Short Term Rentals in Golden Print Article Font Size

Short Term Rentals in the Town of Golden

 

What's happening now?

Final-STR-TOG-logo-(1).jpgThe Town of Golden is in the process of fine-tuning a draft regulatory framework for Short Term Rentals (STRs). Your Town Council wants a regulated and fair framework that allows some STRs while protecting the existing housing stock. Our community survey was live from November 20, 2017 to Januaray 3, 2018. During this time, we also hosted a number of focus groups to discuss the issue of STRs and the Town's draft regulatory framework. Please click HERE to view the public input summary. 

At the Regular Open Council Meeting held on February 6, 2018, Council reviewed the public input gathered from the recent STR survey, the four focus group meetings and the items of correspondence received.  Council discussed the input and provided the following direction for bylaw drafting.  This direction was recorded and recirculated to Council, the focus group attendees and others who expressed an interest in the short term rental topic (nearly 50 people). 
 
At the Regular Open Council Meeting held on February 20, 2018, Council re-affirmed their direction on bylaw drafting:

  1. Support for the proposed Temporary Use Permit and business license/regulation framework as a way to control the number of STRs in a particular area or on a particular street.
  2. A short term rental (accommodation of 30 days or less) can occur in single detached dwelling or in a secondary suite as well as within a duplex.
  3. The single detached dwelling, duplex or ½ duplex, must be occupied during the short term rental by the owner, it must be the owner’s principal dwelling, and the owner must be present.  Council was also cognizant of neighbourhood impact and wanted the owner to be present to address potential noise, parking and other nuisances.   
  4. A duplex or ½ duplex being operated as an STR must be on one title/one real estate entity:
    1. If an owner owns both halves of the duplex, on one title, the owner can reside in one half of the duplex and operate an STR in the other. 
    2. In the case of a fee simple duplex the owner can operate a B&B/STR only in the side where they reside/own.   
  5. Short term rentals are not to be permitted:
    1. On a property with a detached secondary residential dwelling (carriage house or garden suite);
    2. Within a unit in a multi-family residential development.
  6. Prior to approval, an initial life-safety inspection is to be conducted by the building official then inspections every three years. 
  7. Requirements such as no advertising without a business license will also be implemented for efficient enforcement purposes. 
  8. Council is comfortable with the on-site (off-street) parking requirements of two parking stall per single detached dwelling and one additional stall for each bedroom operated as a B&B/STR up to three bedrooms. 
  9. There was no support for seasonal operators paying reduced licensing or water/sewer fees.
 
This approach balances Council's desire to create a fair regulated environment that supports a viable Short Term Rental sector while meaningfully preserving housing stock for residential purposes -- both rental and ownership. 
 
Next steps:
Staff will further examine options for transitioning permits in order to ensure there are opportunities for new entrants to the STR market over time and if the permit can expire upon sale of the property. 
Also, at a later date further information will be brought forward for Council consideration on the permit and license fee structure and implementation process timeline. Those currently operating STR should be aware of the direction Council is headed. 
 
Approximate time line:
  • Spring 2018: First reading and information on implementation
  • Late spring/early summer 2018: Public hearing
  • Summer 2018: Regulations adopted
  • Late summer/fall 2018: First applications received and processed.
  • Fall/winter 2018: Enforcement commences
*Please be advised that timelines are currently six months behind schedule.


Background
The Town of Golden is continuing to study potential new rules for Short Term Rentals (STRs), often referred to as Bed and Breakfasts (B&Bs), Airbnbs, vacation rentals, and even home sharing.  STRs refer to the accommodation rental of a private residence whether a few rooms (a B&B) or an entire house (a vacation rental), for a period of less than 30 nights, for which the guest compensates the owner (or lessee) of the unit.

Staff and Council began discussing this topic in the summer of 2016. Due to the sheer magnitude of the issue, work priorities, and a want to learn from other communities, Council directed staff to re-examine the Town’s B&B and STR regulatory regime in 2017 and 2018. Our goal is to have new regulations in place in early 2018.
  
Our intent is to create a fair, non-burdensome and enforceable regulatory structure that meets the community’s expectations developed with the help from both those currently operating STRs and those that simply want them regulated.
 
It is important to understand that any eventual regulatory framework we put in place will set the stage for things like density, location, behaviour and fees. What the Town has no control over is consumer tax collection. Collection of consumptive taxes such as PST, GST, and MRDT (Hotel Tax) are not within our authority, but that of the provincial and federal governments. These are separate issues that the industry needs to grapple with and we are powerless to direct, leaving us simply to lobby these higher authorities for tax equality like everyone else.
 
We have heard from Tourism Golden and a few community members that this is an important issue and we are listening. As staff brings this topic back to the Council table for more discussion and consideration, we will keep the community informed on this page.


Historical and Current Regulations
For decades, the Town of Golden’s Zoning Bylaw has allowed B&Bs to operate as an accessory use in a single detached dwelling. No rezoning application is required and breakfast does not have to be served, despite our traditional expectation of this type of STR.
                             
However, an application for a business license is required and some of the regulations include that the owner resides in the home; a maximum of three guest rooms are offered; onsite parking requirements must be met (2 parking stalls for the home and 1 parking stall for each guest room); increased water and sewer fees apply; and small sign is permitted (0.25 square metres). 
 
Also, prior to the issuance of a business license an inspection will be conducted to confirm that general life safety items such as guard rails, handrails, fire extinguishers, smoke and CO detectors, garage door self-closers, weather stripping, and appropriate means of egress are present.
 
Remember - if you are operating a B&B it is your responsibility to apply for a Business License.  The costs:

1. Annual Business Licensee of $70.00
2. Annual Water and Sewer Utility Charges. Note: In January, 2018, Council passed two bylaws to increase water and sewer fees (and lowered the fee for long-term, residential secondary suites).

2018-Short-Term-Rental-W-S-Comparison-cropped.jpg

 3. Other implications may include additional third party insurance costs and GST if revenue exceeds $30K.

The 2008 Official Community Plan has an objective to encourage vacation rentals in commercial areas, and prohibit them in residential neighbourhoods except Canyon Ridge in an effort to preserve long-term rental housing stock.  Vacation rentals were not introduced in the 2011 Zoning Bylaw.

Recent Trends
STRs represent a globally sought and valid market for travelers. Times have changed and millions of people want more authentic accommodation experiences not afforded by the traditional hotel model.  In our minds, banning this obviously important market force would be counter intuitive and unnecessarily meddling with the free market. Having said this, some form of fair and equitable regulation that fits the community should be in place, because of their real and potential influences to communities including challenges such as, neighbourhood impacts (noise, parking, loss of community feel), impact on rental and ownership housing stock, erosion of the commercial core, and increased water and sewer use. On the other hand, community benefits include additional local wealth creation source for residents, authentic cultural experiences, and perhaps using existing homes that would be vacant or otherwise under-occupied more efficiently.

Websites such as Airbnb and Vacation Rental by Owner (VRBO) as well as smart phones have made it easier to operate an STR. The Town is aware that over the last couple of years many unlicensed STRs have started up in both the Town and Area A (Note: There is limited land use planning in CSRD Electoral Area A, but there are regulations in regards to subdivision, water/sewer systems, Agricultural Land Reserve, riparian areas, etc. Please contact the CSRD Development Services Department at 1-888-248-2773, 250-832-8194 or plan@csrd.bc.ca if you have any questions). Numerous communities are facing this disruptor, have been grappling with similar policy questions, and have found their STR regulations difficult to enforce and controversial if not either carefully thought out or not having the buy-in from the sector.
 
Questions, comments, or want to be included in future public consultation processes? 
Contact str@golden.ca and tell us about your experience with STRs.  
 
Relevant documents