Over recent years, many provinces in Canada have updated their short-term rental regulations to reflect different community needs, such as housing shortages. As a result, Airbnb owners must now ensure they comply with any and all rule changes within their province.
In this article, we discuss the specifics of short-term rental rules in the provinces of Ontario, Québec, Alberta, British Columbia, and Nova Scotia. Plus, we discuss the complexities of dealing with both province-wide and municipal regulations.
Before diving into the specific rules belonging to different provinces, let’s first discuss the importance of familiarizing yourself with municipal laws in your city or town.
Understanding Municipal Rules
Along with learning the differing regulations between provinces, Airbnb owners also need to follow specific municipal laws in their location.
Municipal laws apply locally to cities and towns, setting clear standards for residential zoning and rentals. While a province may have certain rules that apply across the board to cities and towns within the region, each city or town can also have its own requirements for property owners to abide by.
Knowing not only the provincial rental rules but also the municipal laws that apply to your property is crucial for ensuring compliance with all relevant regulations.
Airbnb Rules in Ontario
In Ontario, short-term rentals like Airbnbs are subject to a variety of different requirements. A significant amount of regulatory power is given to the cities themselves, making municipal laws a highly impactful factor when setting up an Airbnb business in this province.
For example, let’s compare Toronto and Ottawa, two different cities within the Ontario province. In Toronto, short-term rental owners must obtain a license to operate from the city and collect and remit a 6% municipal accommodation tax. Meanwhile, Ottawa offers two separate licensing options — a standard short-term rental license and a “cottage rental” license for more rural properties.
Two laws in particular help to set these municipal-specific standards in Ontario — the Municipal Act and the City of Toronto Act.
Airbnb Rules in Québec
Québec is known for its strict laws and regulations for short-term rentals. Revenu Québec, the provincial government’s revenue agency, outlines the following steps for short-term rental owners to take:
· Register your tourist accommodation
· Register for, collect, and remit tax on the lodging
· Register for the GST (Goods and Services Tax) and QST (Québec Sales Tax)
· Collect and report the GST and QST
· File an income tax return
In addition to these tax requirements, Québec also published a new tourist accommodation law that imposes hefty fines for short-term rentals operating illegally in the province. Unregistered accommodations can face a fine of up to $100,000 for disobeying relevant regulations.
Airbnb Rules in Alberta
Like in Ontario, the Alberta province gives municipalities the freedom to set their own rules and regulations for short-term rentals. As the home to many major outdoor destinations, such as Banff National Park and Canmore, each municipality in Alberta can differ significantly in their chosen regulations based on their environmental and sustainability goals.
In Alberta’s largest city of Calgary, for instance, Airbnb hosts are subject to several rules under the Business License Bylaw, including:
· No more than two adults, not including minors, can stay in a single room
· Overlapping bookings of two or more bookings for the same dwelling are not permitted
· All advertising for the short-term rental must include the host’s business license number
To view all of the specific bylaw requirements for Calgary, visit the Calgary Government website.
As for other municipalities in Alberta, it is highly recommended to work with a team of legal advisors when setting up your Airbnb venture. In areas like Banff and Canmore especially, it is imperative to be aware of zoning laws and short-term rental restrictions.
Airbnb Rules in British Columbia
British Columbia (BC) has recently introduced several new rules and requirements impacting short-term rentals. Per the BC Government:
“Legislation has been enacted to give local governments stronger enforcement tools for their short-term rental bylaws, return short-term rentals to the long-term rental market, and establish a new Provincial role in regulating short-term rentals.”
Some of the new rules for the BC community include:
· BC’s Short-Term Rental Accommodations Act, aimed at returning more residential units into long-term homes rather than short-term rentals to address the ongoing housing crisis
· The Provincial Principal Residence Requirement, which introduces new rules restricting short-term rentals from operating in specific communities
BC has also introduced a variety of new requirements for hosts, platforms, and guests of short-term rentals. Most of the new regulations came into effect in May 2024, making it a necessity for any new hosts or property owners in BC to get to know these laws ahead of an Airbnb launch.
Detailed information on the new requirements can be found on the BC Government website.
Airbnb Rules in Nova Scotia
Starting in September of 2024, Nova Scotia will be introducing new requirements for short-term rentals. Like British Columbia, Nova Scotia’s new rules aim to increase housing for permanent residents to address the ongoing housing shortage in the region.
As part of these new rules, Airbnb owners are required to:
· Provide supporting documentation, such as proof of compliance with municipal bylaws and proof of primary residence
· Paying an annual registration rate ranging from $50 to $2,000 per unit based on the accommodation type and location
· Pay a fine of up to $100,000 for non-compliance with registration rules
Find out more about the upcoming regulation changes on the Nova Scotia government website.
Airbnb Property Management and Investment Advice: S&T Properties
At S&T Properties, our knowledgeable team can provide you with specific insights and guidance for navigating short-term rental regulations in Canada. Reach out to S&T Properties today to get started.
