The city’s licensing and regulation of short-term rentals cost almost three times as much as it generated in revenue, according to a city report.
In its first 12 months, from June 2021 to June 2022, the program generated almost $15,000 in revenue from licensing fees. Between June 2022 and June 2023, the regulations brought in more than $25,000.
But administration of the program has turned out to be time-consuming and expensive.
“It is estimated that over the last year, direct staff time has been approximately 1,400 hours and the costs associated with this time, including administration, equate to approximately $72,800,” stated a report to council from Jenna Morley, the acting commissioner of growth and development services. “As the fees for STR licensing are based on the principle of cost recovery, the program is unlikely to achieve full cost recovery, and a review of the pricing model will be warranted in preparation for the 2024 budget.”
There are now about 173 licensed short-term rentals owned by 164 different operators and about 228 listings.
In the past year, the city received four complaints related to short-term rentals, including a traffic complaint, a noise complaint, a complaint about an unlicensed short-term rental and a complaint about a long-term lease being ended so the property owner could convert it to a short-term rental.