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Council weighs pitfalls as Airbnb rules move ahead

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City council is concerned Airbnb operations could become defacto hotels.

Draft regulations for short-term rentals moved ahead Tuesday for a council vote next SA国际影视传媒 with some caveats. Business operations under Airbnb allow residents to rent out several rooms, stirring questions over effects on tenancy, fairness for traditional B&B owners, and the difference between a capital-heavy business and a side income.

Both are considered short term rentals. That means temporary stays in private residences, according to the city's definition. However, B&B doesn't actually require operators to live in their rental spaces. Which could be a sticking point SA国际影视传媒 Coun. Niels Konge said that may mean a backdoor to opening a hotel on the cheap.

Then tenancy issues crop up. Other municipalities like Vancouver have clamped down on short-term rentals, citing a tight market with little space. This leads to restricting short-term rentals to operators who live in the space.

That's to limit taking scant rental spaces off the market. However, there's little evidence saying that's an issue in Yellowknife, said Coun. Julian Morse

He also drew attention to the question of commercial tax rates applying to an Airbnb operator who may have multiple spaces rented out, at which point it may be a SA国际影视传媒渃onglomerate hotel.SA国际影视传媒

A different rate would be a good compromise because a renting room out of a residence wouldn't have large impact on the market, he said, SA国际影视传媒渂ut when it's not your principal residence, you have a condo or something, that's something you really could rent out.SA国际影视传媒

Coun. Shauna Morgan reconsidered the role the city would be best suited to as it ushered in a new plan.

SA国际影视传媒淲hat is the problem we're trying to solve here?SA国际影视传媒 she asked, questioning how the city could determine whether it's a side income or not, and whether residents live in the space they're renting out. She said the proposed level of regulation was appropriate, considering the City's resources.

Bryan Manson, a local landlord, presents to council on Tuesday.
Nick Pearce / NNSL Photo

Speaking to councillors, Bryan Manson, a local landlord, said there may not be enough communication to owners whose tenants rent out their space. Similarly, condo boards may not have adequate say over short-term rentals in their buildings.

B&B owner Faith Embleton was concerned over fairness. When she applied for her licence in 1999, it was a rigmarole SA国际影视传媒 it required a development permit, registration with the federal government, liability and proper house insurance, adequate parking, and a sprinkler system upon expansion.

SA国际影视传媒淎pparently that's no longer required,SA国际影视传媒 she said.

Embleton said other operators didn't necessarily meet these standards.

SA国际影视传媒淚 resent the fact that I've been paying my business license and getting it invoiced to me and everyone else has been doing nothing,SA国际影视传媒 she said, adding that she disagreed with the joint short-term rental definition.

That mainly centred around the difference between running a business and supplementing an income, a point another presenter, Yanik D'Aigle, former federal election candidate and RBC Manager, echoed.

He also asked councillors to consider when Airbnb becomes a commercial venture, where operators run multiple rental space they actually don't live in.

On that, Konge found a particular issue: SA国际影视传媒淚f I own a house, and I live in a house, and I want to do short-term rental, I have to go and get a rental permit. But if I own a house, and I don't live in the house, and I want to short term rental it, I don't even need to get a development permit.SA国际影视传媒

Mayor Rebecca Alty suggested requiring a development permit regardless of where the operators live.

Councillors opted to send the plan forward from committee to next week's council meeting. Morse argued developing the hotel levy to promote Yellowknife tourism already has City staff occupied. SA国际影视传媒淭he sooner we get (the levy) in place, the better,SA国际影视传媒 he said.

Fair treatment needed, says B&B owner

Jenny Qu, owner of Aurora Jenny's B&B, says fairness would help Yellowknife's tourism industry.
Nick Pearce/NNSL Photo

Jenny Qu, owner of Aurora Jenny's B&B, moved here four years ago. She was inspired to open her business after visiting Yellowknife and noticing all the rooms in town were packed. It was too busy.

Qu asked around: SA国际影视传媒渃an any place speak Chinese? No, no place can speak Chinese,SA国际影视传媒 she said.

She saw a business opportunity catering to Chinese tourists, and encouraging them to stop by her B&B to view the Northern lights. She moved north, picked a house, a started her business. It was a good guess: SA国际影视传媒淢any Chinese know my place, because if they're English is not good, ... they can connect,SA国际影视传媒 she said.

Qu told Yellowknifer it would be fairer for all short-term rental operations to be treated the same. That extends to industry standards.

SA国际影视传媒淚f you want to run this short-term (rental) business, you have to follow some rules,SA国际影视传媒 she said, adding this would foster fairer competition.

SA国际影视传媒淲e're a small town,SA国际影视传媒 she said. SA国际影视传媒淚f something happened because a property's not (up to standards), and there's something like that, it's not good for Yellowknife in the tourism market.SA国际影视传媒

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Bryan Manson, a local landlord, raises presents to council on Tuesday. Nick Pearce / NNSL Photo




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