Stricter rules around short-term rentals in Port Moody advanced to public hearing by council

Port Moody is looking to strengthen its regulations around short-term rentals, advancing bylaw updates that could lead to fines of up to $3,000 a day for infractions.

City council unanimously supported sending the bylaw updates to public hearing on Oct. 8, which would define short-term rentals (STR) units for the first time, and restrict them to bed and breakfasts and private room rentals.

“I was really pleased to see this,” said Coun. Kyla Knowles. “Any way we can increase vacancy, housing options for families in the city within existing buildings will have my support.”

By returning units being used on sites like Airbnb to its long-term rental stock, the city is aiming to reverse its low vacancy rate, which could help ease local rent prices.

Port Moody has a vacancy rate of 1.3 percent, and the Tri-Cities had a vacancy rate of just 0.5 percent as of October, 2023, according to the Canadian Mortgage and Housing Corporation, which recommends a balanced rate of 3 percent.

The bylaw changes follow on the heels of Bill 35 – the provincial housing legislation passed last October – which restricted STR operations across the province

As of May 1, 2024, STRs are limited to a host’s principal residence, one secondary suite, or one accessory dwelling unit, and must be registered under a new provincial registry.

The province also set up a new Compliance and Enforcement Unit (CEU) for STRs under the Ministry of Housing to investigate non-compliant hosts and platforms, which can apply fines of up to $5,000 per infraction for hosts, and up to $10,000 a day for corporations.

A short-term rental portal was set up where information about listings are required to be shared with the province on a monthly basis, and can be accessed by local governments to enforce local bylaws.

In order to access the information, however, Port Moody needs to have an STR bylaw set up – something previously missing – and have an agreement in place with the province.

STRs are not currently tracked or enforced by the city as a separate business licence category, and hosts do not need to specify whether their units are for the short or long-term markets.

According to a third-party platform which tracks STR markets (AirDNA) the number jumped of short-term units jumped from 88 to 162 between August 2018 and August 2023, with 88 percent renting out entire homes. 

Since the passing of Bill 35, the number of active listings has dropped to 119 as of August, 2024.

The provincial legislation, however, did not prevent local municipalities from setting out their own individual definitions for STRs to further limit the market in their communities.

In both Coquitlam and Port Coquitlam owners must reside in the home and have a short-term rental business licence and face inspections.

Staff said Port Moody would be better suited by excluding secondary suites and accessory dwelling units from its STR market, stating these housing types should serve the long-term market. It would also align Port Moody’s policy with its neighbours in the Tri-Cities, they said.

By passing the bylaw update, Port Moody will be allowed access to the provincial registry, which will make it easier to find infractions, according to staff.

They added they will also respond to public complaints about rulebreakers, and coordinate with the province’s CEU.

Port Moody would publish information related to the new regulations and requirements to its website, and notify licence holders of the new conditions, staff said.

Coun. Samantha Agtarap raised a concern about whether residents would be able to rent out their homes if they have to travel for an extended period of time.

“It’s technically like their primary residence, they’re just not living in it at that moment,” Agtarap said. 

Staff said they would investigate whether the regulations would apply and update its website accordingly.