Big White, Canada Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Big White, British Columbia?

Big White is a popular ski resort located in the Southern Interior of British Columbia, Canada. With its world-class skiing and stunning mountain scenery, it's no surprise that many property owners are interested in starting a short-term rental business in the area. However, before diving in, it's crucial to understand the local regulations and zoning laws that govern short-term rentals.

Starting a Short-Term Rental Business in Big White

According to the Big White Zoning Bylaw No. 1166, short-term rentals are permitted in most residential zones, including the High-Density Mixed Residential/Commercial 8 Zone (R8). This means that property owners can rent out their homes or condos on platforms like Airbnb and VRBO, as long as they comply with the relevant regulations.

One important thing to note is that the Regional District of Kootenay Boundary (RDKB), which encompasses Big White, has decided not to "opt-in" to the principal residence requirements set by the province's Short-Term Rental Accommodations Act in 2024. This means that, for now, property owners in Big White are not limited to renting out only their principal residence plus one additional unit.

However, it's essential to keep in mind that the RDKB can choose to adopt more restrictive bylaws or opt into the provincial requirements in the future. As a property owner, it's your responsibility to stay informed about any changes to local regulations.

When starting a short-term rental business in Big White, it's also a good idea to work with a reputable property management company that specializes in vacation rentals. Companies like Stay Locations can help you navigate the local regulations, optimize your listing, and maximize your bookings.

It's worth noting that some areas within Big White, such as the resort accommodation areas, are exempt from the provincial principal residence requirement. This means that property owners in these designated areas have more flexibility when it comes to short-term rentals.

While Big White's zoning bylaws are relatively permissive when it comes to short-term rentals, it's still crucial to ensure that your property meets all the necessary safety and building code requirements. This may include obtaining the proper permits, installing smoke detectors, and providing adequate parking for guests.

In conclusion, starting a short-term rental business in Big White can be a lucrative venture, but it's essential to do your due diligence and understand the local regulations. By staying informed, working with a knowledgeable property management company, and ensuring your property is up to code, you can set yourself up for success in this exciting market.

Short-Term Rental Licensing Requirement in Big White

To legally operate a short-term rental in Big White, property owners must obtain a business license from the Regional District of Kootenay Boundary (RDKB). However, as of 2024, the RDKB has decided not to "opt in" to the provincial regulations that require a business license for STRs. This means that currently, a business license is not required to operate a short-term rental in Big White.

Despite not requiring a business license, STR operators in Big White must still comply with other provincial and local regulations:

• STR hosts must register their property with the provincial Short-Term Rental Accommodations Registry and include the registration number in any online listings starting May 1, 2024.
• The property must be zoned to allow for short-term rentals. Many residential zones in Big White permit STRs, including the High Density Mixed Residential/Commercial 8 Zone (R8).
• The dwelling unit must have been legally constructed with proper building permits. If it was built or converted without permits, the owner needs to apply for a retroactive building permit before it can be used as a rental.
• The unit must meet density regulations in the applicable zoning bylaw.
• STRs are subject to the principal residence requirement that takes effect May 1, 2024, limiting rentals to the operator's primary home plus one secondary suite or accessory dwelling. However, many resort areas like Big White are exempt from this rule.

While the RDKB does not issue business licenses or charge fees for STRs, operators who violate zoning bylaws or building codes can face significant penalties. Operating a rental in an illegally constructed or converted unit can result in fines.

The process to ensure compliance depends on the specific circumstances of the property. At minimum, hosts should:

• Confirm the property is zoned for STRs by checking the Big White zoning map
• Verify the unit was constructed or converted with proper permits
• Register with the provincial STR registry before May 1, 2024
• Include the registration number in any online listings

For more information, STR operators can contact the RDKB's Planning Department at plandept@rdkb.com. The department keeps a record of public comments and questions to present to the Electoral Area Services Committee for review.

In summary, while Big White does not currently require business licenses for short-term rentals, hosts still need to meet other important regulations at the provincial and local levels. Failure to comply with building and zoning rules can lead to significant fines. As local STR bylaws can change annually, it's important for operators to stay informed of the latest requirements.

Big White Short-Term Rental Taxes

As a short-term rental operator in Big White, it's crucial to understand the various taxes that apply to your business. Failing to collect and remit the proper taxes can result in penalties and legal issues. Here's a breakdown of the key taxes you need to be aware of:

Provincial Sales Tax (PST)

The Province of British Columbia charges an 8% Provincial Sales Tax (PST) on all short-term accommodations. This tax applies to rentals of less than 27 consecutive days. As a short-term rental host, you are responsible for collecting this tax from your guests and remitting it to the provincial government.

Municipal and Regional District Tax (MRDT)

In addition to the PST, many municipalities and regional districts in British Columbia levy a Municipal and Regional District Tax (MRDT) on short-term accommodations. The MRDT rate varies by jurisdiction, but in the Big White area, it is currently set at 2%. This tax is also collected by the host and remitted to the provincial government, which then distributes the funds to the applicable municipality or regional district.

Goods and Services Tax (GST)

The federal Goods and Services Tax (GST) of 5% applies to all short-term rentals in Canada. As with the PST and MRDT, hosts are responsible for collecting and remitting this tax to the Canada Revenue Agency (CRA).

It's important to note that if the combined PST, MRDT, and any other applicable taxes exceed 12%, the GST will also apply to those taxes. This can result in a higher total tax rate for your guests.

Income Tax

In addition to the taxes you collect from guests, you must also report your short-term rental income on your personal or business income tax return. The specific tax treatment will depend on whether your rental activity is considered a business or an investment for tax purposes.

If your short-term rental is deemed a business, you may be able to deduct a wide range of expenses, such as mortgage interest, property taxes, insurance, utilities, cleaning fees, and depreciation. However, if your rental is considered an investment, your deductions may be more limited.

Possible Deductions and Write-Offs

As a short-term rental operator, there are several potential deductions and write-offs you can claim to reduce your taxable income:

• Mortgage interest
• Property taxes
• Insurance premiums
• Utilities
• Cleaning and maintenance costs
• Repairs and renovations
• Supplies and amenities provided to guests
• Advertising and marketing expenses
• Property management fees
• Depreciation of the rental property and furnishings

To maximize your deductions and ensure compliance with tax laws, it's advisable to work with a qualified accountant or tax professional who specializes in short-term rentals.

In summary, as a short-term rental host in Big White, you must collect and remit the 8% PST, 2% MRDT, and 5% GST on all bookings. Additionally, you must report your rental income on your tax return and may be eligible for various deductions. Staying informed about your tax obligations and keeping accurate records will help you avoid penalties and optimize your rental business's profitability.

British Columbia Wide Short-Term Rental Rules

In addition to any local regulations in Big White, short-term rental hosts must also comply with province-wide rules set by the Government of British Columbia. The Short-Term Rental Accommodations Act, which took effect in stages starting in late 2023, aims to return more short-term rental units to the long-term housing market, give local governments stronger enforcement tools, and establish a new provincial role in regulating short-term rentals.

Key provincial requirements include

• Principal Residence Requirement: Effective May 1, 2024, short-term rentals are limited to the host's principal residence, plus one additional unit, such as a secondary suite or accessory dwelling. However, this requirement does not apply in Big White and other designated resort areas, which are currently exempt.
• Business License Display: Starting May 1, 2024, hosts must display a valid business license number on their short-term rental listing, if a license is required by their local government. Platforms must remove listings without a valid license upon request.
• Provincial Registration: By early 2025, the province plans to launch a short-term rental registry. Hosts will need to register and include their provincial registration number in listings. Platforms will be required to validate these numbers against provincial data.
• Data Sharing: Beginning in summer 2024, short-term rental platforms must share data about their B.C. listings with the provincial government on a monthly basis. The province can then share this information with local governments to support enforcement efforts.
• Increased Fines: The act raised the maximum fines for bylaw offenses. Regional districts can now set fines up to $50,000 for prosecutions, up from $2,000 previously. Municipal ticketing fines increased from $1,000 to $3,000 per infraction per day.
• Compliance and Enforcement: The province is establishing a compliance and enforcement unit to investigate alleged violations of the act. Penalties can range from $500 to $5,000 per infraction for individuals, and up to $10,000 for corporations.

It's important to note that local governments can enact bylaws that are more restrictive than the provincial rules. Big White hosts should stay informed of any changes to regional district or resort municipality bylaws that may affect them.

The province has emphasized that the goal is to reign in commercial operators running multiple "mini-hotels," not to punish hosts for renting out their own homes occasionally. However, all short-term rental operators are advised to carefully review the new legislation to ensure they are in full compliance with provincial and local requirements.

Does Big White Strictly Enforce STR Rules?

Based on discussions in online forums like Bigger Pockets and Reddit, it appears Big White takes a relatively lenient approach to enforcing short-term rental regulations compared to larger cities in British Columbia. Several users mention that purpose-built condo complexes zoned for nightly rentals are common and operate without much pushback from the municipality.

This makes sense, given Big White's status as a resort community that relies heavily on tourism. Allowing a robust supply of short-term accommodations is crucial for attracting visitors and supporting local businesses. Cracking down too hard on Airbnb-style rentals could have a chilling effect on the town's economy.

However, this doesn't mean hosts can flout the rules entirely. With the province increasing fines for violations and threatening to revoke tax deductions for non-compliant listings, Big White may start taking enforcement more seriously. The municipality itself also has a vested interest in ensuring short-term rentals don't negatively impact housing availability and affordability for full-time residents.

Overall, Big White seems to be more Airbnb-friendly than cities like Vancouver or Victoria, but hosts still need to do their due diligence and follow applicable regulations. Flying under the radar is getting increasingly risky as the short-term rental industry faces greater scrutiny from all levels of government. Playing by the rules is the best way to build a sustainable and profitable rental business in the long run.

How to Start a Short-Term Rental Business in Big White

Starting a short-term rental business in Big White can be a lucrative venture, but it's important to approach it strategically. Here's a step-by-step guide to help you get started:

• Research local regulations: Before investing in a property or listing your existing home, thoroughly review Big White's zoning bylaws and any other short-term rental regulations. Ensure your property is eligible for nightly rentals and understand any restrictions or requirements you'll need to follow.
• Choose the right property: Look for a property that's well-suited for short-term rentals. In Big White, this often means a condo or townhouse in a complex zoned for nightly rentals. Consider factors like location, amenities, and potential rental income when making your decision.
• Obtain necessary permits and licenses: While Big White doesn't currently require a business license for short-term rentals, you'll still need to register with the provincial government and obtain any other required permits. Make sure your property meets all building and safety codes.
• Set up your listing: Create an attractive and informative listing on popular platforms like Airbnb and VRBO. Hire a professional photographer to showcase your property's best features, and write compelling descriptions that highlight its unique selling points. Be transparent about any rules or restrictions guests need to follow.
• Invest in quality furnishings and amenities: To attract guests and earn positive reviews, outfit your rental with comfortable, stylish furnishings and all the amenities they'll need for an enjoyable stay. This might include high-quality linens, a well-equipped kitchen, reliable Wi-Fi, and entertainment options like a smart TV or game console.
• Develop a pricing strategy: Research comparable listings in Big White to determine a competitive nightly rate for your rental. Consider factors like seasonality, events, and demand when setting your prices. You may want to use dynamic pricing tools to automatically adjust rates based on market conditions.
• Create a system for managing bookings and communication: Establish a process for handling booking inquiries, guest communication, and check-in/check-out procedures. You can manage this yourself or hire a property management company to handle the day-to-day operations.
• Prioritize cleanliness and maintenance: Guests expect a spotless and well-maintained rental. Develop a thorough cleaning checklist and hire reliable housekeeping staff to ensure your property is always guest-ready. Address any maintenance issues promptly to avoid negative reviews.
• Promote your listing: In addition to optimizing your listing on rental platforms, consider other ways to market your property. This might include creating a website, running social media ads, or partnering with local businesses to offer special packages.
• Stay informed and adaptable: The short-term rental landscape is constantly evolving, so it's crucial to stay up-to-date on any changes to local regulations or market trends. Be prepared to adapt your strategy as needed to ensure the long-term success of your rental business.

By following these steps and providing an exceptional guest experience, you can build a thriving short-term rental business in Big White. Just remember to always prioritize compliance with local laws and being a responsible host in the community.

Who to Contact in Big White about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental rules or need to obtain required licenses and permits in Big White, reach out to the following departments and organizations:

Regional District of Kootenay Boundary (RDKB) Planning Department

The RDKB Planning Department handles zoning inquiries and land use approvals for Big White. Contact them for questions about whether your property is zoned for short-term rentals.

Phone: 250-368-0241
Email: plandept@rdkb.com
Address: 202-843 Rossland Avenue, Trail, BC V1R 4S8

RDKB Building Department

If your short-term rental is in a dwelling that was constructed or converted without proper building permits, contact the RDKB Building Department to apply for retroactive permits before operating your rental.

Phone: 250-368-0241
Email: buildingdept@rdkb.com

Big White Fire Department

Reach out to the Big White Fire Department for questions about fire and safety requirements for your short-term rental, such as smoke detectors, fire extinguishers, and emergency exits.

Phone: 250-765-3090
Address: 7555 Porcupine Road, Big White, BC

Useful Communities for Big White Hosts

Consider joining these online communities to connect with other short-term rental operators in Big White and get peer advice:

• Big White Short-term Rentals Facebook Group: https://www.facebook.com/groups/bigwhitestrs/
• Big White Hosts Forum on BiggerPockets: https://www.biggerpockets.com/forums/530-big-white-short-term-rental-hosts
• r/BigWhiteSTR Subreddit: https://www.reddit.com/r/BigWhiteSTR/

You can also attend local short-term rental association meetings to network with other hosts and stay up-to-date on regulatory changes. Look for notices about upcoming meetings on the RDKB website or the online communities listed above.

When contacting municipal staff or participating in host forums, have your property address and zoning details ready. The more specific information you can provide upfront, the easier it will be to get accurate guidance on Big White's short-term rental regulations and how they apply to your unique situation. Building positive relationships with both local officials and fellow hosts will serve you well as you navigate the evolving regulatory landscape.

What Do Airbnb Hosts in Big White on Reddit and Bigger Pockets Think about Local Regulations?

Scanning the posts on Reddit and Bigger Pockets, a few key themes emerge regarding how short-term rental operators view the regulatory environment in Big White:

Some hosts feel the new provincial rules unfairly target compliant operators who have invested in properties specifically zoned for short-term renting. They argue that blanket restrictions hurt law-abiding hosts while doing little to rein in "rogue" listings.

Others express frustration with the lack of clarity around municipal bylaws and licensing requirements. They want the town to provide more explicit guidance to help hosts understand and adhere to local regulations.

There is concern that the rising fees, taxes, and potential fines associated with running a short-term rental will eat into profits and make it harder for small-scale hosts to compete with larger, corporate players.

Despite these gripes, most posters seem to agree that Big White remains more welcoming to short-term rentals than other BC municipalities. The town's zoning bylaws allow for purpose-built rental accommodations in certain areas, which is not the case in many larger cities.

Several hosts emphasize the importance of doing thorough due diligence before buying a short-term rental property in Big White. They advise working with a local realtor who understands zoning and can steer you towards compliant listings.

Overall, the sentiment among Airbnb hosts in Big White seems to be one of cautious optimism. While they may not love every aspect of the regulatory framework, most recognize that the town's economy depends on a healthy supply of tourist accommodations. By working proactively with municipal officials and advocating for fair, clear rules, hosts can help ensure short-term rentals remain a viable investment in this popular ski resort for years to come.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.