Short-Term Rentals Under New Scrutiny

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B.C. Reg. 85/2024 enacted under the Short-Term Rental Accommodations Act (S.B.C. 2023, c. 32), This regulation aims to streamline the operation of short-term rentals, particularly those listed on major platforms, while ensuring adherence to local government regulations through a series of definitions, requirements, and provisions.

Among the key provisions activated by this regulation is the definition of “responsible official,” which clarifies the roles and responsibilities associated with short-term rental operations. Additionally, specific regulations regarding major platform service providers, defined as those with over 1,000 listings, have been enacted. These stipulations include the requirement for periodic disclosure of platform information, improving accountability within the short-term rental market. The regulation also introduces new definitions, such as “authorized site” and “major platform service provider,” and clarifies the definition of “time share property” to better address strata-titled hotels and motels, thereby refining the regulatory framework.

A significant aspect of the new regulation pertains to strata-titled hotels and motels, which may be exempt from the principal residence requirement under certain conditions, such as when services are offered similar to those provided by traditional hotels or motels, or when there are restrictions on the use of strata lots as principal residences due to agreements, covenants, or bylaws.

Compliance and reporting requirements are also integral to the regulation, mandating that platform service providers maintain comprehensive records related to their short-term rental operations. Key measures include initial and periodic disclosure of essential information about offerings, which must be reported to the minister monthly, and the issuance of notices by local governments regarding failures to comply with business license requirements. These notices must include specific details, such as the URL of the platform offer and identification information. Furthermore, local governments have the authority to request the cessation of platform services within a defined period following a notice of non-compliance, ensuring prompt enforcement actions.

The regulation establishes a framework for compliance and enforcement, detailing procedures for administrative penalties and compliance orders. Individuals receiving notices of compliance orders or penalties are entitled to a hearing, which can occur through various means, including written submissions or electronic communication. The regulation outlines considerations for imposing administrative penalties, such as prior violations and the severity of the contravention, specifying maximum penalty amounts and payment periods.

By establishing clear definitions, compliance procedures, and enforcement mechanisms, the regulation aims to strike a balance between the growth of the short-term rental market and the need for responsible management and community standards.

British Columbia (85/2024) April 23, 2024