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

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

Short-term rentals through booking platforms like Airbnb and VRBO have become increasingly popular in recent years. However, many cities and municipalities across Canada have introduced regulations to address concerns around housing affordability, safety, and neighborhood disruption. The city of Chambly in Quebec is no exception. Let's take a look at the current rules governing short-term rentals in Chambly.

Starting a Short-Term Rental Business in Chambly

If you're considering operating a short-term rental in Chambly, the first step is to ensure your property complies with local zoning laws. In March 2024, Chambly introduced new regulations that restrict short-term rentals to an operator's primary residence only. This means you can rent out a room in your home or your entire residence while you are away, but operating multiple STR properties is not permitted.

To legally run a short-term rental, you must obtain a CITQ (Corporation de l'industrie touristique du Québec) permit. The permit application requires proof that the rental is your primary residence. Some documentation you may need to provide includes:

• Property title
• Proof of civil liability insurance
• Photos of the property
• Proof of compliance with municipal bylaws
• Declaration of co-ownership allowing STRs (for condos)

It's important to note that even with a CITQ permit, condominium associations can vote to ban short-term rentals in their building. So if you own a condo, double check your condo board's rules.

Enforcement of these regulations has been a challenge. While Quebec requires platforms like Airbnb to verify CITQ permit numbers, there is still a lack of resources to fully investigate and penalize non-compliant listings. Some hosts use fake permit numbers or register a single property but use the permit for multiple listings.

The city of Chambly has until March 25, 2024, to introduce any additional zoning restrictions on short-term rentals. Certain boroughs, like Verdun, have already banned "tourist homes" that are not a host's primary residence. It remains to be seen if Chambly will follow suit.

For prospective STR operators, the key takeaways are:

1. Ensure your rental is your primary residence
2. Obtain a CITQ permit and display the number on your listing
3. Verify that STRs are allowed by your condo association
4. Stay up to date on any new municipal zoning changes

While the regulations add some red tape, hosts who operate responsibly can still earn extra income by occasionally renting out their home in Chambly. The rules aim to strike a balance between the benefits of home-sharing and the need to protect long-term housing affordability.

Short-Term Rental Licensing Requirement in Chambly

To legally operate a short-term rental in Chambly, hosts must obtain a classification certificate from the Corporation de l'industrie touristique du Québec (CITQ). This provincial body regulates tourist accommodations to ensure standards of safety and quality.

The CITQ certificate requirement applies to any accommodation rented for less than 31 consecutive days to tourists, including whole home rentals, private rooms, and shared rooms. The only exception is for primary residences rented for less than 31 days total per year.

To apply for a CITQ certificate, hosts need to provide the following documents:

1. Proof of $2 million liability insurance from a licensed Canadian provider
2. Signed declaration of compliance with municipal, provincial, and federal regulations
3. Property title or long-term lease agreement in the host's name
4. Clear photos showing the interior and exterior of the rental
5. Detailed description of the accommodation type, capacity, and services offered
6. Floor plan with room dimensions, beds, and emergency exits
7. Parking plan if applicable
8. Receipt of payment for CITQ fees ($256 for 2 years)

Hosts must submit the CITQ permit application online and pay the $256 fee for a 2-year certificate. They should respond promptly to any requests for more information. An inspector will then schedule a site visit to verify the property meets all safety and habitability standards.

If approved, the CITQ will issue the classification certificate with a unique number that must be clearly displayed on any online listing or advertisement for the short-term rental. The host must also register with Revenu Québec to collect and remit the required taxes before welcoming any guests.

Failure to obtain a valid CITQ certificate before operating a short-term rental in Chambly can result in steep fines. Penalties start at $2,500 for a first offense and can reach up to $50,000 for repeat violations. The city also has the power to shut down any illegal short-term rentals.

The CITQ certification process can take 2-4 weeks, so hosts should plan accordingly before accepting reservations. Certificates are valid for 2 years and must be renewed before expiring to continue operating legally.

For more information on how to apply for a CITQ certificate, visit the provincial government's website: https://citq.qc.ca/en/owners-and-operators/obtaining-a-classification-certificate/

Required Documents for Chambly Short-Term Rentals

To apply for a short-term rental permit in Chambly, hosts must submit the following documents:

1. Proof of primary residence - Hosts must provide two documents proving the short-term rental is their primary residence, such as a driver's license, vehicle registration, voter registration, tax documents, or utility bills. The name and address must match the information on the permit application.
2. Property title or lease agreement - Hosts must submit a copy of the property title or long-term lease agreement in their name to demonstrate ownership or legal right to rent out the dwelling.
3. Liability insurance certificate - Short-term rental operators are required to maintain at least $2 million in civil liability insurance coverage. A copy of the insurance certificate from a licensed Canadian provider must be included with the permit application.
4. Photos of the property - Clear interior and exterior photos of the short-term rental unit must be provided, including all rooms and amenities that will be accessible to guests.
5. Floor plan - A detailed floor plan, preferably to scale, must show room dimensions, bed locations, and the placement of fire extinguishers, smoke alarms, and carbon monoxide detectors. Hand-drawn plans are acceptable if neat and accurate.
6. Site plan - Hosts should submit a site plan of the entire property, marking the location of buildings, driveways, parking spaces, and septic system if applicable. A land survey is ideal, but a clear hand-drawn site plan to scale is also permitted.
7. Condominium authorization - If the short-term rental is part of a condominium complex, the host must provide a signed letter from the condo board or a copy of the bylaws expressly permitting short-term rentals in the building.
8. Emergency contact information - The name and phone number of a designated emergency contact person who can respond to issues at the property within 60 minutes must be provided. This can be the host or a local property manager.

These documents help the city of Chambly verify that short-term rental applicants meet all eligibility criteria and safety standards. The materials should be gathered before beginning the online permit application through the CITQ portal.

Providing incomplete or inaccurate information can result in delays or rejection of the permit. Hosts should allow at least 3-4 weeks for the city to review the application and schedule the required fire safety inspection of the short-term rental property before welcoming any guests.

Chambly Short-Term Rental Taxes

Short-term rental operators in Chambly must collect and remit several types of taxes on their rental income. Understanding your tax obligations is critical to running a compliant and profitable rental business. Here is an overview of the key taxes that apply:

GST/HST - The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) are federal value-added taxes. In Quebec, the HST rate is 14.975%, consisting of the 5% federal portion and 9.975% provincial portion. Short-term rental hosts must register for a GST/HST account and charge this tax on their rental fees if their annual revenue exceeds $30,000. GST/HST collected is reported on the host's income tax return.

QST - The Quebec Sales Tax (QST) is a provincial value-added tax that is applied in addition to the GST. The QST rate is currently 9.975%. Similar to the GST/HST, short-term rental operators with annual revenue over $30,000 must register for QST, charge it to their guests, and remit it to Revenu Québec.

Lodging Tax - The provincial lodging tax of 3.5% applies to short-term accommodations rented for less than 31 consecutive days. Airbnb collects and remits this tax on behalf of its hosts in Quebec. However, operators using other platforms are responsible for collecting and submitting the lodging tax themselves.

Income Tax - Net rental income earned from short-term rentals is taxable and must be reported on the host's federal and provincial income tax returns. The net rental income is calculated by deducting eligible expenses from gross rental revenue. The marginal tax rate depends on the host's total taxable income for the year.

Failing to comply with these tax requirements can result in penalties and interest charges. Short-term rental hosts should maintain detailed records of their income and expenses to accurately calculate and report their taxes owing.

Tax Deductions

Chambly short-term rental operators can deduct many of their business expenses to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Utilities
4. Insurance premiums
5. Repairs and maintenance
6. Cleaning fees
7. Supplies (e.g. linens, toiletries, etc.)
8. Advertising costs
9. Property management fees
10. Accounting and legal fees

Hosts can also claim capital cost allowance (CCA) to depreciate assets like appliances and furniture over time. Only the portion of expenses related to the short-term rental business can be deducted. If the rental is part of the host's primary residence, expenses must be prorated based on the percentage of the home used for business and the number of days rented.

Keeping accurate records and working with a qualified tax professional can help short-term rental hosts maximize their deductions and minimize their tax liability. By understanding the applicable taxes and taking advantage of write-offs, hosts can run a tax-efficient rental operation.

Quebec Wide Short-Term Rental Rules

In addition to municipal bylaws, short-term rental operators in Chambly must comply with provincial regulations set by the Quebec government. These rules aim to ensure the safety of guests and preserve the long-term rental housing supply. Here are the key requirements that affect hosts across Quebec:

CITQ Registration - As of September 2023, all short-term rental accommodations in Quebec must have a valid registration number issued by the Corporation de l'industrie touristique du Québec (CITQ). This applies to any dwelling rented to tourists for periods of 31 days or less. Hosts must display their unique CITQ number on any listing advertisement.

Primary Residence Restriction - Short-term rentals are limited to an operator's primary residence only. Hosts cannot legally rent out secondary homes or investment properties on a short-term basis. The goal is to prevent the conversion of long-term housing into de facto hotels.

Liability Insurance - Hosts are required to have a minimum of $2 million in civil liability insurance coverage from a licensed Canadian provider. Proof of insurance must be submitted with the CITQ permit application.

Safety Standards - All short-term rentals must meet provincial health and safety regulations, including having working smoke alarms, carbon monoxide detectors, and fire extinguishers. The CITQ conducts inspections to ensure compliance before issuing a registration certificate.

Taxation - Short-term rental income is subject to the Quebec Sales Tax (QST) of 9.975% and the Goods and Services Tax (GST) of 5%. Hosts earning over $30,000 annually must register for a tax account and collect these taxes from guests. Additionally, a 3.5% lodging tax applies to stays under 31 nights.

Fines and Penalties - Operating a short-term rental without a CITQ registration is illegal and subject to hefty fines. Hosts face penalties of $5,000 to $50,000 per violation, while platforms like Airbnb can be fined $10,000 to $100,000 for each unregistered listing advertised.

These provincial rules provide a consistent framework for regulating short-term rentals across Quebec. However, municipalities like Chambly can adopt additional zoning restrictions and licensing requirements to suit their local needs.

It's crucial for hosts to understand and abide by both the provincial and municipal regulations to operate legally. Failure to comply can result in substantial financial penalties and the shutdown of a short-term rental business.

Does Chambly Strictly Enforce STR Rules?

While Chambly has introduced regulations aimed at curbing the negative impacts of short-term rentals, enforcement remains a challenge. The city is not as Airbnb-friendly as some other Canadian destinations, but it has stopped short of an outright ban on non-owner occupied rentals like in some boroughs of Montreal.

According to discussions on real estate investing forums like BiggerPockets, some hosts continue to operate STRs in Chambly despite not meeting all the regulatory requirements. Tactics mentioned include using fake permit numbers, lying about a property being a primary residence, and advertising minimum stays of over 31 days to avoid the need for a permit altogether.

One host on BiggerPockets shared their experience operating a successful Airbnb in a Chambly multi-unit building without issue, stating the city licensing process was "very easy" with no inspection required. They noted that being responsive to inquiries, getting positive reviews, and offering amenities like in-unit laundry allowed them to charge higher than average nightly rates and maintain high occupancy.

However, other hosts on Reddit expressed frustration with the increasingly restrictive STR environment in Quebec. Some said the time and stress of complying with municipal regulations made self-managing properties challenging, leading them to either work with professional property managers or exit the short-term rental business.

Overall, while Chambly has a regulatory framework in place, the city seems to lack the resources for proactive enforcement. The onus is on vigilant neighbors or building management to report suspected illegal short-term rentals to authorities. Hosts appear to be weighing the risks and rewards, with some continuing to operate under the radar. But those who can meet the permit requirements and provide a high-quality guest experience are finding ways to run viable STR businesses that comply with the rules.

In summary, Chambly is less welcoming to Airbnb and other STRs compared to some cities, but more lenient than others with de facto bans. Enforcement is inconsistent, emboldening some hosts to skirt the rules. But with steep fines for violations, operating illegally is a gamble many are not willing to take. The STR landscape remains in flux as the city grapples with how to balance tourism dollars with housing affordability concerns.

How to Start a Short-Term Rental Business in Chambly

Starting a short-term rental business in Chambly requires careful planning and execution. Follow these steps to launch your STR venture:

1. Create a business plan - Develop a detailed plan that outlines your business model, target market, competitive advantages, financial projections, and marketing strategy. This roadmap will guide your decision making and help secure financing if needed.
2. Choose a business structure - Consult with an attorney and accountant to determine the optimal legal structure for your STR business, such as a sole proprietorship, partnership, or corporation. Forming an LLC can help protect your personal assets.
3. Understand the regulations - Thoroughly research Chambly's municipal bylaws and Quebec's provincial rules governing short-term rentals. Ensure your property meets all zoning, licensing, tax, and safety requirements before listing it. Failure to comply can result in hefty fines.
4. Obtain necessary permits - Apply for a CITQ classification certificate, which is mandatory for any rental under 31 days in Quebec. Submit all required documentation, including proof of ownership, insurance, floor plans, and photos. Factor in application fees and processing times.
5. Prepare your property - Furnish and equip your rental to appeal to your target guests. Invest in durable, high-quality items that will withstand frequent turnover. Hire a professional photographer to showcase your space in its best light online.
6. Determine your pricing - Research comparable STRs in your area to set competitive rates. Build a pricing model that covers all your expenses, including mortgage payments, utilities, insurance, maintenance, and supplies. Consider using dynamic pricing tools to optimize revenue.
7. List your property - Create listings on popular STR platforms like Airbnb and Vrbo. Craft compelling descriptions, use professional photos, and highlight your property's best features and amenities. Utilize social media and your own website to expand your reach.
8. Automate operations - Implement vacation rental software to streamline reservations, guest communication, cleaning coordination, and reporting. Automating repetitive tasks will save you valuable time as you scale your business.
9. Deliver excellent service - Prioritize the guest experience to earn 5-star reviews, which are critical to STR success. Be responsive, accommodating, and proactive in your communication. Provide thoughtful touches like local recommendations to exceed expectations.
10. Evaluate and adjust - Regularly assess your STR's performance using key metrics like occupancy rate, average daily rate, and revenue. Adapt your strategies based on guest feedback and market trends to optimize your business over time.

Some additional tips for STR success in Chambly:

1. Partner with local businesses to offer exclusive discounts or packages to your guests
2. Develop a reliable network of cleaning and maintenance professionals
3. Stay up to date on industry trends and best practices through STR associations and events
4. Diversify your marketing efforts to reach new guest segments and reduce reliance on a single platform
5. Build a strong brand identity that reflects the unique character of your property and location

By following these steps and continuously improving your operations, you can build a thriving short-term rental business in Chambly. While the regulatory landscape presents some challenges, a well-executed STR strategy can generate significant returns in this growing market.

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

If you have questions about short-term rental rules or need assistance with the permitting process in Chambly, here are some key contacts and resources:

Chambly Urban Planning Department

Address: 1, place de la Mairie, Chambly, QC J3L 4X1
Phone: 450-658-1133
Email: urbanisme@ville.chambly.qc.ca
Website: https://www.ville.chambly.qc.ca/services-aux-citoyens/urbanisme/

The city's urban planning department is responsible for administering zoning bylaws and issuing permits. They can provide information on where short-term rentals are allowed and the specific requirements for operating legally in Chambly.

Corporation de l'industrie touristique du Québec (CITQ)
Phone: 450-679-3737 or 1-866-499-0550
Email: info@citq.qc.ca
Website: https://citq.qc.ca/en/

CITQ is the provincial body that regulates tourist accommodations in Quebec. They issue the mandatory classification certificates for short-term rentals. Contact them for questions about the application process, required documents, and inspections.

Revenu Québec
Phone: 1-800-567-4692
Website: https://www.revenuquebec.ca/en/

Revenu Québec administers the provincial sales tax (QST) and lodging tax that apply to short-term rentals. Consult their website or contact them directly for information on registering for tax accounts and remitting the taxes you collect from guests.

In addition to government agencies, connecting with other short-term rental hosts in Chambly can be a valuable way to get insights and support. Consider joining these online communities:

1. Airbnb Community Center - Hosting Forum: https://community.withairbnb.com/t5/Hosting/bd-p/listing-and-reservations
2. Bigger Pockets Forums - Short-Term and Vacation Rental Discussions: https://www.biggerpockets.com/forums/530-short-term-and-vacation-rental-discussions
3. VRBO Community Forum: https://community.vrbo.com/s/
4. Chambly Airbnb Hosts Facebook Group: https://www.facebook.com/groups/chamblyairbnbhosts

These forums and social media groups allow you to ask questions, share experiences, and learn best practices from fellow hosts. Local host groups may also organize in-person meetups for networking and education.

By engaging with these official and peer resources, you can stay informed about the evolving short-term rental landscape in Chambly. Regulations may change over time, so it's important to monitor communications from the city and province and adapt your business accordingly.

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

To get a sense of how short-term rental operators in Chambly feel about the local regulations, I searched through discussions on Reddit and BiggerPockets. Here are some key takeaways from hosts with experience navigating Chambly's STR rules:

On the Montreal subreddit, one host shared their perspective on Quebec's provincial law that restricts short-term rentals to primary residences only:

"First off, a CITQ (establishment permit) is still needed in all cases in Quebec to Airbnb. To get a CITQ it MUST be your primary residence, and you have to prove it...I'd really love to hear a VALID reason as to how a person renting a room in their personal residence, or their entire place when they go on vacation, affects the housing crisis."

The host argues that renting out one's own primary residence on Airbnb, either partially or while away, does not negatively impact housing affordability. They believe the real issue is with commercial operators taking long-term rentals off the market.

In another thread on the Montreal Housing subreddit discussing where to live near the city, a commenter mentioned "Chambly is not far" - suggesting the town is seen as a viable option for those priced out of Montreal proper who are open to a longer commute.

While I did not find any posts from Chambly hosts specifically on BiggerPockets, there were some general discussions about navigating local short-term rental permits and regulations. Hosts emphasized the importance of thoroughly researching city and state STR ordinances before purchasing a property to avoid issues down the line.

One host described their experience getting a non-owner occupied STR permit in Chattanooga, Tennessee, which required proving the rental would not negatively impact the neighborhood. Another shared tips for succeeding with Airbnb near Orlando, Florida, including understanding local zoning and HOA rules.

The overall sentiment seems to be that responsible hosts who educate themselves on Chambly's STR regulations and operate within the stated limits face fewer obstacles than those trying to skirt the rules. Some see the owner-occupancy requirement as reasonable, while others feel it is overly restrictive.

Ultimately, each host has to weigh the potential costs and benefits of starting an STR business under Chambly's regulatory framework. Those willing to put in the work to obtain proper permits and meet the city's standards can still find ways to succeed in the local market. But the rules may deter more casual hosts or those seeking to operate multiple STR properties as a full-time business.

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.