Short term rental policy pondered by Lake Cowichan council

Short term rental policy pondered by Lake Cowichan council

Published 1:00 pm Monday, September 21, 2026

Town council is working hard to ensure visitors to Lake Cowichan have more legal options to stay the night.

“We’ve seen many tournaments and other options coming to Lake Cowichan, and with the lack of accommodations, it would appear that most people reside either in areas where short-term rentals are allowed,” explained Mayor Tim McGonigle.

He noted visitors often stay on First Nations properties on the Youbou side of Cowichan Lake or in Duncan instead of within the town because of a lack of availability.

While there are roughly 38 active short-term rentals in the town, council has been authorizing them on a site-by-site basis, which isn’t sustainable. Council seeks a more streamlined process.

“This is much needed,” said the mayor. “I think we tried the process of site-specific [approvals] and that has become cumbersome not only for staff, but site-specific applications take time and are very expensive.

“If we can have a blanket process to go forward…I think it’s something that will benefit not only Lake Cowichan but the western communities. As we become more popular, people want to stay here, and we want them to stay here for our businesses. Without people having a place to stay, they are drive-through tourists.”

But short-term rentals shouldn’t disrupt long-term rental markets, council and staff agreed.

“We’re trying to accommodate short-term opportunities while maintaining long-term stock,” the mayor later explained.

He said the target vacancy rate within the town of Lake Cowichan is three per cent for rental properties. While it’s been difficult to get the current vacancy rate information, the hope had been that the Elder Care Society’s proposed 33-room project would incorporate affordable seniors housing, which would open up some residential properties should people decide to move into that facility. Provincial funding for that project was put on hold this year, however.

“Hopefully that comes forward in the near future,” McGonigle said, noting it’s already been decades of work trying to get affordable seniors housing in west Cowichan.

At their committee of the whole meeting on Sept. 8, council discussed a comprehensive report from contract planner Brigid Reynolds outlining several options aimed at regulating short-term rentals within the town’s limits, but being mindful of other factors.

“We identified a number of possible principles that can help frame the regulation moving forward,” she added. “One is protecting the long-term rental housing units,” something she said was one of the main drivers of the provincial regulations.

In May of 2024, a new provincial regulation required local governments with populations greater than 10,000 to limit short-term rentals to hosting only in their principal residence.

“And that of course doesn’t apply to the town of Lake Cowichan, but the town may choose to opt into that regulation or adopt regulations on its own,” Reynolds said.

“What would be very helpful to frame the conversation, or frame the regulation, is to consider guiding principles,” Reynolds said. “What is important? What are the community values that council is considering, or the community character that could be impacted as a result of this type of use?”

Council directed staff to develop a short-term rental regulatory framework that limits short-term rentals to principal residences only. Staff has also been asked to implement “a fulsome engagement strategy” that will assist council to establish regulations that are more reflective of residents’ opinions, concerns and support on the matter.

While the town hasn’t explicitly opted-in to the provincial regulations as a town under 10,000, they’re using it as a starting point to bring the bylaw forward for consideration.

For a bylaw, council needs to look at applicable zones, including commercial, that allow for residential within that zone.

“We’re trying to look at the appropriate regulations on parking, noise, garbage etcetera, so that will come back in a bylaw and business licence to accommodate the extra administration and enforcement issues that are anticipated.

“The current business licence is $100 per year and we don’t feel that would be appropriate for short-term rentals given some of the stories we hear from other communities on enforcement and other bylaw infractions,” McGonigle said.

The mayor said council has had presentations from a few community members who do have short-term rentals available who are finding it hard to accommodate people through online platforms like Airbnb because they can’t secure the proper approvals.