City of Whitehorse asks for public feedback on short-term rental experiences

As the debate about how to address the nationwide challenges of housing availability and affordability continues, the conversation has reached Whitehorse. The city is inviting the public to voice their opinions on the matter via a survey on its website.

The City of Whitehorse is seeking public comment on recommendations to amend its zoning and business regulations to address the issue of short-term rentals (STRs).

Earlier this year, the Housing and Land Development Advisory Commission (HLDAC) presented a report to council that aims to increase access to housing in the city through STR regulation.

The report highlights the need to change business licensing and zoning laws to implement the recommendations, proposing tighter controls on STRs and clearer definitions of the types of STRs in use. The amendments are intended to regulate the positive and negative impacts of STRs across the city.

Ben Pereira, president of Neighbourly North, which manages multiple STRs in Whitehorse, responded to the proposed changes with preliminary research notes. The notes, based on an analysis of data from provider Airdna, suggest that Airbnb apartments make up less than five per cent of Whitehorse’s total housing stock.

Pereira says STRs play an important role in the housing market, noting that thousands of key workers rent short-term accommodation in the city each year. He warns that poor regulation can lead to supply and quality issues.

YukonDOCS, a program that recruits doctors for the Yukon, backed up Pereira’s claims, confirming in a letter of recommendation from Neighbourly North that STRs help them recruit.

Pereira also notes that while STRs are currently regulated by city zoning laws, like other types of rental housing, the current law lacks clear definitions of STRs. He welcomes the introduction of regulations that will not disrupt the housing market.

“I think it’s time to have some regulation in Whitehorse. But regulation that is, you know, supportive and smart, that’s not going to shake up the housing market,” Pereira said.

Part of the effort to regulate STRs in Whitehorse is to bring local regulations into line with those proposed for the entire country.

In a Dec. 23 press release, the federal government announced a bill to crack down on STR owners who don’t comply by denying income tax deductions for expenses incurred to earn income from short-term rentals. This would apply if operators don’t comply with territorial or municipal licensing.

The HLDAC report indicates that Whitehorse currently has no city permitting or licensing regulations for STRs. It recommends that STR operators adhere to basic health and safety standards to qualify for an annual business license, recognizing their commercial nature.

The report also raises concerns about the city’s ability to enforce the proposed changes. To support city enforcement, the federal government announced $50 million over the next three years in its 2023 Fall Economic Statement.

Earlier this year, Statistics Canada released an analysis of STRs in the Canadian housing market in response to ongoing policy debates about housing challenges. The paper examined a subset of STRs that are not currently used as residential units but have the potential to function as long-term housing, either as owner-occupied or rental properties.

The analysis found that 0.9 per cent of Yukon homes are now short-term rental units that could be used as long-term housing, the highest in six years. The percentage of such housing in Yukon is well above the national average of 0.69 per cent.

Contact Jake Howarth at [email protected]