Short Term Rentals

Overview of Short Term Rentals
3 types of SRT licences annual, summer (May 1 to Aug 31), and 31 day
There is a cap of 110 annual licences and 40 for summer licences; there is no cap on 31
day licences, however there can only be one per property per year.
Maximum of three licences in total per block (combined annual and summer) doesnt
include 31 day licences
3 types of STR dwellings - guest homes, guest rooms or guest suites (secondary or
detached secondary suites)
They are all require you to be the primary resident except for summer licences - this is
to accommodate those renting to students where the students leave for the summer,
and this allows them to do short term rentals for the summer months
As the Manager of Development Services, I have the ability to approve or not approve
Summer licences, so if I think that someone is abusing this, we can refuse to issue the
summer licence i.e. if they are evicting a long term tenant rather than a summer student
for the summer months
We have pretty much maintained the existing parking requirements we have allowed
for one stall to be provided on an adjacent property or across the lane
Each property can have up to one annual licence and another licence less than 6 months
(summer or 31 day licence)
All annual licences have to have a Nelson Kootenay Lake Tourism membership
All licences require a $500 deposit, except for the grandfathered licences (of which we
have 7)
Grandfathered licences are also exempt from cancellation of their licence if property
ownership changes, and the requirement to list the BL#, # of parking spaces and max
guest occupancy on booking platforms
All licences require a building and fire inspection every three years
Max of 2 adults per guest room, 4 per guest suite and 6 per guest house
Must have a contact person who responds within 15 minutes to phone calls and lives
within 30 km of the property
STRs need to apply by December 15 each year to ensure that they maintain their spot in
the queue for the next year after Dec 15 you will then be subject to the caps 110
annuals/40 summer
Process Overview
At the August 8, 2016 meeting of Council, staff presented the results of the policy
research and public feedback that was undertaken over the summer.
These results included an overview of the 200+ hours of policy research, numerous
conversations with other communities, 350 survey responses, dozens of emails and
phone inquiries, a stakeholder meeting and a public Town Hall.
Council directed staff to prepare bylaw amendments
Final approval at Dec 5 meeting of Council
If approved, STR operators will be able to apply for a business licence after December 15
THE CORPORATION OF THE CITY OF NELSON

REQUEST FOR DECISON
DATE:
TOPIC:
PROPOSAL:
PROPOSED BY:
November 21, 2016 Special

Business Licence Bylaw; Off-Street Parking, Zoning and OCP
Amending Bylaws
Introduction of Short Term Rental regulations and first readings of
the related bylaws
Staff
______________________________________________________________________
ANALYSIS SUMMARY:
Council directed staff to undertake a public consultation and planning process to
institute regulations for Short Term Vacation Rentals in the spring of 2016. First
readings of the Business Licence Bylaw, Off-Street Parking and Landscaping Amending
Bylaw, Official Community Plan Amending Bylaw and Zoning Amending Bylaw to
institute those regulations are presented for Councils consideration.
BACKGROUND:
Staff first introduced recommendations for Short Term Rentals (STRs) to Council at a
special meeting on July 18, 2016. At the August 8, 2016 regular council meeting, staff
presented recommendations for STR regulations in the following bylaws:
Business Licence Bylaw
Off Street Parking and Landscaping Bylaw
Official Community Plan Bylaw
Zoning Bylaw.
The Business Licence Bylaw has been rewritten to update the language in the bylaw,
remove the fees from the regulatory bylaw and place them in the Fees and Charges
Bylaw and add new regulations for STRs. The amending bylaws for Off-Street Parking
and Landscaping, Official Community Plan and Zoning are relevant to regulations for
STRs only. All of the bylaws have received a full legal review.
First readings of the bylaw are being presented at this November 21, 2016 Special
Meeting with the intent of adoption of all bylaws at the December 5, 2016 Regular
Meeting. This will provide the ability for the new regulations to be in place for the 2017
business licencing cycle.
BENEFITS, DISADVANTAGES AND NEGATIVE IMPACTS:
Benefits of regulating STRs include ensuring a fair, level playing field and retaining the
ability to protect the integrity of residential neighbourhoods by imposing certain
restrictions. One local host claims that operators who pay for a business licence will be
more serious about hosting than those who casually give it a try. Staff believe that
Nelson is in a position to achieve a higher compliance rate than other cities have
achieved by introducing dynamic regulations and a realistic enforcement strategy. The
proposed regulations establish a robust and transparent licencing mechanism to all
residential areas, while still retaining discretion for exceptional circumstances.
A restructuring of staff work on business licencing will greatly increase processing

efficiency. This will also improve efficiency of Development Services staff on matters of
development.
Actively prohibiting STRs has not been advocated for by the community or tourism
industry. Enforced prohibition would be resource-intensive with limited revenue
generated through licencing. Other cities have not succeeded. A negative impact on
tourism, particularly in the summer, would be a possible consequence. Anecdotal
evidence from STR operators and visitors suggests that the local STR market is
composed primarily of visitors of friends or family in residential areas who thus do not
wish to be downtown.
LEGISLATIVE IMPACTS, PRECEDENTS, POLICIES:
In accordance with section 59 of the Community Charter, before adopting a Business
Licence bylaw, notice must be provided and the public are to be given the opportunity to
comment on the bylaw.
In accordance with section 464 of the Local Government Act, a public hearing must be
held prior to adopting an Official Community Plan or Zoning Bylaw including any
amending bylaws thereto.
COSTS AND BUDGET IMPACT - REVENUE GENERATION:
The City receives revenue through Business Licences and building inspections and the
proposed amendments are expected to enable a significant number of currently illegal
operations to apply for a Licence. A significant number of short-term rental operators
have indicated their desire to be regulated and licenced. Licence fees are collected on
a cost-recovery basis and will be required to sufficiently fund enforcement.
IMPACT ON SUSTAINABILITY OBJECTIVES AND STAFF RESOURCES:
The processing and inspection of short-term rental business licence applications will
add to the workload of counter staff, Development Services, and the Building Inspector.
Two hours of staff time are anticipated per application. It is estimated that there are 120
short-term rentals in the City of Nelson, although many are seasonal or occasional.
Increased Bylaw Enforcement capacity is required to enforce compliance.
COMMUNICATION:
Extensive consultation has taken place so far, both within the city and beyond.
OPTIONS AND ALTERNATIVES:
1. Pass first readings of the bylaws
2. Do not pass any readings of the bylaws
3. Refer to staff for further review
ATTACHMENTS:
1. Business Licence Bylaw
2. Off-Street Parking and Landscaping Amendment Bylaw
3. Official Community Plan Amendment Bylaw
4. Zoning Amendment Bylaw
5. Staff Report from July 18, 2016 meeting
6. Staff Report from August 8, 2016 meeting
STAFF RECOMMENDATION:
That Council passes the following resolution/s:
1. THAT the The Corporation of the City of Nelson Business Licence Bylaw No.
3347, 2016" be introduced and read a first time and read a second time by title
only.
2. THAT the The Corporation of the City of Nelson Business Licence Bylaw No.
3347, 2016 be read a third time by title only.

3. THAT the Off-Street Parking and Landscaping Amendment (Short Term Rental)
Bylaw No. 3345, 2016" be introduced and read a first time and read a second
time by title only.
4. THAT the Off-Street Parking and Landscaping Amendment (Short Term Rental)
Bylaw No. 3345, 2016" read a third time by title only.

5. THAT the Official Community Plan Amendment (Short Term Rental) Bylaw No.
3346, 2016" be introduced and read a first time and read a second time by title
only.
6. THAT the Zoning Amendment (Short Term Rental) Bylaw No. 3344, 2016" be
introduced and read a first time and read a second time by title only.
7. THAT A Public Hearing be scheduled for December 5, 2016 at 6:00 p.m.
AUTHOR:
REVIEWED BY:
____________________________
DIRECTOR OF CORPORATE SERVICES
____________________________
CITY MANAGER

Business Licence Bylaw No. 3347, 2016
Being a bylaw respecting Licences for carrying on business within the City of Nelson
Table of Contents
Page No.
PART 1 INTERPRETATION ................................................................................................ 2

PART 2 - DEFINITIONS ......................................................................................................... 2
PART 3 - LICENCE REQUIRED ............................................................................................ 4
PART 5 - LICENCE PERIOD.................................................................................................. 5
PART 8 - LICENCE INSPECTOR .......................................................................................... 6
PART 10 - SUSPENSION AND CANCELLATION OF LICENCES ......................................... 7
PART 11 - COUNCIL RECONSIDERATION OF REFUSAL, SUSPENSION OR
CANCELLATION OF LICENCE ....................................................................................... 7
PART 12 GENERAL REGULATIONS ................................................................................. 8
PART 14 - SHORT-TERM RENTAL LICENCE APPLICATIONS ........................................... 9
PART 19 - SHORT-TERM RENTAL LICENCE APPLICATION DEPOSIT ........................... 11
PART 20 - EXEMPTION PROVISIONS FOR HOME OCCUPATION AND BED &
BREAKFAST .................................................................................................................. 12
PART 21 - LICENCE REGULATIONS FOR TAXIS AND VEHICLES FOR HIRE................. 12
PART 22 - ENFORCEMENT AND PENALTIES ................................................................... 13
PART 23 - REPEAL AND REPLACEMENT ......................................................................... 14
PART 24 - SEVERABILITY .................................................................................................. 14
PART 25 - CITATION ........................................................................................................... 14
PART 26 - EFFECTIVE DATE.............................................................................................. 15
SCHEDULE 'A' SHORT TERM RENTALS....... 16

Business Licence Bylaw No. 3347, 2016
WHEREAS pursuant to the Community Charter, Council may, by bylaw, regulate,
prohibit and impose requirements in relation to business;
NOW THEREFORE the Council of the City of Nelson, in open meeting assembled,
enacts as follows:
PART 1 INTERPRETATION
1.1
The headings contained in this bylaw are for convenience only and are not to be
construed as defining, or in any way limiting, the scope or the intent of the provisions
of this bylaw.
1.2
Any reference in this bylaw to an appendix, schedule, statute, regulation, bylaw or

other legislative instrument shall be deemed to mean a reference to that appendix
schedule, statute, regulation, bylaw or legislative instrument in force at the effective
date of this bylaw, and as amended, superseded or replaced from time to time
thereafter.
PART 2 - DEFINITIONS
2.1
The following words or phrases have the meanings set out in the City of Nelson
Zoning Bylaw 3199, 2013: "Bed and Breakfast", Dwelling Unit, Guest Suite,
Guest Room, "Guest Home, "Home Occupation", "Multi-Unit Residential",
Short-Term Rental.
2.2
In this bylaw, the following terms have the following meanings:

a)
"BUSINESS" means the carrying on of a commercial or industrial undertaking

of any kind or nature or the providing of professional, personal or other
services, for the purpose of gain or profit;
b)
"BYLAW ENFORCEMENT OFFICER" means a person acting as any of the

following are designated for the purposes of this Bylaw and the Local
Government Bylaw Notice Enforcement Act:
(1) Special constables, officers, members or constables of the Nelson Police
Department;
(2) Bylaw Enforcement Officers appointed pursuant to the Police Act and
Community Charter;
City of Nelson Business Licence Bylaw 3347, 2016
Page 2
(3) Local Assistants to the Fire Commissioner under Section 6 of the Fire
Services Act;
(4) Bylaw Enforcement Officers, licensing inspectors, building inspectors,
animal control officers or other persons acting in another capacity on
behalf of a municipality, regional City or local trust committee for the
purpose of enforcement of one or more of its Bylaws.
c)
BYLAW NOTICE means a ticket issued under the Bylaw Notice Enforcement
Bylaw;
d)
"BYLAW NOTICE ENFORCEMENT BYLAW" means the City of Nelson Bylaw

Notice Enforcement Bylaw No. 3195, 2011, including all amendments and
replacements thereto;
e)
"CHIEF CONSTABLE" means the Chief Constable of the City of Nelson Police
Department and includes any police officer or peace officer acting under his or
her authority;
f)
"CITY" and "CITY OF NELSON" means The Corporation of the City of Nelson
and is called the "City" when referring to the corporate entity and "City of
Nelson" when referring to the geographic location;
g)
"COUNCIL" means the Council of the Corporation of the City of Nelson;
h)
"DOOR-TO-DOOR AND DIRECT SALES" means the carrying on of a

business by the display or demonstration of samples, the taking of orders, or
the offering for sale of goods, wares, or other merchandise directly to or from
any public place, in commercial premises or in private premises occupied by
the prospective purchaser;
i)
"DRIVER" means any person who drives a vehicle as herein defined and
includes any other person driving or in charge of a vehicle for hire;
j)
"FEES AND CHARGES BYLAW" means the City's Fees and Charges Bylaw,
No. 3092, 2008, including all amendments and replacements thereto;
k)
"HIRE" means the fare, toll, fee or rate charged or collected from any person
for the transportation of a person or persons or chattels of persons.
l)
"LICENCEE" means a business entity which holds a valid licence to operate a

business within the City of Nelson under this Bylaw;
m)
"LICENCE INSPECTOR" means the person, from time to time, duly appointed
as Licence Inspector for the City, a peace officer and any employee of the City
acting in the capacity of Licence Inspector;
Page 3
n)
"OWNER" means:
(1) with respect to motor vehicles and commercial vehicles, a person or
persons duly registered from time to time under the Motor Vehicle Act or
Commercial Transport Act, as the case may be, as the owner of the motor
vehicle or commercial vehicle; and
(2) with respect to land, buildings and premises, means the registered owner,
tenant, lessee, agent, licensee and any other person who has the right of
access to and control of any land, building or premises to which any of the
provisions of this Bylaw apply;
o)
"PERMIT" means an annual permit required to be held by a driver pursuant to

the provisions of this Bylaw;
p)
"PERSON" includes any corporation, partnership, sole proprietorship, party or

individual;
q)
"PREMISES" means a building or portion of a building or an area of land

occupied, or capable of being occupied, by a business for the purpose of
carrying on a business; and
r)
"TAXI" means a vehicle which is operated or plies for hire by members of the
public for the transportation and conveyance of persons or property for hire, but
does not include an ambulance, public transit bus, hearse or a vehicle driven
by the person who hires it.
PART 3 - LICENCE REQUIRED

3.1
Every person who owns or operates a business within the City of Nelson shall apply
for, obtain and hold a licence for each business.
3.2
Every person who operates a business at more than one premises, shall obtain a
separate licence for each premises, whether or not the premises are located in the
same building.
3.3
A person who operates more than one business at one premises, shall apply for
and maintain a separate licence for each business.
3.4
No person shall carry on any business for which a licence is required by bylaw
within the City of Nelson without holding a valid and subsisting licence for the
carrying on of such business.
3.5
Every person who carries on a business in the City shall comply with all bylaws of
the City and all applicable laws, rules, codes, regulations and orders of all Federal
or Provincial authorities having jurisdiction over such business.
Page 4
PART 4 - EFFECT OF LICENCE

4.1
Every licence issued under this bylaw is personal to the person named in the
licence and may not be transferred to another person.
4.2
A person shall not carry on a business in or on any premises other than those
identified on the licence without first making an application for a new licence or a
change to the licence.
4.3
The granting of a licence under this bylaw in no way implies or constitutes a

representation or warranty of the Licence Inspector or the City that the licencee is
competent in the business operation for which they are licenced or that the licenced
business or the business premises comply with the City's bylaws.
4.4
Every operator of a business is responsible for complying with, and is subject to,
the requirements of all other City bylaws applicable to the business.
PART 5 - LICENCE PERIOD

5.1
Except as otherwise provided in this Bylaw, the licence period shall be one (1) year,
to commence on January 1 and to terminate on December 31, on each and every
year.
5.2
The licence period with respect to a Short-Term Rental will be for the periods set
out in Schedule "A".
5.3
The licence period with respect to a circus, horse show, dog or pony show,
exhibition or other itinerant show or entertainment, when held elsewhere than in a
licenced theatre or other licenced premises, will be one day.
PART 6 - LICENCE APPLICATION AND FEE

6.1
Except as otherwise provided in this Bylaw, the application for a licence and the
licence issued thereafter shall be in the form prescribed by the City.
6.2
Where an applicant applies for more than one licence, the particulars of each
licence applied for shall be included on a separate application form for each
licence.
6.3
Every person applying for a new licence shall, at the time of making the application,
pay to the City:
a)
the licence fee for the applicable type of business prescribed by the Fees and
Charges Bylaw;
b)
all outstanding fees, charges and penalties due and payable to the City in
respect of the business; and
c)
all applicable federal and provincial sales taxes.
Page 5
6.4
Any person making application for a licence under this Bylaw shall, at the time of
making such application, make a true and correct statement in writing disclosing the
nature of and character of such business to be carried on by the applicant,
including business name, legal business name if different, contact information,
number of persons engaged or occupied in the business.
6.5
Licence fees paid hereunder shall not be refundable.
6.6
For licence applications received on or after July 1st, other than applications for
Short-Term Rental licences, the applicable licence fees prescribed by the Fees and
Charges Bylaw will be reduced by fifty (50) percent. The fee reduction provided
herein shall only be applicable for the licence period applicable to the application.
PART 7 - LICENCE TO BE DISPLAYED

7.1
Every licencee shall keep a copy of the licence posted in a conspicuous place in
the premises, vehicle or other mode of transport, place or structure where the
business is conducted or undertaken and for which the licence is issued.
PART 8 - LICENCE INSPECTOR

8.1
The Council may, by resolution, from time to time, appoint a Licence Inspector for
the purposes of administering and enforcing the provisions of this Bylaw.
8.2
A Licence Inspector appointed pursuant to Section 8.1 shall have the authority to
grant or refuse a licence.
8.3
Pursuant to the Community Charter, the Licence Inspector or Chief Constable may
enter, at all reasonable times onto and into premises to inspect and determine
whether all regulations, prohibitions, and requirements established by this Bylaw
are being met.
8.4
An owner shall provide to the Licence Inspector and Chief Constable the
information and the access to premises in order for an inspection and determination
under Section 8.3 to be made.
PART 9 GRANTING AND REFUSAL OF LICENCES

9.1
The Licence Inspector may grant a licence where the Licence Inspector is satisfied
that the applicant therefore has complied with the requirements of the bylaws of the
City regulating building, zoning, health, sanitation and business.
9.2
The Licence Inspector may refuse to grant a licence in any specific case provided
that a licence shall not be unreasonably refused and, in the case of refusal, upon
request, the Licence Inspector must provide written reasons for the refusal and
opportunity for the applicant to be heard.
Page 6
9.3
In considering an application for a licence, the Licence Inspector may require that
an applicant provide proof of certification, approval or qualification required by a
Federal, Provincial or Local Government Authority having jurisdiction over the
business.
9.4
The Licence Inspector may establish the terms and conditions of a licence, or the
terms and conditions that must be met for obtaining, continuing to hold, or
renewing a licence.
9.5
If the issuance of a licence requires insurance coverage, proof of that insurance

coverage in a form acceptable to the Licence Inspector shall be submitted prior to
the issuance of the licence.
PART 10 - SUSPENSION AND CANCELLATION OF LICENCES

10.1
The Licence Inspector is authorized by Council to suspend or cancel a licence for:

a)
failure by a licencee to comply with a term or condition of the licence;
b)
failure by a licencee to comply with this Bylaw; or
c)
reasonable cause,
provided that the Licence Inspector has, before the suspension or cancellation, given
the licencee notice of the proposed suspension or cancellation and an opportunity to
be heard.
PART 11 - COUNCIL RECONSIDERATION OF REFUSAL, SUSPENSION OR
CANCELLATION OF LICENCE
11.1
If the Licence Inspector proposes to exercise his/her authority to refuse, suspend or

cancel a licence, the Licence Inspector must provide to the applicant or licencee
who is subject to the Licence Inspector's decision, notice of the Licence Inspector's
proposed action and that the licencee is entitled to have Council reconsider the
matter.
11.2
A notice under section 11.1 shall be issued to the licencee and served on the
licencee or delivered by registered mail to the licencee to the address given by the
licencee on the application for the licence.
11.3
An applicant or licencee who wishes to have Council reconsider the refusal,

suspension or cancellation of a licence shall give written notice of its request for
reconsideration to the City's Manager of Development Services and such notice
must include a description of the grounds upon which the request for
reconsideration is made.
11.4
Upon receipt of a written notice under section 11.3, the City's Manager of
Development Services shall schedule the time, date, and place for Council to hear
the matter.
Page 7
11.5
In reconsidering a decision of the Licence Inspector to refuse, suspend or cancel a

licence, Council may confirm or set aside the Licence's Inspector's decision as
Council deems appropriate in the circumstances.
PART 12 GENERAL REGULATIONS

12.1
Where any Federal or Provincial enactment or any other City bylaw applies to any
matter covered by this Bylaw, the issuance of a licence under this Bylaw shall not
relieve the licencee from complying with the provision of such other enactments or
bylaws.
12.2
A licence is not assignable or transferable. If ownership of a business, or control of a

business entity, changes, the new owner(s) of the business must apply to the City for
a new licence.
12.3
Notwithstanding section 12.2, if all outstanding fees under this Bylaw have been paid
in respect of an existing licence, then no additional amounts are payable by the new
owner(s) for the current licencing period for fees that are duplicative of the paid fees.
PART 13 - SHORT-TERM RENTAL LICENCE REGULATIONS

13.1
A requirement of this Bylaw pertaining to Short-Term Rentals does not abrogate the
application of any other requirements contained herein that are generally applicable
to all businesses.
13.2
A Short-Term Rental licence is only valid for one dwelling unit and one category of
Short-Term Rental.
13.3
An owner may not hold more than one (1) Short-Term Rental licence,
notwithstanding that the owner may be licenced for a second Short-Term Rental
provided that it is for a period of less than six (6) months.
13.4
No more than one (1) 31-Day Short-Term Rental licence per calendar year will be
issued in respect of the premises from which the Short-Term Rental is operated.
13.5
No person shall operate a Short-Term Rental unless they are the permanent
residents of the premises from which the Short-Term Rental is operated,
notwithstanding that there is no permanent resident requirement for a summer
licence (May 1 to August 31).
13.6
No person shall operate a Short-Term Rental without a valid and subsisting licence.
13.7
No person shall offer or advertise a Short-Term Rental without a valid licence in

respect of such Short-Term Rental.
13.8
Short-Term Rentals are subject to inspection by a Licence Inspector once every

three (3) years, whether or not the Short-Term Rental has been continuously
licenced during that period.
Page 8
13.9
Proof of membership in the Nelson Kootenay Lake Tourism Society, that is valid for
the duration of the licence period, is required for a valid annual Short-Term Rental
licence.
13.10
Without limiting the generality of section 4.4, every person operating a Short-Term
Rental must comply with, and will be subject to the Zoning Bylaw, No. 3199, 2013,
the Off-Street Parking and Landscape Bylaw, No. 3274, 2013 and the Noise Control
Bylaw, No. 3201, 2011, as each of those may be amended or replaced from time to
time.
PART 14 - SHORT-TERM RENTAL LICENCE APPLICATIONS

14.1
Applications for Short-Term Rental licences will be processed by the City on a firstcome basis.
14.2
An application for a Short-Term Rental licence shall be made on a form prescribed

by the City.
14.3
Any person making application for a Short-Term Rental Licence shall at the time of
making such application, in addition to the general requirements under this Bylaw,
provide:
a)
proof of ownership of the premises from which the Short-Term Rental will be
operated;
b)
proof of principal residence of the applicant unless the application is for a

summer licence (May 1 to August 31);
c)
contact information for one (1) or two (2) local contacts, who may be the
applicant, as the individual(s) available on a 24/7 basis during the use of ShortTerm Rental by a guest to respond within fifteen minutes to any telephone
enquiries regarding the Short-Term Rental, and who have consented to the
applicant to allow their contact information to be made publicly available,
including on-line and to guests of the Short-Term Rental;
d)
for a Short-Term Rental located within a Multi-Unit Residential building, other

than a stratified building, a letter signed by an agent authorized to act on behalf
of the multi-family building corporation, consenting to the applicant's operation
of a Short-Term Rental from the premises;
e)
for a Short-Term Rental located within a Multi-Unit Residential building that is

stratified, a letter duly signed by the president of the strata council, consenting
to the applicant's operation of a Short-Term Rental from the premises;
f)
a narrative describing the intent and purpose of the application, which narrative
may be made publicly available by the City.
Page 9
14.4
A local contact for a Short-Term Rental must reside within thirty (30) kilometers of the
Short-Term Rental property.
14.5
In considering an application for a Short-Term Licence, the Licence Inspector

may:
a)
consider whether a Short-Term Rental licence held by the applicant has

been revoked in the preceding two (2) licence periods; and
b)
require an inspection of the premises from which the Short-Term Rental will
be operated notwithstanding that, a Licence Inspector may grant approval
of the application without an inspection subject to the condition that if upon
subsequent inspection, the Short-Term Rental fails to comply with the
requirements of this Bylaw, the Licence Inspector shall suspend or cancel
the licence.
PART 15 - SHORT-TERM RENTAL LICENCE RENEWAL

15.1
An application for renewal of a Short-Term Rental licence must be received by the

City by December 15th in each calendar year, failing which the application shall be
considered a new application and shall become subject to the Short-Term Rental
allocation cap, pursuant to PART 17.
PART 16 - ADVERTISING AND ONLINE BOOKING PLATFORMS

16.1
Every advertisement for a Short-Term Rental must disclose, in respect of the ShortTerm-Rental being advertised:
a)
a valid business licence number;
b)
the number of off-street parking spaces available to guests and a statement

that such number is the maximum number of vehicles that paying guests of the
Short-Term Rental are permitted to bring to the premises; and
c)
the maximum permitted guest-occupancy applicable to the Short-Term Rental,

pursuant to the Zoning Bylaw.
PART 17 SHORT TERM RENTAL LICENCE CATEGORIES AND ALLOCATION CAP

17.1
The categories of licences available for Short-Term Rentals shall be as set out in
Schedule "A".
17.2
The City will limit the number of Short-Term Rental licences available in a calendar
year to the maximum number of licences set out for each category of licence in
Schedule "A".
Page 10
17.3
The City may refuse to grant a licence if the maximum number of Short-Term Rental
licences for the category in which the applicant is seeking a licence has been
reached.
17.4
If, having issued the maximum number of Short-Term Rental licences, a licence is
suspended or cancelled, then the City may approve a licence application to
reallocate the suspended or cancelled licence.
PART 18 SHORT-TERM RENTAL GUEST REGISTRY

18.1
18.2
Every person carrying on the business of a Short-Term Rental must:

a)
establish and maintain a daily register of the name, telephone number, address
and vehicle licence plate number, for every overnight guest of the business;
and
b)
upon request from the City, supply a copy of the guest register to the Licence
Inspector.
The City may request a copy of the guest register on any day of the calendar year
between the hours of 8:00 am and 8:00 pm.
PART 19 - SHORT-TERM RENTAL LICENCE APPLICATION DEPOSIT

19.1
Every applicant for a licence to carry on the business of, or to operate, a Short-Term
Rental must deposit with the City security in the amount of not less than five hundred
dollars ($500).
19.2
A deposit shall be held by the City as security against any costs incurred by the City
as a result of investigations, hearings, appeals, or other enforcement actions
undertaken by the Licence Inspector or the City, whether initiated by the City or
resulting from third-party complaints in respect of the use or operation of the ShortTerm Rental.
19.3
A deposit shall be provided in the form of cash, debit, credit card or cheque.
19.4
Any amounts deducted from the deposit and used for the purpose for which the
deposit was provided must be forthwith provided to the City to replenish the deposit
to the original amount.
19.5
Any amount of the deposit not required by the City for the purpose for which the
deposit was provided shall be returned to the person who provided the deposit upon
written notification of the cessation of Short-Term Rental operations.
Page 11
PART 20 - EXEMPTION PROVISIONS FOR HOME OCCUPATION AND BED &

BREAKFAST (Grandfathered Short Term Rentals)
20.1
Any person or business that applied for, or renewed, a licence prior to January 1,
2016 and held a valid licence in 2016 for a "Home Occupation" designated for up to
two (2) Guest Rooms or for a "Bed and Breakfast" shall be exempt from:
a)
the payment of a deposit under PART 19;
b)
the cancellation of the licence pursuant to a change in property ownership; and
c)
the requirement for the owner or operator of the Home Occupation or Bed and
Breakfast, as the case may be, to list the licence number, parking spaces and
maximum guest occupancy in respect of such Home Occupation or Bed and
Breakfast on all booking platforms used for advertising the business.
PART 21 - LICENCE REGULATIONS FOR TAXIS AND VEHICLES FOR HIRE

21.1
21.2
Prior to issuance or annual renewal of a licence to operate a taxi or vehicle for hire,
each owner/operator must produce to the satisfaction of the Licence Inspector the
following documents:
a)
proof of vehicle insurance that indicates the vehicle for hire is insured as a
taxi or vehicle for hire and liability insurance in respect of the vehicle is for not
less than Two Million ($2,000,000) Dollars.
b)
proof that the vehicle for hire, in the previous 60 days, has been inspected by
a Ministry of Transport designated inspection facility and a safety inspection
certificate has been issued in respect of the vehicle.
With respect to Taxis and Vehicles for Hire (Driver Permits):

a)
No person shall be employed as, or shall act or engage to act as a driver,

unless he is of the full age of nineteen (19) years, and is the holder of an
annual permit issued to him by the Chief Constable.
b)
No such permit shall be issued unless, in the opinion of the Chief Constable,
the applicant is of good character, is not awaiting trial on a charge alleging
dishonesty, violence, indecency or concerning narcotics, and the applicant
has an adequate knowledge of the English language and of the geography of
the City and surrounding area, as well as the contents of this Bylaw.
c)
Where a person holding a permit under the provisions of this section, by

reason of his use of or dealing in intoxicants or narcotic drugs, or for any
other reason, is in the opinion of the Chief Constable, unfit to act as a driver,
the Chief Constable upon proof to his satisfaction of such unfitness, may
suspend or cancel the permit.
Page 12
d)
Where an application for a permit is refused, suspended or cancelled by the

Chief Constable, the Chief Constable shall, within seven (7) days after such
refusal, suspension or cancellation, notify the applicant or holder in writing,
stating the grounds for such refusal, suspension or cancellation, and an
appeal shall lie to the Municipal Council of the City from the refusal,
suspension or cancellation and the decision of the Municipal Council thereon
shall be final.
e)
The fee as established in the Fees and Charges Bylaw shall be charged for
every permit issued under this section.
f)
Every driver who holds a permit issued under this section shall have the
permit in his possession at all times while driving or operating a vehicle on
any highway, and shall produce the permit for inspection at any time upon the
demand of a peace officer or police officer.
g)
Should there be any inconsistency between the provisions of this Bylaw and
of the Motor Vehicle Act, the Motor Vehicle Act shall prevail.
h)
No taxi driver shall take, consume or have in his possession any unsealed
alcoholic liquor while on duty.
i)
Every taxi driver shall keep a daily trip record, in a form approved by the Chief
Constable, of the taxi driven by him. Such record shall be kept in the English
language and shall contain the following information:
(1) the date, time, origin and destination of each trip;
(2) the taxi driver's name; and
(3) the provincial or City licence number of the taxi or both if required by any
Act or Bylaw.
j)
The record mentioned in this section shall be made available at any time
during the course of the shift on demand by the Chief Constable, shall be
delivered to the owner at the end of the shift, and shall be kept by the owner
with the records which are available for inspection by the Chief Constable for
a period of one (1) year.
PART 22 - ENFORCEMENT AND PENALTIES

22.1
A person who:
a)
contravenes or fails to comply with this Bylaw;
b)
permits, suffers or allows any act or thing to be done in contravention of this

Bylaw;
c)
fails to carry out an order made under this Bylaw;
d)
fails or neglects to do anything required under a licence;
Page 13
e)
provides false or misleading information to obtain a licence under this Bylaw;

or
f)
carries on or remains open for business after receiving notice from the City
that the licence for the business was suspended or cancelled,
commits an offence and each day such an offence continues or is permitted to

continue will constitute a separate offence.
22.2
On being found guilty of an offence under this Bylaw, a person will be liable to pay
a fine of up to $10,000 or to imprisonment for a term not exceeding six months or to
both such fine and imprisonment and in default of payment of the fine to
imprisonment for an additional term not exceeding six months under the Offence
Act.
22.3
This Bylaw is designated under section 264 of the Community Charter as a bylaw
that may be enforced by means of a Bylaw Notice.
22.4
Without limiting the enforcement options under Section 22.3, a person who commits
an offence under this Bylaw will be liable to a penalty established under the Bylaw
Notice Enforcement Bylaw.
22.5
Bylaw Enforcement Officers are designated to enforce this Bylaw by means of a

Bylaw Notice under section 264 of the Community Charter.
22.6
No person may obstruct a Bylaw Enforcement Officer in the fulfillment of his or her
duties under this Bylaw.
PART 23 - REPEAL AND REPLACEMENT

23.1
Business Licence Bylaw No. 3328, 2016 together with all amendments thereto is
hereby repealed in entirety.
PART 24 - SEVERABILITY
24.1
If a portion of this bylaw is held invalid by a Court of competent jurisdiction, the

invalid portion must be severed and the remainder of this bylaw is deemed to be
adopted without the severed section, subsection, paragraph, subparagraph, clause
or phrase.
PART 25 - CITATION
25.1
This bylaw may be cited for all purposes as The Corporation of the City of Nelson
Business Licence Bylaw No. 3347, 2016.
Page 14
PART 26 - EFFECTIVE DATE

26.1
This Bylaw comes into force and effect upon its adoption.
READ A FIRST TIME the
READ A SECOND TIME the
READ A THIRD TIME the
day of
day of
day of
FINALLY PASSED AND ADOPTED the
2016
2016
2016
day of
2016
___________________
Mayor
___________________
Corporate Officer
Page 15
SCHEDULE "A"
to Business Licence Bylaw No. 3347, 2016
SHORT-TERM RENTALS
1. Short-Term Rental Licence Categories

Licences for Short-Term Rentals comprise the following categories:
(i)
Annual Short-Term Rental licence - valid from January 1 to December 31;
(ii)
Summer Short-Term Rental licence valid from May 1 to August 31;
(iii)
31-Day Short-Term Rental licence valid for a continuous 31-day period

commencing on the date specified on the licence; or
2. Short-Term Rental Licence Allocation Caps

The maximum number of Short-Term Rental licences to be issued by the City for each
category is as follows:
Maximum number of Short-Term Rental licences available for issuance:
Annual Short-Term Rental
licence
Summer Short-Term Rental

licence
31-Day Short-Term Rental

licence
110
40
No Cap
Maximum of three (3) licences in total are permitted within

one block
For the purposes of this Section 2, "one block" shall be considered to be the two sides of a
single street that face one another and are bordered on either end by the nearest street or
cul-de-sac. Where a lot is located on a lane, such lane shall be considered to be part of the
nearest parallel street for the purposes of determining the boundaries of one block.
Page 16

BYLAW NO. 3345
BEING A BYLAW TO AMEND THE CORPORATION OF THE CITY OF NELSON
OFF-STREET PARKING AND LANDSCAPE BYLAW NO. 3274, 2013
WHEREAS the Council of the Corporation of the City of Nelson considers it

desirable and expedient to amend The Corporation of the City of Nelson Off-Street
Parking and Landscape Bylaw No. 3274, 2013 (hereinafter called the said Bylaw);
NOW THEREFORE the Council of the Corporation of the City of Nelson, in open
meeting assembled enacts as follows:
1. That the said Bylaw be amended by:
a. Renaming PART 1 from PART 1 - DEFINITIONS to PART 1
DEFINITIONS AND INTERPRETATION.
b. Inserting a heading after PART 1 DEFINITIONS AND
INTERPRETATION as follows:
1.1
Definitions
c. By deleting the first paragraph under Section 1.1 Definitions in its

entirety and replacing it as follows:
The following words or phrases have the meanings set out in the City of
Nelson Zoning Bylaw 3199, 2013: Dwelling Unit, Gross Floor Area
(GFA), Guest Suite, Guest Room, Guest Home, Lane, Lot,
Lot Coverage, Short-Term Rental, Street, Zone
d. Inserting a new section, 1.2 Interpretation as follows:
1.2 Interpretation
Any reference in this bylaw to an appendix, schedule, statute,
regulation, bylaw or other legislative instrument shall be deemed to
mean a reference to that appendix schedule, statute, regulation,
bylaw or legislative instrument in force at the effective date of this
bylaw, and as amended, superseded or replaced from time to time
thereafter.
2. That the said Bylaw be amended by deleting the wording in section 7.1(1) in its
entirety and replacing it as follows:
(1) In all residential zones, off-street vehicle parking spaces shall be provided and
maintained on the same lot as the use, building or structure they serve, except:
Page 1
(a) If sufficient off-street parking spaces for a Short-Term Rental use cannot
be provided on the same lot as the Short-Term Rental, up to one (1)
required parking space may be located on another lot adjacent to or
across the lane, or within 100 metres from the subject lot, upon approval
of the Manager of Development Services provided that:
i. such other off-site parking shall be secured by an agreement,
satisfactory to the City, providing the off-site parking for the benefit
of the lot with the Short-Term Rental;
ii. the agreement must include a plan showing the location and area
of the parking space to be provided by the agreement.
iii. the agreement shall be valid for the duration of the Business
Licence. A new agreement shall be provided at the time of each
Licence renewal.
iv. the City shall be a named party in the agreement for the sole
purpose of ensuring that the agreement is not amended or
discharged from title without the approval of the City.
v. if the agreement is invalidated before its expiration date, the
property owner must immediately cease operation of the ShortTerm Rental use until its off-street parking requirements are fulfilled
to the Citys satisfaction.
vi. the lot on which the off-site parking space is located must meet the
minimum parking requirements as specified in section 7.3 of this
bylaw. The space provided for a Short-Term Rental shall be in
addition to the minimum parking required.
vii. a property owner providing off-site parking shall only enter into not
more than one (1) agreement to provide not more than one (1)
parking space.
3. That the said Bylaw be amended by deleting the wording in the Residential
portion of the table in section 7.3(1), Off-Street Vehicle Parking Requirements in
its entirety and replacing it as follows:
Residential
Single Detached Residential
2 spaces/Dwelling Unit (DU)
Duplex Residential
Single Detached Residential
Duplex Residential
With one (1) or more Short Term Rental
Guest Rooms
2 spaces/DU + 1 space/guest room
Secondary Suite
1 space/DU
Page 2
Detached Secondary Dwelling Unit

Multi-Unit Residential (Studio, 1 Bedroom)
1 space/DU, plus 0.2 visitor spaces per DU
Multi-Unit Residential (2+ Bedrooms)
1.5 spaces/DU, plus 0.2 visitor spaces per DU
Live/Work Unit
1 space/DU
Dwelling Units located in the Downtown

Residential Zone (R3) and Core
Commercial Zone (C1)
1 space/DU
Existing Dwelling Unit with 1 Short-Term

Rental Guest Room
1 space/DU

Rental Guest Rooms
2 spaces/DU

Rental Guest Rooms or more
2 spaces/DU + 1 space/guest room
Secondary Suite used as a Short-Term

Rental Guest Suite
1 space/DU
Detached Secondary Dwelling Unit used

as a Short-Term Rental Guest Suite
1 space/DU
Existing Dwelling Unit used as a ShortTerm Rental Guest Home (not located in
the Downtown Residential Zone (R3) or
Core Commercial Zone (C1))
a) To satisfy the requirement for a year-round

Short-Term Rental Business Licence: 2
spaces/DU
b) To satisfy the requirement for Short-Term
Rental Business Licence valid for fewer than
six (6) months: 1 space/DU
Existing Dwelling Unit used as a ShortTerm Rental Guest Home or Secondary

Suite used as a Short-Term Rental Guest
Suite or a Detached Secondary Dwelling
Unit used as a Short-Term Rental Guest
Suite (located in the Downtown
1 space/DU
Residential Zone (R3) and Core

Commercial Zone (C1))
Page 3
4. This Bylaw may be cited as "Off-Street Parking and Landscaping Amendment

(Short Term Rental) Bylaw No. 3345, 2016".
day of
day of
day of
, 2016
, 2016
, 2016
day of
, 2016
_______________________
Mayor
_______________________
Corporate Officer
Page 4

BYLAW NO. 3346
A BYLAW TO AMEND "THE CORPORATION OF THE CITY OF NELSON
OFFICIAL COMMUNITY PLAN BYLAW NO. 3247, 2013"
_________________________________________________________________________
WHEREAS the Council of the Corporation of the City of Nelson considers it desirable
and expedient to amend The Corporation of the City of Nelson Official Community Plan
Bylaw No. 3247, 2013 (hereinafter called the said Bylaw);
1. That the said Bylaw be amended by deleting subsection 19 of Nelson as a Whole
Policies in section 4.2 of Schedule A Goals, Objectives & Policies in its entirety and
replacing it as follows:
Residential neighbourhoods will conditionally accommodate resident-occupied and operated short-term rental accommodations, and all other tourist accommodation types
will be located in the Downtown and Waterfront neighbourhoods.
2. That the said Bylaw be amended by modifying the table Land Use Designations on
pages 24 and 25 of section 4.2 of Schedule A Goals, Objectives & Policies as follows:
Low Density Residential, delete the following from the column Land Use
Description:
Bed & Breakfasts, where permitted by zoning
and replace with:
Short-Term Rentals, as permitted by zoning
Multi Unit Residential, delete the following from the column Land Use
Description
Bed & Breakfasts, where permitted by zoning
and replace with:
Short-Term Rentals, as permitted by zoning
Page 1
3. This Bylaw may be cited as "Official Community Plan Amendment (Short Term
Rental) Bylaw No. 3346, 2016."
day of
day of
, 2016
, 2016
PUBLIC HEARING held this
day of
, 2016

day of
, 2016
day of
, 2016
_______________________
Mayor
_______________________
Corporate Officer
Page 2

BYLAW NO. 3344
A BYLAW TO AMEND "THE CORPORATION OF THE CITY OF NELSON
ZONING BYLAW NO. 3199, 2013"
_________________________________________________________________________
WHEREAS the Council of the Corporation of the City of Nelson considers it desirable
and expedient to amend The Corporation of the City of Nelson Zoning Bylaw No. 3199,
2013 (hereinafter called the said Bylaw);
1. That the said Bylaw be amended by deleting the definition of Bed and Breakfast in its
entirety from Part 1 Interpretation.
2. That the said Bylaw be amended by adding a definition to Part 1 Interpretation as
follows:
Short-Term Rental means a Guest Home, Guest Suite, Guest Rooms, or part thereof
in a residential zone wherein accommodation is offered for rent, or rented, to the
travelling public on a temporary basis (31 days or less), and is subject to section 1.1.10
of Schedule A.
3. That the said Bylaw be amended by deleting the definitions in Part 1 Interpretation for
Home Occupation, Guest Home, Guest Suite Guest Room in their entirety and
replacing them as following:
Home Occupation means a commercial use that is not a Tourist Accommodation or
Short-Term Rental, carried out by an occupant of a dwelling unit for remuneration which
is accessory to the residential use of the dwelling and subject to section 1.1.6 of
Schedule A.
Guest Home means a Single-Detached Residential dwelling unit, a dwelling unit in a
Duplex Residential dwelling or a dwelling unit in a Multi-Unit Residential dwelling where
such dwelling unit is used in its entirety as one dwelling for Short-Term Rental.
Guest Room means a habitable room used for Short-Term Rental and that does not
contain cooking facilities.
Guest Suite means a Detached Secondary Dwelling Unit or Secondary Suite used for
Short-Term Rental.
Page 1
4. That the said Bylaw be amended by deleting the wording in section 1.1.10 of Schedule
A in its entirety and replacing it as follows:
10.
Short-Term Rental
In any zone in which a Short-Term Rental is permitted, the following conditions
shall be satisfied:
a.
Compliance with the licencing requirements of the Business Licence Bylaw

No. 3328, 2016.
b.
Compliance with the parking requirements of the Off-Street Parking and

Landscape Bylaw No. 3274.
d.
The principal use of the property containing or comprising the Short Term
Rental shall remain a residential use. The operators of the Short Term Rental
must be the permanent residents of the property and shall alone be engaged
in the management of the Short-Term Rental, notwithstanding that:
i.
The operator may hire one employee to work on the premises; and
ii.
A person authorised to offer Short-Term Rental exclusively between May

1st and August 31st shall be exempt from section 1.1.10(d) of this bylaw
upon the approval of the Manager of Development Services.
e.
The total display area of any outdoor advertising sign shall not exceed 0.14
sq. m. in area on the premises.
f.
Not more than two (2) adult guests shall be accommodated per Guest Room,
not more than four (4) adult guests shall be accommodated per Guest Suite,
and not more than six (6) adult guests shall be accommodated per Guest
Home.
g.
In the case of Guest Rooms for rent, not more than 2 guest rooms in the
licensed Dwelling Unit shall be used for guest accommodation, except as
provided for in the R6, Guest Room and Suite Zone.
h.
Only one annual Short Term Rental is permitted per lot, notwithstanding that
a second Short Term Rental is permitted provided that it is for a period of less
than six (6) months.
Page 2
5. That the said Bylaw be amended by replacing the Zone Name in Table 3.1 of Section 3.1
of Schedule A from R6, Bed and Breakfast Zone to R6, Guest Room and Suite
Zone.
6. That the said Bylaw be amended by renaming Section 4.7 of Schedule A from R6,
BED AND BREAKFAST ZONE to R6, GUEST ROOM AND SUITE ZONE.
7. That the said Bylaw be amended by deleting the wording in Section 4.7.1 of Schedule A
in its entirety and replacing it as follows:
1.
Purpose
The purpose is to provide a zone to accommodate Short-Term Rentals with up
to six guest rooms.
8. That the said Bylaw be amended by removing the Permitted Use of

Bed and Breakfast (subject to section 1.1.10 of Schedule A)
from the following Zones:
R1, Low Density Residential Zone
R3, Downtown Residential Zone
R6, Guest Room and Suite Zone
CD 6
Schedule A, section 4, subsection 4.1, item 2

9. That the said Bylaw be amended by adding the Permitted Use of

Short-Term Rental (subject to section 1.1.10 of Schedule A and section 1 of Schedule
C)
to the following Zones:
R1, Low Density Residential
R2, Medium Density Residential
R3, Downtown Residential
R4, High Density Residential
R6, Guest Room and Suite
MU2, Waterfront Mixed-Use
MU3, Railtown Mixed-Use
MU4, Waterfront Mixed-Use
CD1
CD6 zones

Page 3
10. This Bylaw may be cited as "Zoning Amendment (Short Term Rental) Bylaw No. 3344
2016."
day of
day of
, 2016
, 2016
PUBLIC HEARING held this
day of
, 2016

day of
, 2016
day of
, 2016.
_______________________
Mayor
_______________________
Corporate Officer
Page 4

REQUEST FOR COUNCIL DECISION
DATE:
July 18, 2016 Special
TOPIC:
Short-Term Rentals
PROPOSAL:
To provide direction on desirability of specific policies
PROPOSED BY: Staff
______________________________________________________________________
ANALYSIS SUMMARY:
The purpose of this report is to hold a discussion between Council and Staff on regulation
of the short-term rental (STR) market in order to provide Staff with clear direction on how
to proceed. The presented recommendations (see Background and Appendix) are based
on the premise that STR is not, as-of-right, a residential use, the precedence of municipal
regulation and enforcement of land use and business licencing, and the Citys statutory
obligation to enforce safe short-term accommodations.
BACKGROUND:
Since May, Development Services has employed a dedicated researcher for short-term
rentals (STR) in order to redress the gap between the Citys policies and the actual STR
market. The vast majority of Nelsons estimated 120 STR listings are considered illegal
by virtue of a lack of business licence (most private room rentals would be eligible for a
Bed & Breakfast licence) or non-compliance with zoning (entire dwelling unit rentals,
which constitute the majority of STRs). However, only a handful of voices have
demanded that STRs (continue to) be banned. STR bans in other jurisdictions have
proven unenforceable and potentially detrimental to the tourism industry.
Central policy objective have been compliance and enforceability, which are intimately
connected with general community support of relevant regulations. The more voluntary
compliance achieved the less of a demand on Bylaw Enforcement. Experience
elsewhere reveals the relative complexity of STR enforcement. The majority of the 50
STR operators surveyed, out of an estimated 100 to 110 individual operators in the city,
were supportive of some form of regulation. A number of them have expressed general
agreement with the recommendations brought forth by Staff (see Appendix).
Data collected on Nelsons STRs indicate that this industry has unique nuances. Most
STRs are listed as available for rent for less than 70% of the time; many are much more
occasional. Out of 87 Airbnb listings reviewed in May, 14 had no reviews, indicating that
they possibly have not yet been rented. Most only accept multi-night bookings. 77% are
entire dwelling units. A number are listed on multiple online platforms. The average
nightly rate for an Airbnb in Nelson is $107, well below the average rate in Tofino,
Kimberley, and Sechelt and half of that of Revelstoke and Fernie. Self-reported safety
data illustrate that fire safety is not a given. Out of 87 listings, 53 self-reported having a
fire extinguisher and 69 a smoke detector.
Key ideas
The vast majority of the city would be eligible for STR under these propositions, but only
roughly 3.3% of dwelling units could ever be used simultaneously as an STR. They
propose that residential areas be preserved primarily for residential usedefined as
occupied for over 30 days by the same householdwith allowance for home-sharing
with paying guests, which, admittedly, constitutes a commercial use and has proven to
pose some nuisances, and sometimes benefits, for neighbours.
STRs would be allowed almost everywhere, however City-wide caps and a density
cap are proposed in residential areas, in light of general support for this through public
consultation
o
This is intended to maintain the integrity of residential neighbourhoods. Any
property owner is free to apply to rezone to commercial, if that is their intention
for the property.
o
A density cap would help ease on-street parking competition without requiring
new off-street parking to be built at great cost to resident-operators and
Nelsons natural capital.
Distinguish between rooms for rent (such as a conventional B&B) and entire dwelling
units.
A new business licence category of up to $800 for a year-round, entire-dwelling unit
rental.
The availability of monthly and summer-only licences to facilitate occasional homesharing and to enable landlords of student housing to create needed summer tourist
accommodation supply.
Year-round licence-holders to contribute to funding tourism marketing.
Fire safety inspections and a one-time proof-of-insurance requirement.
Allow for the short-term rental of multifamily building units for the first time, provided
that the property owner/manager or strata council has no objection.
A principal residency requirement, supported by public consultations; applicants must
demonstrate that the property is their principal residence
o
A new zone is proposed to allow for the possibility of a non-resident property
owner to rezone a secondary residence for STR purposes. Nelson already
requires potential B&Bs outside of commercial areas to rezone if they wish to
have more than two guest rooms.
Initial priority to existing STRs and B&Bs, but licencing requirements will still be
obligatory.
A process to revoke a licence in the case of a problematic STR.
An online, publicly-accessible directory of all licenced short-term rentals and their 24/7
contact
BENEFITS OR DISADVANTAGES AND NEGATIVE IMPACTS:

Benefits of regulating STRs include ensuring a fair, level playing field and retaining the
ability to protect the integrity of residential neighbourhoods by imposing certain
restrictions. Another is higher-quality accommodations. One local host claims that
operators who pay for a business licence will be more serious about hosting than those
who casually give it a try. Staff believes that Nelson is in a position to achieve a superior
compliance rate than other cities have achieved by introducing dynamic regulations and a
realistic enforcement strategy.
The status quo carries the disadvantage of a lack of clarity. Currently, the public is not
clear on what is and is not permitted. Enforcement has been complaint-based and
property owners have been unhindered in illegally transforming residential properties into
STRs and subsequently requesting that the City legitimize and regulate their activity. This
encourages a precedence of 'buy property first, push the land use parameters later'.
Actively prohibiting STRs has not been advocated for by the community or tourism
industry. Enforced prohibition would be resource-intensive with limited revenue generated
through licencing. Other cities have not succeeded. A negative impact on tourism,
particularly in the summer, would be a possible consequence. Anecdotal evidence from
STR operators and visitors suggests that the local STR market is composed primarily of
visitors of friends or family in residential areas who thus do not wish to be downtown.
The benefits and disadvantages of the specific policy options (see Appendix) will be
discussed in this workshop.
The Zoning Bylaw and Business Licence Bylaw do not recognize or permit the short-term
rental of Guest Homes. Guest Suites are only permitted in R6, which covers two
properties in the City of Nelson.
The Official Community Plan does not provide for the possibility of permitting the majority
of the currently illegal short-term rental stock, which mostly consists of entire dwelling
rentals. It states: Residential neighbourhoods will accommodate bed and breakfast type
accommodations, and all other tourist accommodation types will be located in the
Downtown and Waterfront neighbourhoods.
Municipalities carry a statutory obligation to ensure the fire safety of hotels, lodging
houses, and any other building, except a private dwelling, where lodging is provided by
means of regular inspection (Fire Services Act, s. 26).
A legal paper on short-term rentals issued by Young Anderson Barristers & Solicitors
indicates that the Hotel Keepers Act strengthens the commercial expectation that a hotel
is expected to have management on site at all times to ensure that guest behaviour does
not disturb neighbouring guests and property owners. This strengthens the argument for
on-site owner-operators of STRs.
The British Columbia Court of Appeal has confirmed the authority of Council to revoke a
business licence in response to poor management of a motel (377050 BC Ltd. Dba the
Inter-City Motel v. Burnaby (City of), 2007). A process to revoke the licence of a
problematic STR is widely considered an essential best practice.
Short-term rental business licencing will generate new revenue that can be used to
increase general Bylaw Enforcement capacity. A significant number of short-term rental
operators have indicated their desire to be regulated and licenced.
The proposed $100 triannual inspection matches the Building Inspectors current costrecovery charge for ad hoc building inspections.
The public hearing process invoked by amendments to the Zoning Bylaw and the Official
Community Plan would require Administration and Development Services staffing.
Development Services staff time would also be required for preparing informational
material for the public and enforcement strategies for Bylaw Enforcement.
The processing and inspection of short-term rental business licence applications would
add to the workload of front counter staff, Development Services, and the Building
Inspector. Two hours of staff time are anticipated per application. Staff estimates that
there are 120 short-term rentals in the City of Nelson, although many are seasonal or
occasional and it is anticipated that some may cease operation if a licencing regime is
implemented.
COMMUNICATION:
Extensive consultation has taken place so far, both within the city and beyond. Further
public communication will be hosted on the str.nelson.ca website.
1. That Council direct staff to prepare recommendations for bylaw amendments based
on the direction provided by Council and return with a report in August 2016.
2. That Council receive staffs report and will provide further direction to staff at a
future date.
3. That Council direct staff not to proceed further with work on short-term regulation at
this time.
ATTACHMENTS:
Memo of policy options for discussion
Licencing and enforcement costing
Summary of correspondence and public input
Letter from the Nelson Short-Term Rental Owners Association
Correspondence from an informal group of Short-Term Rental Operators
Letter from the Town Manager of Fincastle, Virginia
RECOMMENDATION:
That Council passes the following resolution:
THAT Council directs staff to prepare recommendations for bylaw amendments based on
the direction provided by Council and provide a report at the August 8th Regular Council
meeting.
AUTHOR:
REVIEWED BY:
____________________________
STUDENT RESEARCHER DEVELOPMENT SERVICES
____________________________
CITY MANAGER
____________________________
MANAGER OF DEVELOPMENT
SERVICES
City of Nelson Short-Term Rental Project July 2016
Possible Business Licence Types

Nelsons business licence fees have not increased for a number of years. Considerations
include:
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
2 rooms and under
Year-round
$350
$110
3 rooms and over
Summer
only (May August)
Year-round
$450
$700
Year-round
$800
$1,050
Summer
only (May August)
One month
(one per
year)
$400
$500
$150
$250
Guest House or
Suite
Building
Tourism
Total
Inspection* Membership Cost*
($100)
($150)
X
X
$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.
1
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
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 100-word 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
2
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
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 Insurers 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/strata
3
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
Stalls required*
Apartment/multifamily suite (residence)

Secondary suite or detached dwelling
unit
1 stall as per bylaw
Entire house (primary residence)
Guest room(s) in primary residence
2 stalls as per bylaw (except in R3 zoning: 1 stall)

1-2 stalls as per bylaw (rounded to the nearest number: if 1.52,
rounded up to 2)
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.
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
Ideas
Grace period
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.
4
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
a violation
of 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
awareness and
at any one time as well as indicating where they are and providing each
transparency
licences 24/7 contact information. Anyone may sign up to receive email
notification of any new permit application and/or approval within the City.
Inspections in
Allow the City to inspect an STR, upon giving at least 24 hours written notice to
case of
the owner.
complaint
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
Any listing of the property on a booking website omits the maximum
revoke a permit,
number of off-street parking spaces or the maximum guest-occupancy as
if:
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.
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.
-
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 cofund 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
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.
Short-Term Rentals New Licencing Revenue

Source of new
revenue
Number of
licences
Cost
Guest Rooms
12 new
year-round
12 new
summer
9 existing
B&B
licences
30 new
year-round
30 new
summer
20 new
monthly
$350- N/A
$450
$110 N/A
Guest
House/Suite
Increased
licence fees
other
accommodators
All other licence
fees (except
buskers,
performers)
Increase
(each)
New
licence
revenue
$4,200
New inspection
fee revenue
(tri-annually)
$1,200
$1,320
$1,200
$350- $270$450 $290
$2,430
$900
$800
N/A
$24,000
$3,000
$400
N/A
$12,000
$3,000
$150
N/A
$3,000
$2,000
10
SUBTOTAL $46,950
$150*
$1,500
1298
$25*
New funding for

Nelson Kootenay
Lake Tourism
$1,800
$4,500
$11,300
$6,300
$11,300
$6,300
$32,450
SUBTOTAL $33,950
TOTAL
$80,900
These are considered to be conservative estimates.
* These numbers were chosen to simply calculations. The current recommendation is to potentially
increase hotel/motel/hostel licences by $100 to $200 and other licence types by $10 to $30.
Short-Term Rentals Enforcement Costing

Increased Bylaw Enforcement
Host Compliance annual service fee*
Extend the contract of the current 6-month Bylaw

Officer to 12 months
Hire a new year-round, part-time Bylaw Officer
Hire a new year-round, full-time Bylaw Officer
* There is a six-month satisfaction guarantee.

^ Approximate cost based on the current CUPE contract.
$41,000^
$41,000^
$82,000^
$12,000
Summary of Input on Short-Term Rentals

Accommodators have consistently been asking for a level playing field. Some have indicated that STRs
are increasing the proportion of one-night bookings that they receive. There is a huge benefit to
accommodators of having stay-over guests as it reduces both housekeeping and front-desk (checkin/out) costs. We suspect, without any empirical evidence, that longer-stay guests are more attracted to
STRs, which often have minimum multi-night stay requirements.
Out of the 297 responses to the public survey:
84.7% agreed that Residents should be free to rent part of their homes on a regular basis or
their entire home on an occasional basis (e.g. when the family goes on vacation) in order to help
pay the rent or mortgage.
60.9% agreed that It is a problem when someone has multiple Airbnb/STR listings and acts as a
professional Airbnb/STR landlord.
70.3% agreed that Building and fire safety are serious concerns with Airbnb/STR properties.
The City must inspect them as it does hotels and bed and breakfasts.
73.4% agreed that Airbnb/STR hosts must be held to the same off-street parking requirements
as bed and breakfasts: one parking spot for each room for rent.
70.8% agreed that Airbnb/STR guests on-street parking must be regulated and controlled.
Only 29.9% did not want to see a primary residence requirement for STRs.
Only 21.7% believed that there should be no regulation of STRs because it is a homeowners right.
Under 12% asked that the City prohibit STRs.
The most frequent response to the question on being personally affected by STR in Nelson was that it is
hard to find a rental home. The other most common types of answers, in order, were that no, it has not
affected me, that it benefits tourism, that it benefits locals (by providing a source of revenue),
complaints about noise and other neighbourhood impacts, and finally that it is unfair for other
accommodators.
Complete survey responses are available for your review:
http://str.nelson.ca/wp-content/uploads/2016/05/Public-survey-report-web.pdf
One page of highlights: How have you personally been affected or impacted?
http://str.nelson.ca/wp-content/uploads/2016/05/Highlights.pdf
Of the 50 responses to the survey for STR hosts:
Only 25.5% say that they rarely or never live on-site during guest stays
76.6% only have one listing
Five are themselves renters
74.% claim they have sufficient off-street parking
56.3% say that all of their neighbours are aware of their STR; 31.3% say some are
Most say that their listings are active about half of the year. Many of them are previous landlords refuse
to have to deal with the residential tenancy board. Most say either that they would rather leave their
properties empty than rent to long-term tenants or that their STR is not suited to long-term rental
because of its design or because the family uses it frequently for other purposes. Answering why they do
STR, the most frequent response was the extra income, followed by bad experiences with tenants, fun,
and flexibility.
Key quotes from hosts:

[I do it] to help be able to afford my home
To share a place I love without the hassle of opening a BnB which I wouldnt be able to work.
I see that there are concerns regarding safety and health in STRs. And it makes sense, but Airbnb for
example has the review way of evaluating the quality of accommodation (and travelers are demanding)
and it is very effective to make owners offer excellent conditions.
I think the city is lagging behind on how it develops and implements its city bylaws. [] the relaxed
enforcement of the rules has allowed many people to take liberties, I guess in part, myself included.
It is CLEARLY filling a massive market demand, and there is a huge benefit to the region in doing it:
thousands of tourists, spending here, that otherwise wouldnt come, and making housing affordable for
current residents. The City should ABSOLUTELY NOT get into the idea of limiting the number of licenses.
The market will determine the right size
This is to me a very intrusive and authoritarian type of attitude on the citys behalf, creating a witch
hunt of ordinary people trying to up their income a bit.
Complete survey responses are available for your review:

http://str.nelson.ca/wp-content/uploads/2016/05/STR-host-web.pdf
Sample of Correspondence on Short-Term Rentals

Email to Alex Thumm and Pam Mierau on June 27 t h , 2016:
Not yet having a family of my own, I am the organizer of our group of friends to get to new places to
spend a long weekend together. Its usually a group of at least 6 people for several days, and renting a
whole house is the only thing that works. Well do group skiing or hiking trips, on a rainy day we might
stay in and play games, and we love to cook together. The only choice for us is a vacation rental. If we
had to do it in hotels, we just wouldnt do it at all. Meaning lost tourism dollars for your community.
Email to Alex Thumm on June 26 t h , 2016:
Hi Alex
I attended the STR forum last week and had a few thoughts following the meeting. I am an owner of an
Airbnb as well as a long term 4-plex rental, in which I have great tenants and an appreciation for how
difficult the rental market has become in Nelson.
Like others, I invested a significant amount of money in the creation of the Airbnb suite in my basement,
roughly $70,000, all locally hired labour as I have no skills in that department. Its unlikely I would
recover the costs of that apartment as a long term rental (its a small space) especially factoring in the
increase in city taxes and water/sewer for a legal suit, let alone realize an income- which after all is the
goal of a rental unit. That income is an integral part of our household income, and one of the ways living
in Nelson was made possible following our move here 3 years ago.
So the point made by Mayor Kozak that developers have found construction costs prohibitive to the
building of apartment buildings, also holds true for many homeowners whove invested in suites in their
homes. For that reason, I feel that the problem of long term rentals in Nelson should not be placed
solely on home owners to solve.
I am in agreement that regulations and fees are necessary, and in many cases welcome as a way to
legitimize our businesses.
You were seeking input into the various proposals other cities have enacted. I didnt get a chance to
absorb them all, but one stuck out for me. The idea of limiting the number of days a vacation rental can
be available for rental presents bigger problems for a small unit like mine which is at the lower end of
the price range. A bigger unit is able to earn much more income in a short period of time since they are
able to charge more for more occupants. I make my income through a year round rental.
Airbnb owners are quintessential Nelsonites- small business owners cobbling together several sources of
incomes in a limited job market. They are part of the vibrant, eclectic offerings that is such a important
part of this wonderful city. Im glad the city is open to how best to solve the problem and hope this
process results in a fair outcome for everyone.
Many thanks for the opportunity for feedback,
Email to Alex Thumm on June 22 n d , 2016:
For me personally I can't accept the idea that someone who's currently deeply invested in airbnb would
be unable to obtain a permit because of something impossible to fix that isn't really causing a real life
problem right now. (Their zoning, lack of living nearby, or inability to make new land for a parking
space.) I really hope the city will use discretion and compassion to enable these current hosts to
continue rather than shut them out. This would show the city genuinely cares about each individual
person and this is a small enough town that it would be possible to do.
Email to Alex Thumm and Pam Mierau on June 20 t h , 2016:
Hello;
I am writing on the matter of vacation rentals, as I understand this a topic your local government is
currently discussing within the community.
Over the past seven of years, I have used a vacation rental in Nelson on three separate occasions and I
have stayed in hotel for twice. For reference, I live in Victoria. When traveling on my own for work, I will
use a hotel in town. However, when we travel as a family, its me, my wife, and our two children. Our
dog usually comes too. And has been the case in the last few visits, we have had some family friends join
along as well. Were we not to have access to a vacation rental in Nelson that would mean at least few
hotel rooms, plus meals out three times per day. For us, its a matter of cost and also experience. Its
simply not feasible for us to spend $600/night on hotels plus meals. And without a vacation rental, we
wouldn't have the same experience as family and friends were we not able to reside in the same
accommodation. Without a vacation rental for our group, its probably not a trip we would make to be
honest.
I look forward to continued visits to Nelson. As you consider the various viewpoints on this matter, I
hope you also consider those of the visitors to your beautiful community.
Much appreciated Email to Alex Thumm and Pam Mierau on June 18 t h , 2016:
I have recently become aware of the issue surrounding short term rentals (STR) in Nelson. As someone
who regularly travels to Nelson to visit family, this issue is near and dear to me. Because of my
circumstances, staying in a B&B or hotel accommodation is not an option for me. I travel with either a
special needs child, or with a multi-generational family group. In both situations open living spaces,
home like accommodation and amenities, kitchens, and more than one bedroom are required,
something a B&B or hotel rooms cannot provide.
If there was a ban on STR in Nelson, or they were taxed exorbitantly, we would be deeply disappointed
and would be forced to look for accommodations in surrounding areas such as Kaslo or Christina
Lake. The nature of travel has changed significantly, STR allow people, like my family and I, the ability to
travel to Nelson, contribute to the local economy, and advocate positively for tourism in the Nelson
area.
It is my hope that will not change in the future.
Sincerely,
Email to Alex Thumm on June 6 t h , 2016:
First, I am a HUGE fan of this model, have used it successfully in many cities.
I am, however, very concerned about the impact of these on Nelsons vacancy rate and availability of
housing. I have heard that there are a huge number of listing in this small city. And I know from
personal experience that all rental housing - not just at the affordable end, is in demand.
Word on the street is that people are converting their spaces to Air B & B rather than putting them into
the rental market.
Thanks for this work. A valuable contribution.
NSTROA
nelson short-term rental owners association
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819 Houston Street, Nelson BC V1L 5J3

T 778.350.5800 E nstroa@gmail.com
Alex Thumm, B.Soc.Sci. (Hon.), M.Urb. (Candidate)

Student Researcher, Development Services | City of Nelson
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July 7, 2016
Dear Alex:
Thanks for the opportunity to respond to your stakeholder policy review document. Here are the comments
from our association:
General:
The general consensus from the Town Hall meeting from both STR owner/operators and others (Hoteliers,
NKLTB, etc), was that vacation rentals form an important part of the accommodation service in Nelson, but
that operators should pay their fare share. We couldnt agree more. There currently isnt a mechanism for
us to pay our share; if there were, we would be paying it.
City Council has a discretionary budget of perhaps $60,000 per year for any and all items not in the annual
budget. Why not use this new type of business called STR as a means to increase that discretionary
budget? Collect appropriate license fees, but dont pre-commit those same dollars to an expensive
enforcement regime that consumes all of the monies collected.
Start from the assumption that Nelson is different from downtown Vancouver. Were not a city of 1,000-unit
high-rises with hundreds of STRs operating as an off-the-books hotel room. Were a tourist town that is now
attracting a new type of tourist that is a net increase to the total tourist population. We are accommodating
families with multiple small children along with an ageing grandparent; were accommodating family reunions
for kids who grew up in Nelson but moved away and are now coming home to visit parents and
grandparents and who need a larger space. The typical guest profile of a STR is someone for whom
traditional hotels or B&Bs dont work. If it werent for our STRs, these tourists simply wouldnt come.
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Lets work on supporting and building on this economic driver for the City of Nelson.
Business Licencing fee amendments: (pages 1-2)
- Rather than take a punitive, presumption-of-guilt approach to business licence enforcement, (and incurring
huge expenses in human resources, negating any net benefit from the revenue collected from those
licenses), begin with a voluntary approach to assess how many STR will naturally comply. This can be
reviewed after a year to determine whether or not an expenditure for additional by-law enforcement is
required. I believe that through our Association, we can compel almost all STR operators to purchase the
appropriate licence.
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- proposed new types of licenses and rates look fine.

- I would be cautious around inspections and what that means. If the goal is to bring people above-ground
in this business, we should make it as easy as possible. I dont know of very many homeowners who would
want an inspection to take place in their homes; the fear is that the inspector might write-up a list of tens of
thousands of dollars worth of requirements. What specifically would be inspected? Since these are also
family homes, and not a purpose-built commercial enterprise, applying commercial inspections seems
heavy-handed and unnecessary. Clarification on inspections would be helpful. A fire/safety inspection is fine.
A building inspection seems a bit much since all homes would have already been granted an occupancy
permit upon construction completion. This may also be redundant since home insurance requires fire/safety
issues to be addressed.
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- Tourism membership is fine.
Short Term Rental Licencing Bylaw - New (pages 2-4)

- The $1,000 deposit may be onerous and excessive for the shared room STR. There were two young
women at the Town Hall who occupied a 3-bedroom home, and rent their spare room on Airbnb to
occasional guests to help with costs. If they were told they had to pay a $1,000 fee, they may instead
choose to just stay underground and not participate in the process. Like the licensing fee schedule above,
being reflective and adaptive to the different types of accommodation makes sense, particularly for the first
year while we all gain an understanding of the market, the business, the costs and benefits and drawbacks.

Application requirements: (page 3-4)

A. Building safety inspection (see above)

B. proof of ownership - this is fine

C. proof of residence - this is fine

D. 24/7 contact - we all do this anyway, but its probably moot with (c) above.

E. Tourism membership - fine

F. Insurance - fine, however this seems to be outside the scope of the Citys responsibility.

G. R2 R4 zones - fine

Conditions that applicant must agree to (pg. 4)

a. Number of guests: This should be revised to reflect Adult guests. For example, were currently
hosting a family of Mom, Dad, Grandma, and 4 children under the age of 12. I dont think the intention of this
item is to restrict these people; youre probably trying to prevent renting a house to 15 adults. Fair enough,
but lets describe the actual guests accurately.

b. Advertising = offering: fine

c. License number - fine

d. parking - fine

e. transferability - fine

f. address transferability - fine

g. guest registry - fine
Parking (page 5)
- Fine, however it should be noted that outside of the downtown core and a few blocks south, parking
enforcement is practically non-existent. For example, my property has off-street parking for 6+, so we dont
have an issue. But technically, the block is marked as non-parking for much of our adjacent area, but our
neighbours (long-term renters) have multiple vehicles out there all the time, illegally.
Zoning Amendments (pages 5-7)

- No concerns with any of the proposed amendments, other than to suggest that before you lock yourself
into a by-law that caps the number of licenses available, we should consider including language to review
after a year. The current number of STRs is a good place to start, but the right number will be determined
by the market and it would make sense to allow the market time to indicate what that number should be.
Particularly in the case of owner-occupied STR/Guest House, a restriction on rentals seems heavy-handed.
For example: if we currently have a license and our block is now at the maximum of three STRs and a new
owner would like to get into the business, they could potentially lodge unwarranted complaints in an effort to
cause us to lose our license. I dont think the City wants to get into a situation where theyre pitting
neighbour against neighbour. Again, owner-occupied STR could be perhaps exempted from many of the
proposed regulations.
Ocial Community Plan amendments (page 8)

- Fine
Enforcement (page 8-9)

- As stated in the introduction, I would caution against immediately creating a very expensive and
cumbersome enforcement regime before its clear that its warranted. Approach this from a voluntarycompliance model, and adjust as necessary. As you clearly heard at the Town Hall, the operators of STRs in
Nelson are community residents who want to operate legally, contributing their fair share. The very nature of
a hospitality business demands that operators have customer service, respect for neighbors, and all other
issues discussed here, top of mind. Immediately moving to a punitive approach that presumes wrong-doing
feels contrary to the spirit of what STR operators already do. I would suggest that Nelson create its own
recommendations and policies (like youve done here), and not start from a negative place as if we are in
Vancouver, or Berlin, or NYC.
Additional policy considerations and Intergovernmental work (pages 8-9)

- This is a key piece for our association. We agree completely that there needs to be more long-term rental
housing in Nelson. You also heard clearly that none of the STR operators at the Town Hall will go back to
(or into) that business because of the challenges and expenses.
- By using the business license fee as a way to fund additional by-law enforcement before its known
whether or not enforcement is even needed, the City will be giving away tens of thousands of dollars that
could be used to incentivize or support Long Term Rentals.
- For example, the STR License Fees could be directed to a special fund that is held in reserve to assist with
development of long term rental units (i.e. a developer building a rental apartment building could apply to
the fund to waive development cost charges, or water/sewer hook up fees, etc. This would then incentivize
the private sector to invest in rental housing.
- Lobbying the Province to revisit the Residential Tenancy Act to give power back to landlords would also
encourage more long-term rental stock. With the current wording of the Act and the current operation of
the RTO, I simply would not ever risk my mortgage with a long-term tenant. If I knew that I was actually
protected and had the ability to manage my property without undue and unfair dictates from the RTO, I
would likely have a more positive opinion on using my space for long term rental.
- Encouraging BC transit use for tourists staying with licensed accommodators is exactly the type of action
that makes sense along with this policy review. Id wholeheartedly agree with that move, and would be
happy to work with a committee on how it could work.
!
!
Alex, Id happily volunteer my home as a test case or pilot project to go through the proposed steps to see
if this all works in reality as well as on paper. Let me know.
Cheers,
!
!
Stephen Harris
NSTROA
!
!
!
An Airbnb viewpoint
Primary problems as we see it
* Airbnb stealing business from approved accommodations and reducing long term rentals
available
* Existing Airbnb hosts are afraid we will not be able to get licences and will have to shut
down. (We are content paying for business licenses etc.). Weve put incredible effort into our
accommodations and it has become part of our lives.
Side issues - largely speculative and technical issues that aren't actually causing many real life
problems right now. We feel these issues are being used to bully us and create restrictions so
we can't compete with hotels and to force us to rent to locals.
Zoning how many real life complaints have been made about an existing Airbnb in wrong
zoning causing problems because its in the wrong zone?
Parking - how many real life complaints are there that Airbnbs are preventing people from
being able to park?
Tax evasion - we can report income on line 104 or use the statement of real estate rentals
just like any regular landlord. We are willing to pay hotel tax if it could be done.
Housing shortage for locals - there will always be hundreds more people who want to live
here than rentals available no matter how many we make available. Converting some Airbnbs
to rentals might alleviate pressure for a few weeks but then the shortage would continue.
Many of us have permanently rejected local renters and will not rent to them again.
Quality control - Airbnb reviews weed out poor quality very effectively.
Insurance solved between homeowner and insurance company.
What wed like to say to Nelson residents:
Tourists WANT Airbnb options! Hotels can't provide the types of accommodation and
experiences people are now looking for. We bring additional tourists to this area who would
not come otherwise. Many people now use only Airbnb when travelling. Although hotels
suffer somewhat, just as many local people and businesses are benefiting. We offer
accommodation diversity, diversity being something our city embraces and is known for, and
feel our impact in the community is a net benefit.
A SOLUTION IDEA
We would be happy to accept all reasonable terms and restrictions the city has for any new
starting Airbnb from this day onward. But wed like to see compassionate discretion used for
those existing Airbnbs that wont be able to meet all criteria. Wed like those STRs to be
grandfathered in and able to get licences so nobody currently hosting is left out. (Some
mandatory safety and insurance requirements would be fine.) In cases where a genuine
complaint is made to the city by a neighbor that has been affected by an Airbnb because it
hasnt met all requirements it would be possible for the city to revoke the license.
RESULT
The city would have control over all new starting Airbnbs and they would need to meet all
criteria. Licences to nonconforming STR's could be revoked if a problem came up.
For this idea to work its important to understand that Airbnb has a fairly high host dropout
rate. Lots of folks try it for a while but its not for them. Over a period of months to a
year+ many existing Airbnbs - who may not have met every requirement - will fizzle out. Once
they leave and let their license lapse they then would have to meet all requirements to renew
in the future. This approach would cause a gradual transition from our current state to one
where the city fully controls STR's, and how many there are, without shutting out anyone
currently involved with sudden changes.
We feel this is a solution that would be reasonable for all parties at the table.
Deborah Nasmyth
Residential Landlord and Airbnb Superhost
Follow-up email from Deborah Nasmyth responding to the stakeholder review:
Hi Alex,
Thanks for sending this its a bit complex to me, particularly zoning, but most of it makes
sense. I super appreciate the grandfathering elements.
My feedback is that $800 plus other costs will be too expensive for many. I know Stephen
proposed up to $1000 on behalf of the NSTROA group but its important to realise (and some
hosts are upset) that he created the group and then presented the groups ideas at Town Hall
prior to inviting anyone to join his group or having any sort of meeting. So the ideas of the
NSTROA group are not really a good refection of Airbnb hosts and I dont think anyone else
supported a $1000 business licence idea. Maybe Stephen can afford it but most hosts operate
on a smaller scale than he does. A business licence fee of a few hundred dollars I think most
people would be ok but I wouldnt go over $500.
Having a licence cost higher than the fine for being caught may motivate people to try and hide
and wait until they get warnings from the by-law officer before they comply or shut down.
If I remember correctly other Nelson businesses get licences for is it $130 or something? And
they may be making tens of thousands of dollars a year. Meanwhile Airbnb hosts will be paying
$800 plus extra costs and, although a few are bragging about exceptional earnings, I think many
are pretty small scale and likely only make a few thousand a year. It would be nice if the cost of
business licences in Nelson was related to the scale/earnings of the operation rather than the
type of industry.
Thanks for your work on thislooking forward to seeing the final product.
Letter in support of this proposal from June 22 n d , 2016:
Hello Alex;
I just wanted to take a minute to write and express say that the consensus amongst people
operating STR's seems to be that your work in this regard seems organized, respectful and openminded.
The last week there has been a flurry of emails as the informal group we started tried to develop
ideas or proposals. I am encouraged to learn from Debra that some of these may be given
consideration and that the tone of your meeting was not the strident anti-Airbnb one I have heard
of late in the media and in town. She and I discussed at length the idea of grandfathering or
other flexible means of bringing people into conformity so that the impact is less drastic.
Obviously any of these future rules are going to exclude a few, many or all of the people doing
this type of rental, and I recognize I may be one of them.
In that regard, as you probably already know, I don't live in BC, although it is my plan to move
back there in retirement. I recognize that this is self-promotion, but if you would permit me to
speak to the idea of absentee landlording, I'll say the following: it is a source of stress and I don't
like doing things this way, but I'm stuck with it. For 15 years I was an absentee landlord for full
time tenants and even with great ones it was not easy. With some of the negligent ones it was
terrible. Even if I am barred from STR'S I will not go back to full time renting in that space,
since I will never be able to stay in my own house and after a major restoration I don't want it to
get run down again. Problems with renters were the biggest reason I hired a caretaker and
became a member of Airbnb - managing the property is now to a much higher standard because
my agent is inside the unit on a regular basis, something that was impossible with full time
renters. Almost everyone who runs a STR has said it: this type of guest is generally more
respectful and appreciative of their stay and the property.
As far as not contributing to the community, I suppose I take issue with that since I my house has
been made available to the community for 25 years, including the many family and friends of
locals that I rent it to on Airbnb. In the Kootenays like everywhere else in BC (i.e. lower
mainland anyone?) there are "outsiders" and many foreigners who buy properties to sit on the
them for investment or to holiday for two weeks a year, leaving them unoccupied for the rest.
That, in my opinion, is the definition of not giving back to the community. I have long term
friends and contacts in Nelson and feel a sense of belonging there in a way that makes me not
want to sell the house for any price.
Thanks for your consideration of my comments. Best regards in your deliberations and my
hopes that Debra's proposal of designing a gradual application of rules that takes into
consideration current operators vs any future ones will meet your approval
Sincerely,

REQUEST FOR DECISON
DATE:
TOPIC:
PROPOSAL:
PROPOSED BY:
August 8, 2016 Regular

Short-Term Rentals: Bylaw Amendments and Policy
To amend regulations to regulate short-term rentals
Staff
_________________________________________________________________________
ANALYSIS SUMMARY:
The current bylaws do not allow for short-term rentals (STRs) in residential areas other than
Bed & Breakfasts, yet there has been a proliferation of STRs in Nelson. Following the direction
provided to staff at the Special Council meeting on July 18, 2016, the proposed amendments
establish a regulatory and licencing framework for the purpose of regulatory fairness and the
mitigation of potential negative outcomes for neighbours and the city. They help to achieve
Councils directions on preserving long-term rentals and restricting residential commercial use to
principal residents, which is currently the case for Home Occupations and Bed & Breakfasts. An
additional set of recommendations, including the recommendation to adopt a policy on STR
enforcement, are proposed to round off issues around preserving long-term rental housing and
achieving compliance.
If adopted, these changes will result in the following:
1. Legalisation of entire-home STRs under flexible, yet enforceable regulations;
2. Limitations and caps on STR;
3. Consolidation of STR and Bed & Breakfast regulations by bringing both under the
umbrella of short-term rentals;
4. A balance between residential neighbourhood integrity and resident-operated
commercial in light of the currently illegal STR operations in Nelsons neighbourhoods;
5. A business licence fee structure that reflects the multiplicity of STR uses;
6. Clear expectations and commitments from STR operators to neighbourhood integrity;
7. Reduced parking requirements for residential tourist accommodations and increased
flexibility in providing parking.
The proposed changes balance clarity and fairness with reducing the administrative burden on
staff as well as providing the ability to apply discretion in cases where neighbourhood impact is
uncertain. The complex nature and variety of STR operations creates a unique challenge for
policy-makers.
Draft Official Community Plan, Zoning and Off-Street Parking and Landscape Amendment
bylaws and recommendations for amendments to the Business Licence are presented for
Councils review. With Councils approval, the draft bylaws will be forwarded to legal counsel for
final review before the bylaws are presented to Council for first readings.
BACKGROUND:
The attached bylaw amendments follow up on Councils direction from the July 18, 2016 Special
Meeting to draft STR regulations based on the directions Council provided. Staffs
recommendations were based on two-and-a-half months of policy research and consultation,
the results of which were submitted to Council and are available at str.nelson.ca.
A number of changes to recommendation have been made since staff last reported to Council,
including:
Collecting the contribution to tourism marketing directly as a Tourism Fee;
Spreading the cost of triannual building inspections over each year instead of charging a
fee once every three years;
Allowing the Licence Inspector to grant conditional approval to an STR prior to
inspection, which will let complying STRs begin operating legally sooner and spread out
the workload of the Inspector;
The proof of insurance requirement has been removed as a licence requirement based
on legal advice that the City does not face a liability risk, however the City will
recommend that STR applicants obtain the appropriate insurance and the City will work
with insurance brokers to ensure that insurance information is readily available;
Reduced STR parking requirements; and
Allowing those who held a Bed and Breakfast business licence in 2016 to continue to
pay the same licence fee, with an additional $30 fee for the new requirement for
triannual inspections.
If adopted, the new regulations will allow for the issuance of STR licences beginning in 2017.
A number of additional actions are proposed to holistically address concerns around the longterm housing market as well as to assist in improving voluntary compliance with STR
regulations; see Staff Recommendations No. 3 through 7.
Recommendation No. 3 proposes a transit strategy, borrowed from Konstanz, Germany,

to simultaneously create an incentive for compliance, make compliant accommodators
more attractive to guests, promote transit use, and take pressure off of downtown
parking demand. The Official Community Plan seeks to encourage increased transit use.
Recommendations No.4 and 7 aim to incentivize the creation of long-term rental

housing, particularly infill. Other cities have been waiving development fees, for
example, in order to make it easier to build purpose-built rental, often with a covenant in
ensure that the new unit remains a long-term rental. The relevancy to STR is to balance
out the attractiveness of STR with the communitys need and the OCPs direction for
rental housing. Recommendation No. 7 will also assist illegal suites to achieve legal
secondary suite status, which will bring clarity to matters of STR licencing and
inspection.
Recommendations No. 5 and 6 are steps in ensuring that the City has the resources to
maintain compliance and satisfactorily follow up on Bylaw complaints, whether they stem
from STRs or not. The Citys business licence fees have not been increased since 2005.
The Bank of Canada reports that inflation over the past 11 years is 20.77%.
Recommendation No. 5 envisions a streamlining of staff duties by creating a dual-role

position of both Bylaw Enforcement Officer and Business Licence Officer (Development
Services) to act as a single point-of contact for all business licence matters in addition to
adding Bylaw Enforcement capacity.
BENEFITS, DISADVANTAGES AND NEGATIVE IMPACTS:

Benefits of regulating STRs include ensuring a fair, level playing field and retaining the ability to
protect the integrity of residential neighbourhoods by imposing certain restrictions. One local
host claims that operators who pay for a business licence will be more serious about hosting
than those who casually give it a try. Staff believe that Nelson is in a position to achieve a higher
compliance rate than other cities have achieved by introducing dynamic regulations and a
realistic enforcement strategy. The proposed regulations establish a robust and transparent
licencing mechanism to all residential areas, while still retaining discretion for exceptional
circumstances.
A restructuring of staff work on business licencing will greatly increase processing efficiency.
This will also improve efficiency of Development Services staff on matters of development.
Actively prohibiting STRs has not been advocated for by the community or tourism industry.
Enforced prohibition would be resource-intensive with limited revenue generated through
licencing. Other cities have not succeeded. A negative impact on tourism, particularly in the
summer, would be a possible consequence. Anecdotal evidence from STR operators and
visitors suggests that the local STR market is composed primarily of visitors of friends or family
in residential areas who thus do not wish to be downtown.
Because the current Official Community Plan explicitly denies the provision of short-term
accommodations in residential areas except for Bed & Breakfasts, an amendment of the Official
Community Plan is necessary to eliminate policy contradictions.
With regards to Staff Recommendations No. 4 and 7 on infill housing and secondary suite
parking requirements; section 4.3 of the Official Community Plan, policy 6 states: The City will
consider measures to support development of purpose-built rental housing. These measures
can include consideration of variances to reduce the off-street parking requirements, and fee
and/or tax reductions.
Municipalities carry a statutory obligation to ensure the fire safety of hotels, lodging houses,
and any other building, except a private dwelling, where lodging is provided by means of
regular inspection (Fire Services Act, s. 26).
A legal paper on short-term rentals issued by Young Anderson Barristers & Solicitors indicates
that the Hotel Keepers Act strengthens the commercial expectation that a hotel is expected to
have management on site at all times to ensure that guest behaviour does not disturb
neighbouring guests and property owners. This strengthens the argument for on-site owneroperators of STRs.
The British Columbia Court of Appeal has confirmed the authority of Council to revoke a
business licence in response to poor management of a motel (377050 BC Ltd. Dba the InterCity Motel v. Burnaby (City of), 2007). A process to revoke the licence of a problematic STR is
widely considered an essential best practice.
The City receives revenue through Business Licences and building inspections and the
proposed amendments are expected to enable a significant number of currently illegal
operations to apply for a Licence. A significant number of short-term rental operators have
indicated their desire to be regulated and licenced. Licence fees are collected on a costrecovery basis and will be required to sufficiently fund enforcement.
The processing and inspection of short-term rental business licence applications will add to the
workload of counter staff, Development Services, and the Building Inspector. Two hours of staff
time are anticipated per application. To spread out the inspection workload, staff recommend
that the City follow Pentictons practice of offering applicants conditional approval to let them
begin operating right away with the agreement that an inspection will take place within the
following weeks. It is estimated that there are 120 short-term rentals in the City of Nelson,
although many are seasonal or occasional.
COMMUNICATION:
Extensive consultation has taken place so far, both within the city and beyond.

1. Approve the presented recommendations and forward the bylaws for legal review.
2. Amend some of the recommendations and then forward the bylaws for legal review.
3. Refer to staff for further review.
ATTACHMENTS:
1. Draft Zoning Amendment Bylaw
2. Draft Off-Street Parking and Landscaping Amendment Bylaw
3. Draft Official Community Plan Amendment Bylaw
4. Business Licence Bylaw amendment recommendations
5. Proposed Licence Fee Calculation
6. Bylaw Enforcement Guiding Policy (draft)
STAFF RECOMMENDATION:
That Council passes the following resolutions:
1. THAT Council approves the recommended amendments to the Business Licence Bylaw
AND FURTHER
THAT Council approves the draft Official Community Plan, Zoning and Off-Street
Parking Landscape bylaws AND FURTHER
THAT the amending bylaws be presented to Council for first readings following a full
legal review.
2. THAT Council approves the draft Bylaw Enforcement Guiding Policy and
THAT the policy be presented for adoption at the regular meeting when the amending
Zoning, Official Community Plan, Off-Street Parking and Landscape and Business
Licence bylaws are presented for adoption
3. THAT Council direct staff to investigate the provision of free transit service to guests of
municipally-licenced accommodators or as an opt-in program for municipally-licenced
accommodators.
4. That Council direct staff to investigate waiving fees levied on rental housing providers
and the developers of purpose-built rental housing and secondary suites with the goal of
incentivizing long-term rental housing.
5. That Council direct staff to review staffing for Bylaw Enforcement and Business
Licencing and consider increasing staffing levels in time for the preparation of the 2017
budget.
6. That Council direct staff to review Business Licence fees in time for the preparation of
the 2017 budget.
7. That Council direct staff to review parking requirements for all secondary suites and
detached Accessory Dwelling Units and report back to Council by March 31, 2017.
8. That Council direct staff to provide a report on Short-Term Rental regulations by June
30, 2018.
AUTHOR:
REVIEWED BY:
____________________________
STUDENT RESEARCHER DEVELOPMENT SERVICES
____________________________
CITY MANAGER
____________________________
MANAGER OF DEVELOPMENT
SERVICES

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Overview of Short Term Rentals

THE CORPORATION OF THE CITY OF NELSON

November 21, 2016 Special

A restructuring of staff work on business licencing will greatly increase processing

3347, 2016 be read a third time by title only.

Bylaw No. 3345, 2016" read a third time by title only.

THE CORPORATION OF THE CITY OF NELSON

PART 1 INTERPRETATION ................................................................................................ 2

THE CORPORATION OF THE CITY OF NELSON

Any reference in this bylaw to an appendix, schedule, statute, regulation, bylaw or

In this bylaw, the following terms have the following meanings:

"BUSINESS" means the carrying on of a commercial or industrial undertaking

"BYLAW ENFORCEMENT OFFICER" means a person acting as any of the

City of Nelson Business Licence Bylaw 3347, 2016

"BYLAW NOTICE ENFORCEMENT BYLAW" means the City of Nelson Bylaw

"COUNCIL" means the Council of the Corporation of the City of Nelson;

"DOOR-TO-DOOR AND DIRECT SALES" means the carrying on of a

"LICENCEE" means a business entity which holds a valid licence to operate a

City of Nelson Business Licence Bylaw 3347, 2016

"PERMIT" means an annual permit required to be held by a driver pursuant to

"PERSON" includes any corporation, partnership, sole proprietorship, party or

"PREMISES" means a building or portion of a building or an area of land

PART 3 - LICENCE REQUIRED

City of Nelson Business Licence Bylaw 3347, 2016

PART 4 - EFFECT OF LICENCE

The granting of a licence under this bylaw in no way implies or constitutes a

PART 5 - LICENCE PERIOD

PART 6 - LICENCE APPLICATION AND FEE

all applicable federal and provincial sales taxes.

City of Nelson Business Licence Bylaw 3347, 2016

Licence fees paid hereunder shall not be refundable.

PART 7 - LICENCE TO BE DISPLAYED

PART 8 - LICENCE INSPECTOR

PART 9 GRANTING AND REFUSAL OF LICENCES

City of Nelson Business Licence Bylaw 3347, 2016

If the issuance of a licence requires insurance coverage, proof of that insurance

PART 10 - SUSPENSION AND CANCELLATION OF LICENCES

The Licence Inspector is authorized by Council to suspend or cancel a licence for:

failure by a licencee to comply with a term or condition of the licence;

failure by a licencee to comply with this Bylaw; or

If the Licence Inspector proposes to exercise his/her authority to refuse, suspend or

An applicant or licencee who wishes to have Council reconsider the refusal,

City of Nelson Business Licence Bylaw 3347, 2016

In reconsidering a decision of the Licence Inspector to refuse, suspend or cancel a

PART 12 GENERAL REGULATIONS

A licence is not assignable or transferable. If ownership of a business, or control of a

PART 13 - SHORT-TERM RENTAL LICENCE REGULATIONS

No person shall offer or advertise a Short-Term Rental without a valid licence in

Short-Term Rentals are subject to inspection by a Licence Inspector once every

City of Nelson Business Licence Bylaw 3347, 2016

PART 14 - SHORT-TERM RENTAL LICENCE APPLICATIONS

An application for a Short-Term Rental licence shall be made on a form prescribed

proof of principal residence of the applicant unless the application is for a

for a Short-Term Rental located within a Multi-Unit Residential building, other

for a Short-Term Rental located within a Multi-Unit Residential building that is

City of Nelson Business Licence Bylaw 3347, 2016

In considering an application for a Short-Term Licence, the Licence Inspector

consider whether a Short-Term Rental licence held by the applicant has

PART 15 - SHORT-TERM RENTAL LICENCE RENEWAL

An application for renewal of a Short-Term Rental licence must be received by the

PART 16 - ADVERTISING AND ONLINE BOOKING PLATFORMS

a valid business licence number;

the number of off-street parking spaces available to guests and a statement

the maximum permitted guest-occupancy applicable to the Short-Term Rental,