Advocacy: Short Term Rentals (STRs) - Spring 2022

Article from Volume 9, Issue Number 2, 2022

Advocacy: Short Term Rentals (STRs) - Spring 2022

By Alan Forbes | Other articles by Alan Forbes | Feature

We wrote to the Standing Policy Committee on Property and Development, Heritage, and Downtown Development (SPC-PDHD) asking to be included in their stakeholder consultations as we could provide the perspectives from condominium owners, investors, boards and residents, along with the perspectives of our professional members and business partners.

Within minutes of receiving our correspondence, one of the Councilors of the Committee, Janice Lukes, responded favorably to us and copied the pertinent director of the City department, John Kiernan, who also responded favorably to us a short time later. Since then we have had an introductory meeting (more to follow) with City staff who have the responsibility to conduct the stakeholder engagements and prepare the report and recommendations.

At this point in time we’re not clear on the exact timeline to enact regulations, but an interim report and plan was presented by City staff to the SPC-PDHD April 5th, along with a number of other written submissions from interested parties (click on any of the links associated with agenda item 7).2 A YouTube recording of the meeting is also available. STR related presentations from delegations run from about 1:34 to 4:14 (hh:mm) and then again from 4:21 to 4:45. The City Staff present their report starting from the 5:30 point with the STR discussion wrapping up by 6:16.

Listening to the recording provides exposure to some of the terminology and some of the issues. For example, terms like ‘ghost hotel’ or ‘clerkless hotel’ are interchangeable with STRs, but the ‘hotel’ term is a misnomer because they aren’t regulated as a hotel. As well, it seems implicit with the AirBnB name that the unit is the hosts primary residence or at least is on the property. One of the subtle issues that all taxpayers should be concerned about, is that some downtown condo developers received tax increment financing (TIF) incentives in the hopes of bringing more residents downtown, yet some of those same condo developers are focusing on the STR market.

Generally, all speakers were in favor of some form of regulation to keep operators accountable, and the need for licensing and taxation, but concerns expressed by some (but not all) STR operators were mainly about a possible requirement limiting STRs to the owners primary residence, which would prevent an investor from operating multiple units. Most of the STR operators that spoke mentioned that through self

regulation, screening of guests, setting and enforcement of rules, most problems are prevented. Similarly, most STR operators indicated that their guests typically spent weeks to months in the unit as opposed to a day or two. Many of the speakers were accepting minimum stay requirements of a week or so up to 30 days. Many of the operators talked about the important market for STRs, such as transitional housing for immigrants, extended stays for contract employees in town for several weeks to several months, family members supporting loved ones in hospital for extended periods or patients in town for extended treatments - again, not for just a few days at a time. Not surprisingly, none of the speakers were advocating for party rentals.

One possible regulation a few of the presenters talked about was requiring condo corporation approval of STR operators at their property. This is the opposite of condo corporations trying to update their declaration or bylaws to regulate or prohibit STRs. However, as seen with the multiple presentations from one downtown condo, when the Board tried to enact STR related rules, it was voted out by the STR interests.

Toward the end of the session, Councilor Lukes spoke strongly in favor of the Toronto model (which was also discussed earlier in a presentation by Scott Jocelyn from the Manitoba Hotel Association. The Toronto model, amongst other things, restricts STRs to primary residences. Councilor Klein then raised a motion for the City Staff to review the Toronto regulations and report back to the Committee. After a few discussions and modifications, the motion was passed. Refer to the Disposition section and look for item 7 for the final wording of the motion.

Taking into account the fall municipal elections, potentially a final report with recommendations could be presented sometime in the fall. We will keep you updated in future newsletter editions and if there is something of a more timely nature, we will send out an E-blast and/or post to our social media channels.

Independent of our efforts with the City of Winnipeg, our Government Relations Committee is working on standardized wording that would be acceptable to the Provincial regulator and that could be put into a CC’s Declaration, Bylaws or Rules to regulate STRs.

ALAN FORBES
Chair, CCI MB Advocacy Committee

¹ Condominium News and Views, CCI Manitoba, Winter 2022 https://cci-manitoba.ca/sites/default/uploads/files/CCI-MB-Winter%20Newsletter-2022-FINAL.pdf

² SPC-PDHD Regular Meeting Agenda, City Clerk’s Decision Making Information System, April 5, 2022 https://clkapps.winnipeg.ca/DMIS/ViewDoc.asp?DocId=21722&SectionId=&InitUrl=