Amidst the evolving landscape of housing regulations, Cowichan residents find themselves at the forefront of changes brought about by the recent Provincial Housing and Short-Term Rental Legislation, particularly Bill 35. These regulatory shifts aim to address the pressing housing crisis while reshaping the short-term rental (STR) market. For Cowichan residents, staying informed about regulations and enforcement measures is crucial for property owners and communities alike. Here’s a breakdown of the implications and responses within the Cowichan Valley Regional District (CVRD).
Understanding Short-term Rentals
The Province defines short-term rentals (STRs) as accommodations provided to members of the public in a host’s property, in exchange for money, for a period of less than 90 consecutive days. They are generally tourist accommodations that are often found in residential or resort areas. They may be advertised via online platforms such as Airbnb, VRBO, Expedia and FlipKey, and may also be advertised on other web forums including Facebook Marketplace, or found in classified ads in newspapers.
Short-term rentals do not include accommodations that are intended to be provided for 90 days or longer, but which unexpectedly end before 90 days have passed. The definition of an STR is specific and it differs from other accommodations such as student accommodations or strata-titled hotels or motels.
In order to operate a STR on your property, it must be permitted within the zoning of the property. Within the electoral areas of the CVRD, most residentially-zoned parcels do not currently permit short-term rentals. Fewer than 100 parcels of land throughout the CVRD permit short-term rentals, which include: the CD-5 Zone in Mill Bay (Sandy Beach Cottages), the W-8 Zone in Cowichan Bay Village (Cowichan Bay stilt homes), the CD-2 Zone in Cowichan Lake/ Skutz Falls (Pebbles West), and the LR-11 Zone in Youbou/Meade Creek. Traditional style Bed and Breakfasts are generally permitted in most residential zones providing the owner or operator resides within the dwelling and serves breakfast to guests. Our region’s municipalities also have their own rules regarding STRs.
Understanding Bill 35, Principal Residence and Opt-In Decisions
Bill 35, also known as the Short-Term Rental Accommodation Act, represents a proactive measure by the Provincial government to tackle the challenges posed by the burgeoning STR industry. Its core objectives include granting more authority to local governments for enforcement, encouraging the conversion or return of STR units into the long-term housing market, and establishing a new framework for provincial oversight.
One of the key changes under Bill 35 is the principal residence requirement, which stipulates that STRs are limited to operating within the host’s primary residence, plus one secondary suite or accessory dwelling unit on the same property. This requirement automatically applies to communities exceeding 10,000 in population, as well as smaller neighbouring communities. Due to population size, the Municipality of North Cowichan and nearby City of Duncan are automatically subject to this rule, with the principal residence requirement coming into effect on May 1, 2024.
Communities that are automatically included but with a rental vacancy rate of 3% or more for two consecutive years may request to opt out of the principal residence requirement, subject to Ministerial approval. (Note: in 2023, the rental vacancy rate in Duncan was 2.4%, and 0.6% in Ladysmith).
Communities of less than 10,000 people may choose to opt into the principal residence requirement. CVRD Electoral Areas A, C, E, F, G and H have opted in, but the rules will not take effect until November 1, 2024. It is important to emphasize that opting in only relates to the principal residence requirement, and that property owners must still meet local zoning requirements in order to operate a legal STR, regardless of whether they are operating in an area that has opted in or not.
Not all areas within the CVRD have opted in to the principal residence requirement, such as Shawnigan Lake, Cowichan Bay, and Youbou/Meade Creek. The Town of Ladysmith and the Town of Lake Cowichan also did not opt in. Concerns about potential challenges for property owners, particularly those who purchased properties under previous regulations, have influenced some electoral area directors’ decisions to abstain.
It is also important to note that all lodgings on farm-class properties are exempt from the new STR regulations. The exemption holds, even if a local government has chosen to opt in. This decision falls in line with the 2021 provincial change in farm housing governance, whereby owners of property within the Agricultural Land Reserve are able to build a second home or suite to use as a rental property, farm worker lodgings, agritourism, or for extended family members to use for non-farm use, as long as this is permitted by local government zoning regulations.
Existing non-conforming uses are also being phased out, necessitating explicit zoning amendments to permit STR operations. This means that STRs that existed before Bill 35 may only remain following local government zoning amendments that permit STRs.
Future Considerations and Community Engagement
The Province continues to roll out additional information on the new short-term rental rules, including new enforcement tools for local governments. In anticipation, the CVRD is exploring proactive strategies, such as business licensing, to more efficiently regulate short-term rentals with the intent to support the tourism economy and avoid negative impacts of transient tourist activity on established neighbourhoods.
The implementation of new STR regulations presents both challenges and opportunities for Cowichan Valley residents. By engaging in collaborative decision-making and proactive planning, we can uphold our shared commitment to housing affordability, sustainable tourism, and community well-being.
To inquire whether your property permits the use of a short-term rental, please contact CVRD Development Services at ds@cvrd.bc.ca or your local municipality.
For further information and updates on these regulatory changes, residents are encouraged to refer to the official announcements provided by the CVRD: https://www.planyourcowichan.ca/new-provincial-housing-short-term-rental-legislation
For more information from the Province on how the new regulations, click the link: https://news.gov.bc.ca/releases/2024HOUS0020-000590