British Columbia

Nelson looks to regulate Airbnb-type short-term rentals

The City of Nelson is taking the first step towards regulating Airbnb and other on-line rentals calling for input from stakeholders at a meeting tonight.

'We do have rules that were designed for hotels and B&Bs, perhaps we need rules for short-term rentals.'

The are currently 105 short term accommodations listed on the Nelson Airbnb site. (airbnb)

The City of Nelson is taking the first step towards possibly regulating Airbnb and other on-line rentals by asking for input from stakeholders at a meeting tonight. 

Like many tourist destinations Nelson has seen an increase in the number of unregulated short term rentals. There are currently 105 units listed on Airbnb, most in contravention of the area's zoning and business bylaws.

"We do have rules that were designed for hotels and bed-and-breakfasts," says researcher Alex Thumm, who's been hired by the city to look into the issue. "Perhaps we do need rules that are designed for short term rentals."

Nelson resident Judith Barnaby rents out a a suite in her house on Airbnb. (Bob Keating/CBC)

Hotels in Nelson are charged a two per cent tax that goes towards promoting the area's tourist industry. As well, hotels are subject to city business and provincial taxes. Airbnb-type rentals operate outside of any regulation and thus avoid paying those same taxes. 

Airbnb host Judith Barnaby and her partner bought a house in Nelson's Uphill neighbourhood and turned the upstairs into a spacious and tasteful — albeit illegal — revenue generating rental suite. 

"We renovated the house so that the top level we could use as a vacation rental and the lower level to accommodate ourselves," said Barnaby. 

Barnaby says she'd have no problem paying taxes or a fee, as long as she can continue to rent out her suite. 

"I think they should review it. I think they should get behind it. I would be happy to pay a licensing fee," she said. 

Earlier this week Tofino started cracking down on people offering on-line vacation rentals. And in Vancouver and the Okanagan research is suggesting Airbnb-type rentals are adding to the affordable housing crisis.

With files from Bob Keating