REQUEST FOR DECISION
MEETING DATE: November 17, 2026 Report No. APC-26-026
TO: Advisory Planning Commission
FROM: Bill Brown, Director of Development Services
SUBJECT: Short-Term Rentals - Review of proposed amendments to the:
Bylaw Notice Enforcement Bylaw; Business Licence Bylaw; Parking Bylaw; and Zoning Bylaw
RECOMMENDATION:
Recommendation
That the Commission recommend that Council any changes that they would like to see in the draft amending bylaws for the following bylaws as they relate to the proposed regulation of Short-Term Rentals:
1) Bylaw Notice Enforcement Bylaw
2) Business Licence Bylaw
3) Parking Bylaw
4) Zoning Bylaw
Body
EXECUTIVE SUMMARY:
At their June 22, 2026, regular meeting, Council passed the following motion:
Moved by Councillor Morrison, seconded by Councillor Brame: That
Council direct staff to prepare amendments to the Zoning Bylaw,
Business Licence Bylaw, and the Bylaw Notice Enforcement Bylaw,
based on the proposed regulatory framework outlined in the Report
attached as Appendix “A” to Staff Report DEV-26-032, with the
exception of Recommendation 1.10 to be amended to strike out the
word “prohibit” and replace with “allow” and add “for up to a maximum
of 90 nights per calendar year within owner-occupied homes” at the
end.
And be it further resolved that:
1) All related bylaws including Sections 1.5, 1.5.1, and 1.5.2 as outlined
in Staff Report No. DEV-26-032 pertaining to the Zoning Bylaw be
changed to allow short-term rentals for secondary suites and garden
suites to a maximum of 90 nights per year;
2) The cap of 90 nights on short-term rentals for secondary suites and
garden suites be reviewed by Council one year from the date of
implementation; and
3) Staff be directed to include a high-level estimate of potential costs
and revenues for the first three years in the report when the Zoning
Bylaw is brought forward for first reading. Carried Unanimously
BACKGROUND:
The consultant assisting staff and Council with implementing a legal framework to allow Short-Term Rentals in Esquimalt has prepared a Background Report (Appendix “A”) that provides an overview of the proposed framework for the regulation of Short-Term Rentals in Esquimalt and a follow-up Report (Appendix “B”) that explains the proposed bylaw amendments that are required to implement the direction that Council gave to staff at their June 22, 2026, regular Council meeting.
Prior to returning to Council with a set of proposed bylaw amendments, staff is requesting that the Advisory Planning Commission provide Council with any questions or comments it may have related to the proposed amendments. An overview of the proposed amendments is provided below. The actual draft amending bylaws and accompanying drafting schedules are attached as appendices to this report.
1. Zoning Bylaw
1.1. Bed and Breakfasts
1.1.1. Eliminate the existing Bed and Breakfast term and regulations.
1.1.2. Extend the meal permission to all STR operators.
1.1.3. Amend or rezone the RS-4 and RS-4A zones to align with a standard residential zone.
1.2. Keep the “Tourist Accommodation” term to allow for amenity-rich, dedicated guest accommodation units in mixed-use developments.
1.2.1 Clarify the distinction between Tourist Accommodation and Short-Term Rentals in the Bylaw.
1.2.2 All “Tourist Accommodation” use will need to comply with the provincial principal residence requirement or qualify as “Exempt Accommodation” (e.g. Strata Hotels or Fractional Ownership model).
1.3 Define Short Term Rentals as stays of less than 90 consecutive days.
1.3.1 This aligns with the provincial definition.
1.4 Monitor the prevalence of 90+ day listings following implementation.
1.4.1 Avoids additional regulatory complexity until the data warrants it.
1.5 Allow short-term rentals in Secondary Suites and Detached Accessory Dwellings located on the same parcel as the Principal Dwelling Unit.
1.5.1 Secondary Suites and Detached Accessory Dwellings could be rented as a Short-Term Rental for up to 90 days in a calendar year.
1.5.2 Staff will monitor the impact of the 90-day rule for one-year and then report back to Council.
2. Parking Requirements
2.2 Require no additional parking beyond what is already required for residential use.
2.3 The Parking Bylaw will be amended to clarify that there are no additional requirements for Short-Term Rentals.
2.4 Reference to Bed and Breakfasts will be removed from the Parking Bylaw as they will no longer exist in law in Esquimalt.
3. Business Licence Bylaw
3.1 Business Licence Application Requirements.
3.1.1 Require a pre-licence inspection
3.1.2 Require proof of residency
3.1.3 A responsible person must be designated.
3.1.4 Require a guest safety attestation
3.1.5 Require strata, owner, or landlord permission as needed.
3.1.6 Business licence number must be displayed on all advertisements and listings.
3.1.7 Require a higher initial licence fee to cover the costs of inspections with a lower renewal fee.
3.2 Establish a dedicated Short-Term Rental contravention and penalty schedule in the bylaw.
4. Enforcement and Administration
4.1 Take and maintain a proactive enforcement approach.
4.2 Create an internal enforcement guide.
4.3 Create a policy of enforcement priorities.
4.4 Make Short-Term Rentals part of one staff person core focus for the first 6 - 12 months tapering to part-time once a high baseline level of compliance is established.
Additional information is found in the report attached as Appendix “B”.
Chronology:
● In 2018, the Council added the following Objective and Policy to Section 16.4 the Official Community Plan:
o 16.4 Tourism
o Objective: Consider land use decisions that help promote tourism.
o Policy: Consider short-term vacation rentals within legal dwelling units, where the dwelling unit is an owner or tenant’s principal residence, for up to 60 days per year.
● October 26, 2023 - Bill 35, the Short-Term Rental Accommodations Act, received royal assent.
● “Short-term rental policy analysis” was subsequently incorporated into the Council Priorities Plan 2023 - 2026 as a project under the “Diversified & Thriving Economy” priority.
● July 15, 2024 - Staff Report No. DEV-24-036 entitled Short-Term Rental Regulations was presented to the Committee of the Whole.
● October 7, 2025 - Third Space Planning (consultant) hired to prepare a Report entitled Short-Term Rental Policy Analysis.
● November 19 to December 17, 2025 - On-line open house and survey.
● November 26, 2025 - Short-Term Rental Policy Analysis Open House held at the Recreation Centre.
● February 13, 2026 - Draft Short-Term Rental Policy Analysis Report submitted to the Township for review.
● March 16, 2026 - Council reviewed the Short-Term Rental Policy Analysis Report and provides staff and the consultant with their preferred basic approach and the direction to prepare a report focused on implementing this basic approach.
● June 22, 2026 - Council reviews a more detailed report from the Consultant that lays out a framework based on comments received by Council on March 16, 2026.
ANALYSIS:
The consultant’s report (Appendix “B”) along with draft amending bylaws and amendment drafting schedule contain detailed information that explains the rationale behind each proposed amendment (see Appendices “C” to “J”).
OPTIONS:
● That the Advisory Planning Commission advise Council that they have no concerns or questions related to the proposed bylaw amendments.
● That the Advisory Planning Commission advise Council that they have several recommended changes, concerns, or questions and forwards them to Council along with reasons as motion.
COUNCIL PRIORITY:
“Short-term rental policy analysis” was incorporated into the Council Priorities Plan 2023 - 2026 as a project under the “Diversified & Thriving Economy” priority.
REPORT REVIEWED BY:
1. Victoria McKean - Concurrence
LIST OF ATTACHMENTS:
1. Appendix “A” Original Consultant’s Report presented to Council at their June 22, 2026 regular meeting entitled: Short-Term Rental Regulatory Outline Township of Esquimalt, June 2026.
2. Appendix “B” Report entitled: Short-Term Rental Draft Bylaw Amendments Township of Esquimalt, October 2026.
3. Appendix “C” Draft amending bylaw for the Bylaw Notice Enforcement Bylaw 2014, No. 2839.
4. Appendix “D” Bylaw Notice Enforcement Amendments - Short-Term Rentals Drafting Schedule.
5. Appendix “E” Draft amending bylaw for “Business Licence and Regulation Bylaw, 2024, 3144.
6. Appendix “F” Business Licence Bylaw Amendment - Short-Term Rentals Drafting Schedule.
7. Appendix “G” Draft amending bylaw for the Parking Bylaw, 2025, No. 3089.
8. Appendix “H” Parking Bylaw Amendment - Short-Term Rentals Drafting Schedule.
9. Appendix “I” Draft amending bylaw for the “Zoning Bylaw, 1992, No. 2050.
10. Appendix “J” Zoning Bylaw Amendment - Short-Term Rentals Drafting Schedule.
11. Appendix “K” Staff Presentation