Tofino is first resort community to opt into BC's short-term rental crackdown

Tofino has decided to adopt the toughest legislation the country has seen on short-term rentals like Airbnb and VRBO, despite major opposition from some of its residents.

Starting November 1, 2024, the central Vancouver Island community will join most major BC cities in restricting short-term rentals to owners’ primary residences, secondary suites, or carriage houses. Contraventions of the new rules could lead to hefty $3,000-a-day fines.

According to 117 letters sent to staff, 54% of residents were against opting in, and 34% were in favour (12% were other). An in-person poll yielded similar results — 58% not in favour, and 33% in favour.

In February, a petition urged the Tofino council to conduct a referendum regarding the legislation. Tofino held a town hall meeting that same month to delve into the matter, where residents grappled with the prospect of short-term regulations.

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As a resort municipality with fewer than 10,000 residents, Tofino is exempt from the principal residence requirement, but the council has decided to follow the provincial government’s bylaw which is in place for spots like Vancouver, Victoria, and Kelowna.

Staff proposed that the council defer a decision until after a bylaw zoning review could take place within the next year — councillors Ali Sawyer and Tom Stere agreed, voting against the motion, but were outnumbered.

Councillor Duncan McMaster told Council that he hopes short-term rentals will be converted to long-term rentals with the introduction of this bylaw.

He added that he will also advocate for Tofino to be included in the province’s speculation and vacancy tax—an annual tax based on how often owners use residential properties.

“By opting in, I do not expect homes to be put up for sale or short-term rentals to turn into long-term rentals overnight,” McMaster said, voicing his support at the meeting. Investors will “take time to determine their options,” he said in the March 12 meeting.

“Some may sell, possibly to locals or out-of-towners — and some of those out-of-towners may actually move here,” he said. “If someone prefers to leave their homes vacant, they have that right, but I believe Council will be advocating to be included in the province’s [vacancy tax].”

Tofino Mayor Dan Law told Daily Hive this is the first step in a larger review of zoning in Tofino. “Council is not going after people who live in a home and rent out their suites,” he said. “It’s going after houses that have been essentially commercialized and turned into investments.”

Law added that Tofino was one of the few resort communities in BC that allows short term rentals in residential areas; Whistler, for example, doesn’t allow it, and is even more restrictive with its short term rental regulations.

“The orignal short term rental regulations [Tofino had] were meant to benefit residents who lived here or who had a home here,” he said. “That’s changed.”

In the fall, the BC government introduced legislation to address the problem of short-term rentals. The new measures will take effect on May 1, 2024.

Meantime, leaders in another city are looking to do the opposite.

As the deadline for Bill C-35 looms, the Victoria City Council will vote this Thursday on a motion of whether to ask the province to pause for now.

Victoria Mayor Marianne Alto and Councillor Stephen Hammond are presenting a motion asking the province to consider delaying the implementation until November 1 as there is concern about what impact the crackdown will have on the summer tourist season.

This article was updated at 3:48 pm on March 3, 2024.

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