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New Airbnb rules could shut down 1,000 short-term listings in Vancouver, says mayor

Airbnb's $400M contribution to Vancouver economy gets mixed reviews

Vancouver Mayor Gregor Robertson says a new proposal that would require people to get a licence for Airbnb and other short-term rentals could put up to 1,000 homes back into the long-term rental pool.

That's because short-term rentals of less than 30 days would only be legal in homes that are principal residences, Robertson revealed Wednesday at city hall.

That means homeowners would be able to get a licence to rent spare rooms, basement suites and laneway homes at a principal residence, but secondary homes — such as investment or vacation properties — would be illegal.

Other listings that are not considered legal dwelling units, such as boats, vehicles and trailers would also be illegal, under the proposed rules.

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"Housing is first and foremost for homes, not operating a business," said Robertson.

The mayor estimates the proposal will put up to 1,000 units back into the long-term rental pool, while legalizing thousands of other short-term rentals.

"Both the city's research and broad public input tells us we can have short-term rentals in Vancouver to help supplement income, while ensuring long-term rents are back in the rental market."

The proposal comes the week after Robertson revealed a proposal to tax empty or vacant homes that are not principal residences, with the aim of getting empty investment properties back in the rental pool.

Those regulations will require home owners to declare if a property is their principal residence each year. The mayor estimates the combined effect of the two new regulations will add thousands of units to the long-term rental pool.

Proof of control of the home required

Under the proposed regulations, anyone wishing to get a licence would need to prove it is their own principal residence.

That means renters wishing to use their homes as short-term rentals would need to prove they have the owner's permission for short-term sublets.

Likewise, strata property owners would need to prove their strata by-laws permit short-term rentals.

In addition, the proposed regulations would require short-term rental operators to post their business licence number in any advertisement.

The city would also make all the business licence information public.

The mayor also revealed any short term rentals may be subject to a hotel tax or other tax that would be re-invested to fund affordable housing initiatives in the city.

The proposal will go to city council next week, and staff are expected to draw up the final regulations by early next year.

Short-term rentals, long-term concerns

Last week when council voted to move ahead with a tax on vacant homes, Robertson said the proposed tax would also apply to secondary properties being used exclusively for short-term rentals.

City bylaws currently prohibit short-term rentals and there have been calls for that bylaw to stand as the city faces a housing crunch.

According to a city report there are up to 5,000 active short-term rentals in the city, with 85 per cent of those on Airbnb. The data also shows two-thirds of the listings are for entire houses, condos or apartments.

But a recent report released by Airbnb claims that most "entire homes" posted on the website were rented for less than 30 days a year, and "typical" hosts earn about $553 per month — considerably less than they could earn by renting their homes out full-time.

"Hosting and earning patterns appear to support the hypothesis that Airbnb hosts in Vancouver are not materially impacting the housing market, but rather reflect a small subset of residents who rent their primary homes occasionally," the Airbnb report concluded.

Airbnb has said it's committed to working with government to establish fair, sensible rules, including around taxation.

The company recently launched a television ad campaign promoting the service in Vancouver and began offering a $250 bonus for new hosts in the city.