Short Term Rental Policy Project
Based on the community engagement results of Phase 2 (outlined in staff report to Council) and direction from Council, a draft policy was prepared and presented to Council in September. The draft policy and staff report to Council can be viewed online.
The main intent of the policy is to allow for more STR use on the island to meet demand and economic needs of residents, while protecting communities from neighbourhood and long term housing impacts. The policy provides guidance on bylaw requirements, enforcement measures and taxation.
The draft is going to various committees and a public open house for review and comment through the month of October.
Frequently asked questions about the draft Short Term Rental Policy
The draft policy proposes limiting Short Term Rental (STR) use to 120 days per year in residential zones because this is considered a reasonable number of days that will help provide additional income for full- and part-time residents and meet demand for guest accommodation on the island, while keeping the residential area just that - a residential neighbourhood. STR operation for more than 120 days is considered a commercial use, which is still allowed under commercial STR options such as “guest house” and “inn” (see open house boards for more details).
To protect residential neighbourhoods, many municipalities limit STR use to only principal residences. However, some communities, such as Bowen Island, have a high percentage of part-time residents with non-principal homes. To allow STR use of non-principal homes, the 120-day limit has been used in jurisdictions around the world, including Paris, Los Angeles and, locally, Revelstoke and Nelson.
Alternatively, your unit may be rented out as a long term rental at anytime. Rentals for periods greater than 30 days are considered long term and do not fall under the proposed Short Term Rental Policy.
STRs will remain prohibited in secondary suites so that they are preserved for long-term housing.
The draft policy proposes to allow STRs on properties with secondary suites, just not in the secondary suites. Currently, STRs are not allowed on properties with secondary suites.
The restrictions provide for a balanced approach that will allow residents to rent out their dwelling for STR, providing additional income, and still have the dwelling available for long term rental. 120 days of STR operation would yield similar income to a full year of long term rental, allowing the option of long term rental to remain competitive with STR.
Both STR use in commercial zones and Bed & Breakfast use in residential zones are still permitted year-round. Currently, STR use of entire dwellings is not allowed anywhere on the island. The draft policy, proposes to allow the additional STR option for entire dwellings in all residential zones with the 120-day limit for the reasons described above.
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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 2019-10-28 at 3:04 PM
Planning & Development