Housing advocates happy with Charlottetown city council vote on STR regulation

Some affordable housing advocates are applauding Charlottetown city council's vote to unanimously pass the first reading of new rules that would regulate short-term rentals.

Council voted eight to zero Monday night to pass proposed bylaw amendments that would bring serious changes to the industry.

The rules would mean short-term rentals can only be the primary residence of the owner, one owner could not own several properties, and apartments would also not be allowed. Suites that are part of homes could be allowed as long as the owner is home at the time of the rental.

That's a step in the right direction, said Connor Kelly of the P.E.I. Fight for Affordable Housing. 

"The idea of it getting regulated will stabilize housing a lot more," Kelly said. "We really can't afford anymore damage being done to Charlottetown's housing." 

He feels short-term rental companies like Airbnb have wreaked havoc on the city's housing market.

"It's been a very negative effect on the ability to have affordable housing in the city and have stable housing for students," he said. 

The group hopes regulations will come into effect quickly. But there are still some lingering questions.

It's not a balance, one is way more important— Bob Gray

"The big question is what kind of grandfathering clause will there be. Right now we're in a crisis situation," said Bob Gray, the chair of the city's advisory committee on affordable housing. 

Gray said if the bylaw amendment passes, but with a stipulation that it's only applicable to future short-term rentals, it won't do much to help the affordable housing situation. 

His committee advised the city to offer a one-year grace period for owners to convert properties that would no longer be eligible to be used as short-term rentals into long-term housing. If not, they'd be forced to sell, said Gray. 

"I think a person's right to safe affordable housing trumps anything at all in terms of a right to make money on your investment," he said.

"It's not a balance, one is way more important."

'For the greater good'

People who own short-term rentals in Charlottetown said they have invested money in properties, which bring in tourists and tax dollars. 

"Anyone in the STR business is not afraid of regulation, not afraid of a bylaw, we just don't want city hall to close down the industry," said Terry McKenna, the owner of several short-term rental units in downtown Charlottetown. 

He said he would not be affected by the proposed bylaw amendments because he lives in the building that his units are in, but he's worried about other people in the industry. 

"They're all mom and pop operations, they have other jobs and do it for the greater good of tourism in the city," said McKenna. 

Short-term rentals are a good option for families who want extra space and add extra places to stay when hotels are at capacity in peak tourist season, said McKenna. 

He said short-term rentals aren't affecting the affordable housing market because many units have been renovated so if they were reintroduced to the long-term market they would no longer be affordable. 

The bylaw amendments will return to Charlottetown council in February.