North Cowichan should consider cracking down on Airbnbs in the municipality that don’t have business licences, says Coun. Chris Istace.
Istace told council at its meeting on Sept. 26 that there are 226 Airbnbs listed in North Cowichan, but just 23 have business licences registered with the municipality.
“That means that there are more than 200 Airbnbs in North Cowichan currently operating in contravention of our bylaws,” he said.
“A fun fact is that the fine for noncompliance of this bylaw is $1,500 a day. I just want to put that out there.”
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Short-term rentals, such as those booked through Airbnb or Vrbo, are becoming increasingly prevalent in local housing markets, creating new opportunities for tourists and an additional revenue stream for some homeowners.
But it’s widely acknowledged that short-term rentals contribute to the ongoing housing shortage because they take units off the long-term rental market.
Istace raised the issue after council received a letter from a resident who suggested, as one means to help deal with the housing crisis, North Cowichan should consider an additional tax on any home that is not an individual’s principal residence, which would be high enough to make short-term rental of those homes unprofitable.
The resident also suggested that North Cowichan should make having a long-term tenant in those homes the single exception to the new tax.
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While Istace didn’t discuss the resident’s suggestion of a new tax, he said the concept has relevance to discussions the municipality is having around short-term rentals while coming up with ideas as to how to deal with the housing crisis.
Istace said the District of Tofino, which is facing a constant struggle between supplying short-term accommodations for tourists as well as long-term housing for residents, has put in place stringent policies to ensure its Airbnbs and related businesses have proper business licences from that municipality.
He said Tofino Mayor Dan Law told him and North Cowichan Mayor Rob Douglas at a recent meeting that the extra administration needed to see to it that business licences are in place is fully paid for, and more, from the issuance of proper business licences, certification and bylaw enforcement.
“So they’ve done some very progressive work there and, from what we’re hearing, it’s soon going to be supported at the provincial level,” Istace said.
