Saskatoon city council seeks federal funding that could change city's AirBnB, VRBO landscape

Saskatoon city council is seeking money to crack down on unlicensed short-term rentals in the city, like those on AirBnB and VRBO, amid an active moratorium on licensing certain new short-term rentals.

Last year, Ottawa created a Short-Term Rental Enforcement Fund, which was a way for communities across Canada to use federal dollars to crack down on short-term accommodations that consume rental supply and can result in fewer long-term rentals on the market.

The City of Saskatoon applied for $380,000 from the fund, expected to cover most of the costs for an enforcement program in a three-year period, with $25,000 coming from the city to cover management and supervision of the program.

Adam Clarkson, who hosts an AirBnB in Saskatoon, said the short-term rental market in the city is small and he believes short-term rentals are "such a miniscule part of the problem."

"I think it's a political move to say that cracking down on them is going to make an impact in a positive way," Clarkson said.

The potential renewed enforcement efforts come alongside an existing roadblock for some AirBnB owners in the city.

Those looking to make their rental a legitimate business and avoid the steep fines are not able to obtain a licence, unless the unit is a homestay — when the owner lives in the home where the unit is being rented — because of an active moratorium in Saskatoon.

In January 2024, Saskatoon stopped granting business licences to short-term rental properties, which provide tenancies for less than 30 days.

Under the city's Business Licence Bylaw, once the rental vacancy rate drops below three per cent it cannot permit new licences to standalone short-term rentals, which are separate residences from where the owner stays.

That includes rentals hosted on platforms like Airbnb, Vrbo, Expedia, Booking.com, and Obasa Six-Three Suites.

Clarkson would not comment about whether he has obtained a licence.

According to city council documents, there are about 230 licensed units in the city. While there is not a precise number of unlicensed units operating in the city, it said there are about 700 listings on AirBnB and 150 on VRBO.

The documents also say the city will contact property owners in violation of the bylaw to provide them a deadline to either stop operation or obtain a licence. 

If they're found to be non-compliant, they could face fines up to $25,000 per day for each day the "offence" occurred, as determined by the courts.

Darren Hill, a former city councillor who has had a pair AirBnB rentals in his home for several years, said the short-term rentals generate two to three times more revenue than a long-term rental — though it's more work.

Hill says he's in support of the city's plan to crack down on short-term rentals because they "wreak havoc on the housing stock" and help further compound the shortage of rental units because they're not available on the long-term rental market. 

He defended his rental situation by stating that it is a homestay rental, rather than a standalone that would take an entire apartment, condo or home off the rental market.