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Vacation rentals claim legal victory

B.C. Supreme Court rules in favour of Naramata couple operating a vacation rental accommodation

The B.C. Supreme Court has ruled that property owners in Naramata have been lawfully operating their private visitor accommodation.

The Regional District of Okanagan Similkameen took Naramata property owners Robert and Cari Leach to court in May 2011. The RDOS was contending the owner was operating a vacation rental contrary to the restrictions placed on a private visitor accommodation/bed and breakfast operation. They also claimed it was contrary to the intent of the residential zoning of the property. Justice Jane Dardi ruled on Jan. 18 that the Leaches did not contravene the permitted secondary use of their single-family dwelling.

“It was an interpretation of the bylaw that was applicable to that area. Every area has its own bylaw, and some of them are more effective than others at controlling short-term rentals,” said the Leaches’ lawyer Daniel Mildenberger. “It is a big win for anyone who wants to rent short-term because there is quite a few people who do that up there.”

In 2007, the regional district moved forward to force compliance based on the zoning regulations which do not allow for short-term vacation rentals on properties zoned for single-family residential use. The Leaches were the third vacation rental property owner in Naramata to become the subject of legal action. Effectively, the ruling determines that those operating under the bylaws currently will not have to comply with any future amended bylaws.

“They would fall under the rules of the day when they started the business. The rules (when amended) would affect all new vacation rentals,” said Donna Butler, development services department manager for the RDOS. “The ones that are there currently operating still have requirements and regulations they would have to meet.”

RDOS CAO Bill Newell told the Western News on Wednesday that the legal action against the Leaches was the “test case” and he was unsure of what was going to happen with the other two property owners.

“I think we will re-evaluate. I think our lawyer is looking through the findings of the court, and if we have to amend some of our legislation, we may do that first,” said Newell.

The RDOS hopes to tighten up, improve definitions and make the eight zoning bylaws related to the vacation rental issue in the region clearer. Currently, the bylaw for the Naramata area allows not more than three bedrooms and a maximum of three guests. The RDOS said it will continue to enforce the bylaw when there is complaints, including excessive noise, which can be issued to SOS Security at 250-492-0911 for bylaw enforcement action.

Eileen Liska, the Discover Naramata association contact, said the court ruling is a win for those with vacation rentals.

“I would certainly think it would be (a victory) for those that have vacation rentals, then they don’t have to worry about it,” said Liska. “At one time it was said that if you were planning on renting a vacation rental that at some point in time you may be told you weren’t able to, depending on what the outcome of the RDOS was. So now there is no worries.”

DiscoverNarmata.com is a website where many of the bed and breakfast businesses from Naramata, and some from Penticton, have come together to advertise themselves and promote the area. Liska said there was a concern for those with vacation rentals as to what the outcome of the Leaches’ trial would be.

“But I guess now it is fairly clear cut,” she said.

Since the ruling, the RDOS sent out a press release stating they are concerned about the potential impact of this use on residential neighbourhoods. The regional district is now reviewing its legal options for an appeal, but said at this time it wants to clarify the significance of the ruling.

Legal costs of the court action are covered by all of the electoral areas as part of the planning function and there will be no additional costs to Area E property owners.