Banff Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Banff

Short-term rentals like Airbnb and VRBO are generally not allowed in Banff due to strict zoning laws designed to protect the town's limited housing supply for residents12. Banff's land use bylaws prohibit the use of residential properties for commercial tourist accommodation, except for approved Bed and Breakfasts (B&Bs)23.

The town's restrictive zoning rules reflect its unique status as a municipality within a national park. Banff aims to ensure an adequate supply of housing for people working in the community to support its tourism-based economy12. The ideal vision is to have at least 80% of those who work in Banff also living in Banff, and not being driven out by housing scarcity, quality or price issues1.

As a result of these restrictions, many short-term rental hosts opt for properties in the nearby town of Canmore instead, which has more permissive rules4. Canmore requires STR operators to obtain a business license and adhere to zoning that limits STRs to certain areas, but is overall much more welcoming to Airbnb than Banff4.

Banff's need-to-reside requirement, a Parks Canada regulation, specifies that to live in Banff you must work in Banff2. This ensures housing is used for eligible residents, not as vacation properties or second homes. The town works to maintain a healthy and balanced community by offering both price-restricted and equity share housing through the Banff Housing Corporation2.

Short Term Rental Licensing Requirement in Banff

Since short-term rentals are prohibited in most cases, there are no specific licensing requirements for platforms like Airbnb in Banff23. However, approved Bed and Breakfasts must obtain a business license from the town and follow strict operating regulations2.

To be eligible for a B&B license in Banff, the property must be the owner's primary residence, and they must live on-site23. The owner must also qualify as an eligible resident of Banff National Park under Parks Canada regulations2. B&Bs are limited to a maximum of 2-4 guest bedrooms depending on the property2.

Illegal short-term rentals that violate the town's land use bylaws prohibiting tourist accommodation in residential areas are subject to enforcement action and fines4. The town actively monitors for unauthorized STR listings to protect long-term rental housing for residents4.

Required Documents for Banff Short Term Rentals

There are no required documents for short-term rentals in Banff since they are generally not permitted23. For the Bed and Breakfast exception, potential operators need to2:

• Verify their property is appropriately zoned for a B&B
• Ensure they meet the Parks Canada eligible resident requirement
• Submit floor plans showing the owner's residence and proposed guest rooms
• Provide a statutory declaration confirming they will operate the B&B themselves
• Obtain a business license from the Town of Banff

Tenants renting long-term in Banff should educate themselves on their rights and responsibilities under Alberta's Residential Tenancies Act2. Landlords must ensure rental properties meet minimum housing and health standards. Leases, roommate agreements, and subletting are other important considerations for tenants2.

Banff Short Term Rental Taxes

The short-term rental tax situation in Banff is not applicable since STRs are prohibited23. Legal Bed and Breakfasts are subject to the same 4% tourism levy as other accommodation providers in Alberta2. B&B operators must register to collect and remit the levy to the province.

Some other cities in Alberta have instituted additional municipal taxes on short-term rentals, but this is not the case in Banff due to the existing ban on most STRs4. Taxes are seen as unlikely to significantly impact housing affordability compared to stricter limits on non-resident STR activity4.

Banff wide Short Term Rental Rules

Banff has some of the strictest rules on short-term rentals in Canada due to its focus on protecting housing for local residents1234. The key restrictions are:

• STRs are prohibited in residential properties with few exceptions23
• Bed and Breakfasts are the only allowed form of short-term tourist accommodation in residential areas2
• B&Bs must be owner-occupied and are limited to 2-4 guest rooms2
• B&B owners must be eligible residents of Banff National Park under Parks Canada criteria2
• Unauthorized STRs are subject to fines and enforcement action4

The town's regulations also explicitly prohibit STRs in employee housing and require 100% of housing units to be occupied by eligible residents13. Preserving long-term rental stock for the local workforce is a top priority12.

Specific land use bylaws limit the number of bedrooms and require dedicated parking for B&Bs and other residential uses3. Detailed design and landscaping standards also apply in most districts to ensure neighborhood compatibility3.

Does Banff strictly enforce STR rules?

Yes, Banff is known for its rigorous enforcement of the ban on short-term rentals4. The town actively monitors for illegal STR listings and has issued fines against non-compliant operators4.

Banff is much less Airbnb-friendly compared to most other cities due to its unique position as a town within a national park with limited land and housing supply123. While some hosts still attempt to operate STRs despite the rules, the strict regulations and active enforcement make it very difficult to run an Airbnb in Banff long-term without facing penalties4.

Most hosts choose to operate in nearby communities like Canmore instead, which has more flexible STR rules that still require licensing and adherence to zoning4. But Banff itself remains one of the least welcoming places for Airbnb in Canada.

The town's uncompromising stance prioritizing housing for eligible residents employed locally is a key part of its strategy to build a balanced and sustainable community12. This contrasts with some other tourist destinations that have embraced STRs more fully.

How to Start a Short Term Rental Business in Banff

Based on the prohibitions explained above, the process to legally start a short-term rental in Banff is quite limited:

• Confirm your property is zoned for a Bed and Breakfast and meets the land use bylaw requirements23
• Verify you qualify as an eligible resident of Banff National Park under Parks Canada rules2
• Prepare your application, including floor plans, proof of residence, and statutory declaration2
• Submit your application to the Town of Banff and obtain a business license2
• Register to collect and remit the 4% provincial tourism levy2

If your property does not qualify for a B&B license, operating a short-term rental is not permitted23. Consider long-term rentals or look to other nearby communities like Canmore that allow STRs4.

For long-term rentals, ensure you understand the need-to-reside requirements, tenancy laws, and health and safety standards that apply2. Consult the town's housing resources and the provincial Residential Tenancies Act.

Who to contact in Banff about Short Term Rental Regulations and Zoning?

For questions about short-term rental rules and zoning in Banff, contact:

Town of Banff Planning and Development
110 Bear Street, Box 1260
Banff, Alberta
T1L 1A1
Phone: 403.762.1215
Email: planning@banff.ca

They can provide information on the land use bylaw, Bed and Breakfast licensing, and enforcement of unauthorized short-term rentals2.

For inquiries related to long-term rental tenancy laws and disputes, standards, and general housing resources, contact:

Town of Banff Community Services
110 Bear Street
Box 1260
Banff, Alberta
T1L 1A1
Phone: 403.762.1251
Email: community.services@banff.ca

What do Airbnb hosts in Banff on Reddit and Bigger Pockets think about local regulations?

There is limited discussion from hosts actually operating in Banff due to the restrictions. However, some key themes emerge:

• Banff's strict rules make it very challenging to operate a profitable Airbnb legally4
• Many hosts have received fines and enforcement for attempting STRs in Banff4
• The general consensus is that nearby Canmore is a much more viable option for short-term rentals4
• Some hosts continue to operate STRs covertly in Banff but risk penalties if caught4
• The Bed and Breakfast path is the only legal option but comes with many limitations2

Overall, Banff stands out as one of the least welcoming cities for Airbnb and short-term rental hosts in Canada34. The town's focus on preserving housing for local residents in the limited confines of a national park leaves little room for STRs to operate legally12.

While some hosts try to skirt the rules, most look to other markets like Canmore that offer an easier path to short-term rental success4. Banff's uncompromising stance makes it an extremely difficult place to start an Airbnb business.

The town faces a housing crisis with very low vacancy rates and rapidly rising prices14. Restrictions on STRs are seen as one important policy to increase long-term rental supply and limit further erosion of affordability4. But it puts Banff in stark contrast to the more laissez-faire approach of many other vacation destinations.