Business licences loom for short-term online rentals in Saskatoon
by Phil Tank, Saskatoon StarPhoenixThe options city politicians will consider include an outright ban on renting properties not occupied by host
Most hosts renting Saskatoon rooms and houses through online platforms like Airbnb could soon be required to obtain a business licence.
A city council committee will consider a report by city hall administration on Tuesday that suggests three options for short-term rentals, all of which would require some of those renting out rooms or homes to get a business licence.
Depending on the choice eventually made by city council, renting out homes where the owner does not occupy the property or is absent during the rental period could be prohibited.
Bed and breakfast owners, who face rigorous standards for approval and operation, first approached city hall in July 2015 to address the discrepancy between themselves and unlicensed online rentals.
“The vast majority of short-term accommodations are operating outside of the current zoning and licensing regulations,” the report says. “At the time of writing this report, there were only 15 licensed businesses.”
The report makes a distinction between “homestays,” where a guest rents a room or part of a property that is occupied by the owner, and short-term rentals of property where the owner is not present.
In the strictest option proposed, homestay hosts would be permitted in all residential neighbourhoods and require a business licence; short-term rentals would be banned.
In October, Airbnb had 610 Saskatoon listings, compared to about 100 in 2015, the report says. It includes 2019 information from Airbnb indicating that 60 per cent of Saskatoon listings offered entire homes where the host is either absent during the rental or does not reside at the property.
The average number of guests per stay is 2.1, and 38 per cent of guests are from Saskatchewan, according to Airbnb.
In the two options proposed that would allow short-term rentals, prospective renters would have to go through an approval process and obtain permission from city council. They would also need a business licence, which costs $125 to obtain and $85 a year to renew.
In the least restrictive option, homestay hosts would be allowed throughout the city without a business licence, provided no more than two guests stay at a time. In the other option, homestay hosts would require a business licence.
The report also suggests capping the number of guests at one time at either six or three, depending on the property, and requiring off-street parking in some parts of the city.
A ban on new licences for short-term rentals should also be considered when the city’s vacancy rate drops below 1.5 per cent, the report recommends. The city’s current vacancy rate is about seven per cent, but dipped below 1.5 per cent in 2007.
Council’s planning, development and community services committee will consider the report on Tuesday, but council will not make a final decision until next year.