Naturally, it is no secret, Vancouver is a hot spot for tourists from all across the glob. With the cost of hotels and the rise of AirBnB, a lot of owners were taking their investment properties off the rental market and capitalizing on the high return AirBnB offered! This lead to a war between worlds, homeowners were claiming “I own the home, why can’t I do what I want with it?!” and renters/home buyers were arguing “We don’t have the supply in Vancouver as everyone is accomodating all the tourists and leaving the residents of the city out to dry”.
This was a back and forth argument for some time until the BC provincial government stepped in. Rules were changed as of this year and the side of the renters/homebuyers was taken…. Mostly. As of today, in order to run an AirBnB operation, one must be registered on AirBnB AND with the provincial government. This registration will provide a homeowner a ‘business registration number’ which must be displayed on their AirBnB add. There is a catch……. One is only able to register and be accepted provided the home/room/unit in question is the principle residence of the homeowner. Meaning those with multiple homes are now out of luck when it comes to renting their additional properties to eager tourists!
Of course attention was turned to the potential fines involved with not complying with these rules and they originally were $1,000 a month if caught without a business registration number. Now let’s do the math quickly assuming we’re dealing with a 30 day month. 30 days at $200 / night equals = $6,000 a month. Even if you were caught, that’s still a $5,000 profit. This is over double of what the average 1 bedroom rent in Vancouver is ($1,900 / month).
The rules needless to say had to be amended again. As of April this year, a DAILY FINE of $1,000 can be applied now! OUCH!! That’s not a light fine! On top of this, if you live in a condo unit, there are only 3 buildings in downtown Vancouver (soon to be 4) that allow AirBnB due to the obvious potential security issues.
The agreement between AirBnB and the provincial government is the first of its kind in Canada and is naturally questioned by many. Although the regulations are in place, it is still possible to utilize AirBnB to your advantage. With the new rules it’s reduced the amount of available homes for tourists to rent. This reduction to supply has increased demand and this has increased the cost a homeowner can charge per night to stay. We’ve even heard rumours of people going on long vacations and renting their home throug Air BnB while away, raking in a $12,000 profit!!!
So AirBnB is still a thing in the city! Just make sure your building allows it (if in a condo), you are only renting your private residence and you register for a business licence through the necessary measures - https://www.airbnb.ca/help/article/1863/business-licensing-in-vancouver?ibbe=0
We’re always trying to bring you all the most relevant and beneficial information! Thanks to our reader who reached out to us for more info on AirBnB!
Until next week guys!