What Vancouver can learn from Portugal about dealing with short-term rentals

Good morning,

Today is the last day to take our survey to shape the stories we cover and our eventual Insider membership (more on that later!). If you care about better local news in Vancouver, please consider filling it out. I’ve already gone through many responses, and there are some great ideas!

Also a huge thank you to everyone who takes our polls and writes up such thoughtful comments. I really enjoy responding to them in the newsletter. It’s critical to hear from different people about the issues facing Vancouver, so I’m glad we have such a variety of opinions.

Apologies today if you aren’t interested in housing, with the big news about unaffordable rent, there’s a lot to cover.

Let’s get to it!

— Geoff Sharpe, Vancity Lookout newsletter writer

Correction: Meowfest, as much as I wanted it to be, is not a free event as I indicated in Monday’s newsletter. It’s a ticketed event that costs $30. We regret the editor.

If you find this newsletter valuable, please consider forwarding it to your friends. New to the Lookout? Sign-up for free.

WEATHER

Wednesday: 29 🌡️ 18 | ☀️

Thursday: 27 🌡️ 15 | ☀️

Friday: 22 🌡️ 15 | ⛅

HOUSING

Vancouver’s rental crisis hits new milestone

What happened: As temperatures rise and the province sees future heat waves, some advocates are calling for the establishment of maximum temperatures for rental units, according to the Vancouver Sun.

• Currently, there are minimum temperatures that need to be maintained, but not maximums.

Mayor Ken Sim said Vancouver is undertaking a multi-year study on indoor heat temperature which will finish at the end of this summer.

The problem: Many landlords are not allowing AC units to be installed in their units, according to CTV, which is posing real problems about what sort of responsibility landlords have for the health of the tenants in their buildings and what they should and shouldn’t be allowed to control.

• Even the B.C. government's plan to purchase AC units for vulnerable low-income households is running into landlords who refuse to allow an AC to be installed, according to CBC.

What it means: Building codes have not kept up with expected changes in weather. With heat waves becoming the norm, more flexibility will be required to help tenants, as well as homeowners whose buildings aren’t built well enough to deal with high heat. The provincial government may need to step in with legislation.

Landlords worried about rising costs

Meanwhile…: I don’t want to be too glib about this story, but you’ll have to excuse my exasperation — a landlord advocacy group has taken to the media to say the public needs to understand that private landlords need to make a profit, according to CityNews.

• I will insert a sarcastic remark here by saying landlords make a choice to be landlords and the risks that come with it. Even if they aren’t making an immediate profit, they are still building long-term equity off their tenants. Renters, on the other hand, do not have a choice, and build no equity.

The numbers: They say costs have risen by 38 percent. Rent prices have increased almost 40 percent in four years, according to data from Liv.rent.

• But one thing not mentioned is that rental owners can claim expenses on rental properties. Renters? Not so much… And have expenses to run a rental really increased by more than $1,000 in four years? Does it really cost a rental provider $3,000 on average for a one-bedroom?

Reality check: The law of supply and demand is at work. Fewer rentals, especially affordable market rentals, mean landlords can raise prices much easier. If you’re a renter, it’s certainly fair to complain about landlords. But be sure to save some anger for all levels of government that have abdicated their responsibility to provide affordable rental units.

VANCOUVER NUMBERS

⛴️ 0: The number of sailings Hullo, the new ferry company between Nanaimo and Vancouver, has run. They were supposed to launch yesterday but the trips were cancelled due to the weather. [CBC]

📈 3.3%: The annual inflation rate for July, which is higher than the bank’s target, with gasoline prices falling less than expected. Sorry homeowners, but experts say another rate hike might be likely. [CTV]

⚡ 8,400: The number of megawatts used during Monday in the midst of the heatwave. It was a new summer record but is still only three-quarters of a peak winter load. [Vancouver Sun]

THE AGENDA

🏢 Speaking of housing, Vancouver is dealing with a hotel shortage that has only gotten worse as the government purchased more affordable hotels and used them for housing. Local business groups say tourists are needed to keep many businesses afloat, which is proving tougher with fewer hotels available. [Vancouver Sun]

🔫 It shouldn’t need to be said but chasing after people with a gun is illegal. Over the weekend a man did just this, chasing some teens with a firearm, and now he’s facing charges. [CTV]

👮 Six Vancouver cops were cleared of any wrongdoing by B.C.’s police watchdog after a man suffered four broken fingers when he was hit with bean-bag rounds. [Vancouver is Awesome]

🏗️ Only one housing project has been built in an area in the Downtown Eastside that was set aside for buildings with 60 percent social housing and 40 percent secured market rentals. The problem according to experts is funding, not the housing mix itself. [Global]

🗳️ Contradiction? Canada’s new housing minister says both Liberal and Conservative governments have stepped away from being involved in housing, and “it should never have happened.” This would seem to contradict the prime minister’s comment that housing is not the responsibility of the federal government. Regardless, it’s a welcome sign! [Vancouver Sun]

🚲 And in other news, it looks like the removal of the Stanley Park bike lane has not improved traffic in the park, though we will, of course, wait to see if any data is eventually released. [Twitter]

DREAM HOME

A few people have asked to showcase more affordable places to buy. I have some bad news — most of the recent places I’ve shown are, in fact, considered “affordable” in Vancouver.

Today we’re heading over to Kitsilano, where sadly most single-bedrooms are going for more than $650,000.

This is a more modest unit. At one bedroom, it’s somewhat spacious with 704 square feet, a kitchen with an island, and a cute little patio nook. It’s not the fanciest place, but this seems to be the average price for a place in Vancouver these days…

House of The Week is a home selected by the Lookout team and is not a paid advertisement. All ads are labeled as such. If you’re a realtor who wishes to feature your home in our newsletter, please contact our sales team.

AROUND THE WORLD

What Portugal is doing to combat short-term rentals

This is an ongoing series where we look at another jurisdiction around the world that’s tackling a similar problem facing Vancouver.

As Vancouver and BC discuss the potential for new rules around short-term rentals to combat rising rental prices, a country in Europe has taken some drastic steps to combat their own rental and housing crisis by aggressively going after short-term rentals, according to CNN.

Background: Beautiful Portugal has become a popular tourist destination. But that has also resulted in a massive rise in the number of short-term rental properties. Rents in the city have risen 65 percent since 2015.

• The number of short-term rentals in Lisbon stands at six percent of total homes. Portugal itself has 110,000 short-term rentals.

Breaking it down: Buildings with fewer than 10 guesthouse rooms will be blocked from opening until 2030. Those that remain will be subject to heavy taxes. Condos can revoke licenses by a majority vote, and new short-term rentals will require 100 percent approval of neighbours.

Here in Canada: As Airbnbs have risen in popularity, affordable private rental stocks have declined. Between 2011 and 2016, there was a loss of 322,600 units with rent below $750, with another 230,000 lost until 2021, according to CBC. But the lack of data makes it hard to track the exact impact of short-term rentals.

What Vancouver can learn: It’s not an easy decision made by Portugal. In fact, it has hurt many businesses and people who invested in short-term rental opportunities. But not doing anything also hurts families who cannot afford to live in the city they call home. At some point a city has to decide whether it’s a place for tourists or a place for residents.

• It also shows governments can act in a big way to fix problems, not just tinker around the edges, something our politicians could absolutely learn.

ARTS

Theatre

A deep dive into Vancouver’s Improv Centre illustrates why it’s become such a hub for the community. [Georgia Straight]

The Downtown Eastside Heart of the City Festival will take place from Oct. 25 to Nov. 5, with over 100 events including art, music, poetry and more. [Stir]

Music

The Vancouver International Flamenco Festival is happening from Sept. 18-30, featuring performers from across Canada, Spain, Cuba and around the world. [Stir]

Movies

It’s a great week for movies at The Rio, with Martin Scorsese’s Cape Fear and Taxi Driver, Dirty Dancing and Point Break. I’ve seen the last three, and let me say, all are worth watching.

And back to the 80s continues at VIFF with such classics as Platoon, Midnight Run, Robocop and Who Framed Roger Rabbit.

Speaking of VIFF, they’ve announced their programming for their 42nd annual festival, with director Hirokazu Kore-eda, Ken Loach and Justine Triet, along with 130 other feature films. I hope to attend! [Stir]

Art

Exciting news for art fans. The Vancouver Art Gallery is set to begin construction in September and will have 10 levels. [Urbanized]

The Vines Art Festival, which showcases stories from Indigenous artists, until August 19 in parks across Vancouver.

Less than 24 hours to take our community survey

We’re trying to create better local news in Vancouver, so you can understand the biggest issues facing Vancouver.

The survey closes today and we still need your optinon. Take two minutes to share your opinions — we read every single response!

SURVEY

Here are the results of our latest poll.

Thanks to everyone who submitted such thoughtful responses. I couldn’t include all of them, but here are a few:

COMMUNITY HIGHLIGHTS

• Some Metro Vancouver municipalities are running contests for which properties have the best brown lawn since lawn watering is now restricted. [CBC]

• People aren’t cozying up to robot servers in Metro Vancouver. And who could blame them? [CTV]

• There are a bunch of new direct airline routes from YVR, including Dubai, Singapore, Atlanta and Nashville. [Vancouver is Awesome]

• A new study from UBC involves capturing raccoons and giving them puzzles to solve. Fun! [Global News]

• Today you can catch a free ride on a vintage trolley from Waterfront between 9 am-4 pm. [Vancouver is Awesome]

TWEET OF THE DAY

Even though prices have flatlined, with rising interest rates, affordability has gotten worse. This may be part of the rental puzzle as fewer people are interested in renting out an investment property because the costs for the mortgage are just too high.

PHOTO OF THE DAY

Thanks to reddit user cookerofstuff for this beautiful shot of the Perseids meteor shower taken at Mount Strachan.

GAME TIME

We’re continuing with parks this week for VancouverGuesser. Can you guess this one? It’s a popular spot in the summer in East Vancouver.

Reply with the park name and your name and I’ll include it in Friday’s newsletter.