BC's new Airbnb regulations will hurt homeowners and won't help renters: critic

BC recently announced regulations addressing the short-term rental (STR) market through platforms like Airbnb and Vrbo, but one expert thinks it’s the wrong move.

Vancouver Island-based lawyer John Alexander recently made an appearance on CFAX 1070, an Island radio station, where he made his voice heard about the economic impacts this would have on homeowners.

In response to Alexander’s thoughts, BC Minister of Housing Ravi Kahlon clapped back with his opinion.

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Alexander said that under the new legislation, current Airbnb operators “will become “reluctant residential tenancy landlords.”

In response, Kahlon said, “Good. That’s the point.”

The caller says that Airbnb operators: “will become reluctant residential tenancy landlords.”

Good. That’s the point.

Homes are for living in – they’re not commodities for speculation and profit. https://t.co/KIQdYUVm9j

— Ravi Kahlon (@KahlonRav) October 18, 2023

“Homes are for living in — they’re not commodities for speculation and profit.”

We contacted Alexander — whose primary subject area is land use law, local government litigation, survey, expropriation and solutions to complex land title and ownership problems — for more on his thoughts.

“I think everyone was surprised to see the parts of the legislation that seek to take away the non-conforming use rights and the extension to 90-day rentals to avoid being classified as ‘short-term.'”

The ministry describes non-conforming use rights as follows:

“At the time a new land use regulation bylaw is adopted, if an existing use of land or a building is lawfully used and it does not conform to the bylaw, then it may be continued as a legal non-conforming use.”

When it comes to renters, we asked Alexander what he’d say to those who are applauding the regulations.

“I don’t know who they are. The majority of these units in STRs, if they go into the rental market, will not be inexpensive.”

When it comes to what Alexander is hearing from people who own properties listed on Airbnb or Vrbo, he said, “primarily that the loss of non-conforming use rights was not expected, and that this presents real financial concerns to many owners, most of whom are individuals with one unit.”

Alexander also suggested it would require “substantial investigation” to determine if those opposed to the regulations have any legal recourse.

We asked what he made of Kahlon’s response, to which he told Daily Hive, “No comment.”

Last week, we did a story about New York’s short-term rental regulations, which you can read more about here.

As to whether a black market develops here in Vancouver as it has on the East Coast city, Alexander said, “I am sure that is happening now and will continue, but the vast majority of owners in Victoria are completely legal and paying significant taxes and permit fees.”