Brentwood Bay, Canada Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Brentwood Bay, Canada?

Short-term rentals, such as those listed on platforms like Airbnb and VRBO, have become increasingly popular in recent years. However, many municipalities have introduced regulations to govern these types of rentals. Brentwood Bay, located on Vancouver Island in British Columbia, Canada, is no exception. Here's what you need to know about short-term rental regulations in Brentwood Bay.

Starting a Short-Term Rental Business in Brentwood Bay

Before starting a short-term rental business in Brentwood Bay, it's important to understand the local regulations. The District of Central Saanich, which includes Brentwood Bay, does not currently have specific bylaws regulating short-term rentals. However, the province of British Columbia has introduced new rules that restrict short-term rentals to principal residences in many communities, including Brentwood Bay, starting May 1, 2024.

Under the new provincial rules, people can only host short-term accommodations at their principal residence, an attached secondary suite, or an accessory dwelling on their property. This means that separate, stand-alone apartments and units can no longer be used for short-term rentals in Brentwood Bay.

It's also important to note that there is a shortage of rental spaces on the Saanich Peninsula, which includes Brentwood Bay, that is comparable to Victoria and other areas. This shortage may impact the availability of long-term rentals as more properties are converted to short-term rentals.

When starting a short-term rental business, it's crucial to check local zoning laws to ensure the property is zoned for short-term rentals. Depending on the location, there may be limits on how long a property can be rented, typically anywhere between 30 to 180 nights per year. Zoning laws may also restrict the number of guests allowed at one time.

Other considerations when starting a short-term rental business include writing a business plan, determining pricing, listing the property on platforms like Airbnb and VRBO, and automating rental tasks. It's also a good idea to consider forming a business entity to protect personal assets.

In summary, while Brentwood Bay does not currently have specific bylaws regulating short-term rentals, the province of British Columbia has introduced new rules restricting these rentals to principal residences starting in May 2024. Those looking to start a short-term rental business in Brentwood Bay should carefully review provincial regulations and consider factors such as zoning, pricing, and business planning to ensure success.

Short-Term Rental Licensing Requirements in Brentwood Bay

As the District of Central Saanich does not currently have specific bylaws regulating short-term rentals, there are no licensing requirements for operating a short-term rental in Brentwood Bay at the municipal level. However, hosts must comply with the new provincial rules that take effect on May 1, 2024.

The province has established a Compliance and Enforcement Unit (CEU) within the Short-Term Rental Branch in the Ministry of Housing to ensure that the provincial short-term rental rules are being followed. Platforms that violate the regulations can face administrative penalties of up to $10,000 per day, while hosts can face penalties ranging from $500 to $5,000 per day, depending on the infraction.

Guests staying in short-term rentals will not face any fines under the new rules. However, it is recommended that anyone planning to stay in a short-term rental on or after May 1, 2024, reach out to the host to confirm that the unit will be in compliance with the provincial regulations.

In summary, while Brentwood Bay does not currently have specific bylaws or licensing requirements for short-term rentals, the province of British Columbia has introduced new rules restricting these rentals to principal residences starting in May 2024. Those looking to start a short-term rental business in Brentwood Bay should carefully review provincial regulations and be aware of the potential penalties for non-compliance.

Required Documents for Brentwood Bay, Canada Short-Term Rentals

As Brentwood Bay is part of the District of Central Saanich, which does not currently have specific bylaws regulating short-term rentals, there are no required documents at the municipal level for operating a short-term rental in Brentwood Bay. However, hosts must comply with the new provincial rules that take effect on May 1, 2024, which restrict short-term rentals to principal residences.

While there are no specific licensing requirements for short-term rentals in Brentwood Bay, it's important to note that the nearby City of Victoria does have regulations and required documents for eligible short-term rental operators:

• Short-Term Rental Business License: This license is required for eligible operators to legally run a short-term rental in Victoria. It ensures compliance with the city's short-term rental bylaws and operating requirements. The license can be obtained through the City of Victoria's Business Licensing department.
• Proof of Principal Residence: Hosts must provide documentation showing that the short-term rental unit is their principal residence. This could include a driver's license, utility bill, or property tax assessment showing the address. The purpose is to ensure the property is the host's main home and not a separate investment property, in line with the city's regulations.
• Strata Approval (if applicable): If the short-term rental is located in a strata property, written approval from the strata council is required. This confirms that short-term rentals are permitted under the strata bylaws. The approval document can be obtained from the strata council or property management company.

Although these specific requirements apply to Victoria and not Brentwood Bay, they provide an example of the types of documents that may be required if the District of Central Saanich introduces short-term rental regulations in the future. For now, Brentwood Bay hosts should focus on ensuring their short-term rental complies with the provincial principal residence requirement taking effect in May 2024.

Brentwood Bay Short-Term Rental Taxes

Short-term rental hosts in Brentwood Bay, British Columbia, are required to collect and remit several taxes on their rental income. These taxes include:

1. Provincial Sales Tax (PST): The PST is an 8% tax that applies to all short-term accommodations in British Columbia. Hosts must register to collect PST and remit it to the provincial government on a regular basis.
2. Municipal and Regional District Tax (MRDT): The MRDT is a 3% tax that applies to short-term accommodations in many municipalities and regional districts in British Columbia, including the District of Central Saanich, which encompasses Brentwood Bay. This tax is collected by the host and remitted to the provincial government along with the PST.
3. Goods and Services Tax (GST): The GST is a 5% federal tax that applies to most goods and services in Canada, including short-term rentals. Hosts who earn more than $30,000 per year from their rental business must register for a GST number and collect and remit the tax to the Canada Revenue Agency (CRA).

It's important to note that short-term rental platforms like Airbnb and VRBO may collect and remit some of these taxes on behalf of hosts. However, it is ultimately the host's responsibility to ensure that all applicable taxes are collected and remitted correctly.

Potential Tax Deductions for Short-Term Rental Hosts

Short-term rental hosts in Brentwood Bay may be eligible for certain tax deductions that can help offset the costs of operating their rental business. Some potential deductions include:

1. Mortgage interest and property taxes
2. Utilities, such as electricity, water, and internet
3. Cleaning and maintenance expenses
4. Supplies and amenities provided to guests
5. Insurance premiums
6. Advertising and marketing costs
7. Depreciation of furniture and equipment used in the rental

To claim these deductions, hosts must keep accurate records of their income and expenses and report them on their annual income tax return. It's recommended to consult with a tax professional to ensure that all eligible deductions are claimed correctly.

In summary, short-term rental hosts in Brentwood Bay are required to collect and remit several taxes, including the PST, MRDT, and GST. However, they may also be eligible for various tax deductions that can help reduce their overall tax liability. By understanding these tax requirements and potential deductions, hosts can ensure that they are operating their rental business in compliance with provincial and federal regulations.

British Columbia Wide Short-Term Rental Rules

In addition to any local regulations in Brentwood Bay and the District of Central Saanich, short-term rental hosts must also comply with new provincial rules that take effect on May 1, 2024. These rules are part of the Short-Term Rental Accommodations Act and apply to communities with populations over 10,000, as well as some smaller municipalities that have opted in.

The key provincial requirement is the Principal Residence Requirement. Under this rule, short-term rentals can only be offered in the principal residence of a host, plus one additional unit, secondary suite, or laneway home/garden suite on the property. This means that separate, stand-alone apartments and units can no longer be used for short-term rentals in most communities, including Brentwood Bay.

Short-term rental hosts will also need to display a valid business license number on their listings where local governments require a license. Platforms like Airbnb and VRBO will be required to share data with the provincial government and remove listings that do not comply with the regulations.

The province has established a Compliance and Enforcement Unit (CEU) within the Short-Term Rental Branch in the Ministry of Housing to ensure the rules are being followed. Platforms that violate the regulations can face administrative penalties of up to $10,000 per day, while hosts can face penalties ranging from $500 to $5,000 per day, depending on the infraction.

Guests staying in short-term rentals will not face any fines under the new rules. However, it is recommended that anyone planning to stay in a short-term rental on or after May 1, 2024, reach out to the host to confirm that the unit will be in compliance with the provincial regulations.

The goal of these new provincial rules is to return more short-term rental units to the long-term rental market and ensure housing availability for residents. While some communities have raised concerns about the impact on tourism, the government remains committed to curbing speculation and prioritizing housing for British Columbians.

Does Brentwood Bay Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that Brentwood Bay and the surrounding areas of British Columbia are not particularly Airbnb friendly compared to some other cities and regions. The province of BC has introduced strict new rules that will significantly limit short-term rentals starting in May 2024.

Under the new provincial regulations, short-term rentals will only be allowed in a host's principal residence, plus one additional unit on the same property. This effectively bans the common practice of investors buying separate properties specifically to use as short-term rentals. The goal is to return more housing stock to the long-term rental market.

While some hosts may attempt to skirt the rules, the province has set up a dedicated enforcement unit and steep penalties of up to $10,000 per day for platforms and $5,000 per day for hosts who violate the regulations. This suggests the government is serious about cracking down on non-compliant short-term rentals.

Real estate investors on BiggerPockets have noted that when strict short-term rental bans have been implemented in other cities like New York, a significant number of Airbnb hosts chose to sell their properties rather than risk fines or convert to long-term rentals. Early indications are that a similar trend is starting in BC in anticipation of the new rules, with former Airbnb units already appearing on the sales and long-term rental markets.

So in summary, Brentwood Bay and British Columbia as a whole appear poised to become a much more challenging environment for short-term rentals once the new regulations take effect. Hosts looking to operate STRs despite the rules will face stiff penalties if caught, making it a risky proposition. The region is prioritizing housing for long-term residents over Airbnb-style accommodations.

How to Start a Short-Term Rental Business in Brentwood Bay

Starting a short-term rental business in Brentwood Bay requires careful planning and compliance with provincial regulations. Here are the key steps to get started:

1. Understand the new provincial rules: As of May 1, 2024, short-term rentals in British Columbia can only be offered in the principal residence of a host, plus one additional unit, secondary suite, or laneway home/garden suite on the property. Familiarize yourself with these restrictions and ensure your planned rental unit is eligible. Review the Short-Term Rental Accommodations Act and regulations on the Province of British Columbia website for full details on the new rules.
2. Check local zoning and bylaws: While Brentwood Bay and the District of Central Saanich do not currently have specific bylaws regulating short-term rentals, it's important to verify that your property is zoned for this use. Contact the District's planning department to confirm. Consider applying for a Bed and Breakfast License if your rental will involve the use of sleeping units in your primary dwelling and include breakfast. This requires meeting zoning, fire safety, and building code requirements.
3. Obtain necessary licenses and permits: Although there are no specific short-term rental licenses required in Brentwood Bay at this time, you will need to register to collect and remit the 8% Provincial Sales Tax (PST) and 3% Municipal and Regional District Tax (MRDT) on your rental income. If you expect to earn over $30,000 annually, register for a GST number as well. Keep detailed records of your rental income and expenses, as you will need to report this on your annual income tax return. Consult a tax professional for guidance on deductions and filing requirements.
4. Prepare your property: Ensure your rental unit is clean, well-maintained, and equipped with all necessary amenities for guests. Consider hiring a professional photographer to take high-quality photos for your listing. Provide a welcome guide with important information about the property, house rules, and local attractions to help guests feel at home and minimize questions during their stay.
5. Create your listing: Once your property is ready, create a listing on popular short-term rental platforms like Airbnb and VRBO. Write a compelling description, set competitive rates, and establish clear house rules and cancellation policies. Highlight unique features of your property and the local area to make your listing stand out. Respond promptly to inquiries and maintain a high level of communication with guests.
6. Manage your bookings and guests: Use the platform's calendar and reservation system to manage bookings and communicate with guests before, during, and after their stay. Arrange for cleaning and turnover between guests. Consider using a keyless entry system or lockbox to streamline the check-in process and provide flexibility for guests arriving at different times.
7. Monitor reviews and maintain your listing: Encourage guests to leave reviews after their stay and respond promptly to any feedback, both positive and negative. Regularly update your listing with new photos, seasonal rates, and any property improvements. Maintain a high standard of cleanliness and guest satisfaction to earn positive reviews and build your reputation as a top-rated host in Brentwood Bay.

By following these steps and staying informed about provincial and local regulations, you can successfully launch and operate a short-term rental business in Brentwood Bay. Remember to prioritize compliance, guest experience, and effective management to ensure the long-term success of your venture.

Who to Contact in Brentwood Bay about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations and zoning in Brentwood Bay, the best place to start is by contacting the District of Central Saanich's Planning Department:

Planning Department
Phone: 250-544-4209
Email: planning@csaanich.ca

The Planning Department can provide information on current zoning bylaws and any specific regulations that may apply to short-term rentals in Brentwood Bay. They can also assist with questions about permits and land use.

For general inquiries related to business licenses, taxes, and other municipal matters, you can contact the District of Central Saanich's main office:

District of Central Saanich Municipal Hall
1903 Mount Newton Cross Road
Saanichton, BC V8M 2A9
Phone: 250-652-4444
Email: municipalhall@csaanich.ca

In addition to contacting local officials, short-term rental hosts in Brentwood Bay may find it helpful to connect with others in the industry through online communities and forums. Some popular options include:

1. The Airbnb Community Center (https://community.withairbnb.com/), which offers forums for hosts to share experiences, ask questions, and discuss industry trends.
2. The VRBO Community Forum (https://community.vrbo.com/), a similar platform for VRBO hosts to connect and share knowledge.
3. Local Facebook groups for short-term rental hosts in the Victoria and Vancouver Island area, such as "Vancouver Island Airbnb Hosts" and "Short Term Rental Operators of Greater Victoria".
4. The BiggerPockets Forums (https://www.biggerpockets.com/forums), a popular real estate investing community with a dedicated short-term rental section for discussing strategies and regulations.

By engaging with these communities, hosts can stay informed about regulatory changes, get advice from experienced operators, and build connections with others in the local short-term rental industry.

Remember, while these online communities can be valuable resources, it's always best to verify any regulatory information directly with the appropriate municipal departments to ensure accuracy and compliance.

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

While there are no discussions specifically about short-term rental regulations in Brentwood Bay on Reddit or BiggerPockets, hosts in other parts of British Columbia have shared their experiences and thoughts on provincial and municipal rules.

On Reddit, hosts have noted that Tofino, a popular resort town on Vancouver Island, recently voted to opt-in to the province's new restrictions limiting short-term rentals to principal residences. One commenter suggested this makes sense given Tofino's chronic shortage of housing for workers. Another mentioned that Tofino has long regulated vacation rentals, requiring the owner to live on-site, but many found workarounds by hiring local property managers.

In Victoria, the capital of BC, Redditors have questioned why the city doesn't do more to prosecute illegal short-term rental listings. Some argue there's a big difference between renting out a spare room versus operating a "pseudo-hotel," and that true home-sharing should be allowed to continue. Others say a significant portion of the rental market consists of illegal suites, so cracking down could hurt housing availability.

On BiggerPockets, a real estate investing forum, members have discussed the profitability and regulations around short-term rentals in other parts of the province. One host shared their experience operating Airbnbs in Madison, Wisconsin for the past four years and their interest in expanding to other areas like Milwaukee and lake homes in central Wisconsin.

Another post on BiggerPockets highlighted an extreme case in California where an Airbnb guest refused to leave a property or pay rent for 540 days. The original landlord had approvals in place for short-term rentals, but a dispute arose when the city later determined the guest house was not approved for occupancy.

So while there are no direct insights from Brentwood Bay hosts, these discussions demonstrate the complex landscape of short-term rental regulations that hosts must navigate in different jurisdictions. Many seem to favor allowing true home-sharing while restricting the operation of de facto hotels in residential properties. But opinions vary on how strictly rules should be enforced given the potential impacts on rental housing supply.

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.