Regulations on short-term rentals one step closer

Winnipeg could soon be taxing short-term rental properties and limiting how many an individual can own.

The mayor's Executive Policy Committee (EPC) voted unanimously Tuesday to put new regulations in place.

The proposed changes come following complaints some short-term rental units are connected to out of control parties and criminal activity.

The vote has led to debate among owners and those who live near the rentals.

"Short-term rentals increase the risk of parties, crime, violence and criminal activities," said Craig Penner, a condo owner in the city. "Information is not available to police and it is easy for criminals to rent multiple suites in large buildings, such as ours."

"This would shut me down because I don't live in my property," said Rosanne Kelly, who runs a short-term rental.

Two dozen people were registered to speak at the EPC, where the vote came out 6-0 in favour of new regulations.

Under the proposed rules, short-term rental operations would need a license, be subject to criminal record reviews and pay the city's five per cent accommodation tax, like hotels do.

"Over the past few years, we've seen our businesses impacted by (business) that face none of the regulatory requirements that we do," said Michael Juce, the president and CEO of the Manitoba Hotel Association.

Owners of short-term rentals were at city hall protesting some of the potential rules, such as the stipulation that one primary residence can be rented out anywhere in the city, but people can only have a second rental property in areas zoned as commercial, multi-family and downtown.

Owners with multiple locations think this could put them out of business.

"Basically, all my BNBs are going to get killed right away," said Stas Reznik, who owns five short-term rentals.

Mayor Scott Gillingham did add a grandfather amendment, which would allow current owners to have up to three additional dwellings in downtown, commercial and multi-family zones.

"We need regulations around this. It's also a matter of trying to achieve a measure of fairness," said Gillingham.

The grandfather clause would mean owners would have to have the properties by Feb. 23.

Now that the regulations have passed through EPC, they must pass through all of council. If that passes, then the city's administration would come back with bylaws for a vote.