Burlington Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Burlington

Burlington, Canada, has implemented regulations to govern the operation of short-term rentals like Airbnb and VRBO within the city limits. These rules aim to strike a balance between allowing residents to benefit from the sharing economy and mitigating the potential negative impacts of STRs on the local housing market and residential neighborhoods.

Zoning and Licensing Requirements

According to the City of Burlington's Zoning By-law 2020, short-term rentals are permitted in principal urban residences, rural residential zones, and certain other zones, subject to specific conditions. Hosts must obtain an annual license and pay the associated fees, which range from $90 to $390, depending on whether the rental is for a partial or entire dwelling unit.

The licensing process requires submitting various documents, including a floor plan, guest information package, fire escape plan, proof of insurance, and zoning verification. Additionally, entire dwelling unit rentals are subject to an inspection by the Hamilton Fire Department and the City's Licensing Compliance Officers.

Primary Residence Requirement

One of the key regulations is that short-term rentals are only allowed in the host's principal residence. This means that property owners cannot operate multiple entire-unit STRs across different properties. The rationale behind this rule is to prevent the conversion of long-term rental housing into short-term accommodations, which could exacerbate the city's housing shortage.

Hosts must provide proof of their principal residence, such as a declaration of homestead, voter registration, utility bills, or tax returns. This requirement aims to discourage investors from purchasing properties solely for the purpose of operating short-term rentals.

Taxation and Fees

In addition to the licensing fees, short-term rental hosts in Burlington are required to collect and remit a 9% tax on their rental income to the city. This tax is intended to help offset the potential impacts of STRs on municipal services and infrastructure.

Furthermore, the City of Burlington has implemented a Housing Replacement fee for any housing units converted to non-residential uses, including whole-unit short-term rentals. The fee is meant to contribute to the city's Housing Trust Fund, which supports the creation and preservation of affordable housing units.

Enforcement and Penalties

Burlington has partnered with a third-party company, Granicus, to monitor and identify non-compliant short-term rental listings across various platforms. Hosts who fail to comply with the regulations may face fines, license suspension, or revocation.

The city has also established a complaint process for residents to report any issues or concerns related to short-term rentals in their neighborhoods.

Community Concerns and Debates

While some residents and businesses welcome the economic benefits of short-term rentals, others have raised concerns about their impact on housing affordability, noise, and the character of residential neighborhoods.

There have been debates within the Burlington City Council regarding the appropriate level of regulation. Some councilors have advocated for stricter rules, such as prohibiting whole-unit rentals or requiring zoning changes for STRs, while others have argued for a more permissive approach to support the sharing economy and property rights.

As the short-term rental industry continues to evolve, Burlington's regulations may be subject to further review and adjustments to address emerging issues and community concerns.

Short-Term Rental Licensing Requirement in Burlington

Burlington has implemented a comprehensive licensing system for short-term rentals to ensure compliance with the city's regulations and maintain oversight over this industry. All hosts operating short-term rentals within the city limits are required to obtain an annual license from the municipality.

The licensing process involves submitting various documents and undergoing inspections to verify that the rental property meets the necessary safety and zoning requirements. Hosts must provide detailed information about their rental unit, including floor plans, guest information packages, fire escape plans, and proof of adequate insurance coverage.

For entire dwelling unit rentals, hosts must schedule a home inspection by the Hamilton Fire Department and the City's Licensing Compliance Officers. These inspections ensure that the property adheres to fire safety standards and meets the criteria for short-term rental operations.

The licensing fees vary depending on the type of rental unit. For partial dwelling unit rentals, where only a portion of the property is rented out, the annual fee is $90. However, for entire dwelling unit rentals, the fee is significantly higher at $390 per year.

Obtaining a license is not merely a formality; it is a crucial step in ensuring that short-term rentals operate within the established legal framework. Hosts who fail to obtain the required license or violate the terms of their license may face penalties, including fines, license suspension, or revocation.

The licensing system also serves as a mechanism for the city to monitor and regulate the short-term rental market. By requiring hosts to register and provide detailed information about their operations, Burlington can better understand the scale and impact of this industry within the city.

Furthermore, the licensing process helps to ensure that short-term rentals comply with zoning regulations and do not encroach on residential areas in an uncontrolled manner. By limiting entire dwelling unit rentals to principal residences, the city aims to strike a balance between supporting the sharing economy and preserving the character of residential neighborhoods.

Overall, the short-term rental licensing requirement in Burlington is a critical component of the city's efforts to manage this emerging industry and mitigate potential negative impacts on the local housing market and community.

Required Documents for Burlington Short-Term Rentals

To obtain a short-term rental license in Burlington, hosts are required to submit a comprehensive set of documents to the city. These documents serve various purposes, such as verifying the host's principal residence, ensuring compliance with zoning regulations, and demonstrating adherence to safety standards.

One of the primary documents required is proof of principal residence. Hosts must provide evidence that the property they intend to rent out is their primary dwelling. Acceptable forms of proof include a declaration of homestead, voter registration, utility bills, or tax returns.

Another crucial document is a detailed floor plan of the rental unit. This floor plan must clearly indicate the layout, dimensions, and the specific areas designated for short-term rental use. The floor plan helps the city assess whether the rental unit meets the necessary zoning and safety requirements.

Hosts are also required to provide a guest information package, which outlines the rules, regulations, and expectations for guests staying at the short-term rental. This package should include information on noise restrictions, parking guidelines, and any other relevant policies or procedures.

For the safety of guests, hosts must submit a fire escape plan that outlines the emergency evacuation routes and procedures in case of a fire or other emergency situations. This plan is essential for ensuring the safety of guests and minimizing potential risks.

Proof of adequate insurance coverage is another mandatory document. Hosts must demonstrate that they have obtained appropriate insurance policies to cover potential liabilities associated with operating a short-term rental business.

In addition to these documents, hosts may be required to provide additional information or documentation depending on the specific circumstances of their rental property. For example, entire dwelling unit rentals may require additional inspections or certifications to ensure compliance with fire safety codes and other regulations.

It is crucial for hosts to carefully review and comply with the document submission requirements set forth by the City of Burlington. Failure to provide the necessary documents or providing incomplete or inaccurate information may result in delays or denial of the short-term rental license application.

Burlington Short-Term Rental Taxes

Burlington has implemented a tax specifically for short-term rentals, such as those listed on platforms like Airbnb and VRBO. This tax aims to regulate the growing short-term rental industry and generate revenue for the city.

In 2022, Burlington City Council approved a Municipal Accommodation Tax (MAT) of 4% on stays in hotels and motels within the city limits. This tax took effect on October 1, 2022, and is collected by the accommodation providers and remitted to the city.

Following the implementation of the MAT, the city began exploring the possibility of extending the tax to short-term rental accommodations as well. In late 2023, Burlington announced plans to establish a Short-Term Accommodation (STA) bylaw program, which would include a tax on short-term rentals.

The proposed STA tax rate is expected to be aligned with the existing 4% MAT for hotels and motels. This means that guests booking short-term rentals in Burlington will be required to pay an additional 4% tax on top of the rental fee.

The STA tax is intended to create a level playing field between traditional accommodations and short-term rentals, ensuring that all accommodation providers contribute to the city's tourism efforts and infrastructure maintenance.

The revenue generated from the STA tax will be allocated to two reserve funds. Half of the funds will go to the Tourism MAT Reserve Fund, which supports initiatives aimed at promoting and enhancing tourism in Burlington. The other half will be directed to the City MAT Reserve Fund, which can be used for various municipal purposes, such as infrastructure improvements or community projects.

To ensure compliance with the STA tax, short-term rental hosts in Burlington will be required to register their properties with the city and obtain the necessary licenses. Failure to comply with the regulations may result in fines or penalties.

The implementation of the STA tax is part of Burlington's broader efforts to regulate and manage the growing short-term rental industry within the city. By imposing a tax on these accommodations, the city aims to mitigate potential negative impacts on the housing market and residential neighborhoods while generating revenue to support tourism and municipal services.

Canada Wide Short-Term Rental Rules

While there are no overarching federal regulations governing short-term rentals across Canada, each province and municipality has the authority to implement its own rules and bylaws. As a result, the landscape of short-term rental regulations is a patchwork of varying approaches and requirements.

At the provincial level, some jurisdictions have introduced specific legislation to regulate short-term rentals, while others rely on existing laws and municipal bylaws. Here's an overview of the short-term rental rules across Ontario.

Ontario

Ontario grants municipalities broad authority to regulate short-term rentals through the Municipal Act and City of Toronto Act. Cities like Toronto have implemented comprehensive regulations, including a principal residence requirement, registration, and taxation.

Does Burlington Strictly Enforce STR Rules?

Based on discussions on Reddit and other online forums, it appears that Burlington is not particularly Airbnb-friendly, and the city's enforcement of short-term rental rules has been relatively lax compared to some other cities.

Several Reddit users have pointed out that despite the regulations in place, many hosts continue to operate short-term rentals in Burlington, flouting the rules. One user commented, "Seems Vermont is often passing laws and not really enforcing them." Another user stated, "Some Short-Term Rental Hosts Are Flouting Burlington's New Regulations."

A news article from Seven Days VT, shared on Reddit, reported that a group of hosts had sued Burlington over the short-term rental rules, indicating a level of resistance to the regulations. The article quoted the city's code enforcement director, Bill Ward, who acknowledged that the city had not issued any tickets for violations of the ordinance at that time.

Furthermore, some Reddit users expressed frustration with the perceived lack of enforcement, with one user suggesting that instead of complex rules, the city should simply double or triple the tax rate for short-term rentals, as it would be easier to enforce.

While Burlington has implemented regulations to govern short-term rentals, such as requiring hosts to obtain licenses and limiting entire-unit rentals to principal residences, the consensus among online discussions is that these rules are not being strictly enforced. Many hosts appear to be operating in Burlington despite the regulations, taking advantage of the city's lenient enforcement approach.

It is worth noting that some users acknowledged the potential benefits of short-term rentals, such as providing affordable accommodations for visitors and generating income for property owners. However, the overall sentiment suggests that Burlington's efforts to regulate the industry have fallen short, and the city is perceived as being relatively Airbnb-friendly compared to other municipalities with stricter enforcement measures.

How to Start a Short-Term Rental Business in Burlington

Starting a short-term rental business in Burlington requires complying with the city's regulations and obtaining the necessary licenses and permits. Here are the steps to get started:

• Understand the Zoning Regulations: Familiarize yourself with Burlington's zoning bylaws to ensure that short-term rentals are permitted in the area where your property is located. Short-term rentals are generally allowed in principal urban residences, rural residential zones, and certain other zones, subject to specific conditions.
• Determine Eligibility: According to Burlington's regulations, short-term rentals must be located in the host's principal residence or on the same lot as the host's primary residence. There are a few exceptions, such as for seasonal homes or buildings with affordable housing units.
• Obtain a License: All short-term rental hosts in Burlington are required to obtain an annual license from the city. The licensing process involves submitting various documents, including a floor plan, guest information package, fire escape plan, proof of insurance, and zoning verification.
• Schedule Inspections: For entire dwelling unit rentals, hosts must schedule an inspection by the Hamilton Fire Department and the City's Licensing Compliance Officers to ensure compliance with fire safety standards and other regulations.
• Pay Licensing Fees: The licensing fees vary depending on the type of rental unit. For partial dwelling unit rentals, the annual fee is $90, while for entire dwelling unit rentals, the fee is $390.
• Register for Taxes: Short-term rental hosts in Burlington are required to collect and remit a 9% tax on their rental income to the city. Hosts must register with the city for short-term rental taxes and file monthly tax returns.
• Comply with Primary Residence Requirements: Hosts must provide proof of their principal residence, such as a declaration of homestead, voter registration, utility bills, or tax returns. This requirement aims to prevent investors from purchasing properties solely for short-term rental purposes.
• Designate an Emergency Contact: If the host does not reside in Chittenden County, they must designate a property manager or co-host who lives in the county to serve as an emergency contact.
• Advertise and List Your Property: Once you have obtained the necessary licenses and permits, you can advertise and list your short-term rental on platforms like Airbnb and VRBO. Ensure that you include your city-issued registration number and comply with any advertising requirements.
• Stay Compliant: Regularly review and comply with any updates or changes to Burlington's short-term rental regulations. Failure to comply may result in fines, license suspension, or revocation.

It's important to note that Burlington has partnered with a third-party company, Granicus, to monitor and identify non-compliant short-term rental listings. Strict enforcement measures are in place, including housing orders, municipal ticket fines, and court actions to ensure compliance with the regulations.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Burlington, you can contact the following departments and officials:

Burlington Planning and Zoning Department
Phone: (802) 865-7188
Email: permittingservices@burlingtonvt.gov

The Planning and Zoning Department is responsible for administering and enforcing the city's zoning bylaws, including regulations related to short-term rentals. You can reach out to them for inquiries about zoning requirements, permitted areas for short-term rentals, and other zoning-related matters.

Burlington Code Enforcement Office
Phone: (802) 863-0442
Email: codeenforcement@burlingtonvt.gov

The Code Enforcement Office is responsible for ensuring compliance with the city's ordinances and regulations, including those governing short-term rentals. You can contact them for information about licensing requirements, inspections, and enforcement actions related to short-term rental operations.

Burlington City Clerk's Office
Phone: (802) 865-7000
Email: cityclerk@burlingtonvt.gov

The City Clerk's Office handles the issuance of short-term rental licenses and the collection of associated fees. You can reach out to them for questions about the licensing process, required documentation, and fee payments.

Burlington Mayor's Office
Phone: (802) 865-7272
Email: mayor@burlingtonvt.gov

If you have concerns or feedback regarding the city's short-term rental policies or regulations, you can contact the Mayor's Office to voice your opinions or seek clarification on the city's stance on this issue.

It's recommended to contact the appropriate department or office directly for the most up-to-date and accurate information. Additionally, you can visit the City of Burlington's website, which may provide additional resources and guidance on short-term rental regulations and zoning.

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

Based on discussions on Reddit and Bigger Pockets, there seems to be a mix of opinions and concerns among short-term rental hosts regarding Burlington's regulations.

Some users express frustration with the perceived lack of enforcement, suggesting that the city is not strictly enforcing the regulations. One user commented, "Seems Vermont is often passing laws and not really enforcing them."

Others argue for stricter rules or higher taxes on short-term rentals, with one user proposing, "What if, instead of all these rules, the tax rate for short-term rentals was doubled or tripled. It's an easy rule to enforce."

There are also concerns about the impact of short-term rentals on housing affordability and the character of residential neighborhoods. One user stated, "Air bnb is stupid anyway. Just get a hotel at this point because the people hosting have made it way more inconvenient."

Some users express concerns about the proposed regulations, particularly the requirement that hosts must live at the property for at least 270 days a year to offer short-term rentals. One user stated, "If that's not a possibility, I may have to rethink entirely."

Others are seeking advice on investing in short-term rentals in Vermont, indicating an interest in the market despite the regulations.

There are also discussions about the challenges of investing in highly regulated areas like Burlington, with one user asking, "Anyone have any thoughts on investing in highly regulated areas?"

Overall, the opinions on Reddit and Bigger Pockets reflect a range of perspectives, from those who support stricter regulations to protect housing affordability and neighborhood character, to those who are concerned about the potential impact on their ability to operate short-term rentals and generate income from their properties.

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.