'It seems very shady': Some short-term rentals will be exempt from Charlottetown's new rules

Some short-term rental owners in Charlottetown could still be allowed to operate multiple properties after city council abruptly changed a fairly new bylaw meant to regulate them.

Council voted unanimously this week to allow many legacy properties to continue operating provided they were in business and had a provincial licence before Charlottetown's new rules came into effect. 

That means some owners could continue to rent out multiple properties under an exemption for "non-conforming use."  

That's a big change from what city housing advocates were expecting, which was a regime in which short-term rental units had to be in the owner's own primary residence. 

"There were all those consultations, and to have done that and then to still allow short-term rentals to operate in this way — it's really unfair, really unclear and intentionally misleading," said Claire Byrne, a Charlottetown student and housing advocate. 

"It does seem very shady. Allowing the ones that already exist to continue doesn't help the housing crisis at all." 

The new regulations came into effect in February 2022, but operators of short-term rentals (STRs) were given a one-year grace period to conform to the bylaw. 

The city then passed a licensing requirement in November 2023. 

'Nothing was secret'

Councillors discussed the non-conforming use change in a closed session on Monday evening before quickly passing the measure unanimously during the public part of the meeting that followed.

Mayor Philip Brown said closed sessions are required under the Municipal Government Act when councils are receiving legal advice. 

"Nothing was secret. We were just informed by legal, which required a closed session. The vote that was taken was [during] an open and transparent meeting," he said.

"Going forward, we have a STR bylaw in place that will address this issue of taking housing off the market that will affect affordable housing." 

City officials said the bylaw change could mean 292 units are exempt from the short-term rental regulations, provided their owners were in business for six consecutive months prior to February 2022 and were licensed by either the province or city before that time.

All of the existing operations will be assessed on a case-by-case basis. They will also be required to submit all the other requirements that are listed in the newly established STR licensing bylaw.— Donna Miller-Ayton, City of Charlottetown official

That means they can continue to be rented out to tourists and other visitors for short stays rather than returned to the rental pool for longer term tenants. 

"All of the existing operations will be assessed on a case-by-case basis," the city's policy and heritage manager, Donna Miller-Ayton, told CBC News on Friday. "They will also be required to submit all the other requirements that are listed in the newly established STR licensing bylaw." 

She said Charlottetown's STR bylaw enforcement officer has been sending notices about the rule changes to operators. 

Good for tourism — or 'unacceptable'? 

In a statement to CBC News, short-term rental owner Terrie Williams called the city's move this week a positive one for tourism.    

"It's been a long three years but I'm confident the city has made the best decision for all involved," she wrote. "We look forward to another busy tourism season for 2024!" 

But for housing advocates, Monday's vote was another example of council's unwillingness to get tough on short-term rentals that are taking properties off the long-term market. 

"It's unacceptable," said former Green Party MLA and concerned citizen Hannah Bell. "It's been clear that this council has been reluctant from the get-go to really tackle this short-term rental challenge here in Charlottetown head-on.

"It's been delay after delay after delay. The hints were there that this was going to be a challenge."

Some background documents related to the vote were missing from the council package on Monday, which the city later apologized for as it publicly released them attached to a statement on Thursday night.  

Housing advocates said that should mean the vote is invalid, but Brown insisted the city followed proper procedure.