As British Columbia faces ongoing economic challenges and an expected rise in domestic tourism, the BC Real Estate Association (BCREA) is urging the provincial government to revisit its short-term rental (STR) laws to better balance housing needs with regional economic realities.

Since the Short-Term Rental Accommodations Act came into effect, it has aimed to increase housing availability. However, the unintended consequences have strained local economies—especially in tourism-heavy and rural areas.

Why Reforms Are Needed

With travel and tourism demand increasing and hotel availability tightening, BCREA says now is the time for more flexible STR rules. While recognizing the urgency of BC’s housing crisis, REALTORS® argue that STR restrictions must account for the province’s tourism, healthcare, and entertainment industries.

Here are four key recommendations BCREA has proposed:

1. Restore Local Zoning Authority

Current legislation limits local governments’ ability to exempt areas from the principal residence requirement unless their vacancy rate has been at or above 3% for two consecutive years. This threshold is too strict for many communities—like Parksville, which hasn’t hit that mark in over 20 years, and Prince George, which fell just short in 2023.

BCREA recommends returning more zoning control to municipalities, allowing them to request exemptions for specific zones or buildings originally designed for STR use. This would help communities tailor STR policies to their specific needs rather than applying a rigid province-wide standard.

2. Clarify and Expand Strata Hotel and Fractional Ownership Exemptions

While strata hotels and fractional ownership properties were granted limited exemptions, the criteria are confusing and overly complex, excluding many buildings designed for tourism and short-term stays. These properties often cannot accommodate long-term tenants due to their design and purpose.

BCREA urges the government to fully exempt these property types from STR restrictions, noting that excluding them has harmed local tourism economies and created unnecessary legal uncertainty for property owners and REALTORS®.

3. Create Exemptions Near Major Healthcare Facilities

In rural and northern BC, hospitals serve large surrounding areas. Patients and healthcare professionals often rely on STRs for short stays.

BCREA proposes geographic exemptions for STRs within defined zones around healthcare centres, similar to how the province approaches transit-oriented housing policy. This would support travelling nurses, doctors, and patients needing temporary accommodation without pushing them into costly hotel stays.

4. Support the TV and Film Industry with STR Access

BC’s film and television industry brings in substantial revenue, but the current STR rules have limited housing options for transient cast and crew, placing further pressure on hotel availability and increasing lodging costs.

BCREA is calling for broad STR exemptions for the entertainment sector, arguing that more flexibility is essential to sustain BC’s competitiveness in this industry. 

Final Word from BCREA

“The BC provincial government has the challenging job of balancing housing policy with overall provincial economic well-being,” says Trevor Hargreaves, Senior VP of Government Relations at BCREA. “Some key changes to current short-term rental legislation would help many people and communities across the province while maintaining the spirit of the original policy.” Altin Yousefi : RE/MAX Crest Realty : For Rent

BC Real Estate: New short-term rental exemptions - The Golden Star