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City of Penticton reviewing short-term vacation rental policy

Report recommends enhancing enforcement and penalties on short-term vacation rentals non-compliance
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Penticton city city council approved increased penalties on non-compliant vacation rentals. File photo

The city is taking a harsher stance on unlicensed vacation rentals at a June 19 council meeting.

Along with increases in penalties from operators circumventing existing bylaws, the staff report again recommended contracting a third-party business to count the number of short-term rental businesses, an idea that council was cool on when it was introduced at a March council meeting.

Related: City wants more compliance with short-term rentals

Objections ranged from the cost of the service recommended in the March 20 report by Ken Kunka, the city’s building and permitting manager, to concerns about a third party sending notifications to Penticton residents.

Kunka’s latest report suggests contracting a third-party service could pay for itself.

In March, Kunka said a review of short-stay vacation rentals showed 334 separate listings in Penticton, with only 130 licensed under the city’s current program.

“Multiple, separate third parties have advised staff that there are well over 150 unlicensed vacation rentals within the city which represents over $25,000 annual additional licence revenue as well as $30,000 in tourism fees,” wrote Kunka in his current report. He adds the city received three proposals from national and international companies and the prices range from approximately $8,000 to $18,000 for their respective locate-and-report services.

Kunka also proposes increasing the penalties for both operating a business without a licence to $450 for each offence from the current $250.

Coun. Judy Sentes said that the increased fines weren’t enough.

“I would be willing to put the fine up to $1,000,” said Sentes, concerned that people were purposefully flaunting the bylaw. “I think we need to make a statement.”

“I think in this case we have reached a point where there has to be a consequence.”

The city’s ability to levy a fine, however, is limited to $500 a day. Sentes suggested the fine be increased to the maximum.

“I am starting to be hard-nosed about this,” said Sentes.

If the program of increasing frequency of ticketing is not helping and the business owner is continuing with the illegal operation, the city can take further measures, including court action.

Legitimate operators are also required, under Penticton’s policy, to display their business licence when they advertise a vacation rental online.

Four councillors voted unanimously to give the go ahead for an RFP on a monitoring service and increasing fines. Couns. Max Picton, Tarik Sayeed and Andre Martin were absent from the voting.


Steve Kidd
Senior reporter, Penticton Western News
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