Canmore Short Term Rental Zoning 2022

Canmore short term rental zoning is heavily dependent on the different bylaws in order to properly manage the influx of tourists and vacationers to this beloved resort town. There are four types of zoning: residential, vacation-use, tourist, and employee/affordable housing. As Canmore is a vacation town, we will outline the tourist and vacation-use zoning as it’s important for buyers and owners to understand how those bylaws may affect them.

Vacation / Hotel Condo Zoned Properties

This style of property is often referred to as a “Hotel Condo.” It can be used year-round for up to 30 consecutive days. Owners are not allowed to live in the space full-time. When the property is not in use, it can be left vacant or can join a professionally managed rental pool for that time being. It can also be managed totally independently. The income covers the costs of condo fees, property taxes, and utilities. Interest rates for this kind of property are usually by higher by 1% or 2%.

Advantages & Disadvantages

Advantages

  • Zoned for short-term rental – nightly and/or weekly
  • Self-Management options and complex rental pool
  • Hotel-type front desk management

Disadvantages

  • Standard Mortgage Financing is usually unavailable
  • Stays are a maximum of 28 consecutive days
  • Commercial Mortgage approval is required or cash-only purchasing

Municipal Taxes

For vacation accommodations in 2021, the tax rate is 11.85178. If a property is assessed at $400,000, multiply that number by the tax rate.

$400,000 x 11.85178 = $4,740.71

The annual tax for that vacation rental in 2021 would be $4,740.71.

Surrounding Neighbourhoods

Bow Valley Trail

Tourist Zoning Properties

The Town of Canmore defines tourist properties as, “a dwelling unit operated as a temporary place to stay, with or without compensation, and includes all vacation rentals of a dwelling unit.” These properties usually consist of apartment-style condos. These are the most flexible properties when it comes to zoning. They can be managed independently or through a vacation-rental company (short-term) for anywhere between 40% and 60% gross.

Advantages & Disadvantages

Advantages

  • Has the most flexible of zoning options
  • Zoned for short-term rental – nightly and/or weekly

Disadvantages

  • Standard mortgage financing is often more restrictive

Municipal Taxes

For tourist properties in 2021, the tax rate is 9.39371. If a property is assessed at $400,000, multiply that number by the tax rate.

$400,000 x 9.39371 = $3,757.48

The annual tax for that tourist property in 2021 would be $3,757.48.

Surrounding Neighbourhoods

Bow Valley Trail – Spring Creek – Town Centre/Railway – Silvertip

Complexes with Tourist/Vacation Zoning

  • Blackstone Mountain Resort 
  • Solara Resort and Spa 
  • Silver Creek Lodge
  • The Lodges of Canmore 
  • Grand Rockies Resorts
  • Copperstone Resort
  • Banff Boundary Lodge 
  • Mystic Springs Chalets 
  • Falcon Crest Lodge 
  • Stoneridge Mountain Resort 
  • Canmore Crossing 
  • Rundle Cliff Lodge
  • Canadian Rockies Chalet
  • Windtower Resorts
  • Canmore Suites

Canmore Tourist and Visitor Accommodation Rules

Canmore short term rental zoning allows for “hotel condos” or “tourist home” to be the best options for an Airbnb. In order to run them though, there are rules that need to be followed and while they can be complex, the overall points are:

  1. Facilitators cannot book, advertise, take deposits or payment via Airbnb in other zones.
  2. Tourist homes can be for full-time residence or short-term rentals.
  3. Hotel condos may only be used for short-term rentals.
  4. Nightly rentals are only allowed in these specially zoned areas.

If Rules Are Broken…

The Town of Canmore has seriously cracked down on any illegal or unregulated rentals. For just posting a listing on Airbnb, owners will. Be fined $2,500 without a warning – even if it’s the first offence. Subsequent fines can reach $5,000.

Canmore is pretty open and thorough with zoning and the rules. Short-term rental properties are one of the best ways to generate extra income, anywhere from hundreds to thousands per month. That being said, it’s important to remember that, that income will also go to property taxes, utilities and more. As well, hosting short-term rentals requires time, investment, money, communication, and real estate prowess.

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