirement — that they have claimed the homeowner grant for the house — the city is not looking at the situation any closer.
“The new fee for short term rental (STR) guest suites will ensure that council’s direction that only long term rentals receive the benefit of the 75 per cent reduction in the secondary suite fee is achieved while simplifying the administrative billing method.”
During the public consultation process of the review of STR regulations, STR operators provided comment that the STR fees were high. To address this, the fee for the building inspection and the STR deposit have been removed, noted Thumm.
The new fee for market appraisals will ensure that costs are recovered. In deeming that a guest home may not be advertised for more than 182 days in a year the purpose of the regulation was to have more clarity around the principal residency requirement, said Thumm.
The city had received a number of complaints about people who have — despite showing proof of principal residence — do not live at the residence at all, he added.
“And they say they are running a (short-term rental) on a full time basis,” Thumm said. “But if you are meeting the principal residency requirement this should not be the case.”
People can only claim the homeowner grant on one home in B.C., and it means that is where you live your daily life, Thumm explained.
Policy changes contained in the amendments
- Remove the $30 inspection fee;
- Remove the $500 deposit requirement;
- Remove the Nelson Kootenay Lake Tourism membership requirement in light of the upcoming application of the two per cent “tourism tax” (MRDT);
- Secondary suites used for STR: apply a utility fee instead of withholding the 75 per cent utility discount, effectively reversing the discount;
- Replace summer-only licences with four-month licences (accompanied by a stricter residency requirement: the dwelling unit must be occupied 50 per cent or more of the year by the owner or long-term tenants);
- Staff may waive parking requirement under extenuating circumstances;
- Guest home may not be advertised for more than 182 days per year;
- Building official can waive inspection requirement if full inspection was recently conducted;
- Allow up to two 31-day licences per year (current maximum is one);
- Applications made Aug. 1-on: prorate at 50 per cent; and
- Reserve right to request booking records directly from listing platforms.
— Source: City of Nelson
