City of Nelson Short-Term Rental Project – July 2016
Possible Business Licence Types
Nelson’s business licence fees have not increased for a number of years. Considerations include:
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Inflation
The need for greater capacity in bylaw enforcement for all issues, including to proactively enforce
business licence compliance for all business in order to ensure fairness
The resource-intensiveness of enforcing on STR compliance compared to other accommodations
Input received from some STRs requesting a licence of $500-$1,000 annually
The need that business licence fees be levied on a cost-recovery basis, including enforcement
Findings on cost-recovery for licencing from other jurisdictions
That conventional accommodators such as hotels have a direct stake in ensuring STR compliance
Type of Rental
Licence
Validity
Basic
Cost
Building
Inspection*
($100)
Tourism
Membership
($150)
Total Cost*
2 rooms and under
Year-round
$350
X
X
Summer only
(May - August)
$110
X
3 rooms and over
Year-round
$450
X
X
$700
Guest House or Suite
Year-round
$800
X
X
$1,050
Summer only
(May - August)
$400
X
$500
One month
(one per year)
$150
X
$250
$600
$210
*It is proposed that building inspections only occur every three years. The $100 cost-recovery charge would thus only be
charged once every three years.
What is an “inspection”? A building inspection ensures that basic safety, fire safety, and public health
standards are met. The inspector also verifies that parking requirements are met and that the site is as
described.
It is proposed that other accommodation licences (hotel, hostel, and motel) be increased by $100-$200.
It is proposed that all other licence categories be increased by up to $30, except for Carnival/Circus (a
daily licence), Street Performer (an annual licence), and Busker (a daily licence).
Short-Term Rental (STR) Caps
It is proposed that the following caps be imposed on STRs in residentially-zoned neighbourhoods:
Type of cap
Year-round licences, of all types, in residential zones
Summer-only licences (May to August)
One-month licences (1 per address, per year)
Recommended limit
110
40
None
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City of Nelson Short-Term Rental Project – July 2016
Caps are not imposed on other businesses such as hotels, however other permit types are greatly
restricted geographically, by zoning. This document assumes Nelson will allow STRs in nearly the entire
city, but the entire city should not become STRs. Without going through rezoning and a public hearing,
hotels and most retail, for example, are confined to the downtown core and along the highway.
In the first two weeks of each calendar year, to ensure continuity for those who have been operating, it
is proposed that the City only accept renewal applications for a property that has been issued an STR
licence within the previous calendar year. This nuance is not required for other business licences
because they are not subject to a cap.
Density cap
A block is defined as the two sides of a street directly facing one another, including alleyways. Typically,
blocks in Nelson have between 12 and 16 lots. Staff are recommending no more than 3 STRs per block at
any one time.
What could STR licencing require?
1. A mandatory STR business licence for each dwelling unit. If both a primary dwelling unit and a
secondary suite are let on a short-term basis on the same property, require two licences.
2. Create a new STR application form, separate from the general Business Licence form.
Differentiate between new application and renewal. Allow space for applicant to provide a 100word “project narrative” describing the intent of the application; this project narrative will be
publicly available online. This idea is borrowed, with modifications, from Portland, OR.
3. A $500 deposit to be held during the first year of a licence as security against any costs incurred
by the City as a result of investigations, hearings, or other enforcement actions. The City could
choose to return this deposit after one year, under the pretext that if an STR is problematic for
the neighbourhood, this should show within the first year. In BC, Sechelt and Sun Peaks require a
deposit; however, they hold the deposit for as long as the permit is valid.
4. Within the first 30 days of the issuance of the new STR licences, only accept applications from
short-term rental operations that operated between October 1st, 2015, and June 1st, 2016.
It is proposed that those operators that can prove they were in operation between October 1st,
2015, and June 1st, 2016, be exempted from the density cap and residency requirement. This is to
acknowledge the significant investment that many operators have already undertaken to upgrade
their accommodation.
5. A person-limit on the number of guests per rental unit allowed. A common figure is six; wording
could be found to allow for flexibility with small children.
Possible licence application requirements
a. Triannual building safety inspection
a. Make available a pre-inspection “checklist” outlining some of the requirements of an
accommodators licence to help applicants prepare for the inspection
b. Proof of property ownership
a. Issue the licence, and any renewal, only to the property owner
c. Proof of principal residence (at the same address; not necessarily same suite/dwelling unit)
a. This means requiring that the applicant prove, with documentation, that the property is
their primary, not secondary, residence
b. Exemption for summer licences
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City of Nelson Short-Term Rental Project – July 2016
c. If a property owner does not meet this requirement, but still wishes to rent short-term,
they will have the option of applying for a rezoning
d. 24/7 local contact person(s) – one or two
a. The applicant may assign themselves or someone else to be a 24/7 contact person to be
available to answer phone calls at any time, within 15 minutes, during a guest stay
b. One person may not be the contact person for more than two properties
c. The contact would be expected to reside within a 30-40 km distance of the property
e. Proof of valid Nelson Kootenay Lake Tourism membership
a. Exemption for summer and monthly licences
f. Certificate from a broker licenced to sell insurance in the Province of British Columbia
a. Could be a one-time requirement for new applications and not necessary at renewal
b. Liability insurance covering bodily and personal injury arising from the commercial use
conducted pursuant to the licence
c. It would be within the Insurer’s discretion whether third-party insurance, such as from a
listing service, suffices to provide confidence that the property is insured at all times
g. In multifamily dwellings, require support from the building corporation
a. For strata, the letter must be signed by the president of the strata council
b. For rental housing, the letter must be signed by the property manager or owner(s)
Parking Options
Type of residence
Entire house (primary residence)
Stalls required*
2 stalls as per bylaw (except in R3 zoning: 1 stall)
Apartment/multifamily suite (residence)
1-2 stalls as per bylaw (rounded to the nearest number: if 1.52, rounded up to 2)
Secondary suite or detached dwelling unit
1 stall as per bylaw
Guest room(s) in primary residence
Option 1
1 stall per guest room, as per bylaw
Option 2
Eliminate parking requirement
Pros
Maintains current requirements
Same as current B&B requirement
Pros
Increases compliance
Potential to conserve green
space
Cons
Many sites do not have capacity for
more on-site parking
Eliminates on-site green space
Cons
Potential for conflicts with
neighbours
Adds to parking congestion
Potential to decrease compliance
*The intent is that guests will only park in front of the house they are staying at and it will
be required that this be made explicit in any online listing.
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City of Nelson Short-Term Rental Project – July 2016
In certain residential areas where parking is limited, there are 2-hour parking zones where
residents are entitled to one residential parking permit per house, however guest permits
are currently unregulated. In these areas, consideration should be given to limiting the
number of guest permits to 1 per property to alleviate parking congestion. As well, charging
short-term rental operators for their guest parking permit could also be considered.
Enforcement Options
Objective
Grace period
Ideas
Unlicensed accommodators will have 60 days from policy adoption to apply for a
licence or cease operation. This notice will be widely advertised and electronically
sent to all listings on known platforms, including Airbnb, VRBO, and others. Clear
information on STR regulation will be made available online.
After 60 days, Bylaw Enforcement will follow-up on any complaints received and have
a proactive enforcement mandate for STRs.
What constitutes
Illegally advertising a space for short-term rental will be considered a violation of
a violation
bylaw, regardless of whether a booking is made. For example, if an STR is found to be
accepting bookings for the month of April, but the operator only has a licence valid
for May to August, this is a violation. Furthermore, a listing on an online booking
platform must include the business licence number, the amount of off-street parking,
and the maximum number of guests, as stated on the issued licence.
Neighbourhood
Information will be maintained online indicating the number of licences issued at any
awareness and
one time as well as indicating where they are and providing each licence’s 24/7
transparency
contact information. Anyone may sign up to receive email notification of any new
permit application and/or approval within the City.
Inspections in case Allow the City to inspect an STR, upon giving at least 24 hours written notice to the
of complaint
owner.
Guest registry
Require operators to maintain a guest registry. If a complaint is received, the owner,
upon request from the City or police, shall provide the guest registry for inspection.
Discretion with
The decision to renew an STR licence should, at the Manager of Development
renewals
Services’ discretion, take into consideration any complaints that have been made
about the property within the previous year.
Process to revoke  Any listing of the property on a booking website omits the maximum number of
a permit, if:
off-street parking spaces or the maximum guest-occupancy as stated on permit
 Three fines have been issued to the property owner within the previous 3 years
 Change of property ownership (permit is non-transferable)
Changes for current Bed & Breakfasts
Under this concept, existing B&Bs would be licenced under the proposed licence types, namely “two
rooms and under” and “three rooms and over”. The current regulations already use the two-room mark
as a cut-off point.
It is proposed that annual licence costs be increased as noted in the table on Page 1 in order to fund
enforcement of the STR market
A proposed requirement of proof of insurance and Tourism membership; it is expected that most
comply already.
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City of Nelson Short-Term Rental Project – July 2016
It is proposed that existing B&Bs not be subject to permit caps and thus not be denied a licence on that
basis.
Additional considerations
It is recommended that regulations, including cap limits, be reviewed biannually.
Council may wish to consider reforming development and utility fees levied on rental housing providers
with the goal of encouraging and incentivizing long-term rental housing.
Strengthening the Noise Control Bylaw.
Working with the Province to incentivize the creation and preservation of long-term rental stock.
Encouraging the Province to enforce fair taxation for tourist accommodations and specifically to
equalize the market between conventional accommodators such as hotels and short-term vacation
rentals.
As incentive for compliance with accommodation licencing, the City of Nelson may wish to work with BC
Transit to pilot free public transit service to guests of municipally-licenced accommodators. To be
successful, such a pilot project would benefit from increasing the accessibility of information on local
transit by distributing easy-to-understand schedules and maps to all accommodators. This is inspired by
a long-running program in Konstanz, Germany, (population 80,000) where a 2 Euro per day, per visitor
tourism tax is levied. In return, visitors are given a bus ticket valid for the duration of their stay.
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Anticipated benefits include: increased compliance with licencing in order to access the benefit,
transit route and schedule improvements induced by increased use, ‘mainstreaming’ or increased
awareness of local transit, and alleviating downtown parking demand
Funding could be achieved via the City, provincial reform to allow the MRDT hotel to co-fund the
project, or a low-cost opt-in system that is advantageous for accommodators: participating
accommodators could agree to levy perhaps $1 per day, per guest towards improving local transit
and granting their guests free access to public transit.1
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Downtown businesses may also be interested in participating in an opt-in transit program for their employees, to
encourage their employees to leave downtown-area parking for customers. Even if only three downtown
employees gave up off-street, alleyway parking for public use, given the average turnover of downtown parking, a
significant number of customers would be able to find parking over the course of the day, without increasing
parking supply. If a critical mass of downtown employers and employees opt-in, transit service is anticipated to
improve significantly. Many businesses in Canada and the US do this and some American jurisdictions incentivize
employee “cashing out” of parking in favour of transit commuting.
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