Tofino cracks down on unlicensed short-term rentals

The tourist town of Tofino is stepping up pressure on unlicensed short-term rentals as home prices climb out of reach of many residents, who can’t find long-term housing.

Last year, more than two dozen enforcement warnings were issued for non-compliance by short-term rental operators and the district recently won a court case involving a vacation rental.

Tofino took Blackfish Investments Ltd. to B.C. Supreme Court and on March 27 obtained a consent order requiring the company’s South Chesterman Beach property to cease operating without a required business licence.

The company was advertising stays of as few as three nights in its townhouse, the district said in its notice of claim.

Mayor Dan Law said it’s important to let the community know the district is “very active” in enforcing the rules for tourism accommodation operators — “and in fact, we will take those people to court.”

Tofino is an “extremely expensive” place to own or to rent, said Law, adding the town has been prioritizing long-term accommodation of all kinds.

The demand for housing outpaces its availability and short-term rentals affect how many long-term rental homes exist, he said.

Once a resource-based community, Tofino, with a population of 2,516 in 2021, is a magnet for visitors seeking its scenery, outdoor activities and proximity to Pacific Rim National Park Reserve.

Short-term rentals were first allowed in the town in 2005, a staff report said to council. Many homes were owned by people living outside the community who could rent them out when they weren’t being used.

Under district rules, a short-term rental must be in one self-contained dwelling unit per lot (either a primary dwelling, a caretaker’s cottage or a secondary suite), cannot be operated in a dwelling unit with more than three bedrooms, and cannot have more than six guests at one time.

Either the operator of the rental or a long-term tenant must live at the property while it is being used as short-term rental.

There are currently 268 business licences, with about 587 total beds, for short-term rental in Tofino, a staff report to council said.

The staff report said a significant portion of Tofino’s single-family housing stock now operates primarily as short-term rentals, “impacting both the availability and cost of housing.”

Business licence fees for short-term rentals have been increased — they start at about $400 annually and rise depending on number of bedrooms, Law said.

A short-term rental operator or owner is required to respond to any complaints within two hours, he said.

Enforcement has increased in the past few years, he said, with a district licence inspector tasked with investigating and taking action against short term rentals not complying with rules. “That has been quite successful.”

The first step in the enforcement process is typically a request for voluntary compliance, followed by fines if that doesn’t happen. Law said fewer than 10 per cent of short-term rentals are believed to be not following the rules.

One operator in the community is facing fines of $1,500 per day, said Law, who would like the province to allow municipalities to add unpaid fines to property taxes.

If that was permitted, he said, within a month there would likely be not one unlawfully operating tourism accommodation business in the district.

Law expects council members will look at whether short-term rental bylaws need updating. If so, that could start this year in tandem with an overall zoning review, which would include public consultation.

The Tofino Housing Corp. is aiming to see 150 new units built in the community, Law noted. So far, one building has tenants and more are in the works, in conjunction with B.C. Housing and the private sector.

A 35-unit building is expected to be finished in December and a 37-unit project should be completed early next year, he said.