Mariko Baerg
REW

While some homeowners have strict outside-only pet rules, most allow their animals inside their homes and their pets are considered as part of the family. If you are selling a home with pets, it is very likely that you’ll need to do some serious housecleaning and possibly some repair work before you list your home.

Love is blind, and that cat fur embedded in the carpets, the litterbox, the hole in the wall chewed by your dog are all things that can easily be overlooked when your pet is your best friend. However, just because you’re able to turn a blind eye, it does not mean every home-buyer will be as forgiving. Home sellers who adore their pets (me included) can have a hard time imagining the negative attitudes that others have towards their pets. Nevertheless, if you truly want to receive top dollar for your house, make sure to follow these top tips and notes for selling a home with pets by reading this article.

Why Don’t Home Buyers Like Your Pet?

Don’t take it personally – it’s not you, it’s them! To make sure that you’re fully on board with our tips, here are some reasons why home buyers may not like your pet:

Nervousness: Pets make some people uncomfortable because pets are not always predictable. Keep in mind that a lot of people may have not grown up with a family pet and are inexperienced being around animals.

Fear (both real and irrational): If someone has had a bad experience with a pet in the past then his or her first reaction to seeing a pet will be fear. Regardless of whether the home buyer has a rational or irrational fear, you never want them to feel afraid when they come to your house… it’s just not good for a top-dollar sale.

Your pets aren’t their pets: Most pet owners, including potential buyers who have their own pets, thinks their pets are perfect but have a false illusion that yours will bark, scratch, snap, bite and so on. Like we said, love is blind!

Allergies: A number of people are allergic to dogs and cats, and having them around – or even just their residual fur – may set off the sneezing and coughing in a potential buyer. They’ll be out of the showing before they can fall in love with your home.

Overcoming the Problems

So, how do you overcome all those negatives associated with your pets and ensure that buyers will focus only on the great things about your home? Minimize the objections and nuisance factors, real or otherwise, by paying attention to the following tips and tricks: 

Temporarily relocate your pets: The best way to ensure that you receive the highest price for your home is to relocate your pet while you are on the market. If your pet can only be relocated for a short period of time, try to have them away from the time that you first list the property until you have an accepted offer that is firm. For the best results, consider one of the following options for your best bud(s):

• Send them on a vacation to hang out with your friend or relative.
• Board them at a kennel.
• Bring them to work with you.
• Move out first, and take your pets with you.

In the case that your pet cannot be relocated for an extended period of time, then at the very least it is best to make sure that they are not present at the showings and open houses.

Repair any damage: Where there are pets, there is typically house damage. If your pet has stained a carpet, chewed through your wall, scratched your doors, or damaged the home in any way, it is extremely important that the damage is repaired prior to showing your home. If buyers see something that’s damaged and related to a pet, they’ll start looking for or assume there are other issues somewhere else in the home. While it may be a costly upfront investment to ensure that everything is in top shape, the value that you will get for your house will be well worth paying for the repairs.

Clean up poop in the yard: Make it your mission to clean up all the poop in the yard before every showing and open house (or better yet, at soon as the deed is done!). There aren’t very many things that will make a worst first impression than stepping in dog poop as you’re checking out a back yard! Furthermore, don’t forget to do this once more right before you handover the keys and move out.

Remove carpet and floor pet stains: If your carpet is really beat up, you may want to consider replacing your flooring. In the case that you’ve thought of switching over to hardwood flooring anyways, now may be the time to do it! At the very least, make sure that your carpets are professionally cleaned prior to listing to ensure that the stains are taken out to the best of your ability. A steam-clean can do wonders, and your clean will more than pay for itself in the perceived value of your property.

Tuck away dog and pet accoutrements: Just because you have a pet doesn’t mean that you need to advertise this fact to the home-buying world. Try and follow these simple steps to putting all the “stuff”’ away to ensure that you have an image of clean throughout your home:

• Put away food and water bowls.
• Hide away any pet rags.
• Pick up pet toys and put them away.
• Pack up cat trees and scratching posts.
• Pack up all cages, carriers, etc.
• Clean up their fur and vacuum thoroughly.
• Pro tip: If you live in a large home, try restricting your pet’s access to only a portion of the house to reduce the number of rooms you need to thoroughly clean on a regular basis while your home is on the market.

Try to mask smells: Ever seen or heard that Febreze commercial where they talk about going “nose blind” to the odours in your house? As humans, our senses can adapt so well that it is easy to get accustomed to a strong pet smell over time. Before listing your home for sale you should give it a thorough clean from top to bottom and eliminate anything that gives out any pet-related odour. Start with this list:

• Thoroughly wash the floors.
• Have your carpets cleaned.
• Feed dry food instead of canned (the smell lingers longer than you realize).
• If your dog has a pee rug, dispose of it.
• Throw out old stuffie toys.
• Put away dog and cat beds.
• The litter box – enough said.

If you’re still unsure about the smell after all of your efforts, bring in a neighbour for a smell check!

Preparing your home to show for sales is always a lot of work, but especially if you are selling a home with your pets. However, your efforts to keep your property as clean and presentable as possible will pay off, in your time on the market and your sales price.

Putting in effort by following the tips above when preparing your home for sale will ensure that buyers are confident in the quality of your home, which will boost the likelihood of a multiple-offer scenario. 

© 2017 REW.ca

Sears gone, Hudson?s Bay selling flagship stores as major retailers blindsided by changing shopping environment

Glen Korstrom
Western Investor

Sears Canada plans to close all its stores and liquidate its assets in the lead-up to the holiday season. Hudson’s Bay Co. (HBC) is selling its flagship New York and Vancouver stores.

The sales are in reaction to dramatic changes in the shopping environment that have retail watchers musing about the future of department stores.

No one expects business at department stores to suddenly collapse, but retail analysts and pollsters say competition is getting fiercer and department stores that do not operate efficiently or embark on wrong-headed strategies will feel the pain.

“Holt Renfrew, for many years, has been an operation in disarray,” DIG360 principal and retail analyst David Gray told attendees at the October 12 Retail West 2017 convention.

A potential problem is that the company is going out on a limb in its bid to go even more upscale than it has been.

Going higher-end means that fewer shoppers will be able to afford the chain’s products, and those who do will be part of an international jet set that is accustomed to shopping at stores such as Selfridges & Co. in London, England.

Such “high-end luxury” stores set the bar high among well-heeled shoppers, Gray said.

“Then they come back to Canada and go to Holt’s. Holt Renfrew is going to have a perception problem.”

Holt Renfrew has these challenges while being affected by a separate industry-wide problem.

Brands are increasingly opening kiosks within department stores to introduce their products to new markets. Employees at those kiosks then collect lists of customers who were originally shoppers at the department store. The brand then leaves the department store to flourish on its own with the help of that customer information.

Saint Laurent, for example, introduced its brand to Metro Vancouverites with a kiosk in Holt Renfrew. It then left last year to open its own boutique in downtown Vancouver.

“Saint Laurent is one of the world’s most popular brands right now,” said Retail Insider Media owner and retail analyst Craig Patterson. “The brand essentially says, ‘Thanks for all your help. We’re ready to go on our own. We’re grown up now.’ They open a boutique and the department store loses the brand completely.”

Patterson does not think Holt Renfrew is in operational disarray.

He also understands the store’s ambitious renovations at its Vancouver store.

He has heard that the Vancouver store’s expansion is in anticipation of it becoming the top-selling luxury department store in North America outside of Manhattan – potentially with sales as high as $500 million annually, though sales haven’t yet achieved such a level, despite being the top performer in the Holt chain.

“A lot of Nordstrom shoppers are also coming from the [Hudson’s] Bay [Co.],” said Christian Bourque, who operates Leger Marketing’s Montreal office.

Bourque pointed to data from a recent survey that Leger carried out with DIG360 showing that of those customers who are spending more on fashion today compared with two years ago, 30 per cent shop at a high-end store. However, a much higher percentage shop at mid- to low-end department stores, he said.

“If there is potential, it would seem to lean in the direction of mid- to high-end department stores as opposed to mid- to low-end department stores.”

Hudson’s Bay Co. is reacting to the changing retail climate by liquidating its real estate.

Hudson’s Bay is inviting bids on its iconic Vancouver flagship store on Granville Street, following news of the retailer’s Lord & Taylor Fifth Avenue sale in New York.

The Toronto-based HBC is selling its New York store in a nearly $1.1 billion deal that would include leasing significant floor space to collaborative workspace company WeWork. WeWork also announced it would be leasing space at the Granville Street Hudson’s Bay store.

“This partnership places HBC at the forefront of dynamic trends reshaping the way current and future generations live, work and shop: the sharing economy and urban and suburban mixed-use real estate planning,” said Richard Baker, HBC’s governor, executive chairman and interim CEO, in a statement.

HBC has enlisted real estate advisers CBRE and Brookfield Financial Corp. to find a buyer for its Vancouver location.

The six-storey Granville Street store covers 650,000 square feet and has an assessed value of nearly $59.7 million.

However, the property is expected to sell for as much as $900 million.

HBC will continue to operate its downsized store through a lease-back arrangement, which could include retail space for Saks Fifth Avenue, which HBC owns.

Copyright © 2017 Western Investor

Neil Sharma
Mortgage Broker News

Home Capital Group’s $30mln third-quarter net income is substantially less than it was during the same period last year, but the embattled lender claims it’s on the cusp of becoming a major player again.

Thanks to considerable capital inflow from Berkshire Hathaway, Home Capital’s President and CEO Yousry Bissada says significant commercial mortgage investment will be forthcoming—provided the mortgages meet strict criteria.

“We have ample liquidity and what we’re focused on is growing originations to utilize that liquidity,” said Bissada during a conference call. “We don’t think we have to do much, if anything, on our deposits right now to fund a substantial increase in our originations. We have the ability to increase 15 basis points, and that’s enough to attract additional basis inflows.”

Bissada also hinted at plans to cultivate stronger presences in Western Canada and Quebec.

“We’re in those markets today but believe we could be more aggressive,” he said.

Home Capital has been rocked by allegations that it misled shareholders, and it prompted a run on deposits by customers this past April.

The resulting scrutiny and liquidity episode has inflated its expenses.

Home Capital’s 2016 Q3 net income was $66.2mln. Last year’s Q3 revenue of $145mln dropped to $95.4mln this year as consequence of the liquidity episode.

“Third quarter performance continued to reflect a number of negative factors stemming from the liquidity event including lower residential and commercial loan assets, higher deposit interest costs and elevated non-interest costs,” the company said in a statement.

“New loan originations were well below historical levels and are not adequate to replace loan assets reduced through sales.”

Home Capital’s Executive Vice President and CFO also revealed the company has turned down about 70% borrowers.

“When we reopened the gates, a lot of mortgages came in, but we’re under stringent provisions with risk,” said Brad Kotush. “We have to go out and recommunicate what kind of deals fit our priorities. The deals being sent here have a higher chance of being approved now.”

He added that Home Capital is looking to reaffirm its broker relationships, but he reminded reporters that at least a few more weeks are needed to tie up loose ends.

“Our broker relationships are very strong,” said Kotush. “They’re all very keen to deal with us again. It’s about the process and getting back into their paths with the right incentives in place.

“There’s large appetite for doing business within the new framework, but it’s inconsistent today. There are times when we’ll give same-day approval and others where we take a few days, so we need to get to a tighter turnaround of 24 hours or less.”

Copyright © 2017 Key Media

Steve Randall
Canadian Real Estate Wealth

A North Vancouver estate has set a new record with a price tag of $36.2 million.

Sotheby’s Realty Canada has listed the estate at 2250 Indian River Crescent as a single parcel for the first time although it is a three-title property of more than 14 acres.

The extensive land is home to a 4-bedroom, 5.5-bathroom house of 9,000 square feet with Japanese influence, private gym, a separate guest house, paddock/barn and greenhouse.

Outdoor space includes mature plantings and both natural and man-made water features.

“The size and setting of the property are unparalleled. I believe the buyer of the estate will appreciate that this may be a once-in-a-lifetime opportunity to acquire a property that captures the best of the West Coast’s natural beauty, on a scale that is unprecedented for the market,” Steve Mitchell, listing agent with Sotheby’s International Realty Canada told the firm’s Insight Magazine.

Copyright © 2017 Key Media Pty Ltd

Neil Sharma
REP

Foreign buyers, most of whom are Chinese, have found ways to circumvent the foreign buyer tax, often with the help of their children.

“I’ve seen 20-year-olds pay for condos with cash,” Jay Flemming, a sales agent with Core Assets Real Estate, told REP. “Their parents give them the money to get it out of the country.”

Foreign students can be exempted from paying the foreign buyer tax—likely because they were nominated under the Ontario Immigrant Nominee Program— so their parents purchase Toronto properties in their name for them to ostensibly live in, however, Flemming says that doesn’t always happen.

“Many of them don’t live there,” he said. “They’ll rent apartments or live in dorms. It’s truly an amazing tax loophole—just have a kid in school over here.”

Eugene Kaplun, a sales agent with REMAX Infinite, says many of his foreign clients are Chinese and, as another strategy used to circumvent the 15% foreign buyer tax, buy preconstruction units that won’t be closed for another five years, by which time they expect to have received their permanent resident cards, thus precluding them from being taxed.

However, not everybody buys property in their children’s name. According to Kaplun, many foreign buyers don’t mind paying the 15% tax up front because there are ways to get it back. Although it is possible to recoup the tax money through the condo unit’s appreciation in the five or so years before closing, Kaplun says it would be too much of a gamble because the market could go south, and that there other ways to guarantee a tax reimbursement.

“The good case scenario is there are loopholes,” he said. “If you have been studying and you get a permanent resident card, you can apply to get the 15% tax you paid back.”

Another strategy used to dodge the foreign buyer tax is to apply for the Quebec Immigrant Investor Program (QIIP), whereby immigrants provide the government interest-free loans in exchange for citizenship. The rest of Canada had a similar program that’s now defunct, but Quebec has jurisdiction over its immigration and has kept the QIIP operational.

“We’re a stable economy and there’s room to expand, so they see it as an opportunity,” said Kaplun. “Canadian computer science is among the best in the world, our banking system is one of the safest in the world, and so they feel comfortable parking their money in Canada. They want their kids to grow up in a stable environment with free health care and great education, so Toronto is the place to go for them.”

Copyright © 2017 Key Media Pty Ltd

Marriott Canada floats idea of opening a Ritz-Carlton and a W hotel in to maximize on the city’s lodging market

Glen Korstrom
Western Investor

Marriott International Inc. is letting hotel owners know that it is interested in opening several new luxury hotels in Vancouver even though the company just opened two luxury hotels in the city’s downtown core.

The world’s largest hotel company owns 30 different hotel brands and several of its top brands would be a great fit for Vancouver, according to Marriott Canada president Don Cleary.

“We’re still looking to grow,” he told Business in Vancouver in a lounge at the company’s month-old, 188-room Douglas Autograph Collection hotel at the Parq development.

“Vancouver is a good hotel market. This can support quality luxury hotels. So for me, W, Ritz-Carlton and St. Regis would be three brands we’d love to bring to the market.”

Marriott, however, might have difficulty bringing the St. Regis brand to the region because a local company owns and operates the 65-room St. Regis Hotel at 602 Dunsmuir Street.

General manager Jeremy Roncoroni told BIV that the hotel’s owner also owns the St. Regis brand for the Lower Mainland because it has operated the Dunsmuir Street St. Regis hotel since 1913. He added that representatives of the global St. Regis brand lost in court many years ago when it tried to strip the hotel of its name.

Ritz-Carlton representatives have long been interested in opening a hotel in the region.

In 2007, Vancouver’s Holborn Group planned to bring the Ritz-Carlton to Vancouver by locating it in the Arthur Erickson-designed building that is now Holborn’s Trump International Hotel & Tower Vancouver. The global economic downturn sank the Holborn–Ritz-Carlton partnership and caused a multi-year delay in getting a brand for that project.

W Hotels and Resorts representatives have not previously floated the idea in public of opening a property in Vancouver, but it could be a wise move, according to hotel industry analysts.

Not only have Metro Vancouver hotels been increasingly filling their properties with guests, but they have also been able to charge higher average room rates, said CBRE Hotels director David Ferguson.

“The performance growth in the hotel sector in Metro Vancouver overall has been fantastic,” Ferguson told BIV.  

“I’ve been here since 1991, and I haven’t seen three years in a row with this kind of growth.”

Metro Vancouver hotels had an average occupancy rate of 76 per cent in 2015. That rose to 79 per cent in 2016 and is expected to be at that level again in 2017. Ferguson predicts that number will rise to 80 per cent next year.

“A lot of the performance improvement the last three years can be attributed to room-rate growth,” he said.

“The room-rate growth demonstrates that there is a willingness to pay more to stay in Vancouver. If you historically stayed in a three-diamond hotel and expected to pay $150 a night, three years later, you might be paying $185 a night for a three-star room.”

Someone paying an average of $250 per night for a luxury hotel three years ago is likely paying more than $400 per night today, he said.

Marriott’s eagerness to expand its luxury-hotel presence in Vancouver follows the chain opening its Douglas hotel and an adjoining 329-room JW Marriott hotel on October 23.

It now has about 225 hotels across Canada thanks to 35 new hotels opening in 2017.

Growth has also come from consolidation.

Maryland-based Marriott added 38 Canadian hotels in April 2015, when it bought B.C.-based Delta Hotels and Resorts from the British Columbia Investment Management Corp.

The company then executed its US$13 billion mega-merger with Starwood Hotels & Resorts Worldwide in 2016, and, with 1.1 million hotel rooms, passed Hilton Worldwide’s approximately 773,000 hotel rooms to become the globe’s largest hotelier.

That pact also added 75 Canadian hotels to Marriott’s fold.

About 75 per cent of the Canadian hotels that carry Marriott brands are franchised, meaning that the owner of the hotel either manages the property or has a third-party do that management.

The hotels that Marriott manages tend to be larger hotels and properties that have owners who do not have expertise in management. 

In Metro Vancouver, those hotels are the new Douglas and JW Marriott hotels as well as the Westin Bayshore, Delta Vancouver Downtown Suites and the Marriott Vancouver Pinnacle Downtown. 

Copyright © 2017 Western Investor

Customizable luxury at South Surrey’s Pacific Heights

Simon Briault
The Vancouver Sun

Pacific Heights by Foxridge Homes

Project location: 16752 — 18 Ave., Surrey

Project size: 28 single-family homes with four or five bedrooms, starting at 3,082 square feet and priced from $1,479,900.

Developer: Foxridge Homes

Interior designer: First Impression Design

Sales centre: 16752 — 18 Ave., Surrey

Hours: open daily, noon —  5 p.m. 

Telephone: 604-427-1803

Website: www.foxridgehomesbc.com

Pacific Heights by Foxridge Homes is a development of 28 luxury single-family homes with four or five bedrooms. And with units starting at more than 3,000 square feet, it may be surprising to think that many of the buyers at this emerging South Surrey neighbourhood will, in fact, be downsizers.

“We’ve had young families and move-up buyers, as well as downsizers moving out of acreages with absolutely enormous houses on them,” said Diane Zarola, Foxridge Homes’ director of sales and marketing. “Those people are still looking for single-family homes, but smaller ones where they don’t have acres of land to look after.”

Carolyn Young is a perfect example of what Zarola is talking about. She and her husband, who live in the Elgin Chantrell neighbourhood of South Surrey, have bought a home at Pacific Heights and expect to take possession in the spring.

“Our current place is about 5,000 square feet on a half-acre lot,” Young said. “I realize we’re moving to a smaller lot and a smaller home, but we’re at a point in our lives where my eldest son is in college and my younger son is in Grade 10, so we really don’t need this much space. I’m tired of housework and my husband is tired of yard work.”

Along with all the benefits of moving into a home that involves far less upkeep, Zarola says many downsizers are attracted by the thought of having all new kitchens and bathrooms, rather than having to go through the stress of renovations.

“The construction techniques have become so much more advanced since those old acreage homes were built,” she said. “All of the new technology makes a big difference — better materials, more efficient furnaces and water tanks, state-of-the-art appliances, better insulation, higher quality windows, longer-lasting roofs and the list goes on and on.”

“The building standards have improved so much over the years,” Zarola added. “Everything’s brand new and it’s all under warranty. On top of that, you get all the latest designs and colours in terms of sinks and countertops and fittings. Those things weren’t so available 20-odd years ago.”

There are two different styles of homes on offer at Pacific Heights by Foxridge – some with a full walk-out basement and others that have a much larger ground floor and a ground level that leads straight out to the back yard, with an underground basement.

Homes feature 10-foot-high ceilings and oversized windows throughout the main floors. There are contemporary designer-selected light fixture packages, hardwood flooring throughout the main levels (including the powder rooms) and linear gas fireplaces in the great rooms.

The kitchens have open-concept layouts with oversized centre islands, abundant storage and large pantries. There are high Shaker-style maple cabinets with soft-close doors and drawers. Buyers will also get quartz or granite countertops and full-height backsplashes, undermount stainless steel double bowl sinks and premium Bosch stainless steel appliance packages that include built-in microwaves, wall ovens and five-burner gas cooktops. Ensuite bathrooms feature Mirolin freestanding soaker tubs, separate frameless glass shower and double vanities. There are granite or quartz countertops and ceramic tile floors.

While Pacific Heights by Foxridge Homes benefits from a quiet location, Zarola is keen to stress that all the shopping in South Surrey at Morgan Crossing is within a few minutes drive, as is the aquatic centre.

“All the amenities you could think of are right there – everything from Canadian Tire to Aldo shoes,” she added. “Everything is so close, but not in your face. It’s a lovely location and some of the homes will also have views of Semiahmoo Bay and the Strait of Georgia.”

Young said she stumbled upon the subdivision and decided to find out which builders were going to be building homes there.

“Foxridge was one of them and I really liked their floor plans,” she said. “The other thing that really made a difference for me was that other developers offer you three or four set colour schemes, but with Foxridge you can pick anything you want. I loved the fact that we could personalize our home.”

The show home at Pacific Heights by Foxridge Homes includes the company’s famous design centre, where buyers can choose from a wide range of colours, materials, finishes and upgrades.

“We’re the only builder in the Lower Mainland that encourages our buyers to make their own decisions for their home when it comes to the colours and the finishes,” said Zarola. “It gives them the opportunity to customize their home in almost every way, both inside and out. Those are choices that nobody else provides and it definitely sets Foxridge Homes apart. No fixed colour schemes – our buyers can choose exactly what they want.”

Prices start at $1.47 million and the show home at 16752-18 Avenue is open from noon to 5 p.m. seven days a week.

© 2017 Postmedia Network Inc.

Steve Randall
Canadian Real Estate Wealth

British Columbia is introducing new rules from spring next year designed to strengthen consumer protection.

The Office of the Superintendent of Real Estate announced this week that new measures would include banning dual agency, making BC the first province in Canada to do so.

“Ending dual agency removes the potential for conflict and serious problems,” said said Micheal Noseworthy, BC’s Superintendent of Real Estate. “We want to create transparency for both consumers and licensees to ensure everyone understands in whose interest licensees must be working.”

The British Columbia Real Estate Association says it is disappointed in the ban and that it will limit consumer choices. But it says it will do its best to ensure a smooth transition to the new rules, which come into force on March 18, 2018.

Dual agency will be allowed in certain cases where the property is so remote that finding multiple agencies is extremely difficult but these exemptions from the ban will be subject to strict reporting requirements.

The other rules being introduced are:

• Requiring enhanced disclosure of real estate licensee remuneration that will inform consumers about how remuneration is to be divided between a listing brokerage and cooperating brokerage.
• Ensuring licensees inform consumers of the duties and responsibilities owed to both clients and unrepresented parties before working with consumers.
• Warning consumers of the risks of relying on a licensee to provide limited assistance if the licensee already represents another party to the transaction.

“The Superintendent is introducing significant changes to the way that BC’s real estate professionals conduct business,” says Real Estate Council Chair Robert Holmes. “Our role is to protect consumers by ensuring that when the Rules come into effect, all real estate licensees understand how to comply with the new requirements, and to get information into the hands of consumers that they can use to make solid choices when working with a licensee.”

Copyright © 2017 Key Media Pty Ltd

Bloomberg

Airbnb and Expedia’s HomeAway unit will continue to operate in Vancouver even as the city passes restrictive rules on short-term home rentals amid rising housing prices.

The two companies confirmed in separate statements that the vote, which will be announced later Tuesday, will recognize and regulate home-sharing in Vancouver. “While some families will be excluded from home-sharing we’re looking forward to continuing to work with the city through the regulation process,” said Lindsey Scully, a spokeswoman for closely held Airbnb.

Under the new rules, many Airbnb and HomeAway properties will be banned. Only principal residences – defined as the place where one lives for the majority of the year, pays bills, cooks meals and receives mail – can be rented out short-term, according to the proposal on the city’s website. This excludes commercial and investment properties or second homes.

‘‘While this proposal is far from perfect, we remain committed to a solution,” Philip Minardi, a spokesman for Bellevue, Washington-based Expedia, said in a message. “We will continue to work with the city to achieve that end.”

It’s not clear how many of Airbnb and HomeAway’s properties might be ineligible for rental under the new rules. Both companies had opposed Vancouver’s proposal to restrict second homes from being rented out on their platforms.

Vancouver is just one more skirmish in the city-by-city fight, led by San Francisco-based Airbnb, to establish rules that would allow the company to operate profitably while still including some regulations on safety and taxes.

Vancouver has pushed to regulate housing more tightly due to the lack of affordable homes for residents, and public scrutiny has focused on landlords, especially those living abroad, who cash in on investment properties.

Copyright Bloomberg 2017

Short-term rentals of principal residences will be allowed provided owners have a licence and pay an activation fee

Glen Korstrom
Western Investor

Vancouver city council has voted to make it legal for homeowners and renters to provide short-term rental accommodation on websites such as Airbnb and VRBO, starting April 1, 2018.

The catch is that they will need to pay an annual $49 licence fee as well as a one-time $54 activation fee. The person operating the short-term rental must also list the property as being his or her principal residence.

The bylaw change comes while owners of illegal short-term rental properties openly flout city bylaws, which currently restrict all rentals to be at least 30 days. Mayor Gregor Robertson estimated that there are now approximately 6,000 such illegal operations in the city.

Short-term rentals will not be allowed in secondary homes or secondary suites. Owners of those properties may find an opportunity if the city’s rental-vacancy rate soars to 4 per cent, something that has not happened in many years.

If the rental-vacancy rate does hit 4 per cent, however, city staff will be directed to look into allowing those homeowners to have short-term rentals, according to an amendment to the council motion.

City councillors passed the motion 7-4 with Non-Partisan Association councillors George Affleck, Elizabeth Ball, Melissa De Genova and Hector Bremner opposed.

Affleck told Business in Vancouver that he doubts city staff will have the time to effectively track Airbnb use. He’s also concerned that homeowners are forbidden from offering short-term secondary suite or laneway home rentals if the units are not their principal residence.

“As a single-family homeowner you should be able to make your decision about how you want to use your home,” he said.

“And, coupled with that, there were people who [spoke to council who] were clearly upset and concerned about the affordability of Vancouver. We have to take those people seriously and respect their concerns in this city.”

Some homeowners who spoke to council noted that they want to have short-term rentals as a way to help them pay their mortgages.

University of British Columbia Sauder School of Business professor Tom Davidoff told BIV that he is sympathetic to homeowners who have secondary units in their homes and are prohibited from renting them out.

“You don’t have to rent [secondary suites] out in order to avoid the empty homes tax,” Davidoff said. “How is it better to have an empty unit than an Airbnb unit for a secondary unit? I think that’s a mistake.”

He suggested that instead of banning short-term rentals in secondary suites, a better way to restrict them would be to tax them.

“The right way, generally, is not to ban activities but to tax them if you don’t like them,” Davidoff said.

As for Affleck, he suggested that instead of adding new taxes, the city could lower property taxes for homeowners who rent their homes to long-term tenants.

“George Affleck is a wonderful human being but that’s stupid,” Davidoff said. “We have ridiculously low property taxes. Cutting them further is a terrible, terrible idea.”

Copyright © 2017 Western Investor