BC Real Estate Association Calls for New Short-Term Rental Exemptions Amidst Tariff Challenges and Expected High Tourism Demand

/EIN News/ -- Vancouver, May 27, 2025 (GLOBE NEWSWIRE) -- In BC’s current tariff- and trade-challenged environment, provincial priorities need to adapt. While affordable housing is a critical provincial issue, so are provincial economic wellbeing and the health of our tourism sector. When the Short-Term Rental Accommodations Act and its accompanying regulations were put into force, the province was extremely focused on creating additional housing by any lever possible. Since its implementation, however, short-term rental (STR) legislation has caused a series of economic challenges across the province that need to be addressed.  

With the current geopolitical environment expected to drive up domestic tourism this summer, now is the time to consider implementation of much-needed changes to STR legislation.  

Our sector understands the pressing and immediate need to address the housing crisis throughout the province and routinely advocates for increased housing supply across the entirety of the housing spectrum. Long-term rentals are a vital piece of the housing continuum, and thus we understand the impetus for changing STR governance in the province. That said, the following recommendations would craft a better balance between housing and economic needs in regional communities.

Recommendation: Return Zoning Autonomy to Local Governments 

As it stands, local governments can opt out of the principal residence rule in the legislation if they provide adequate written notice and can prove their vacancy rate has been 3 per cent or over for two consecutive years. While this formula may work for some local governments, the provision has proven to be too restrictive for many communities.

For example, Parksville has not experienced a 3 per cent vacancy rate in more than 20 years so would not have initially qualified for this exemption. Parksville Mayor Doug O’Brien pushed back in a letter to Minister of Housing and Municipal Affairs Ravi Kahlon, arguing that a partial exemption was justified for several reasons, including that specific suites in the area had been purpose-built as STRs, with infrastructure designed for temporary and seasonal tourism usage.

After a lengthy justification process, Minister Kahlon finally granted a partial exemption, demonstrating that communities have unique STR needs not previously contemplated by the provincial STR policies, and these needs must be taken seriously by the province. 

Similarly, while Prince George had a vacancy rate of 3.7 per cent in 2022, the number dropped to 2.8 per cent in 2023 – disqualifying it from an exemption. Councillor Brian Skakun noted how the regulations would hurt the city, which hosts many people who look for STRs, including healthcare and construction workers. Councillor Kyle Sampson argues the criteria to qualify for an exemption are arbitrary, suggesting instead an average over a number of years.

Prior to the implementation of these rules, many local governments had areas and buildings zoned specifically for STR use. This allowed communities to balance their need for tourist accommodation with the need for long-term rental units.  

It stands to reason that the legislation should be amended to give local governments this power back. There would be significant benefit for local governments to be able to request exemptions for locations and buildings in their community that are zoned for STRs. Doing this would allow municipalities and regional districts the flexibility to shape short-term regulations to fit the nuances of their unique communities and end the false binary of being in or out as exists under the current legislation.  

Recommendation: Expand the Strata Hotel and Fractional Ownership Exemption  

The Short-Term Rental Accommodations Act provides an exemption from the principal residence requirement for strata hotels and fractional interest property. An exemption exists for these property types provided the property owner is unable to use their property as a principal residence due to a mandatory provision in a rental pool, rental management agreement, or fractional ownership agreement. These regulations were recently amended to include a number of other criteria based on building unit zoning, management agreements, covenants, and the presence of a staffed front desk. The regulation as implemented is confusing and currently excludes a number of strata hotels from acquiring much-needed exemptions.  

In order to accommodate tourists as well as owners who may wish to live in high-tourism communities on a part-time basis, a high number of unique ownership types such as strata hotels and fractional ownership properties exist across the Interior. These properties were designed to facilitate such short-term occupancy needs and are often ill-suited for long-term tenancy. While long-term occupancy is possible in some cases, the primary purpose of these buildings remains focused on tourism and short-term tenancy.  

The failure of current regulations to capture all strata hotel and fractional ownership has had severely negative economic consequences by removing tourist accommodations in tourist-reliant economies. It also creates confusion for REALTORS® and consumers.  

It is our view that strata hotels and fractional interest property should be fully exempt from STR regulations. These properties were never intended to be part of the long-term rental market and current exemptions are much too difficult for many to understand.  

Recommendation: Geographic Exemptions for Areas in Close Proximity to Healthcare Centres   

Our members care about ensuring that the communities they live and work in remain vibrant and healthy. Many larger rural communities act as healthcare hubs for the regional districts and rural areas that surround them. For those travelling into these communities for necessary medical treatments, extended hotel stays may not be viable or appropriate.  

Additionally, unlike in larger urban centres, many communities across the North and Interior receive a high number of travelling nurses, locum doctors, and other healthcare professionals that service the community on a temporary basis. Due to the transient nature of their stay, longer-term tenancy agreements are not the best option for these individuals.

In order to ensure the healthcare needs of Northern and Interior communities are met, it is our view that an exemption to the principal residence rule should be added for STR units in close proximity to major healthcare centres and hospitals. The recently passed Housing Statutes (Transit-Oriented Areas) Amendment Act could act as a good template in defining what geographic radius should be exempt around designated health centres and hospitals.  

Recommendation: Establish Broad Television and Film Sector STR Exemptions  

Amidst the uncertainty of Canada-US relations, it is imperative that government take steps to incentivize film and television projects to continue operations across BC. Current STR legislation has hindered the TV and film sector’s ability to house the sizeable transient cast and crew on these projects. It has created an over-reliance on already challenged hotel room inventories across the province, further lowering year-round vacancy rates, increasing consumer competition, and driving up average hotel costs.  

We recommend immediate implementation of broad STR exemptions for the TV and film sector across the province. 

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Quote: 

Trevor Hargreaves, Senior Vice President of Government Relations, Marketing & Communications, BCREA – 
"The BC provincial government has the challenging job of balancing housing policy with overall provincial economic wellbeing. Some key changes to current short-term rental legislation would help many people and communities across the province while maintaining the spirit of the original policy.” 

About BCREA
BCREA is the provincial association for BC REALTORS®. As a champion for the real estate sector, BCREA advances REALTOR® professionalism and ensures the REALTOR® voice is heard, for the benefit of consumers and communities, across BC. By working in collaboration with the province's real estate boards and associations, our mission is to provide professional development opportunities, advocacy, economic and policy research, and standard forms so REALTORS® are trusted, respected, and proud of their profession. 

Craig Battle, Senior Marketing & Communications Specialist
                    British Columbia Real Estate Association
                    604.742.2790
                    cbattle@bcrea.bc.ca