By now everyone has heard of Airbnb, the popular online hospitality service that allow people to lease or rent short-term lodging. While the concept of Airbnb boasts many advantages, from cheaper rent to more personalized accommodations, it has become an issue for the residents of Vancouver.

With the real estate in Vancouver, coupled with the amount of people that are looking for housing, Airbnb poses a problem in that with the expanding growth in tourists targeting short term rentals, many Vancouver residents can’t find a place to live.

The city of Vancouver cracked down on short-term rentals by announcing a series of restrictions that effectively bans properties from being used full-time on sites like Airbnb.

What caused this to happen?

Vancouver is a popular tourism hot spot with its many scenic naturistic views and popular landmarks. As a result of being one of the most highly sought after cities in Canada, it became the perfect place for tourists to come visit. This was made all the easier by Airbnb, which allowed for more reasonably priced accommodations. The consequence of this was that tourists flocked to Vancouver and took up the majority of the short term rentals for their vacation stay in Vancouver.

This problem expanded to the point where at least 6,000 illegal short term rentals (it is illegal to rent a home for less than 30 days) were operating in Vancouver. The new regulations were put in place to ensure that there is better use of all of the city’s housing that takes the residents into account.

What are the restrictions?

-          Short term rentals will only be permitted in homes that already have primary tenants (tenants that reside in the property for most of the year).

-          Any units that exist just for the purpose of being rented out in short periods (the city defines the short period as 30 days or less) will not be allowed to operate.

The above restrictions will be effective immediately starting April 2018. The main purpose of these strict regulations is that the city of Vancouver hopes that any short-term rental units will be pressured in joining the long-term rental market and this will create more living space for the residents of Vancouver.

What will keep these rules in effect?

Any resident who wants to rent either their entire home or a room in their home for less than 30 days will have to apply for a business license, pay a yearly fee of $49 and make sure to display their business license number on their online listing.

What are the planned results of these new rules?

These new regulations aim to free up more housing space by cutting down on short-term rentals and have them converted to long-term rental stock, which is highly needed to solve Vancouver’s rental housing crisis and to hopefully provide homes for the thousands of residents in Vancouver that are currently struggling to find a place to live.

If you are thinking of moving to the lower mainland, because of its beautiful naturistic scenes, fresh air and the mild climate appeals to you, then you’re in luck. We’ve compiled this guide of things you need to know about buying real estate in Vancouver. The city’s real estate market is multifaceted with significant price increases for all lodgings such as condominiums, attached homes, detached single family homes and other residential properties. There are many diverse options for those who are seeking a place to live in one of Canada’s most popular and livable cities. However, navigating the real estate market can be hard, so here are some to-know facts and tips to keep in mind when you are buying a home in Vancouver.

Mild climate means easier adjustment period

With the mildest climate in Canada, moving to Vancouver means there is less of an adjustment to the weather when compared to other parts of the country. Not only is it an easier adjustment period, it is a more cost effective one as well. There is less of an investment needed in other areas, like clothing, household appliances needed for snow removal and heating costs.

Subject free offers are common

Real estate is in high demand, and when that usually happens, bidding wars are common and buyers have to get competitive. As a result, many buyers are making subject free offers (real estate offers made with no conditions) to make their bids appear the most committed and desirable. This can be appealing to sellers, but buyers need to proceed with caution and understand the risks.

If the seller accepts the offer always seek legal advice from a lawyer. The buyer is committed to completing the deal, so buyers have to make sure they understand the legal repercussions of a subject free offer.

Timelines can be tight

When there are multiple offers one on property, a lot of listings have tight timelines for the offers to be submitted. This can cause steps that help protect buyers, like home inspections, to be skipped. Buyers need to be cautious and work with an experienced real estate agent to ensure everything is covered despite the timelines.

Increase in deposits

In the current market, the frequency and size of the deposits offered by potential buyers to sellers has significantly increased. For homebuyers, the ability to make a big deposit can make their offer more attractive, and thus increase their chances of being considered. However, there are risks to take into account, like doing a deposit with a subject free offer. This can make it difficult to get back any funding if the deal ends up not closing in the end, as well as the effort to recoup the deposit can result in a loss of money.

If you are ready to buy in Vancouver, gurdialbadhgroup can help you through what can be an overwhelming process for buyers.