VANCOUVER (NEWS 1130) – It’s a move which could bring 1,000 units back onto Vancouver’s long-term rental market. A new deal between the city and Airbnb will require people who list rooms on that site to show a business licence.

Mayor Gregor Robertson says under the new rules, which kick in next week, people can only operate short-term rentals if they are doing so out of their primary residence — and only if they have a licence.

Property owners can be fined $1,000 a day if they advertise without business licence.

“Right now, with the crunch on rental supply, we want to make sure that every secondary suite possible is in the long-term pool and available to people who are having trouble finding homes right now,” says Robertson.

He expects as many as 1,000 units will end up back on the rental market because of these changes.

“If the vacancy rate increases and we start to see people having an easier time finding a place to rent, then council may consider changing the regulations and possibly, secondary suites would be more flexible, in terms of short-term rentals,” he says.

Deal with Airbnb means Vancouverites posting units on that site must display business licence on listing or face $1,000 daily fine. City believes 88% of short term rentals are through Airbnb. You can sign up for licence starting on April 19 if you are listing primary residence . — Martin MacMahon (@martinmacmahon) April 11, 2018

The City believes nearly 90 per cent of short-term rentals are facilitated by Airbnb.

The bylaws are expected to go into effect on April 19. From that date forward, new Airbnb hosts will have to include their business licence as part of their profile before they can post a unit for rental.

Existing hosts will have until August 31 to get a licence from the City and include it in their Airbnb listings. A news release from the City of Vancouver suggests the company will deactiviate existing.

The City says it is “is in active conversations with other listing platforms to develop similar agreements for compliance with the new bylaws.”