One thing was nearly unanimous at a city council planning committee meeting Tuesday: illegal and unregulated house-hotels and short-term rental rooms are a big problem and there needs to be better enforcement of such businesses, whether or not new regulations are put in place to make them legal.
Councillors must decide whether they should ban the practice altogether or create a new bylaw — as recommended by city staff — that draws some of the shady hotel operations out of the dark and places various limitations on them, via a new business license. Few definitive answers were forthcoming.
“It’s a logistical nightmare trying to control something that can’t be controlled in a sharing economy,” explained Coun. Ken Johnston, who said he is unhappy to be living near an illegal house-hotel.
A 6-1 vote saw councillors decide to accept, on principle, that such operations should be legalized in some form. They voted to take the issue to public consultation.
Absent was Coun. Linda McPhail, while Coun. Carol Day recused herself from discussion, as she is one of 17 licensed bed and breakfast operators in the city.
The only dissenting vote was Coun. Harold Steves, who contends the city has failed to enforce existing bylaws to address the proliferation of such unlicensed operations, which are seen as a boon for tourists and income source for homeowners, but also a black eye for affordable housing, neighbourhood safety and sense of community.
“I think staff have done an excellent job of boarding up the barn doors after the cows have left,” said Steves.
Meanwhile, Coun. Alexa Loo said she wasn’t convinced the problem was as prolific as some think.
“I’m wondering if we’re getting overly excited about people having hotels in houses,” said Loo.
“There’s a few people running hotels and annoying their neighbours, it seems,” she added.
Mayor Malcolm Brodie countered, saying he didn’t think the issue was “overblown.”
A City of Richmond report states there are 1,586 short-term rentals (houses and condos) listed on major online booking websites. In 2016, the city received 111 resident complaints of single-family homes being used in such a manner.
While Brodie said “we’re better off to regulate,” much of the public reaction to the proposals has been negative.
“This proposed licensing will turn our residential areas into noisy commercial enterprises. Why? When is the next election?” said longtime realtor Ed Ganeff on Twitter.
Many, including Steves, claim the city had ignored the problem from the start.
The city maintains that existing bylaws do not specifically address short-term rentals in residential zones. Under the “single detached” bylaw, permitted use is limited to “housing.” A secondary use may be “boarding and lodging.” Boarding and lodging is limited to not more than two guests.
Richmond’s chief license inspector Carli Edwards maintains that there is nothing stopping a homeowner from renting an entire house to one new family each day of the month, plus two additional guests.
This, in part, is why city staff is recommending a new, “short-term rental” license be created to rent out an entire home to no more than six patrons at one time, and as one booking, for less than 30 days, so long as the owner lives permanently in the house.
“We need to have the person living in the house. This is key,” said Coun. Chak Au.
The city would work with online booking agents such as Airbnb and Booking.com to ensure listings are licensed.
The News asked why the city wouldn’t just enforce existing bylaws toward online listings that show more than three bedrooms available for rent with room for 10 or more guests (for example).
City spokesperson Ted Townsend said that listing a house with multiple rooms is not evidence of money being exchanged.
The News asked if the city had attempted to book rooms itself, as part of their own investigations. Townsend didn’t have that information readily available.
In July 2015, the News wrote about a house at 8260 Gilbert Rd. listed on Expedia.ca and offering eight rooms. The city said it would investigate the house, however it continues to be listed on other booking sites to this day.
Edwards maintains that the burden of proof, thus enforcement, is difficult for the city under the existing bylaws. For instance, Edwards says it’s difficult to prove if someone actually spent the night and paid, even if an inspector observes said person in the house. The News understands that the city has never tested such assertions in court.
Edwards says stiffer municipal fines are being proposed for unlicensed operators.
But without new inspectors, nothing will likely change, said Coun. Derek Dang.
Bed and breakfast operators Brian and Linda Cooper say the new regulations are unfair to their business, which has a long list of compliance measures, including insurance.
Brian says the city simply needs to apply its own bed and breakfast bylaw to existing short-term rentals.
“The rules that are in place should be enforced. I agree with Harold (Steves),” he said.
The Coopers differ on enforcement, however. Whereas Linda, like Johnston, thinks it could be a costly bureaucratic nightmare, Brian contends more inspectors can work.
“This is why we have municipalities.”
Townsend said new inspectors could be cost-neutral, factoring in fine revenues.
The city hasn’t decided on the number of licenses it would issue under a new bylaw.
Last September, the News checked into Lancing House in Blundell and discovered 19 guests in 11 rooms. Bylaw officers attended the house numerous times but no fines were issued. No fines were issued against illegal short-term rentals in 2016, said Townsend.
