Properties offered on short-term rental sites such as Airbnb will be subject to a business license and other restrictions. (FreePik)

By NanaimoNewsNOW Staff

RENTAL CHANGES

Business licenses to be required for all Nanaimo short-term rentals, bed & breakfasts

Sep 22, 2021 | 7:47 AM

NANAIMO — City Council is looking to get a measure of control on the growing industry of short-term rentals, such as Airbnb’s.

Councillors, at their meeting on Tuesday, Sept. 21, put in motion the requirement for all short-term rentals, including bed and breakfasts, to carry business licenses with the City.

The $165 annual fee would help the City better track the number of rentals in Nanaimo, in a bid to balance the growing industry with a lack of longer-term rental options.

Council also dealt with the first two readings of a zoning amendment bylaw which would help the City better regulate how the properties operate.

“The regulations would permit short-term rentals, accommodations within residential, commercial and downtown and corridor zones where the operator is a permanent resident of the dwelling unit or suite,” Jeremy Holm, director of development approvals, told Council.

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Permanent residents would be defined by the owner making a property their primary residence for at least eight months of the year and the owner declaring it as their home for legal purposes such as on a driver’s license, filing of income taxes or voter registration.

The new rules would also allow whole home rentals for the other four months in a year, in addition to rentals for portions of the property such as a room or suite.

“The existing limits which currently apply to the number of guest rooms and guests that are permitted within bed and breakfasts, which are currently allowed within the City’s regulations…would apply to other forms of short term rental accommodations,” Holm said.

Those restrictions cap the number of rentable bedrooms in a home to two for a maximum of four adult guests. Children are not officially counted as ‘guests’ in the bylaw.

Council also passed the first two readings of a parking regulation bylaw which would require one parking space for each short-term rental suite.

The zoning bylaw changes are subject to public hearing, which will take place at a future date.

A survey run by the City in April and May of 2021 saw support for business licensing for short-term rentals predictably split. Non-operators or renters ranged between 77 and 82 per cent in favour of the licensing compared to only 23 per cent of operators.

A majority of property owners, whether a rental operator or not, favoured allowing rental of a whole home on the short-term market for the four month limit. Only 44 per cent of renters took the same opinion.

The City also met with a variety of interested groups and organizations including the Nanaimo Hospitality Association, Vancouver Island University and Nanaimo Regional General Hospital.

Short-term rentals were shown to be a valuable area of the local market with the properties popular with doctors or medical students who visit Nanaimo to work at the hospital. The rentals are also a frequent transition for new university students to the area until they can find a long-term option.

Mayor Leonard Krog was absent for the discussion, citing a conflict of interest. The remaining councillors passed all the staff recommendations unanimously.

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