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

What are Short-Term Rental (Airbnb, VRBO) Regulations in Calgary, Alberta?

Short-term rentals like those listed on platforms like Airbnb and VRBO have become increasingly popular in Calgary, Alberta. However, hosts must navigate a complex set of regulations to operate legally. This article will explore the current rules and upcoming changes for short-term rentals in Calgary.

Starting a Short-Term Rental Business in Calgary

Hosts must obtain a business license from the city to start a short-term rental business in Calgary. The cost of the license depends on the number of rooms being rented:

• Tier 1 (1-4 rooms): $100 per property
• Tier 2 (5+ rooms): $172 per property, plus a $104 fire inspection fee

Hosts must also comply with several regulations outlined in the Business Licence Bylaw, including:

1. Egress: Rooms must have at least one egress window, except in multi-story apartment/ condo buildings with existing fire safety standards.
2. Maximum guests: No more than two adults per room, excluding minors.
3. Overlapping bookings: Hosts cannot schedule overlapping bookings for separate guests.
4. Advertising: Business license numbers must be included in all advertisements.
5. Emergency contact: The name, phone number, and email of a 24/7 emergency contact must be prominently displayed.
6. Guest records: Hosts must maintain electronic records of guest names, email addresses, and stay durations and provide them to inspectors upon request.

Failure to comply with these regulations can result in fines of $1,000 per offense upon conviction.

Calgary City Council has approved changes to the Business Licence Bylaw that will come into effect on January 1, 2024. These changes aim to strengthen accountability for hosts and property owners, reduce negative community impacts, and enhance guest safety.

Key changes include:

1. Providing a detailed fire safety plan, including room layouts, smoke alarm/fire extinguisher/carbon monoxide detector locations, and fire exits.
2. Submitting proof of ownership or owner consent, validated through a title search or Land Title.
3. For condos, providing written approval from the condo board for short-term rentals.
4. Proof of insurance with a minimum $2 million liability, issued by a registered Alberta insurer, indicating coverage for home sharing or short-term rentals.

Annual fire inspections by the Calgary Fire Department will also be required to ensure compliance with life safety requirements.

These changes reflect the city's commitment to creating a fair and sustainable environment for residents, visitors, and businesses. Hosts can navigate the licensing process smoothly by familiarizing themselves with the application requirements and gathering the necessary documents.

It's important to note that secondary suites, such as self-contained dwelling units within principal residences or backyards, can also be rented as short-term rentals. However, they must meet the requirements for a legal secondary suite, and the host must obtain a short-term rental license.

As Calgary's short-term rental landscape evolves, hosts, guests, and residents can expect a more balanced and responsible environment. Staying informed and compliant with the latest regulations will help ensure the continued growth and success of Calgary's short-term rental industry.

Short-Term Rental Licensing Requirement in Calgary

As of February 1, 2020, all short-term rental hosts in Calgary are required to obtain a business license from the city. The licensing system is tiered based on the number of rooms being rented out:

1. Tier 1: For hosts renting out 1-4 rooms, the annual license fee is $100 per property.
2. Tier 2: For hosts renting out 5 or more rooms, the annual license fee is $172 per property, plus a $104 fire inspection fee.

To apply for a short-term rental business license, hosts must provide the following information:

1. Personal details, including full name, email address, and phone number.
2. Listing details include the address, number of bedrooms, and intended use (entire space or private room).
3. Proof of ownership or written consent from the property owner.
4. For condos, written approval from the condo board permitting short-term rentals.

Once the application is submitted, Tier 2 properties will require a fire inspection before the license is approved. Hosts must also comply with several regulations outlined in the Business Licence Bylaw, such as:

1. Posting the business license number in all advertisements.
2. Limiting the number of guests to two adults per room, excluding minors.
3. Prohibiting overlapping bookings for separate guests.
4. Prominently displaying emergency contact information.
5. Maintaining electronic guest records and providing them to inspectors upon request.

Failure to obtain a license or comply with the regulations can result in fines of $1,000 per offense upon conviction.

The licensing requirement aims to create a fair and sustainable environment for residents, visitors, and businesses by ensuring safety, transparency, and accountability in Calgary's short-term rental industry. It also helps the city monitor and regulate the growing vacation rental market.

As Calgary continues to adapt to the evolving short-term rental landscape, hosts must stay informed about their responsibilities and work towards maintaining a thriving, compliant business that respects the needs of the community.

Required Documents for Calgary Short-Term Rentals

When applying for or renewing a short-term rental business license in Calgary, hosts must provide several key documents to demonstrate compliance with local regulations. As of January 1, 2024, the following will be required:

Proof of Property Ownership or Consent:

1. Property ownership is validated through a title search conducted by the city or a land title provided at the application.
2. If the host is not the property owner, written consent from the owner authorizing the short-term rental to be offered to guests for compensation.

Condo Board Approval (if applicable):

1. For short-term rentals located in condominiums, written proof from the condo board confirming the short-term rental is permitted.
2. Documentation must include the condo board's seal.

Fire Safety Plan:

1. A detailed floor plan of the dwelling unit or portion offered for rent clearly indicating:
2. All rooms and floors are accessible for rent, including bedrooms and living spaces used for sleeping.
3. Location of smoke alarms, fire extinguishers, and fire exits.

Liability Insurance:

• Proof of insurance coverage specifically for home-sharing or short-term rental use.
• The short-term rental license applicant must be the insurance policy holder.
• For property management companies, proof of their liability insurance is required.
• Insurance must be issued by a company registered to do business in Alberta (a list of approved companies is available).
• Minimum liability coverage of $2 million.

License Inspector Review:

The property will undergo a review by the city's License Inspector to assess any prior concerns and ensure compliance with regulations.

In addition to these documents, Tier 2 license applicants (those renting out 5 or more rooms) will need to schedule a mandatory fire inspection conducted by the Calgary Fire Department to verify adherence to life safety requirements.

Gathering and submitting all necessary documentation is crucial for a smooth and successful licensing process. The city encourages current and prospective hosts to familiarize themselves with the application requirements and prepare well before the implementation date on January 1, 2024.

By ensuring all required documents are in order, short-term rental operators demonstrate their commitment to guest safety, community responsibility, and regulatory compliance - key factors in building a thriving and sustainable short-term rental business in Calgary.

Calgary Short-Term Rental Taxes

As the short-term rental market continues to grow in Calgary, it's crucial for hosts to understand their tax obligations. Income earned from renting out a property on platforms like Airbnb is considered taxable income by the Canada Revenue Agency (CRA).

Short-term rental hosts in Calgary must report all rental income on their tax returns. This income is subject to progressive federal and provincial taxes, ranging from 15% to 33% federally and 10% provincially in Alberta. The exact amount of tax owed will depend on the host's total taxable income for the year.

In addition to income taxes, Calgary hosts may also be subject to the Goods and Services Tax (GST) if their annual gross rental income exceeds $30,000. In such cases, hosts must register for a GST account, collect the tax from guests, and remit it to the government.

To minimize their tax liability, Calgary short-term rental hosts can claim eligible expenses related to their rental property. These expenses may include:

• Mortgage interest
• Property taxes
• Utilities
• Insurance
• Repairs and maintenance
• Cleaning and supplies
• Advertising and platform fees

It's essential to keep accurate records of all income and expenses to support any deductions claimed on tax returns. Hosts should also allocate expenses between personal and rental use based on the proportion of time the property is used for each purpose.

While the City of Calgary does not currently impose a specific short-term rental tax, this may change in the future. The provincial government has announced plans to introduce a tourism levy that would require hosts to collect a percentage of the accommodation fee from guests. However, as of June 2023, this levy is not yet in effect.

As the regulatory landscape evolves, Calgary short-term rental hosts must stay informed about their municipal, provincial, and federal tax obligations. Consulting with a tax professional familiar with the short-term rental industry can help ensure compliance and optimize tax planning strategies.

By understanding and fulfilling their tax responsibilities, Calgary short-term rental hosts can maintain a profitable and compliant business while contributing to the city's vibrant tourism economy.

Alberta Wide Short-Term Rental Rules

While the City of Calgary has its own set of regulations for short-term rentals, the province of Alberta also has rules that apply to hosts across the province. These rules are designed to ensure a fair and safe environment for both hosts and guests.

One of the key provincial regulations is the requirement for hosts to obtain a Tourism Levy Registration Certificate from the Alberta Treasury Board and Finance. This applies to any host offering short-term rental accommodations for 28 consecutive days or less. The tourism levy is a 4% tax on the purchase price of short-term rental accommodations, which hosts must collect from guests and remit to the province on a quarterly basis.

To obtain a Tourism Levy Registration Certificate, hosts must complete an application form and submit it to the Alberta Treasury Board and Finance. Once approved, hosts will receive a certificate number that must be displayed in all online listings and advertisements.

In addition to the tourism levy, Alberta has several other regulations that apply to short-term rentals:

• Safety Standards: All short-term rental properties must meet the minimum safety standards set out in the Public Health Act and the Safety Codes Act. This includes requirements for smoke alarms, carbon monoxide detectors, and fire extinguishers.
• Insurance: Hosts are strongly encouraged to obtain appropriate insurance coverage for their short-term rental properties. This may include liability insurance and coverage for property damage and loss of income.
• Zoning and Bylaws: Hosts must ensure that their short-term rental properties comply with local zoning regulations and bylaws. This may include restrictions on the number of guests allowed, parking requirements, and noise levels.
• Occupancy Limits: The local municipality determines the maximum number of occupants allowed in a short-term rental property. In Calgary, the limit is two adults per bedroom, excluding minors.
• Accessibility: Short-term rental hosts must comply with the Accessible Canada Act and the Alberta Human Rights Act, which prohibit discrimination based on disability. Hosts should provide accurate information about the accessibility features of their properties and make reasonable accommodations for guests with disabilities.

By complying with these provincial regulations, short-term rental hosts in Alberta can ensure that they are operating legally and responsibly. Failure to comply with these rules may result in fines, penalties, and legal action.

As the short-term rental industry continues to evolve in Alberta, hosts should stay informed about any changes to provincial regulations and work closely with local authorities to ensure ongoing compliance. By doing so, they can contribute to a thriving and sustainable tourism economy that benefits both hosts and guests across the province.

Does Calgary Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts and real estate investors on platforms like Reddit and Bigger Pockets, Calgary appears to be relatively Airbnb-friendly compared to other major cities. While the city has regulations for short-term rentals, many hosts feel that these rules are reasonable and not overly restrictive.

Calgary takes an approach of working with hosts to achieve voluntary compliance before resorting to fines, which many operators appreciate. The city prioritizes education and collaboration to ensure hosts understand and adhere to the regulations. This stance is seen as more accommodating than the strictly punitive measures employed by some other cities.

Despite the rules, many hosts report operating successful and profitable short-term rentals in Calgary. The city is considered a decent market for investing in STR properties, with good demand and occupancy rates. However, hosts emphasize the importance of thorough research, realistic expectations, and careful property selection to ensure compliance and profitability.

While some hosts express frustration with the licensing costs, paperwork, and potential for increased enforcement, the general consensus among the Bigger Pockets and Reddit communities is that Calgary remains relatively Airbnb-friendly. Many hosts continue to operate STRs in the city, navigating the regulations and finding ways to run successful businesses.

It is worth noting that the short-term rental landscape in Calgary may evolve with the implementation of new bylaw changes in January 2024. Some hosts are concerned about how the added requirements may impact their businesses and are closely monitoring how the regulations will be enforced. However, the prevailing sentiment is that Calgary will likely continue to be more accommodating to STRs compared to other major cities, even with the upcoming changes.

In conclusion, while Calgary has regulations for short-term rentals, the city's approach to enforcement is generally seen as more collaborative and less strict than other jurisdictions. Despite the rules in place, hosts continue to operate STRs in Calgary, finding the market to be relatively Airbnb-friendly and profitable. As long as hosts conduct thorough research, comply with regulations, and adapt to future changes, they can still succeed in Calgary's short-term rental market.

How to Start a Short-Term Rental Business in Calgary

Starting a short-term rental business in Calgary can be a lucrative venture, but it requires careful planning and adherence to local regulations. Here are the steps to get started:

• Research the market: Analyze the demand for short-term rentals in Calgary and identify potential neighborhoods or areas that attract tourists or business travelers. Consider factors such as proximity to attractions, public transportation, and amenities.
• Choose a suitable property: Decide whether you want to use your own property or invest in a new one. Ensure that the property is in good condition, has attractive features, and meets Calgary's short-term rental requirements.
• Understand the regulations: Familiarize yourself with Calgary's short-term rental regulations, including the requirement to obtain a business license, adhere to safety standards, and comply with the city's bylaws. As of January 1, 2024, hosts will need to provide additional documentation, such as a fire safety plan, proof of ownership or owner consent, and liability insurance.
• Obtain necessary licenses and permits: Apply for a business license through the City of Calgary. Depending on the number of rooms you plan to rent out, you will need either a Tier 1 (1-4 rooms) or Tier 2 (5+ rooms) license. Tier 2 licenses also require a fire inspection.
• Prepare your property:Furnish and decorate your rental property to make it appealing to guests. Invest in quality furniture, linens, and amenities to create a comfortable and inviting space. Consider hiring a professional photographer to showcase your property in its best light.
• Set up your listing:Create a detailed and engaging listing on popular short-term rental platforms like Airbnb and VRBO. Include high-quality photos, a comprehensive description of your property and its amenities, and information about the surrounding area.
• Establish house rules and pricing:Determine your house rules, such as check-in and check-out times, maximum occupancy, and pet policies. Set competitive prices based on the local market, seasonality, and the unique features of your property.
• Manage bookings and communication: Respond promptly to inquiries and booking requests from potential guests. Maintain clear communication throughout the booking process and during their stay to ensure a positive experience.
• Arrange for cleaning and maintenance: Develop a thorough cleaning and maintenance schedule to keep your property in top condition between guest stays. Consider hiring a professional cleaning service to ensure consistent quality and to save time.
• Monitor your business and adapt: Regularly review your bookings, guest feedback, and financial performance. Stay informed about changes in local regulations and market trends, and adapt your business strategy as needed to remain competitive and compliant.

By following these steps and providing exceptional service to your guests, you can build a successful short-term rental business in Calgary. Remember to stay informed about the evolving regulatory landscape and to prioritize the safety and satisfaction of your guests and the community.

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

When navigating the complex world of short-term rental regulations and zoning in Calgary, it's essential to know who to contact for accurate information and guidance. Here are some key resources and contacts:

City of Calgary - Planning Services Centre
Phone: 403-268-5311
Email: calgary.ca/livechat
In-person: 3rd floor, Municipal Building, 800 Macleod Trail SE
Hours: Monday to Friday, 8 a.m. to 4:15 p.m. (MT)

The Planning Services Centre is the primary point of contact for inquiries related to short-term rental business licenses, zoning, and bylaw compliance. Their knowledgeable staff can provide information on application requirements, fees, and the licensing process.

Calgary Hotel Association (CHA)
Phone: 403-265-3400
Web: https://www.calgaryhotels.org/

The CHA represents the interests of Calgary's hotel industry and can provide valuable insights into the local short-term rental market. They can also offer guidance on best practices and industry standards for short-term rental operators.

Alberta Hotel & Lodging Association (AHLA)
Phone: 780-436-6112
Email: gr@ahla.ca

The AHLA is a provincial organization that advocates for fair and equitable regulations in the accommodation sector. They can provide information on provincial laws and policies that impact short-term rentals, as well as connect hosts with relevant resources and support.

Calgary Fire Department - Fire Inspections
Phone: 311
Email: 311@calgary.ca

For questions related to fire safety requirements and inspections for short-term rentals, contact the Calgary Fire Department. They can provide guidance on fire safety plans, egress requirements, and other life safety standards that apply to short-term rental properties.

Alberta Tourism and Tourism Levy
Phone: 780-427-3044
Email: tourismlevy@gov.ab.ca

For inquiries about the provincial tourism levy and how it applies to short-term rentals, contact Alberta Tourism. They can provide information on registration, collection, and remittance of the levy.

Hosts can ensure they have the most up-to-date information on regulations and best practices by proactively reaching out to these contacts and staying engaged with the local STR community. Building strong relationships with these organizations can also help hosts navigate any challenges that may arise and contribute to a thriving, responsible short-term rental industry in Calgary.

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

Discussions about Calgary's short-term rental regulations on platforms like Reddit and Bigger Pockets reveal a range of perspectives among Airbnb hosts and real estate investors:

Impact on housing affordability and availability: Some hosts express concerns that the growth of STRs is contributing to rising rents and reducing the supply of long-term housing for residents. Others argue that many Calgary Airbnbs are operated out of primary residences, so they likely wouldn't otherwise be available as long-term rentals.

Reasonableness of regulations: Many Calgary hosts on Bigger Pockets feel the city's STR regulations are relatively reasonable and not overly restrictive compared to other major cities. They appreciate that the city takes an approach of working with hosts to achieve voluntary compliance before resorting to fines. However, some hosts express frustration with the licensing costs, paperwork, and potential for increased enforcement.

Profitability and investment potential: Despite the regulations, many Calgary hosts report operating STRs profitably, with good demand and occupancy rates. The city is seen as a decent market to invest in STR properties, especially compared to more restrictive cities like Toronto or Vancouver. However, hosts caution that thorough research, realistic expectations, and careful property selection are essential for success.

Condo and community restrictions: Hosts note that many Calgary condos and homeowners' associations have rules against or restricting STRs, which can limit investment opportunities. Some hosts report challenges with neighbors complaining or buildings strictly enforcing no-STR policies.

Uncertainty around future changes: With the new bylaw changes coming into effect in January 2024, some hosts are concerned about how the added requirements may impact their businesses. They are waiting to see how the regulations will be enforced and whether compliance will become more challenging or costly.

Overall, while there are diverse opinions among Calgary Airbnb hosts, there seems to be a general sentiment that the city's regulations are manageable and that opportunities exist for responsible STR operators. However, hosts also acknowledge the need to stay informed, adapt to changes, and balance their business interests with the well-being of the wider community.

By engaging in these online forums and learning from the experiences of fellow hosts, aspiring STR entrepreneurs can gain valuable insights into the realities of operating in Calgary and make more informed decisions about their own ventures.

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.