Some strata hotels, motels to be exempt from B.C.'s short-term legislation

The B.C. government says it will clarify new rules around short-term rentals to exempt certain strata hotels and motels.

The Short-Term Rental Accommodations Act aims to address B.C.'s long-term housing shortage by limiting short-term rentals to a homeowner's principal residence plus one secondary suite or accessory dwelling.

The province says strata hotels and motels are facilities that consist of individually-owned strata lots that provide accommodation in a manner similar to a hotel or motel. 

The province said Wednesday that existing strata hotels and motels will be exempt from the principal residence requirement if accommodation was being provided in a manner similar to a hotel or motel before Dec. 8, 2023 and on that date the strata hotel or motel had, and continues to have, the following: 

• A staffed front desk on site.

• One or more employees or contractors that provide housekeeping services for overnight accommodations.

• A platform providing platform services available exclusively for the use of owners offering short-term rentals at the property.

Also, an existing strata hotel or motel will be exempt if accommodation similar to a hotel or motel was being provided before Dec. 8 of last year, and more than one strata lot on the property cannot be used as a principal residence due to a restriction under zoning, a rental management agreement between the manager and an owner of a strata lot, or a restrictive covenant or a covenant under section 219 of the Land Title Act.

"Today's clarification means that strata hotels in Parksville... Kelowna and Vernon can continue to operate," B.C. Housing Minister Ravi Kahlon said Wednesday. "And it sets expectations for those who want to build strata hotels in the future."

Len Archer, who owns and manages a single condo in the Playa del Sol resort property in Kelowna, said that even with the new information, he's still not sure where he stands.

Archer rents out his unit short-term for two months of the year using Airbnb. He rents it out longer-term to students and remote workers the rest of the year. 

"We kind of hoped that some amendments might be made and some clearer acknowledgement of what the situation on the ground is," said Archer. "Summer's up in the air, obviously, and if we're not allowed to rent, we might leave it vacant for a couple months."

Playa del Sol building manager Eric Weilermann said it's unlikely the building will meet the criteria.

"We would have to spend millions of dollars to turn it into a hotel," he said. "It would be messy... and expensive."

The province defines short-term rentals as accommodations rented out for a period of less than 90 consecutive days. 

The principal residence requirement comes into effect on May 1 and applies to all municipalities with a population of 10,000 people or more. Local governments can "opt out" of it annually if their community had a rental vacancy rate of three per cent or more for two consecutive years.