The Village of Pemberton is taking another swing at regulating short-term vacation rentals (STVR)—this time with a revised bylaw that drops a controversial licensing limit and floats new incentives to convert tourist accommodations into long-term housing.
On Tuesday, July 15, the Village’s Committee of the Whole (COW) considered a staff report that takes into account concerns raised by the public during a May 27 council meeting.
Among the proposed changes: the removal of a two-year cap on STVR business licences, a possible system for managing unused licenses and reconsideration of the current five-per-cent-per-neighbourhood cap on STVRs.
The new direction arrives alongside a policy brief prepared in collaboration with students at the University of Victoria’s School of Public Administration. That economic analysis, tailored to Pemberton’s specific housing landscape, found stricter STVR rules or financial incentives to convert tourist units to long-term housing could yield millions over the next decade.
Three options were analyzed: keeping the status quo, banning STVRs in potential long-term dwellings (PLTD) like secondary suites or introducing a $1,000-per-unit subsidy to encourage owners to return those homes to the rental pool.
The options were analyzed for the per cent increase to the housing pool, a decade-long cost-benefit analysis, fairness to all parties—including STVR operators and the broader communities, how simple the program would be for policymakers to manage and the anticipated public response to the program.
The report found the subsidy option generated the largest net financial gain—$8.2 million over 10 years—while also scoring highest for political acceptability. And while it falls short of the second option’s effectiveness at increasing the long-term housing supply, the more stringent ban was predicted to face “substantial opposition, including, potentially, legal challenges from STVR operators.”
The subsidy model would offer a buy-back-style subsidy for licence-holders willing to give up their permits. Staff warn simply revoking and re-issuing those licences to waitlisted applicants could backfire, resulting in no net gain to housing availability.
Despite council’s earlier interest in relaxing the neighbourhood cap to allow more short-term rentals, staff are cautioning against that move.
“The addition of new short-term rentals to the market would reduce the long-term rental housing supply, negatively impact hotels and result in a net financial loss to the community,” staff wrote in their report to council, citing the economic study’s findings.
The COW also considered methods to address unused licences. Staff floated the idea of requiring annual receipts as proof of operation. Councillor Ted Craddock suggested using inspections or invoices to verify occupancy.
The Village’s first attempt to amend STVR regulations this year was met with a wave of opposition from Airbnb owners in Pemberton. Residents argued the original draft bylaw—which included the licence expiry limit—was overly punitive and would unfairly target compliant operators.
An amended bylaw will be prepared for a third and final reading at an upcoming council meeting.
