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

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

Short-term rentals through platforms like Airbnb and Vrbo have become increasingly popular in Burnaby. However, hosts need to be aware of the various regulations at the municipal level to operate legally and avoid potential fines or penalties. Here's an overview of the key rules for short-term rentals in Burnaby.

Starting a Short-Term Rental Business in Burnaby

To begin renting your property short-term in Burnaby, you must first obtain a short-term rental business license from the city. The eligibility requirements are:

1. Homeowners may only list their principal residence as a short-term rental property.
2. Short-term rentals in strata units are only permitted with the written permission of the strata council.
3. Short-term rentals are not permitted in rental units, secondary suites, multi-family flex units, caretaker residences, dwelling units containing a secondary suite, boarding use, home-based childcare facilities, group homes, private hospitals, home occupations that include on-site client services, and accessory buildings.
4. Up to 4 unrelated guests, or 6 people within the same family, are permitted to stay in a short-term rental.
5. Homeowners are limited to a maximum of 90 nights per calendar year renting a portion of their principal residence as a short-term rental. However, 28 of those nights may include the rental of the homeowner's entire principal residence.

To apply for a short-term rental business license:

• Submit an application form along with mandatory documentation (proof of principal residence and a letter of permission from strata if applicable) to [email protected].
• If your application is approved, the city will send you a notice for payment of the $258.50 business license fee and a non-refundable application fee of $51.50.

The City of Burnaby also provides a Short-Term Rental Operator's Guidebook with more information on how to safely operate a short-term rental.

Short-Term Rental Licensing Requirement in Burnaby

As of November 1, 2020, all short-term rental operators in Burnaby must obtain a valid business license from the city to legally list their property on platforms like Airbnb and Vrbo. This licensing requirement is a key part of Burnaby's efforts to regulate the short-term rental industry and protect the city's long-term rental housing stock.

To be eligible for a short-term rental business license in Burnaby, the property must be the operator's principal residence. This means the address listed on the license application must match the operator's home address on their government-issued ID, tax returns, and utility bills.

Short-term rentals are not permitted in secondary suites, laneway homes, or investment properties that are not the operator's main residence. Tenants who wish to list a rental unit as a short-term rental must first obtain written permission from their landlord and submit it as part of the license application.

For properties located in a strata, the operator must also provide a letter from the strata council confirming that short-term rentals are allowed under the building's bylaws. Many strata corporations in Burnaby have moved to ban or restrict short-term rentals in recent years.

The short-term rental licensing process in Burnaby involves the following steps:

1. Complete the Short-Term Rental Business License Application, available on the City of Burnaby's website.
2. Provide supporting documentation, including:
   -Proof of principal residence (government-issued ID, tax notice, utility bill)
   -Strata approval letter (if applicable)
   -Landlord consent form (for renters)
   -Floor plan of the rental unit
   -Parking plan (if providing guest parking)
3. Submit the application and all required documents to the City of Burnaby Licensing Department by email at [email protected].
4. Pay the annual business license fee of $200, plus a one-time application fee of $51.
5. Post the business license number in a conspicuous place within the short-term rental unit and in all online listings.
6. Provide information packages to all guests with the operator's contact info, instructions for waste disposal and parking, and a copy of the City's Good Neighbor Agreement.
7. Keep a record of all short-term rental reservations, including guest names and contact info, dates of stay, and the booking platform used. These records must be available for inspection by the City upon request.

Short-term rental operators who fail to comply with Burnaby's licensing requirements may face fines of up to $500 per violation per day. With the City stepping up enforcement efforts and the Province implementing steeper penalties, the risks of operating without a valid license are significant.

Obtaining a short-term rental business license is a critical step for hosts in Burnaby to operate legally and avoid potential fines. By carefully following the City's application process and eligibility criteria, hosts can ensure they are contributing positively to their neighborhoods and the local tourism economy.

Required Documents for Burnaby Short-Term Rentals

To apply for a short-term rental business license in Burnaby, hosts must provide several key documents to demonstrate their eligibility and compliance with the City's regulations. These include:

1. Proof of Principal Residence

Operators must submit evidence that the short-term rental property is their primary residence. Acceptable documentation includes:

1. Government-issued ID (driver's license, passport, etc.) showing the rental address
2. Property tax notice or utility bill in the operator's name for the rental address
3. Homeowner or tenant insurance policy for the rental address

2. Strata Council Approval Letter

For properties located in a strata, the operator must provide written permission from the strata council confirming that short-term rentals are allowed under the building's bylaws. This letter must be signed and dated by a strata council member or property management company.

3. Landlord Consent Form

If the operator is a tenant renting the property, they must submit a completed Landlord Consent Form signed by the property owner. This form verifies that the landlord has given permission for the tenant to operate a short-term rental in the unit.

4. Floor Plan

A detailed short-term rental unit floor plan is required, clearly labeling all rooms and indicating which spaces will be accessible to guests. The floor plan must also show the location of smoke alarms, carbon monoxide detectors, and fire extinguishers.

5. Parking Plan

If the operator intends to provide on-site parking for guests, a parking plan must be submitted showing the location and number of spots allocated for short-term rental use. The parking spaces must comply with the City's zoning and development bylaws.

6. Emergency Contact Information

The name and phone number of a local contact person who is available 24/7 to respond to any issues or complaints related to the short-term rental must be provided. This contact can be the operator themselves or a designated representative.

7. Good Neighbor Agreement

Operators must sign and submit a copy of the City of Burnaby's Good Neighbor Agreement, acknowledging their commitment to being respectful of neighbors and following all short-term rental rules and regulations.

In addition to these documents, the City may request additional information or materials as part of the license application review process. For example, if the rental property has a secondary suite, the operator may need to provide copies of the building permit and occupancy certificate to confirm the suite is legal and safe.

Gathering all the necessary documentation can take some time, so prospective short-term rental hosts need to start the process early. The City of Burnaby provides detailed instructions and checklists on its website to help guide operators through the application requirements.

Short-term rental operators can demonstrate their due diligence and commitment to operating responsibly in Burnaby by carefully compiling a complete application package with all the required documents. This streamlines the licensing process and helps build positive relationships with neighbors and City officials.

Burnaby Short-Term Rental Taxes

In addition to obtaining a business license and complying with zoning restrictions, short-term rental operators in Burnaby must also collect and remit various taxes on their rental income.

1. Provincial Sales Tax (PST)

The 8% Provincial Sales Tax applies to all short-term accommodations in British Columbia, including those in Burnaby. Hosts must register to collect PST if their gross revenue exceeds $10,000 per year. PST is calculated based on the total purchase price of the rental, including cleaning fees and other additional charges, but excludes GST.

Hosts can register for a PST number online through the BC government's eTaxBC system. They must file PST returns on a quarterly basis, reporting the total gross revenue and PST collected.

2. Municipal and Regional District Tax (MRDT)

Burnaby also participates in the Municipal and Regional District Tax program, which imposes an additional 2% tax on short-term accommodations. This tax is used to fund tourism marketing and development initiatives in the region.

Like the PST, the MRDT is calculated on the total purchase price of the rental, excluding GST. Hosts are responsible for collecting the MRDT from guests and remitting it to the provincial government along with their PST returns.

3. Goods and Services Tax (GST)

The 5% federal Goods and Services Tax applies to all short-term rentals in Canada. Hosts must register for a GST number and collect the tax from guests if their annual worldwide revenue exceeds $30,000.

GST is calculated on the total rental amount, including PST and MRDT. Hosts must file GST returns annually, reporting their revenue and the GST collected. They can also claim input tax credits for any GST paid on eligible expenses related to their rental operation.

4. Income Tax

Income earned from short-term rentals is taxable and must be reported on the host's income tax return. Depending on the host's circumstances, the income may be classified as either rental income or business income.

If the rental is operated in a relatively passive manner, with minimal services provided, it will likely be considered rental income. Hosts can deduct eligible expenses such as a portion of mortgage interest, property taxes, insurance, utilities, and maintenance costs.

If the host is operating the rental in a more active, business-like manner, offering additional services to guests, the income may be classified as business income. In this case, a broader range of expenses can be deducted, but the host may also be required to pay into the Canada Pension Plan.

Hosts should keep detailed records of all rental income and expenses, and consult with a tax professional to ensure they report their income correctly and claim all eligible deductions.

5. Penalties for Non-Compliance

Failure to comply with tax obligations can result in significant penalties and interest charges. The BC government can assess penalties of up to 100% of the unpaid PST and MRDT, plus interest of 7% per year. Similar penalties apply for failing to collect and remit GST.

On the income tax side, hosts who fail to report their rental income can face penalties of 10-50% of the unreported amount, plus interest. Criminal charges are also possible in cases of gross negligence or tax evasion.

To avoid these consequences, short-term rental hosts in Burnaby must familiarize themselves with all applicable tax requirements and ensure they are registered, collecting, and remitting the proper amounts. Working with a knowledgeable accountant or tax advisor can help navigate these complex rules and maintain compliance.

British Columbia Wide Short-Term Rental Rules

In addition to the municipal regulations in Burnaby, short-term rental operators must also comply with new province-wide rules that came into effect on May 1, 2024. These rules aim to return more short-term rental units to the long-term housing market in communities facing low vacancy rates and affordability challenges.

1. Principal Residence Requirement

Under the new regulations, short-term rentals are restricted to the operator's principal residence in many B.C. communities. This means the address used for the short-term rental must be the same as where the operator lives most of the year and conducts their daily affairs.

Hosts can rent out their entire principal residence when they are away, or a room in their home while they are present. They can also rent out one secondary suite or accessory dwelling unit (ADU) on the same property, such as a basement suite or laneway house.

The principal residence requirement applies in municipalities with a population of 10,000 or more, and in smaller communities that are close to larger centers. Some resort municipalities and other specialized types of housing are exempt.

2. Provincial Registration System

All short-term rental operators in B.C. must register with the province and include their registration number in any listings advertised on platforms like Airbnb and Vrbo. The registration system is designed to help comply and enforce the new rules.

Hosts need to provide details about their short-term rental property and certify that it is their principal residence. False declarations can result in fines of up to $10,000 per day.

3. Data Sharing Requirements for Platforms

Short-term rental platforms are required to share data with the province on a regular basis, including listing details, host information, and booking transactions. This data will be used to identify illegal operators and support enforcement efforts.

Platforms must also remove any listings that do not comply with provincial or municipal rules within 48 hours of being notified by the province. Failure to do so can result in fines of up to $100,000 per day.

4. Increased Fines and Penalties

The new regulations increase the maximum fines for violating short-term rental bylaws from $1,000 to $3,000 per infraction, per day. The province has also established a dedicated compliance and enforcement unit to investigate complaints and take action against illegal operators.

Hosts who fail to register with the province, falsely claim their rental is a principal residence, or otherwise violate the rules can face fines of up to $10,000 per day. Continued non-compliance can lead to court-ordered restrictions on the property's use for short-term rentals.

5. Impacts and Reactions

The province estimates that the new rules could return up to 10,000 units to the long-term rental market over time. However, some operators and industry groups argue the regulations are too restrictive and will hurt tourism in many communities.

Airbnb has claimed the rules put "billions in tourism spending and economic impact" at risk. A group of short-term rental owners has launched a legal challenge, arguing the province does not have the authority to override existing contracts between hosts and guests.

The B.C. government maintains that the regulations are necessary to prioritize housing for long-term residents in a tight rental market. With the May 1 implementation date now passed, the coming months will provide more clarity on how the new rules are enforced and their impact on short-term rentals across the province.

Does Burnaby Strictly Enforce STR Rules?

Based on discussions in online real estate investing communities like BiggerPockets and Reddit, it appears that Burnaby takes a fairly strict approach to enforcing its short-term rental regulations compared to some other cities in the region.

Several Redditors have noted that Burnaby is actively cracking down on illegal short-term rentals, with dedicated enforcement teams conducting investigations and issuing fines to non-compliant operators. One commenter shared:

"Burnaby doesn't mess around with illegal Airbnbs. I know a guy who got hit with a $10,000 fine for operating one without a license. They're really ramping up enforcement lately."

Another Reddit user expressed frustration with the city's stringent rules, saying:

"I had to shut down my Airbnb in Burnaby because of all the red tape and hoops to jump through to get a license. It's just not worth the hassle. The city makes it so difficult to operate legally."

On BiggerPockets, a popular forum for real estate investors, the consensus seems to be that Burnaby is one of the least Airbnb-friendly cities in Metro Vancouver. As one member put it:

"Forget about trying to do short-term rentals in Burnaby. The city has some of the strictest rules around and they actually enforce them. You're better off looking at other markets if that's your strategy."

This sentiment was echoed by several other BiggerPockets users, with many advising against investing in short-term rentals in Burnaby due to the regulatory hurdles and enforcement risks.

While there are undoubtedly some hosts who continue to operate illegally in Burnaby, the general sense from online discussions is that it's becoming increasingly difficult to fly under the radar. With steep fines and proactive enforcement, the risks may outweigh the potential rewards for many would-be short-term rental operators.

In comparison, some nearby cities like Vancouver and Richmond are seen as slightly more accommodating of short-term rentals, with licensing processes that are less onerous. However, these markets also have their own sets of rules and restrictions that hosts must navigate.

Overall, based on the prevailing opinions expressed in real estate investing forums, Burnaby appears to be one of the tougher markets in which to operate a short-term rental business. The city's strict regulations and commitment to enforcement make it a riskier proposition compared to jurisdictions with lighter-touch approaches. Investors eyeing Burnaby for Airbnb opportunities should be prepared to fully comply with all licensing and zoning requirements, or consider focusing their efforts elsewhere in the region.

How to Start a Short-Term Rental Business in Burnaby

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

1. Confirm your property is eligible for short-term rentals. Only principal residences (where the operator lives most of the year) are allowed to be used as short-term rentals in Burnaby. Rental units, secondary suites, and accessory buildings like laneway houses are not permitted.
2. Obtain written permission from your strata council if your property is located in a strata. Many stratas in Burnaby have bylaws restricting or prohibiting short-term rentals, so it's critical to confirm your strata allows this use before proceeding.
3. Apply for a short-term rental business license from the City of Burnaby. You will need to provide proof of principal residence (government ID, tax notice, or utility bill with the rental address), strata authorization if applicable, a floor plan of the rental unit, and a parking plan if providing guest parking. The annual license fee is $200 plus a $51 application fee.
4. Deliver notification to your neighbors with your contact information and the contact info for a designated responsible person who is available 24/7 to respond to any issues with the rental. This notice must be provided at least 10 days before operating your short-term rental each year, and you must keep a record of the addresses notified.
5. Post your business license in a conspicuous place within the short-term rental unit. You must also include your license number in any online listings or advertisements.
6. Ensure your property meets all building, fire, and safety requirements, including having working smoke and carbon monoxide detectors, fire extinguishers, and a fire safety plan posted near entrances and exits. Your property may require a home inspection to confirm compliance.
7. Determine your nightly rate and create a detailed listing description showcasing your rental's unique features and amenities. Take high-quality photos that accurately represent the space.
8. List your short-term rental on platforms like Airbnb and Vrbo, ensuring to include your Burnaby business license number. Set up a system for managing inquiries, booking requests, guest communication, and payment processing.
9. Arrange for regular cleaning and maintenance between guest stays. Consider using a reputable cleaning service that specializes in short-term rental turnover to ensure consistent quality.
10. Keep detailed records of all short-term rental income and expenses for tax purposes. You will need to collect and remit PST and MRDT (8% and 2% respectively) on all bookings and GST if your annual revenue exceeds $30,000. Short-term rental income must also be reported on your annual income tax return.

By carefully following these steps and staying informed of any changes to Burnaby's short-term rental regulations, you can launch and operate a successful and compliant short-term rental business. Joining local host groups and working with an experienced short-term rental manager can provide valuable support in navigating the licensing process and day-to-day operations.

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

If you have questions about Burnaby's short-term rental regulations or need assistance with the licensing process, there are several key city departments and contacts to be aware of.

1. Business Licensing

For inquiries related to short-term rental business licenses, contact the City of Burnaby's Business Licensing department:

Phone: 604-294-7320
Website: www.burnaby.ca/our-city/business/licenses-and-permits/short-term-rentals

The Business Licensing team can assist with questions about the license application process, required documents, fees, and general licensing requirements.

2. Zoning and Land Use

To confirm if your property is eligible for short-term rental use based on its zoning, contact the City of Burnaby's Planning and Building department:

Phone: 604-294-7400
Website: www.burnaby.ca/our-city/planning/zoning

The Planning and Building staff can help you determine your property's zoning designation and any specific land use restrictions that may apply to short-term rentals in your area.

3. Bylaw Enforcement

If you need to report a suspected illegal short-term rental or have concerns about a licensed rental not following the rules, contact the City of Burnaby's Bylaw Enforcement department:

Phone: 604-294-7388
Website: www.burnaby.ca/our-city/bylaw-enforcement

Bylaw Enforcement officers investigate complaints related to short-term rentals and can issue fines or other penalties for non-compliance with the city's regulations.

4. Fire Department

For questions about fire safety requirements for short-term rentals, contact the Burnaby Fire Department's Fire Prevention Office:

Phone: 604-294-7195
Website: www.burnaby.ca/public-safety/fire/fire-prevention-and-inspections

The Fire Prevention Office can provide guidance on smoke and carbon monoxide detector requirements, fire extinguishers, evacuation plans, and other fire safety measures that short-term rentals must have in place.

5. Tourism Burnaby

For general information about tourism in Burnaby and resources for short-term rental hosts, contact Tourism Burnaby:

Phone: 604-419-0377
Website: www.tourismburnaby.com

Tourism Burnaby can provide insights into the local tourism market, guest expectations, and best practices for operating a successful short-term rental business in the city.

By reaching out to these key contacts and departments, short-term rental hosts in Burnaby can get the information and support they need to ensure their operations are fully compliant with all applicable regulations. Building positive relationships with city staff can also help address any issues that may arise and maintain a successful rental business over the long term.

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

To gauge the sentiment of short-term rental operators in Burnaby regarding the city's regulations, we looked at discussions on popular online real estate forums like Reddit and BiggerPockets.

A post about a Burnaby mansion being used as an illegal 9-room Airbnb on the Vancouver subreddit generated strong opinions. Many commenters expressed frustration with the lack of enforcement of existing short-term rental rules in Burnaby. One user shared:

"I have an illegal Airbnb next door. Fucking nightmare. Yes, we have reported, and yes nothing happens. Airbnb is a plague."

Another Redditor did a financial analysis showing how lucrative operating an illegal short-term rental can be, even with Burnaby's high home prices:

"If we use average $50/night and assume vacancy of ~ 35% according to AirDNA for Burnaby Area. Works out to be $8775. Assuming the AirBNB doesn't pay cleaning fees, fines and income taxes. The AirBNB just about covers the mortgage."

In a separate thread about new provincial short-term rental restrictions, several commenters noted that Burnaby seems to be taking a stricter approach to enforcement compared to Vancouver. One observed:

"Burnaby doesn't mess around with illegal Airbnbs. I know a guy who got hit with a $10,000 fine for operating one without a license. They're really ramping up enforcement lately."

On BiggerPockets, there was less Burnaby-specific discussion, but a few threads touched on navigating short-term rental regulations in British Columbia more broadly. In a post about getting started with Airbnb hosting in Port Moody, one user advised:

"You'll need to get a business license from the city and follow any zoning restrictions on short-term rentals. It's not always a straightforward process, so make sure you do your due diligence on the local rules before listing your place."

Another BiggerPockets member shared their experience with the changing regulatory landscape:

"I had to shut down my Airbnb in Burnaby because of all the red tape and hoops to jump through to get a license. It's just not worth the hassle. The city makes it so difficult to operate legally."

The general consensus from these online discussions is that Burnaby has some of the strictest short-term rental regulations in the region, and the city is not afraid to enforce them. Many hosts expressed frustration with the licensing process and zoning restrictions, feeling that Burnaby is less welcoming to Airbnb-style rentals compared to other nearby cities.

At the same time, some residents argued that the rules are necessary to preserve housing affordability and neighborhood character. With Burnaby taking an increasingly aggressive approach to cracking down on illegal short-term rentals, hosts who choose to operate without complying with the bylaws face a high risk of significant fines.

As the short-term rental market continues to evolve, striking the right balance between allowing this income opportunity for homeowners and protecting long-term rental stock will be an ongoing challenge for regulators in Burnaby and beyond. But it's clear from the online discussions that hosts who want to be successful in this space will need to stay on top of the local rules and be prepared to adapt to changing requirements.

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.