By providing services that are popular with customers and landlords, vacation rental companies such as Airbnb and Vrbo have transformed the hospitality industry.
There are benefits to this. By identifying a market and using cutting-edge technology, the companies have profitably connected short-term renters with providers who are able to meet their needs. It is a successful example of the free market at work.
And, yet, there also are drawbacks. As Forbes.com has written: “The influence of the so-called ‘Airbnb effect’ on local housing markets has grown into a significant cause for concern, particularly when looking at its impacts on housing stock, prices and communities. But even if Airbnb really is damaging local housing markets, can anything be done to stop the hugely popular, multi-billion-dollar juggernaut?”
Therein lies the conundrum facing the Vancouver City Council. As The Columbian reported this week: “There are more than 300 short-term rentals — such as Airbnbs and Vrbos — in Vancouver. Due to zoning laws, almost all of them are illegal.”
That reflects a problem that is common to municipal, state and federal governments: Laws and regulations are only as effective as their enforcement. If the city of Vancouver does not actively enforce zoning regulations, those regulations are insignificant. The lack of oversight also leads to questions about other zoning requirements: Why are some enforced when limits on short-term rentals are afforded only a wink and a nod?
Now, the city is considering ordinances that would increase inspections, alter land-use regulations to allow short-term rentals and introduce a permit application process. In an email to The Columbian, city official Tim Becker wrote: “The city is aware that there are roughly between 250-400 short-term rentals operating in Vancouver. The city has notified operators that this is the case but has decided not to enforce this to give staff time to develop new regulations and for operators to come into compliance with these.”
As far back as 2017, The Columbian editorially warned about the Airbnb effect. At the time, Business Insider wrote, “The few surveys that have looked at the issue suggest Airbnb is affecting prices of both rent and purchases, mainly in the center of large cities where tourists visit.”
Vancouver is not a large tourist hub. But its proximity to one – and the growing number of short-term rentals in the area – suggests that the impact of the burgeoning industry is being felt here. Whether that industry contributes to a housing shortage that increases homelessness is not clear; but it is reasonable to conclude that short-term rentals have helped upend housing markets in Vancouver.
Proposed changes in city regulations would allow short-term rentals in all residential and commercial zones and require an operating permit with a $250 application fee. The permit application process would verify that the unit meets state and local health, safety and building code regulations.
In addition, short-term rental owners that meet a certain profit threshold would be required to register with the Washington State Department of Revenue and obtain a city of Vancouver business license. Owners, however, note that they already pay fees to Airbnb and taxes to the city.
In an effort to regulate short-term rentals, city leaders should focus on the concerns of neighbors who suddenly find themselves living next to a de facto hotel. But most important, they should be prepared to enforce regulations rather than treating them as meaningless gestures.
