Revelstoke city hopes $1,000 fines for illegal vacation rentals will free up rental housing

As Revelstoke enters its pre-winter rental crunch, moves to regulate vacation rentals in the city are hoped to have a positive effect on the supply issue, among others.

While vacation rentals are considered a unique and cost-effective accommodation choice for tourists, plus a side-income for property owners that vary from families to entrepreneurs, the impacts this share-economy market has had on commercial accommodation and local housing and rental markets has brought them under a negative light.

It’s why a number of cities across the U.S. and Europe have come up with regulations to police this new market, and now it’s Revelstoke’s turn. A proposal to cap the number of legal vacation rentals in Revelstoke to five per cent of the housing stock, and move to active enforcement of those that are not legal was approved at Revelstoke City Council meeting on Tuesday, September 13.

One point of concern with vacation rentals is that they take potential rental properties off the market that house seasonal residents and local employees. Revelstoke this year seems to have had less availability in rental properties over the shoulder seasons than in past years, potentially due to this year’s rise in summer tourism.

What this means for the upcoming winter appears to be a tighter housing crunch, with the pre-winter housing search appearing to have started earlier than normal. And with no large housing developments underway before this winter, it’s expected to get worse before it gets better.

With the new cap on vacation rentals, the city is hoping some properties might again be put up for rent.

“When they consider the fees ($1,800 to apply), what we’re hoping is that some people will make the choice to go to full-time residential accommodation instead,” manager of development services Dean Strachan.

Vacation rentals using sites like Airbnb are growing in Revelstoke. Photo: Airbnb homepage

The cap was determined keeping in mind the market of tourists that would exclusively choose this type of accommodation, or go elsewhere.

“A lot of people recognize that vacation rentals do fill a need and is a necessary type of accommodation for a lot of people,” Mayor Mark McKee said. “So I think we have the ground work to start a really good process.”

The City of Revelstoke’s development services department has monitored about 100 unregistered vacation rentals for over a year. The city will now be taking action on these properties. Owners will be asked to apply for rezoning of their property to vacation rental or to stop that use.

If the city doesn’t see any action within their timeline and the vacation rental is continued to be advertised, fines begin at $1,000.

“Our objective is not to go around and fine people,” Strachan said.

On the wider issue of housing, Strachan said it’s important for the community to understand it won’t be one solution that fixes all scenario.

“Different parties are going to help,” he said. “The local housing society, Community Connections, individuals themselves that have suites, and the city.

“It is going to be a number of different things that is going to address this issue, and it won’t happen overnight. A lot of action the city is going to take, will take several years to have [an] impact.”

What do you think? Is this the right direction, or not? Do you have other suggestions on how the city should deal with this issue? Comment on our website or Facebook page.