Bowen Island Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Bowen Island, Canada?

Bowen Island, a scenic community located off the coast of West Vancouver, has implemented bylaws and regulations to govern short-term rentals like Airbnb and VRBO. These rules aim to balance the needs of residents, visitors, and the local economy. Here's what you need to know about operating a short-term rental on Bowen Island.

Starting a Short-Term Rental Business in Bowen Island

As of April 2024, Bowen Island has opted into British Columbia's new provincial short-term rental regulations under Bill 35. This means the principal residence requirement will apply on Bowen Island starting November 1, 2024.

The principal residence requirement mandates that short-term rentals must be limited to a host's principal residence and either a secondary suite or accessory dwelling unit on the same property. Hosts must live in the home for at least 6 months of the year for it to qualify as their principal residence.

Prior to opting into the provincial rules, Bowen Island already had its own short-term rental regulations in place since 2020. These allowed two types of short-term rentals:

• Bed and Breakfasts (B&B) - can operate year-round with the owner living on-site
• Residential Guest Accommodations (RGA) - rentals under 30 days, up to 120 days per year

As of 2023, Bowen Island had issued business licenses for 58 B&Bs and 78 RGAs for a total of 136 active short-term rentals. This was a significant increase from just 40 total STRs in 2021.

Under the new provincial rules, the 58 B&Bs can continue operating as long as the owner lives on the property. Of the 78 RGAs, 44 serve as the owner's principal residence and can also continue. However, 32 RGAs are owned by people who primarily live elsewhere, so they will have to cease short-term rental operations.

To legally operate a short-term rental on Bowen Island, hosts must:

1. Ensure their property is their principal residence
2. Obtain a valid business license from the municipality
3. Include their business license number in all online listings
4. Comply with all local bylaws and provincial regulations

Bowen Island's short-term rental bylaws also have requirements around parking, noise, and the number of guests allowed. Fines for non-compliance can reach $500 per day.

The municipality is currently in the process of updating its short-term rental policies to align with the new provincial rules. Existing operators and those considering starting a short-term rental should stay informed of any additional changes.

While the new regulations will undoubtedly impact some short-term rental operators on Bowen Island, the goal is to protect long-term rental housing for residents while still allowing some vacation rentals in principal residences. With Bowen Island's popularity as a tourist destination, there will likely still be a range of legal short-term rental options available for visitors.

Short-Term Rental Licensing Requirement in Bowen Island

All short-term rental operators on Bowen Island are required to obtain a valid business license from the Bowen Island Municipality and include their license number in any online listings or advertising. Operating a short-term rental without a proper license can result in fines of up to $500 per day.

To be eligible for a short-term rental business license, the property must be the operator's principal residence, where they live for at least 6 months of the year. This principal residence requirement will be enforced as of November 1, 2024, when Bowen Island's STR regulations align with the new provincial legislation.

There are two types of licensed short-term rentals permitted on Bowen Island:

1. Bed and Breakfasts (B&B) - can operate year-round with the owner living on-site
2. Residential Guest Accommodations (RGA) - rentals under 30 days, up to 120 days per year

As of 2023, Bowen Island had issued business licenses for 58 B&Bs and 78 RGAs for a total of 136 active short-term rentals. However, a review found that 32 of the licensed RGAs are owned by people who primarily live elsewhere, so they will have to cease operations under the new principal residence rules.

When applying for a short-term rental business license, operators must:

1. Confirm their property is their principal residence
2. Meet all fire and safety requirements
3. Obtain permission from the property owner and/or strata if applicable
4. Review the municipality's STR bylaws and good neighbor agreement
5. Pay the applicable license fees

Bowen Island's short-term rental bylaws also have requirements around parking, noise, and the number of guests allowed. Operators must post a copy of their business license in the rental unit and provide guests with the good neighbor agreement.

The municipality conducts both complaint-based and proactive enforcement to ensure STR operators are properly licensed and following the rules. Bylaw officers can issue fines for non-compliance and revoke business licenses for repeated violations.

Short-term rental business licenses must be renewed annually and kept up to date with accurate information. With the adoption of the new provincial regulations, Bowen Island's licensing process aims to balance the needs of residents and visitors while protecting long-term rental housing on the island.

Bowen Island Short-Term Rental Taxes

Short-term rental operators on Bowen Island are required to collect and remit several taxes on their rental income. These include:

1. Provincial Sales Tax (PST) - 8%
2. Municipal and Regional District Tax (MRDT) - 2%
3. Goods and Services Tax (GST) - 5%

The 8% PST applies to all short-term accommodations in British Columbia, including hotels, motels, resorts, bed and breakfasts, and vacation rentals like Airbnb. PST must be charged on the total price of accommodation, including any cleaning fees or other additional charges.

The 2% MRDT is a tax levied by the Bowen Island Municipality on short-term accommodations. This tax is used to fund tourism marketing, programs and projects in the community. Like the PST, the MRDT applies to the total price of accommodation.

The 5% GST is a federal value-added tax that applies to most goods and services in Canada, including short-term rentals. GST is calculated on the rental price plus any PST and MRDT charged.

As an example, if a short-term rental on Bowen Island charges $200 per night, the taxes would be:

1. 8% PST = $16
2. 2% MRDT = $4
3. Subtotal = $220
4. 5% GST = $11
5. Total with taxes = $231

Short-term rental operators are responsible for registering to collect these taxes, charging the appropriate amounts to guests, and remitting the taxes to the respective governments. Failure to do so can result in penalties and interest charges.

Operators must register for a PST number with the province and a GST/HST number with the Canada Revenue Agency. They must also file regular tax returns reporting their rental income and tax collected.

It's important for short-term rental hosts to keep accurate records of their rental income and expenses for tax purposes. Hosts can claim deductions for expenses related to the rental, such as a portion of their mortgage interest, property taxes, utilities, insurance, and maintenance costs.

Short-term rental income is also subject to income tax. Hosts must report their net rental income (after expenses) on their personal or corporate income tax return. Depending on their situation, hosts may be able to take advantage of the small business deduction or capital cost allowance to reduce their taxable income.

In summary, short-term rental operators on Bowen Island have several tax obligations they must meet, including collecting and remitting PST, MRDT, and GST on their rental charges. Hosts should ensure they are charging the correct amounts, keeping good records, and reporting their rental income to avoid potential penalties and interest. Consulting with a tax professional can help ensure compliance with all tax requirements.

British Columbia Wide Short-Term Rental Rules

The province of British Columbia has introduced new rules and regulations for short-term rentals that apply across the province. These rules, which started coming into effect in 2023, aim to return more short-term rental units to the long-term housing market and establish a new provincial role in regulating short-term rentals.

One of the key changes is the principal residence requirement, which takes effect on May 1, 2024. This rule restricts short-term rentals to the host's principal residence plus one additional unit, such as a secondary suite or accessory dwelling unit on the same property. The requirement applies to communities with populations greater than 10,000 people, covering over 65 communities in B.C.

However, some exemptions apply. Strata hotels and motels that were operating similarly to a hotel before December 8, 2023, and meet certain criteria are exempt from the principal residence requirement. Additionally, smaller communities, designated tourist areas like mountain resorts, B.C. Parks, Agricultural Land Reserves, and First Nations lands are exempt unless they choose to opt in.

The province has also given local governments stronger tools to enforce their short-term rental bylaws. Maximum fines for bylaw offenses have increased from $2,000 to $50,000. Municipalities can now issue tickets with fines up to $3,000 per infraction per day, up from the previous $1,000 limit. Regional districts have also been granted the authority to regulate and license short-term rentals.

Starting May 1, 2024, short-term rental hosts must display a valid business license number on their listings if required by their local government. Short-term rental platforms like Airbnb and Vrbo will be required to share data on B.C. listings with the provincial government and remove listings that do not comply with regulations.

The province is establishing a short-term rental registry, expected to launch in late 2024 or early 2025. Hosts will need to include their provincial registration number on listings, and platforms must validate these numbers against the registry.

To enforce the new rules, the province has created a Short-Term Rental Compliance and Enforcement Unit. This unit will conduct investigations into alleged non-compliance and may issue fines ranging from $500 to $5,000.

The new regulations have sparked concerns among some short-term rental operators who fear financial losses. However, the provincial government maintains that the changes are necessary to increase long-term rental housing stock in communities facing affordability challenges. With over 19,000 entire homes listed as short-term rentals in B.C. as of March 2024, the province aims to return a significant portion of these to the long-term market.

Municipalities can still introduce additional bylaws that are more restrictive than the provincial rules. The introduction of province-wide short-term rental regulations marks a significant shift in B.C.'s approach to managing the impacts of the growing vacation rental industry. As the new rules come into effect, hosts, platforms, and local governments will need to adapt to ensure compliance and balance the needs of residents, visitors, and communities across British Columbia.

Does Bowen Island Strictly Enforce STR Rules?

Based on discussions from online communities like Reddit and local news reports, it appears that Bowen Island has not been strictly enforcing its short-term rental regulations. Many hosts continue to operate STRs without proper licensing and in violation of the rules.

Data from January 2022 showed that nearly two-thirds of short-term rentals on Bowen Island were operating without a business license. The municipality had approved 41 STR licenses in 2021, but tracking found 113 active STR listings, leaving 72 unlicensed.

The Bowen Island Municipality relies primarily on complaints from residents to identify illegal short-term rentals rather than proactively monitoring listings and seeking out non-compliant properties. Bylaw officers find it challenging to locate specific addresses to follow up on, as listings often only provide a general area until booking.

Compared to cities like Vancouver which have dedicated significant resources to STR enforcement, Bowen Island appears to be quite friendly to Airbnb and other short-term rental hosts in practice. Enforcement actions like fines are relatively rare despite the high rate of unlicensed rentals.

Some Bowen Islanders have expressed concerns that the lack of affordable housing is exacerbated by property owners continuing to short-term rent illegally. There are likely financial incentives for hosts to operate STRs without a license, as they can earn significant income with minimal risk of penalties.

However, with Bowen Island opting into BC's new province-wide STR regulations in March 2024, the landscape may start to change. The principal residence requirement and enforcement from the provincial compliance unit could push more island hosts to pursue long-term tenants or sell their properties instead.

Overall, based on available information from online discussions and local media, Bowen Island has demonstrated a lack of strict enforcement of its short-term rental bylaws to date. This has seemingly allowed a large number of unlicensed STRs to operate, making the island a relatively welcoming place for Airbnb hosts despite the regulatory violations. However, the community's decision to adopt the new provincial rules may signal a shift towards tighter restrictions and greater compliance going forward.

How to Start a Short-Term Rental Business in Bowen Island

If you're interested in starting a short-term rental business on Bowen Island, here are the key steps to follow:

1. Confirm your property is eligible for a short-term rental business license. As of November 1, 2024, it must be your principal residence where you live for at least 6 months per year. You can rent your entire home or a room within it.
2. Determine if you will operate as a Bed and Breakfast (B&B) with the owner living on-site year-round or a Residential Guest Accommodation (RGA) renting for less than 30 days at a time, up to 120 days per year.
3. If you are a renter, obtain written permission from the property owner. If you live in a strata property, verify that the bylaws allow short-term rentals and obtain a signed authorization form.
4. Ensure your property meets all fire and safety requirements, including working smoke and carbon monoxide detectors, fire extinguishers, and an evacuation plan posted at all entrances.
5. Determine the maximum number of guests your property can accommodate based on the number of bedrooms and municipal occupancy limits.
6. Ensure you have the required on-site parking for your guests, as per Bowen Island's land use bylaw.
7. Review the Bowen Island Municipality's short-term rental bylaws, good neighbor agreement, and other regulations to understand your responsibilities as a host.
8. Gather the required documents for your business license application:
   1. Completed application form
   2. Proof of principal residence (2+ documents)
   3. Owner/strata consent forms if applicable
   4. Parking plan
   5. Fire safety plan
   6. Designated responsible person contact info (can be a co-host or property manager if the owner is not available)
   7. Signed Good Neighbour Agreement
9. Submit your short-term rental business license application to the Bowen Island Municipality along with all required documents and fees. As of 2023, license fees were $200 for a B&B and $300 for an RGA.
10. Once you receive your business license, include the license number in all online listings and advertisements for your rental property. Post a copy of the license in the rental unit.
11. Provide your guests with a copy of the Good Neighbour Agreement and ensure they are aware of noise bylaws, parking rules, garbage and recycling procedures, and other applicable regulations. Also, provide a copy of your house rules if you have any.
12. Collect and remit the required taxes on your rental income, including the 8% PST, 2% MRDT, and 5% GST. Register for a PST number and GST/HST number and file regular returns.
13. Keep accurate records of your rental income and expenses for tax purposes. Claim eligible expenses to reduce your taxable income.
14. Renew your short-term rental business license annually and keep all information up to date. Comply with any requests from the municipality for inspections or audits.

By following these steps and adhering to Bowen Island's short-term rental regulations, you can legally operate a vacation rental business in your principal residence. However, keep in mind that with the new provincial rules coming into effect, you may need to make changes to ensure ongoing compliance. Stay informed and connected with the Bowen Island Municipality for the latest updates.

Who to Contact in Bowen Island about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or zoning on Bowen Island, there are several key contacts at the Bowen Island Municipality who can assist you:

Planning and Development Department

For questions about zoning, land use, and the Official Community Plan as they relate to short-term rentals

Email: planning@bimbc.ca
Phone: 604-947-4255

Bylaw Services Department

For questions about short-term rental business licenses, bylaw enforcement, and complaints

Email: bylaw@bimbc.ca
Phone: 604-947-4255

Finance Department

For questions about business license fees, utility fees, and municipal taxes for short-term rentals

Email: finance@bimbc.ca
Phone: 604-947-4255

For general inquiries related to short-term rentals, you can contact the Bowen Island Municipality main office:

Address: 981 Artisan Lane, Bowen Island, BC V0N 1G2
Phone: 604-947-4255
Email: bim@bimbc.ca
Hours: Monday to Friday, 8:30am to 4:30pm (excluding statutory holidays)

If you're unsure which department to contact, start by calling the main office phone number or sending an email to the general inbox. The staff will direct you to the appropriate person or department based on the nature of your short-term rental inquiry.

By reaching out to these municipal contacts, you can get specific guidance on how Bowen Island's short-term rental regulations and zoning rules apply to your situation. They can help you navigate the licensing process, understand your obligations as a host, and ensure you're in compliance with all applicable bylaws and policies. Don't hesitate to get in touch with any questions or concerns about operating a short-term rental business on Bowen Island.

What Do Airbnb Hosts on Bowen Island Think about Local Regulations?

Based on discussions from online communities like Reddit and Bigger Pockets, it appears that opinions are mixed among Airbnb hosts on Bowen Island regarding the local short-term rental regulations:

In a Reddit thread about what to do with 2.5 acres of land on Bowen Island, some commenters suggested building cabins or yurts to use as short-term rentals on Airbnb. This indicates that despite regulations, STRs are still seen as a viable option by some.

However, another Redditor pointed out that Bowen Island has a high rate of unlicensed short-term rentals, with only about 150 out of over 300 being properly licensed as of 2022. They expressed frustration that "greed kills communities" when it comes to the proliferation of illegal Airbnbs on the island.

Discussions around BC's new province-wide short-term rental legislation suggest concern among some hosts. With Bowen Island opting into the new rules that restrict STRs to principal residences, some owners of secondary properties used as Airbnbs are reportedly "panicking" and looking to sell, according to realtors.

On the other hand, some online commenters have little sympathy for STR hosts facing new restrictions. One Redditor stated, "You shouldn't be able to invest and profit from housing any more than you should from food. Food and shelter are basic human rights." Others expressed hope that properties will be returned to the long-term rental market for local residents.

In a thread about Vancouver's increasing flouting of STR regulations, a commenter noted that on Bowen Island, stratas (condo/townhouse councils) seem to be doing more to crack down on Airbnbs in their buildings than the municipality itself is. This suggests some residents want to see the rules enforced.

Overall, the online discussions paint a picture of an island community grappling with the impacts of short-term rentals. While some hosts are pushing back against new restrictions, there also seems to be a sentiment among many that protecting long-term housing should take priority over vacation rentals. As the regulations continue to evolve, the debate is likely to continue on Bowen Island and beyond.

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.