There have been hundreds of short-term rentals that have been operated in the city which are owned by people looking to make a profit off a second property.
The problem is, there is a major lack of long-term housing which has driven up the cost of owning or renting a home to the point where for many, living in Victoria is becoming unaffordable.
On Monday, October 16th, the province announced new measures being introduced to rein profit-driven owners of these short-term rentals to make room for more people to find long-term housing and drive the cost-of-living down in the process.
The two most disparaging aspects of the new legislation for short-term rental owners are the fact that the rentals are to be offered only in the principal residence of the host in municipalities with a population of 10,000 or more, and that legal non-conforming units will no longer be able to operate as they once were.
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Owners of short-term rentals who put their property up on platforms such as Vrbo and Airbnb are not happy with the province’s decision.
“I own a legal non-conforming condo in The Janion building,” said Anurag Sharma, a disgruntled short-term rental owner.
He is upset that his non-conforming condo is included in the legislation — a non-confoming property being one that allowed for people to rent the property on a short-term basis prior to zoning changes made by the City of Victoria.
“I paid $2,500 for a business license to the City of Victoria, and lots more in the taxes collected through short term rentals… Paid a premium price in July this year to buy that unit from my hard earned money.”
Sharma says he has hosted students, tourists, families, many workers in different industries and people from over 20 countries since he began operating the unit as a short-term rental.
He also predicts that many cleaners’ businesses will go out of business because of this new legislation.
“How many of you or your family members stayed in an Airbnb in the past six months?” Sharma asked. “Now, pay double of what you paid in the hotels.”
He did not mention to Victoria Buzz the price point of his unit but the going rate for a short-term rental in the Janion Building ranges from $127 to $320 per night.
The average cost of a hotel room in downtown Victoria is around $147 per night with the most expensive option being the famed Fairmont Empress which costs $391 per night as of this publication.
In downtown Victoria, there are 23 buildings that grandfathered in the ability to allow short-term rentals, making them non-conforming units similar to Sharma’s.
In these buildings, there are over 1,520 units that will become long-term rental options following the introduction of the province’s new legislation.
Some other owners of short-term rental properties who utilize their property as a secondary home are also upset that they may not be able to afford owning a vacation home near the city anymore.
“I am a social worker and a mother in a family of four and we live in Vancouver and are renters because we are unable to afford to purchase a house in Vancouver, like so many others,” said Melissa Ficke, a short-term rental owner in a letter to her MLA.
“Instead, my partner and I have purchased property in Victoria so as to have a place for my family to vacation and just get out of Vancouver.”
She says the property has brought joy and an escape to her family during their stays but when they are away, it is operated by someone who manages it on platforms like Airbnb and Vrbo.
“I am disappointed about the rhetoric around short term rental owners as I am proud of the service that my family and manager provides,” said Ficke. “We are not a big business looking to get bigger, we are a small investor who values community and local service.”
“As a social worker and a renter I am very keen on supporting real housing solutions as we are also affected when costs of housing goes up.”
“What I see with this new law is a ‘throw the baby out with the bathwater’ approach that is hurting a lot of people in the process, people who also care about housing and their communities,” she continued.
Many of the short-term rental owners who are now speaking out against the legislation say they only operate one unit, similar to Ficke’s situation.
They do so to allow them a home away from home with the ability to contribute to mortgages and condo fees with the income generated from the guests who use their property as a short-term rental.
These short-term rental owners have seven months to get their affairs in order and either sell their properties or convert them to long-term rentals as the legislation goes into effect on May 1st, 2024.
For those who do not comply with the new legislation, the province will be creating a short-term rental compliance and enforcement unit to ensure rules are followed.
