Short-term rental owner Deborah Jenkins takes exception to the proposed City of Powell River bylaw governing short-term rentals in the city.
At a City of Powell River Council public hearing into Bylaw 2539 on Thursday, March 21, Jenkins said she does not agree with the fee structure the city is trying to impose on “so-called vacation rentals.” She said $2,000 is an “outrageous” fee to charge.
“What I charge for our Airbnb barely covers the mortgage; it doesn’t cover taxes, food, cleaning or repairs. We shouldn’t be charged any more than a business licence, which is fair,” she said. “If you are going to impose this fee then you need to start charging all the long-term rentals as well. After all, they are a business. They are getting paid for their extra homes.”
Jenkins said there is an accommodation problem in Powell River and a need for Airbnbs, or short-term rental availability.
She said she appreciates that council is trying to hear short-term rental owners’ concerns and trying to accommodate them, but she still thinks the bylaw needs more work.
“There needs to be more discussion on this topic before any decisions can be made,” she added. “This is not fair nor ethical.”
After the public hearing, Bylaw 2539 has to go back to city council for third reading and final adoption. The bylaw is on the agenda for the Thursday, April 4, City of Powell River Council meeting.
According to media notes provided by city senior planner Daniella Fergusson, short-term rentals bring benefits to City of Powell River.
“Recognizing the benefits of short-term rentals for homeowners and visitors, council is considering allowing an unlimited number of short-term rental business licences for homeowners who wish to rent out an extra room, suite, carriage house, or the entire house while they are away,” stated Fergusson. “The business licence fee for this would be $180 per year, and the city is aware of 50-plus homeowners ready to start the licensing process.”
According to Fergusson, where the city wants to proceed with caution is the short-term rental of investment properties: homes the owner does not live in. Studies from around the world show unregulated short-term rentals can hurt hotel and motel operators, as well as significantly raise rents for long-term renters, according to Fergusson. So council is considering allowing a limited number of vacation rentals, which are investment properties the owner rents short-term and does not live in.
The $2,000 business licence fee was proposed by staff as a compromise, stated Fergusson.
“Previous versions of the bylaws did not allow vacation rentals, so vacation rental owners would need to rezone to tourist accommodation use to operate. The rezoning would level the playing field with motel and hotel operators who pay commercial property tax rates. With a rezoning and change in use, the average property tax for a vacation rental would increase by about $5,000 a year. As a result, the city is offering a much more affordable option for investors by charging a $2,000 per year business licence fee for vacation rentals.”
