Canmore is known for its stunning scenery which brings tourists from all over the world. Canmore short term rental zoning relies heavily 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 Rentals/ Hotel Condos 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 as their permanent residence. When the property is not in use, it can be left vacant or can join a professionally managed rental pool for the 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 specific property are usually by higher by 1% or 2%.
Advantages & Disadvantages
Advantages
Zoned for short-term rentals – nightly and/or weekly
Self-Management options and complex hotel rental pool
Hotel-type front desk management
Disadvantages
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Standard Mortgage Financing is usually unavailable
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Stays are a maximum of 30 consecutive days
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Commercial Mortgage approval is required or cash-only purchasing
Municipal Taxes
For vacation accommodations in 2023, the tax rate is 10.25758. If a property is assessed at $400,000, multiply that number by the tax rate and divide by 1000.
($400,000 x 10.25758)/(1000) = $4,103.03
The annual tax for that vacation rental in 2023 would be $4,103.03.
Surrounding Neighbourhoods
Bow Valley Trail
Tourist Zoning Properties
The Town of Canmore states its formal definition of tourist property 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 2023, the tax rate is 9.15981. If a property is assessed at $400,000, multiply that number by the tax rate.
($400,000 x 9.15981)/(1000) = $3,663.924
The annual tax for that investment property in 2023 would be $3,663.924.
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 homes” to be the best options for Airbnb properties. In order to run them though, there are rules that need to be followed and while they can be complex, the overall points are:
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Facilitators cannot book, advertise, take deposits, take electronic payment, or payments via Airbnb in other zones.
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Tourist homes can be for full-time residences or short-term rentals.
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Hotel condos may only be used for a short-term rental.
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Nightly rentals are only allowed in these specially zoned areas.
If Visitor Accommodation Rules Are Broken…
The Town of Canmore has seriously cracked down on any illegal or unregulated vacation 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 an even higher price of $5,000.
Canmore as a town 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.
In Conclusion
Investing in Short Term rentals or an Airbnb property in the town of Canmore can be a great way to make money. However, you need to make sure you understand the zoning rules for owning a rental property in Canmore. To learn about long-term rentals visit: https://stproperties.com/long-term-vs-short-term-rental-investment-property/
