Short Term Rental Policy Project
In 2019, Bowen Island Municipality undertook a community engagement process to develop a regulatory approach for Short Term Rentals (STRs). The policy was drafted based on the results of public engagement that took place throughout 2019. Details on the engagement process, results and outcomes may be found in the Public Participation Report.
The policy will guide a regulatory approach for Short Term Rentals (STRs) on Bowen Island. This approach will involve a number of steps to implement, including amendments to regulatory bylaws, subscription to a monitoring service for online STR listings, and application to the Municipal & Regional District Tax (MRDT) program to help fund tourism management and affordable housing initiatives.
The bylaw amendment process, which included further research and public consultation, completed in July 2020. An entire dwelling may now be rented out on a short-term basis as a Residential Guest Accommodation (RGA). For more information on RGAs, visit this webpage: www.bowenislandmunicipality.ca/rga
The MRDT application process started early Spring 2020 but was not able to complete due to lack of accommodation sector support. This application is on hold until sufficient support is established.
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981 Artisan Lane
Bowen Island Municipality is undertaking a community engagement process to develop a regulatory approach for Short Term Rentals (STRs). The process is detailed in the Short Term Rentals: Work Program & Public Participation Plan.
What is a Short Term Rental?
A Short Term Rental (STR) is a dwelling unit, or a portion of one, that is rented for a period of less than 30 days. Examples of STRs include Bed & Breakfasts, guest cabins, and vacation rentals.
Due to rapid growth of online platforms, such as Airbnb, STRs are becoming increasingly viable for both property owners and guests. While STRs may provide valuable revenue and help tourism, they may also impact neighbourhood character and long-term housing availability or affordability. The goal of this project is to develop a policy that regulates STRs in a reasonable manner that addresses the needs and concerns of the community.
There is a range of regulatory approaches for STRs. The policy development process is designed to identify an appropriate approach for Bowen based on accurate background information, best practices research and effective community engagement.
The Official Community Plan includes a variety of STR use, mostly commercial, that is considered acceptable for Bowen. However, the Land Use Bylaw has very few areas on the island zoned for commercial STR use. Bed & Breakfast use is allowed on all residential lots as a home occupation, but entire dwellings are not permitted to be used for STRs.
[FAQ:Short Term Rentals]
The 2016 Census shows Bowen’s population of 3,680 housed in 1,495 principal residences out of a total of 1,915 private dwellings on the island. The remainder of dwellings are mostly empty homes or seasonal homes. The proportion of empty/seasonal homes is quite high on Bowen (22%) compared with the greater region (6.5%).
Despite the high number of vacant homes, rental housing on Bowen is very limited. Only 1% of new homes built since 2011 are renter-occupied (2018 Bowen Island Community Profile), although 18% of households are renters (2016 Census). The 2018 Island Survey revealed the top housing challenge for Bowen was a lack of rental housing.
Bowen also lacks housing diversity where almost 90% of dwellings are single-detached and only 4.6% are multi-family (more than 2 units in one residential building). This means few smaller units for singles, couples or empty nesters.
Another housing type is the secondary suite, which was allowed on Bowen starting in 2008. As of 2018, there were 47 active or completed legal secondary suites on the island. To help protect rental stock, regulations do not permit STRs on properties with secondary suites.
Tourism is a significant revenue generator in the province and, particularly, in the Vancouver region. In 2014, the region saw $4.8 billion of tourism-related spending (2017 Destination BC Regional Tourism Profile). On Bowen, the Visitor Centre saw a 47% increase in number of tourists that were assisted over the past two years, with 21,139 visitors in 2018 (2017-2018 Bowen Island Visitor Report, Tourism Bowen Island).
The peak tourist season is May through August, as evidenced by statistical data from Tourism Bowen Island and BC Ferries. Most visits are day trips, but many do stay for at least one night.
There are few commercial options on Bowen for visitor lodgings:
- One conference centre (25 units)
- Two retreat centres (28 units)
- Various commercial guest accommodations (13 units)
According to the draft 2013 Bowen Island Tourism Plan, the vast majority of visitor lodgings are non-commercial Bed & Breakfast type accommodations.
Over the last decade there has been rapid growth in online platforms which connect STR operators with guests. These platforms charge a service fee for listings, manage bookings and payment, and may provide insurance to the operator. The largest platform, Airbnb, was established in 2008 (Hotel Association of Canada, 2018). Airbnb and several other short-term rental platforms, such as HomeAway and Flip Key, currently operate on Bowen Island.
According to Host Compliance, an online STR monitoring technology provider for local governments, there were 123 online STR listings on Bowen Island as of January 2019. These listings were distributed throughout the Island with a median nightly rate of about $150 CAD. Of these listings, 89% of the listing types were single-detached homes.
Airbnb data showed that most guests were from the greater region and typically had short stays. Interestingly, the share of female hosts is significantly higher on Bowen compared to the rest of the country, which may indicate STRs are an important source of income for females on Bowen where economic opportunities are quite limited.
Practices in regulating STRs range from prohibition (e.g. Harrison Hot Springs) to no regulation. The most common practice is to permit STRs with conditions, such as through a business licence or Land Use Bylaw. One of the key considerations when selecting an approach is the ability, or lack of, to administer and enforce the regulations.
|Temporary Use Permit||
|Principal Residence Only||
|Cap on Days per Year||
|Entire Home Restriction||
|Municipal & Regional District Tax||
The regulatory options mentioned above can be required either as terms of a business licence or through Land Use Bylaw regulations. Fines may be imposed if requirements for business licencing are not met. Non-compliance of the Land Use Bylaw is considered an offence that may, upon summary conviction, be subject to penalties and court costs.
Currently, such enforcement is undertaken on a complaint-basis. A more proactive approach could include the use of an online monitoring service, such Host Compliance, to identify active online STRs. However, such services are costly at a minimum of several thousand dollars per year.
Also, some requirements, such as cap on days or entire home restriction, will require detailed information on STR use that may be difficult to obtain. Some online platforms may be able to provide such information, but not all STRs use these platforms.
Last Updated on 2020-08-03 at 11:39 AM
Planning & Development