Freeland considering action on short-term rentals after B.C. announces crackdown

Finance Minister Chrystia Freeland is applauding the B.C. government for going after short-term rentals and says the federal government is looking at what it can do on the issue as well.

The B.C. government has introduced new legislation that involves forcing those who offer short-term accommodation to actually live on the property, B.C. Premier David Eby told a news conference on Monday.

Eby said the government is also set to increase fines for short-term rental operators who break municipal bylaws and will require short-term rental platforms to share data with the province for enforcement and tax purposes.

"This is a positive and important step in the right direction in an area of provincial jurisdiction," Freeland said in a news conference on Tuesday.

"We know that short-term rentals through sites like Airbnb and VRBO mean fewer homes for Canadians to rent and live in full-time, especially in urban and populated areas of our country."

She said her government is looking at what can be done at the federal level to ensure more short-term rentals are made available as long-term rentals.

The finance minister said this is part the government's efforts to address the housing shortage in both the immediate and medium terms.

"We really do understand that housing is a very challenging issue for Canadians," Freeland said.

"We are looking around and are saying, 'What can we do right away that makes more homes available for Canadians?' And ... short-term rental is one of those spaces."

Short-term rentals in cities like Vancouver, Victoria and Kelowna have come under scrutiny for several reasons including the argument that they siphon housing from municipalities already struggling to provide long-term, stable rentals to residents. 

In addition, neighbours have often complained about noise from so-called "party houses," and a deadly Montreal fire highlighted how STRs can have few safety measures.

B.C.'s moves to further regulate apps like Airbnb have drawn praise from mayors across the province.

For its part, Airbnb says its platform allows residents in cities with expensive real estate to help pay their mortgages. It does not agree with numerous studies that show short-term rentals contribute to overall rent increases.

Airbnb also does not agree with the province that the top 10 per cent of hosts in B.C. earn nearly 50 per cent of short-term rental revenue. The company said on Monday that the majority of hosts in B.C., approximately 83 per cent, share just one home.

Most of B.C.'s regulatory changes are set to go through by next summer, including a requirement that short-term rental platforms share data with the province and the introduction of a provincial short-term rental registry.