The government is reining in short-term rentals to boost housing. Here's how

The B.C. government has introduced legislation that would rein in what it says is a rapidly expanding short-term rental market and deliver more homes for people in need.

The move, aimed at cracking down on investors using short-term rentals to make huge profits, has been applauded by the mayor of Kelowna and other municipal politicians.

Provincial housing Minister Ravi Kahlon introduced the bill in the legislature Monday, saying there has been "an explosion" of short-term rental units and this legislation will target areas with high housing needs.

The legislation would force short-term rental platforms to share their data with the province for enforcement and tax purposes, and would limit short-term rentals to within a host’s own home, or a basement suite or laneway home on their property.

“Hosts will be limited to renting one suite on their own property which could include a secondary suite or laneway home,“ Kahlon said.

Fines for non-compliance would increase from $1,000 to $3,000 per infraction per day.

Most of the rules will apply to communities that have a population of 10,000 or more, and a provincial host and platform registry will be established by late next year.

The government says short-term rental listings on online platforms, such as Airbnb, VRBO, Expedia and FlipKey, have expanded rapidly since the COVID-19 pandemic and are now at an all-time high. The listings have increased by 20 per cent since last year alone.

“We applaud the province’s leadership in taking bold action to address the housing crisis, “ Kelowna mayor Tom Dyas said as part of the government’s media release.

“These proposed changes lay a strong foundation for municipalities to build upon through our own bylaws and regulations, so that current and future residents will be able to quickly access more long-term rentals and housing solutions.”

--With files from The Canadian Press