Vernon resort warns of ‘dire consequences’ and job losses from new short-term rental rules

Jan 18, 2024 | 12:30 PM

Business leaders in the Vernon area are sounding alarm bells about the negative impact the province’s plan to increase long-term rentals could have on tourism-driven resorts in the North Okanagan.

Officials at Predator Ridge are looking for an exemption from the new rules, saying they could result in hundreds of job losses and empty homes.

The provincial legislation, set to begin in May, is focused on returning short-term rentals to the long-term market by establishing province-wide rules and restrictions on short-term housing including the enforcement and fines for violators.

While some tourism operations like Silver Star and Big White have been exempted from the legislation, others like Predator Ridge and Outback Lakeside Resort have not.

Claus Larsen, director of accommodation at Predator Ridge, said more than 300 people could lose their jobs if the golf resort must meet the new legislation.

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“We’re no different than Big White or Silver Star. We’re outside of town, and we’re zoned for short-term rentals. The consequences if we do not get exempt would be dire,” Larsen said. “The loss of jobs is our main concern.”

Larsen said short-term rental accommodations amount to between $3 and $4 million in revenue per year at Predator Ridge. While the resort does have a long-term rental project known as The District, these unfurnished properties start at $4,500 per month.

“That’s the type of accommodation we have at Predator Ridge. Our resort is full of million dollar homes and condos,” said Larsen. “That doesn’t create affordable houses. If we’re not exempted, we’re going to stand empty.”

A Greater Vernon Chamber task force has made recommendations that would mitigate the economic impact of the housing reform.

“We are urging the provincial government to reassess the local vacation resort communities in our area that have not been deemed exempt,” Kirndeep Nahal, Greater Vernon Chamber president, said. “The resort communities impacted are not close to transit and are likely not the affordable living accommodations the legislation is hoping to target. These are communities built upon short-term rental models to drive tourism, which is a massive economic driver for the Okanagan, and would be threatened.”

The Chamber is also asking the province to consult with stakeholders to further understand the unintended impacts. The Chamber’s task force also recommends giving municipalities the right to determine and apply for exempted areas through commercial tourism zoning. To further support long-term rental availability, the task force suggests a reassessment of the Residential Tenancy Act to entice property owners to lease their homes to long-term tenants.

The task force has forwarded their concerns to Vernon-Monashee MLA Harwinder Sandhu, who has delivered them to the B.C. government.

Chamber president Nahal said they appreciate that the government is taking action to address the issue of affordable and attainable housing, and they understand the legislation is meant to increase the availability of long-term housing options.

“This intended objective is undeniably important for families to be able to sustain a basic quality of life in our province and reassure employers that they will be able to attract skilled workers to their regions. However, there are potentially negative impacts to the community that need to be addressed,” Nahal stated.

You can read the Chamber’s letter sent to MLA Sandhu here.

by Pete McIntyre

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