PerspectiveShare your

The District of Squamish is reviewing and developing options for short-term rentals (STRs) which include rentals listed on Airbnb, VRBO and other similar platforms. STR regulation is one of many initiatives to improve affordable housing as outlined in the Squamish2040 Official Community Plan. Designing an approach for Squamish will involve extensive engagement with the community to determine how best to address the opportunities and challenges presented by STRs.

This backgrounder provides information to support informed discussions about STRs – the current housing situation and STR context for Squamish; different perspectives, considerations and common approaches to regulating and managing STRs; and potential options going forward.

WHAT ARE SHORT TERM RENTALS?

? ARE THEY PERMITTED?

An STR is the use of a dwelling unit, or any portion of it, as a rental unit for a period of less than 30 days and includes vacation rentals and bed and breakfasts (District of Squamish Zoning Bylaw 2200, 2011). A Bed and Breakfast is a dwelling used for temporary lodging of paying guests, limited to 2 bedrooms and common areas, including a dining room.

Short-term rentals are currently permitted in commercial zones as tourist accommodation (Hotels, Hostels, Motels) and on parcels zoned to permit licensed Bed and Breakfasts, with a valid Bed and Breakfast Business Licence. Residential zones do not currently permit short-term rentals in residential dwellings (single family, duplex, townhouse units, etc) or accessory dwellings (secondary suites, coach houses, etc). Some stratas in Squamish have begun to put short-term rental strata bylaws in place, and can further regulate rentals and impose fines for non-compliance.

SHORT-TERM RENTALREVIEW

PROJECT STAGES + ONGOING ENGAGEMENT OPPORTUNITIES

Research + Early Engagement

• Council touchpoint - Engagement Strategy

• Early Engagement + Outreach

• STR Backgrounder• Initial public survey

• Stakeholder focus sessions

• Pop-ups• Engagement

summary

• Community open house

• Council workshop

• Public information meetings

• Public hearing for bylaws

• Ongoing stakeholder focus sessions (Future, monitor STRs)

Options, Approaches + Implications

Implementation + Monitoring

Preferred Option Selection + Drafting

Regulations• Collect and synthesize

data to support informed discussions + identify stakeholder perspectives and preferences on STRs

• Develop alternative options for STR regulation + enforcement; consult on the approaches and their implications

• Develop a preferred approach for STRs and draft associated regulations for community + Council review

• Initiate formal bylaw approvals then implement, monitor and enforce new STR regulations; review after Year 1 to refine as needed

1 2 3 4October 2018 November-January

2018 - 2019February-May

2019June 2019 Onwards

Individuals’ needs and aspirations, as well as collective community needs such as affordable housing, are all part of the community conversation.

The STR survey aims to better understand the community’s perceptions, concerns and preferences for short-term rental approaches and their implications. Survey results will be summarized and shared with the community and Council. They will inform next steps for community consultation on regulatory options to find a preferred approach for Squamish.

VISIT squamish.ca/short-term-rentals

to complete the survey

SURVEY

2001

14,435

2006

15,256

2011

17,479

2016

19,893POPULATION

GROWTHavg 2.5% / yr

SQUAMISH CENSUS CA (2016)

Trip AdvisorPricelineOtherExpediaAirbnb

RENTAL LISTINGS LEGEND

ACCOMMODATION

2018SNAPSHOT

0.3% RENTAL VACANCY RATE since 2015

7,375 OCCUPIED PRIVATE DWELLINGS

27% RENTER-OCCUPIED

37% RENTERS SPEND MORE THAN 30% OF INCOME ON RENT

60% HOMES DECLARED AS A PRINCIPAL RESIDENCE (Squamish Home Owner Grants 2018 YTD)

632 SECONDARY SUITES

40 CARRIAGE HOMES

334 SECONDARY SUITE BUILDING PERMITS issued (average of 59/year) and 42 accessory dwelling BPs since 2014

ESTIMATED NEW

AFFORDABLE RENTAL

UNITS NEEDED IN THE

NEXT 8 YEARS

TOURIST ACCOMMODATION

519 Hotel/Motel rooms

508 Camping Sites(includes BC Parks, Municipal + private campgrounds in Squamish boundary)

13 Bed & Breakfast(licenced in 2018)

Hotel Occupancy 2017 to 2018Comparing year to date numbers (January to June) over the same period in 2017, Squamish continues to maintain growth in overnight visitations with a 9.7% increase in occupancy.

429 UNListe

To encourage aff ordable housing options, in 2016 the District began waiving building permit fees for secondary suites and accessory dwelling units as well as exempting them from development cost charges.

488

Short term rentals span the entire community and

all Squamish neighbourhoods

UNKNOWN:how many

secondary suites, or accessory

dwellings (e.g. carriage homes) are used as STRs

represents an additional 7% of total housing stock(Source: Squamish Community Housing Needs Assessment July 2018)

STR Data Source:Host Compliance LLC: a private company that provides short-term rental c

PROPERTY TYPE

PERCENTAGE OF PROPERTY

MINIMUMNIGHTS

66%33%

1%

Single FamilyMulti FamilyUnknown

75%25%

0%

Entire HomePartial HomeUnknown

97%1%1%

1 to 7 Nights30+ NightsNot specifi ed by host

0 to $50 9%$50 to $100 35%$100 to $200 37%$200 to $400 16%$400 + 2%Not provided 2%

NIGHTLY RATES

35%41%15%

8%1%0%

$0$0 TO $5,000$5,000 to $10,000$10,000 to $25,000$25,000 to $50,000$50,000 +

ESTIMATED STR REVENUE

ESTIMATEDYEARLY

REVENUE

JAN FEB MAR APR MAY JUNE

100

75

50

25

0

5

0

5

0

5

0

NIQUE STR RENTAL UNITSed in August 2018 | Listings grew by 140 units in last 12 months

(August 2017 to August 2018)

STR ANNUAL RENTAL FREQUENCY

0102030405060708090

0 1-30 181+31-60 61-90 91-120 120-150 151-180

# of days / year

# of

uni

ts

84 77

43

2410 9 5 1

# of days entire homes are rented in the year

compliance monitoring services to local governments

HOME SHARE / SUPPLEMENTAL INCOME

NEIGHBOURHOODLIVEABILITY

TOURISM

• STRs provide income for owners and businesses

• Allow for utilization of existing accommodation space when not in use

• Offer cultural exchange for residents + visitors

• May be subject to strata bylaw prohibitions, restrictions and/or fines

• Rotating visitors and STR turnover increase potential for noise/nuisance in residential areas

• Security concerns exist in shared accommodation buildings

• Increased parking and pressure on shared resources (utilities, garbage/recycling facilities)

• Potential changes to neighbourhood feel

• STRs provide increased visitor accommodation options (especially for peak tourist periods)

• Increased visitation brings local economic benefits + spending

• STRs may also compete with commercial hotel tax revenues

TAXATION + BUSINESS LICENSING

• Currently Squamish STRs are not licensed nor taxed as commercial enterprises (unless licensed as Bed & Breakfasts) creating an unfair playing field for accommodation providers

• Accommodation Providers >4 units pay 8% PST plus a 2% municipal regional district tax (MRDT) for local tourism promotion

• Illegal STRs are not subject to building/fire inspections, creating potential safety concerns

• Municipal regulation and licensing may provide revenue through taxes and fees to fund STR monitoring, enforcement, inspections etc

HOUSING AVAILABILITY + AFFORDABILITY

• There is a strong financial incentive to rent STRs

• STRs contribute to loss of long-term rental housing supply and increased rental rates over time

• A vacancy rate of less than 1% persists in Squamish

• More than a third of renter households spend more than 30% of their income on rent and utilities which is considered unaffordable

• More than 500 new affordable rental units are needed to meet core housing needs over the next 8 years

LOCAL IMPACTS MANY

PERSPECTIVES

The rise in short term vacation rentals in tourism regions and popular towns is connected to global growth in online rental platforms like Airbnb. STRs allow residents to leverage assets and earn supplemental income, and as a ‘stay in’ strategy in increasingly unaffordable markets like Squamish. STRs bring a variety of opportunities and challenges, as outlined below. Growth in STRs and their resulting community impacts need to be carefully considered and managed.

WITH USSTAY

VISIT squamish.ca/short-term rentals

CONTACTS Aja | aphilp@squamish.ca

Sarah | smcjannet@squamish.ca

604.815.5002

Permissive Restrictive

Business Licence

only

Business Licence plus

Caps

Business licence plus Conditions

Residencey Requirement

Rezoning Requirement

Highly Restrict

Prohibit

FernieSechelt *Squamish

current state*

TofinoPemberton

Vancouver

Rossland

Richmond

Housing speculation

Long term rental supply and

affordability

Safety

Tourism

Compliance and

Enforcement

DIFFICULTTRADE-OFFS

APPROACHES & OPTIONS SPECTRUM

POTENTIAL TOOLS• Business licence and licence conditions

(Building code and fire inspections, health and safety checks, infraction deposits, parking)

• Good neighbour requirements (Host operator contact information availability, onsite management)

• Bylaw enforcement (Audits, tickets, legal review)

• Host platform agreements (not listed without display of licence)

HELPFUL LINKSOCP Housing PoliciesZoning BylawBusiness Licence Bylaw

Sign-up to receive updates by email.

Cumberland NelsonVictoria

RevelstokeNorth Vancouver

WhistlerGolden

No Regulations

New Orleans

ChicagoDenverAustin

New York

Supplemental income

Neighbourhood fit

Regulation and tax equity

SURVEY Please complete the survey before October 31, 2018squamish.ca/short-term-rentals