Will changes to the Residential Tenancy Act backfire?
Could BC tenancy rules end up pushing more long-term rentals into Airbnb short-term (under 30 days) rentals?
In a valiant effort to protect tenants from unscrupulous landlords; the BC government passed legislation to stop “unfair and unjustified rent increases.”
How? By no longer allowing landlords the right to hold tenants to a fixed term lease with a move-out clause.
See exception (Then click on Fixed-Term-Tenancy)
So where does this leave the one-off landlord? That being a property owner with a space to rent, often as a side project. Much different than a property manager or building owner, whose full-time occupation entails day to day rental management.
The latter being well versed with B.C Residential Tenancy regulations and its complex time devouring procedures.
I sell hotel supplies to property owners who’ve opened their homes, cottages, resort condos, suites and so on to travelers. As a result, I speak to Airbnb, VRBO, and HomeAway hosts daily.
I often ask my customers what prompts them to open their properties to this fast growing home sharing and/or short-term rental phenomena.
The top three answers are: Extra income. Fun to meet guests. “This means we can now afford to keep the extra space for visiting family and friends.”
From the rumblings I’m hearing; this new rule may backfire and inadvertently remove even more rental space from BC’s already sparse supply.
Why? Ask yourself. If you’ve worked a lifetime to accumulate your very own real estate, and now find yourself with extra space available.
Would you rather:
A) Rent long term with all of the usual risks. Plus now, this added disincentive; allowing the tenant to unilaterally decide when to end the tenancy.
B) Fix your space up as a guest suite, or guest room, and become a host to short term (under 30 days) visitors. Meet interesting pre-vetted people. Enjoy guaranteed, up front payments.