Sun Peaks hoteliers and some residents are demanding single-family homes on the mountain stop operating as “illegal mini-hotels.”

One hotelier said Thursday the simmering problem resulted in a price war this season that drove his revenues down by 30 per cent.

“Revenue for all the hotels is going down this year,” said Manfred Kasprzik, who operates Heffley Boutique Inn at Sun Peaks. “Occupancy of the illegal mini-hotels is going up.”

Operation of one home for nightly rentals also resulted in legal action filed in B.C. Supreme Court this week.

Homeowner Renate Kals is seeking an injunction to stop a neighbouring home, owned by Ross and Donna Vernon and Murray Holmes, from being rented out on a nightly basis.

In an interview, Kals said when her husband, Fred, was in their home ill for months before he died eight years ago the stress on the couple was overwhelming from the noise and busyness next door.

“I had to move him in the basement to have peace and quiet.”

Kals is one of several residents who plans to attend a Thompson-Nicola Regional District meeting Feb. 25 to demand the municipal government enforce what they say are clear bylaws and a building scheme registered on title.

“It’s party time,” Kals said of the neighbourhood, which is split between those who want income from renting their homes while other, full-time residents want the tranquillity of a single-family neighbourhood they were promised in bylaws.

“You can imagine drunk people in the hot tub (outside). It’s extremely noisy,” Kals said.

She said seven or eight cars are typically parked on driveways of houses and on the road and the regional district is ignoring obvious defaults in additions and hot tubs built without permit. Occasionally a charter bus will roll down the street and disgorge its guests in front of a house.

Kals’ lawyer, John Drayton, said Sun Peaks Resort Corp. and the TNRD are not enforcing their own rules.

“My own personal view is what’s going on is well beyond the scope of a residential zone,” Drayton said.

“These people are clearly operating a business. They have a website promoting their business. In Renate’s case the next-door neighbour’s house is advertised for sale and it’s described as a business.”

In many cases houses on the street are listed as accommodation on a Tourism Sun Peaks’ website.

Sun Peaks general manager Darcy Alexander said the corporation’s view is rental of single-family homes was always permitted.

“Zoning is not that black and white. Our position is nightly rentals is not prohibited in RS-1 (single-family) zone.”

Alexander also disputed hoteliers’ views that single-family homes are undercutting them. He said they cater to large groups, offering kitchen facilities most hotels lack.

“If that’s not available…. they’ll (prospective guests) go somewhere else.”

The TNRD’s director of planning, Andrew Swetlishoff, said an investigation is ongoing after complaints from residents. An enforcement letter has been sent to owners suspected of contravening the bylaw.

The TNRD meeting later this month is also expected to see owners who rent out make presentations to the board.

“It should be an interesting board meeting,” the planning director said.

Kasprzik said hoteliers want the rules held up so they can compete on an even basis. He noted hotels have higher requirements for everything from fire safety to insurance and believes house rentals are undermining economics on the hill.