Properties along Resort Way would be subject to new rules around short term rentals, unless the City is able to obtain an exemption to preserve the economic driver. (Google Maps)

By Alex Rawnsley

three per cent

‘How practical is this?:’ Parksville council balks at exemption requirement for short-term rentals

Feb 7, 2024 | 12:07 PM

PARKSVILLE — It’s a request from the provincial government being described as “unattainable”, but it will likely be required to keep the community’s bustling tourism sector as is.

New rules for short-term rentals will come into effect May 1, which include a provision where rental operators must live on the property. It’s a caveat Parksville took exception to and asked for an exemption for in late 2023, specifically for its land zoned for resort and tourism use.

In response to a letter sent by Mayor Doug O’Brien, B.C. housing minister Ravi Kahlon said the community must demonstrate a vacancy rate roughly double the provincial average for two straight years.

“…short-term rentals [will be limited] in communities over 10,000 to a host’s principal residents plus one secondary suite or accessory dwelling unit,” Kahlon wrote. “To request an exemption…your community must demonstrate a healthy vacancy rate of at least three per cent of two consecutive years.”

Canada Mortgage and Housing Corporation data from late 2023 showed Parksville’s vacancy rate was 1.2 per cent.

important project

Construction starts on new Nanaimo food bank despite funding shortfall

3h ago

typical fall

November Nanaimo weather on par with average despite bomb cyclone

16h ago

bad driving

Careless, uninsured driver runs after hitting Nanaimo home

18h ago

While the regulations do not apply to designated hotels and motels, it would substantially impact properties designed to be short-term rentals in the City’s south end along Resort Way.

O’Brien told Councillors on Monday, Feb. 5, investors came to the community, followed all the rules and purpose-built tourist lodging in areas zoned for such a purpose.

He is keen to help investors protect those moves which have positively contributed to Parksville’s economy.

“Parksville…has been able to take that area, purpose built vacation homes, and created an area in the winter time that provides a very robust economy. Basically we’re known as the Arizona north for our Canadian neighbours…that like to visit and stay in Parksville.”

O’Brien added the City is asking for an exemption for Resort Way only, not a blanket covering the entire city.

He said those purpose-built rentals provide jobs and bolster service providers during a typically slower winter season.

Multiple members of Parksville City Council labeled the three per cent requirement as near impossible to hit and a measure which requires more advocacy from the City.

“We have a large amount of building going on in Parksville right now and far more on the books, and as fast as we can build it, there’s line ups for it to come in to live here in Parksville. To achieve a three per cent vacancy rate means either we’re building the wrong type of housing units, or we’re pricing them in an area that is unattainable.”

Coun. Amit Gaur said the move from the province was a surprise.

“I was like ‘how practical is this? In the last 20 to 25 years have we ever seen three per cent vacancy rate in Parksville?’ It’s very unrealistic. Some people’s life savings and investments have been put into these properties that would be directly impacted, and we as a community that depends so much on tourism.”

Coun. Joel Grenz labelled the move a bait and switch from the province.

“Bait on behalf of the municipalities who’ve set up very strict structures around the type of housing [investors are] actually requesting which is short-term rental. The switch is when the province takes that away from municipalities to be able to allow for that kind of housing.”

Grenz added there was a level of irony from the province, denying a specific exemption on short-term rental rules around the same time Premier David Eby lobbied for a similar exemption on the federal government’s new restrictions around international students coming to Canada.

Both moves are designed to improve housing availability and rental stock.

O’Brien has a planned meeting with Kahlon later this month at a housing summit where he plans to press Parksville’s case in person.

While the Town of Qualicum Beach is still under the 10,000 population threshold, it’s also included in the new short term rental regulations given its close proximity to Parksville.

Local news. Delivered. Free. Subscribe to our daily news wrap and get our top local stories delivered to your email inbox every evening

info@nanaimonewsnow.com

On Twitter: @NanaimoNewsNOW