Regulating the Sharing Economy Rachel Vallance Lidstone & Company Barristers and Solicitors Lidstone & Company

The Sharing Economy Home-sharing (Airbnb), ride-sharing (Uber)…? Hot-button issue Growing influence Potential to disrupt traditional industries and impact neighbourhoods and may not be caught by regulatory regimes Lidstone & Company

What is the Sharing Economy? Misnomers Focus on “digital matching firms” Use web-based platforms to facilitate peer-to-peer transactions Rely on user ratings for quality control Offer service providers flexibility in working hours Rely on service providers using own tools/assets

Impacts of the Sharing Economy Benefits Drawbacks Increased competition for conventional businesses Threat to conventional businesses Less costly and more varied services Uncertain or no regulatory controls or oversight Creation of new, more flexible jobs Decline in traditional jobs, fewer benefits and protections Allow for entrepreneurship and brings tourism and spending to new areas Impacts on land use, neighbourhood character and housing stock Lidstone & Company

Regulatory Options Land Use Regulation Business Regulation/Licensing Review current bylaws Reduce potential for non-conforming uses Be clear and specific Consider permitting as a temporary use Business Regulation/Licensing Owner presence vs. owner occupancy “Designated responsible parties” Security, insurance Licence fees Inspections Lidstone & Company

Case Study: STR in Vancouver Over 5,000 unique STR listings Listings have doubled each year since 2013 75% of listings for entire unit Strong financial incentive for STR over LTR 0.6% rental vacancy rate STR permitted only in licensed hotels/B&Bs

STR in Vancouver Supplemental income for property owners Supply and diversity of accommodations Encourages tourism Brings spending to new areas Neighbourhood impacts Housing availability Loss of licensing and tax revenue Unfair competition for hotels, B&Bs

Vancouver’s Regulatory Response Owners/renters may rent all/part of principal residence with business licence No STR of separate suites on property No cap on maximum rental nights per year Self-reporting with regular audits Exploring hotel/business taxes Enforcement of existing prohibitions Lidstone & Company

Conclusion No one-size-fits-all approach Collect data Consider regulatory options Learn from other local governments Consult with the public Lidstone & Company

Questions?