Short-Term Rental Regulation Review

 

PLEASE NOTE: Short-term rental accommodation uses are currently prohibited in most zones within the Town, with the exception of those within a "resort residential building" within the Resort Commercial (CT4) Zone (subject to the issuance of a business license). A business license cannot be issued for a use that is not permitted by zoning. Please review the information below relating to the on-going Short-Term Rental Regulation Review project, which may result in changes to the regulations relating to short-term rental accommodation uses within the Town.

 

OVERVIEW
The Town of Osoyoos is undertaking a review of the regulations that are applied to short-term rental accommodations.

WHAT ARE SHORT-TERM RENTAL ACCOMMODATIONS?
Short-term rental accommodations (STRs) are dwelling units used for providing vacation or recreational accommodation for a specific period of time, usually facilitated through an online platform such as Airbnb or VRBO (Vacation Rental By Owner). 

ARE SHORT-TERM RENTALS CURRENTLY REGULATED IN OSOYOOS?
Short-term rentals are currently prohibited in all residential zones and are only allowed on a limited basis on the Resort Commercial (CT4) Zone, within a “resort residential building”, subject to the issuance of a business license(s).

WHY IS THE TOWN CONSIDERING THE REGULATION OF SHORT-TERM RENTALS?
While short-term rentals play an important role in the Town’s vibrant tourism industry as a resort municipality, they can also pose challenges to the community as it relates to balancing these demands and year-round housing needs. 

The purpose of this strategic project is to explore means of regulating short-term rentals in order to ensure that the long-term housing stock is protected, while also providing diversity and flexibility in the accommodation options offered within the Town.

NEW SHORT-TERM RENTAL REGULATIONS FROM THE PROVINCE OF B.C.
On October 26, 2023, the Short-Term Rental Accommodations Act received Royal Assent and is intended, amongst other things, to “give local governments stronger tools to enforce short-term rental bylaws.” The regulations are seen to have three primary areas of focus:

  1. Increasing fines for contravention of short-term rental regulations and strengthening local government enforcement tools.
  2. Protecting the community housing stock by returning short-term rentals to long-term homes (i.e., by establishing new criteria for operating short-term rentals within certain communities, being the “Principal Residence Requirement”, and removing non-conforming use allowances).
  3. Establishing a new role for the Provincial government in the regulation and enforcement of short-term rentals.

Principal Residence Requirement
As of May 1, 2024, the Provincial “Principal Residence Requirement” has come into effect. This new requirement limits the operation of short-term rentals to:

  • The host’s principal residence; and,
  • One secondary suite or accessory dwelling on the same property as the host’s principal residence.

The Principal Residence Requirement applies to municipalities with a population of 10,000 and more, as well as some smaller neighbouring communities; however, for those communities exempt from the requirement, the Province has provided an option to “opt-in” to the Principal Residence Requirement.

In March of 2024, Council resolved to request of the province that the Town be included in the provincial “Principal Residence Requirement”. This request was approved and came into effect on November 1, 2024.

For more information on the Provincial Residence Requirement, please visit the following webpage: https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/principal-residence-requirement

“PILOT PROGRAM”
In light of the introduction of the provincial Short-Term Rental Accommodation Act and the Small-Scale Multi-Unit Housing (SSMUH) provisions of the Local Government Act, the Town of Osoyoos is proposing to proceed with a “Short Term Rental Accommodation Pilot Program”.

Where would “short-term rental accommodation” uses be permitted within the Town under the Pilot Program?
Short-term rental accommodation uses would be permitted in the Small-Scale Multi-Unit Residential (RS1) Zone as follows:

  • “short-term rental accommodation” (STR) be listed as a permitted accessory use;
  • the maximum number of STRs permitted to operate on a parcel be one (1);
  • an STR use be limited to dwellings with no more than four (4) bedrooms to a maximum occupancy of eight (8) patrons at any one time;
  • on-site vehicle parking be provided at a ratio of one (1) space for each bedroom in the dwelling unit.

Will I need a business license to operate a short-term rental accommodation business?
The issuance of an associated business license (and annual renewal) will be required to operate a short-term rental accommodation business.  A business license may only be issued where the use is permitted in the applicable zone and the operation complies with the relevant provisions of the zoning bylaw.

The Town is proposing to introduce business license requirements that are specific to short-term rental accommodation uses. Specifically, it is being proposed that business license applications for short-term rental accommodation uses be accompanied by the following required documentation: 

  • proof that principal residence requirement is met;
  • floor plan; 
  • health and safety inspection; 
  • fire evacuation plan; and
  • parking plan.

A business licence fee of $750.00 would be applied to “short-term rental accommodation”.

NOTE: These business license application requirements and fees would also apply to bed and breakfast operations.

What enforcement measures are being proposed as part of the Pilot Program?
New fines ($150.00 - $3,000.00) would be introduced for operating in contravention of business license and zoning requirements, as well as for advertising without a valid business license or for more bedrooms/sleeping units than permitted.

 Where can I find more information on the Pilot Program?

Additional information on these proposed changes can be found in the following documents:

NOTE: information regarding the implementation of the new Business Licence Regulation Bylaw No. 1400 can be found at the following webpage: Business Licence Bylaw Review

ENGAGEMENT OPPORTUNITIES
The Town of Osoyoos will be announcing opportunities for public input on the proposed “Pilot Program” and supporting land use bylaw amendments in early 2025. 

An overview of previous engagement opportunities undertaken throughout 2023 is provided below.  Feedback collected during the first and second phase of engagement has been summarized into a What We Heard Report

  1. Short-Term Rentals Community Workshop (Complete)

A workshop was held June 10, 2023 to provide community members with the opportunity to dive deeper into the short-term rental pilot program and provide additional feedback on key aspects of the program.

See the link below to view the panel boards presented at the workshop: STR Workshop Panel Boards

  1. Online Survey (Complete)

An online survey was open from February 13 to March 13, 2023 to collect feedback on key zoning topics within Osoyoos and to better understand the community's level of support for short-term rental regulation.

  1. Community Workshops (Complete)

A series of community workshops were held throughout February and March 2023 to collect input on key zoning topics and short-term rental regulation.

  • In-Person Community Workshop #1 | Sonora Centre  Tuesday, February 28, 2023
  • Virtual Community Workshop | Zoom  Tuesday, March 7, 2023 
  • In-Person Community Workshop #2 | Sonora Centre  Saturday, March 11, 2023

 

CONTACT US!
Contact Planning and Development Services: plan@osoyoos.ca