If you rent out your place short term – you better pay attention! The Government of BC has just announced some changes to the short-term rental rules, and we're here to give you the lowdown in a way that's easy to understand.
What's Changing?
In a nutshell, if you've been renting out your property for periods less than three months, get ready for some significant changes and potential costs. It might be worth considering a switch to long-term rental. However, if you're only renting out your principal residence or a suite for less than six months a year, you might be in the clear.
Defining Short-Term Rentals
Short-term rentals can be a bit confusing, as different places have different definitions. But for BC, it includes suites for short stays, popular platforms like Airbnb, VRBO, FlipKey, Vacation Rentals, and any tourist accommodations in private homes.
Key Points from New Bill 35
The new bill defines short-term rental as any residential rental under 90 days. It's permitted in your principal residence, a secondary suite in your main home, or even a room in your principal residence. Bill 35 applies to BC cities with a population over 10,000, towns within 15km of such cities, and towns with vacancies under 3%.
What Owners/Landlords Need to Know
Now, here's the nitty-gritty for owners and landlords:
· You'll need a business license, which might be a bit tricky to obtain.
· You must provide evidence of your license on online renting platforms like Airbnb, VRBO, FlipKey, etc.
· Online platforms are now required to share owner information.
· Fines for non-compliance have increased, going up to $50,000.
Phased Rollout of New Rules
The changes won't happen overnight. The first phase, already in effect, sees increased fines for non-compliance. The second phase, starting May 1, 2024, enforces principal residence requirements. By Summer 2024, online platforms will need to follow disclosure rules. The final stage, scheduled for the of Fall 2024, will introduce the Provincial Oversight Committee.
Where Do You Need a License?
Check if your city made the list! Most cities across Vancouver Island, Metro Vancouver, and the Okanagan now require a license. However, some resort towns like Whistler and Tofino are exempt.
Tax Implications
Don't forget about potential CRA tax implications, including GST on the resale of your property, if it was a short-term rental. Consult with your tax accountant to see if it applies to your situation.
What If Short-Term Rental Isn't an Option?
No worries! Let us help you manage your property with long-term stable tenants. We handle all the details, from tenant screening to move-in, so you can relax and enjoy hassle-free rent collection. Let's make the transition seamless for you!