Regulating the unregulated

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This article was published 17/07/2023 (1035 days ago), so information in it may no longer be current.

Short-term rentals in Winnipeg are facing long-term changes.

In the coming weeks, city council is set to vote on a new bylaw which proposes to cap the number of properties an owner can rent out, limit the number of nights a visitor can stay, introduce an annual licensing requirement and add a five per cent accommodation tax to operations, among other things.

The draft legislation has been a contentious issue for people on both sides of the debate: neighbours with gripes against revolving visitors and property owners with hefty investments in the short-term rental market. Regulating a non-regulated industry will always come with pushback, but rules are necessary to ensure the livability of local neighbourhoods and protect Winnipeg’s housing market, while continuing to cater to visitors from afar.

It’s a difficult line to walk, but the city has done an admirable job of finding balance. Surveys have been conducted, rules have been amended and enforcement has been considered. Council has also asked the province to consider adding a conflict resolution mechanism to its condominium laws to address grievances that may arise.

And grievances have arisen.

At a local meeting in February, councillors heard from condo residents who were dealing with excessive noise, violent incidents and a revolving door of strangers related to short term rental suites in their building. Similar units in a downtown condo were also the site of several large drug busts, a recent Free Press investigation revealed.

While the majority of Winnipeg listings on Airbnb or Vrbo aren’t magnets for raging parties and criminal activity, regional regulation is needed to incentivize the vetting of temporary renters while offering full-time residents recourse for disturbances. Licensing requirements are a step in the right direction.

Another thing the city’s proposed legislation gets right is the limit on short-term rental properties.

Like most of the country, Winnipeg is in the midst of an affordable housing crisis. The most recent rental market report from the Canada Mortgage and Housing Corporation indicates a drop in local vacancy rates as demand outstrips supply.

For low-income earners, the situation is more dire. Those earning less than $25,000 per year can only afford to lease an apartment or home from four per cent of the available rental universe.

Housing is both an investment and a basic human need. Too often, the latter is trumped by entrepreneurial designs and earning potential. Yes, those who have the resources to own multiple properties should be able to make a profit on their assets, but it shouldn’t come at the expense of affordable shelter for someone else.

Regina’s short-term rental regulations include a vacancy rate clause which pauses licensing if the city’s vacancy rate drops below three per cent. Winnipeg’s rental vacancy rate currently sits at 2.7 per cent.

Available data suggest there are between 900 and 1,400 short-term rental properties operating within Winnipeg. While the local landscape hasn’t been studied directly, a 2019 study out of McGill University suggests Airbnb has removed more than 31,000 units from Canada’s long-term rental housing market — a dynamic that, if left unchecked, threatens to further strain the national housing crisis.

Modern rules are needed to manage a modern and growing industry. With its proposed short-term rental regulations, the city has created a framework that takes homeowners, investors and travellers into consideration.