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

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

Short-term rentals like Airbnb and VRBO are regulated in Chilliwack through the Short-Term Rental Bylaw and Zoning Bylaw. Anyone operating a short-term rental in Chilliwack must apply for a Business License (Accessory Home Occupation).

The City of Chilliwack adopted new Short-Term Rental regulations on October 19, 2021, that allow short-term rentals to take place on the same property where the property owner lives, either by renting out a spare room or another unit on the same property.

Starting a Short-Term Rental Business in Chilliwack

To apply for a Short-Term Rental License in Chilliwack, you need to submit a Business License application that includes:

• An Accessory Home Occupation Business License application form
• Proof the STR will operate on the same lot as the Principal Residence
• The number of bedrooms that will be contained in the STR
• A parking plan that meets the Zoning Bylaw requirements
• An Owner Consent Form and Strata Consent Form, if applicable
• A Fire Safety Self-Inspection Form and Fire Safety Plan approved by the Chilliwack Fire Department

It's important to confirm your insurance policy allows for STRs. You are responsible for contacting your insurance provider and advising them of your intention to operate a STR.

Starting May 1, 2024, the Province of British Columbia has also implemented a provincial principal residence requirement that limits short-term rentals to the host's principal residence, plus one secondary suite or accessory dwelling unit on the same property, in municipalities with a population of 10,000 and over, including Chilliwack. However, local governments may have more restrictive short-term rental bylaws depending on local needs.

The new provincial and municipal regulations aim to ensure short-term rentals operate responsibly in Chilliwack and return more short-term rental units into long-term homes for residents. Familiarizing yourself with both the local Chilliwack bylaws and provincial requirements is essential when starting a short-term rental business.

Short-Term Rental Licensing Requirement in Chilliwack

To legally operate a short-term rental in Chilliwack, property owners must obtain a Business License (Accessory Home Occupation) from the City. The licensing process ensures STRs comply with the Short-Term Rental Bylaw and Zoning Bylaw requirements.

To apply for a Short-Term Rental License, submit a Business License application that includes:

1. Accessory Home Occupation Business License application form
2. Proof the STR will operate on the same lot as the Principal Residence
3. Number of bedrooms (Sleeping Units) in the STR
4. Parking plan that meets Zoning Bylaw requirements
5. Owner Consent Form and Strata Consent Form, if applicable
6. Fire Safety Self-Inspection Form and Fire Safety Plan approved by Chilliwack Fire Department

It's important to confirm your insurance policy allows for STRs. Contact your insurance provider and advise them of your intention to operate an STR.

The Business License application can be submitted online or in person. The application fee for a Short-Term Rental Business License is $100.

Failure to obtain a valid license or comply with STR regulations may result in fines and penalties. The City of Chilliwack has the authority to enforce against unlicensed short-term rentals operating in violation of the bylaw.

Processing times for STR license applications are not specified on the City website. However, applicants are encouraged to review the FAQ Sheet and Operator Brochure in preparation for submitting their application to ensure they have all required documents and approvals.

Required Documents for Chilliwack Short-Term Rentals

To apply for a Short-Term Rental License in Chilliwack, you need to submit a Business License application that includes the following documents:

1. Accessory Home Occupation Business License application form: This form provides the City with essential information about your short-term rental business, such as the property address, owner details, and type of rental.
2. Proof the STR will operate on the same lot as the Principal Residence: You must provide evidence that the short-term rental is located on the same property where you, the owner, live. This aligns with Chilliwack's "homeshare" model, which requires the rental host to live on-site for monitoring and maintenance purposes.
3. Number of bedrooms (Sleeping Units) in the STR: Specify the number of rooms you intend to rent out. Chilliwack allows a maximum of three rooms to be rented in a home, duplex, townhouse, secondary suite, garden suite, or carriage house.
4. Parking plan that meets Zoning Bylaw requirements: Submit a plan showing the available parking spaces for your short-term rental. The parking plan must comply with the City's Zoning Bylaw to ensure adequate parking is provided and to minimize neighborhood impacts.
5. Owner Consent Form and Strata Consent Form, if applicable: If you are not the sole owner of the property or if the property is part of a strata, you must obtain consent from the other owners or the strata council to operate a short-term rental.
6. Fire Safety Self-Inspection Form and Fire Safety Plan: Complete the Fire Safety Self-Inspection Form and create a Fire Safety Plan for your short-term rental. The Chilliwack Fire Department will review and approve the Fire Safety Plan to ensure your rental meets fire safety standards.

These documents can be obtained from the City of Chilliwack's website or by contacting the Planning and Strategic Initiatives Department. The Business License application, along with the required documents, can be submitted online or in person at City Hall.

Chilliwack Short-Term Rental Taxes

Short-term rental operators in Chilliwack are subject to various taxes, including income tax and the Municipal and Regional District Tax (MRDT).

1. Income Tax: As a short-term rental operator, you must report your rental income on your personal income tax return. The amount of tax you pay depends on your total taxable income and applicable tax bracket. Keep accurate records of your rental income and expenses to calculate your net rental income.
2. Municipal and Regional District Tax (MRDT): The MRDT, also known as the "hotel tax," applies to short-term accommodations in Chilliwack. The City of Chilliwack is the designated recipient of these funds, which are used for tourism marketing, programs, and projects. The MRDT rate in Chilliwack is 3% of the purchase price of the short-term rental.
3. Goods and Services Tax (GST): If your short-term rental business generates more than $30,000 in gross annual revenue, you may be required to register for and collect GST. The current GST rate is 5%.

Potential Deductions and Write-offs: As a short-term rental operator, you may be eligible for certain deductions and write-offs to reduce your taxable income. These may include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Repairs and maintenance
6. Advertising and marketing expenses
7. Cleaning and supplies
8. Depreciation of furniture and equipment

Consult with a tax professional to determine which deductions apply to your specific situation and to ensure you are complying with all applicable tax laws.

In addition to these taxes, short-term rental operators must obtain a Business License (Accessory Home Occupation) from the City of Chilliwack and comply with the Short-Term Rental Bylaw and Zoning Bylaw.

British Columbia Wide Short-Term Rental Rules

In addition to the City of Chilliwack's short-term rental regulations, the Province of British Columbia has implemented new rules that affect short-term rental hosts across the province, including those in Chilliwack.

1. Principal Residence Requirement: As of May 1, 2024, the Province has implemented a principal residence requirement that limits short-term rentals to the host's principal residence, plus one secondary suite or accessory dwelling unit on the same property, in municipalities with a population of 10,000 and over. This aligns with Chilliwack's "homeshare" model, which requires the rental host to live on-site for monitoring and maintenance purposes.
2. Business Registration: Short-term rental operators in British Columbia must register their business with the Province and obtain a Provincial Sales Tax (PST) number. They must also collect and remit the 8% PST on the purchase price of the rental.
3. Municipal and Regional District Tax (MRDT): The MRDT, also known as the "hotel tax," applies to short-term accommodations in British Columbia. The tax rate varies by municipality, with Chilliwack's rate set at 3% of the purchase price of the short-term rental.
4. Strata Regulations: If a short-term rental property is part of a strata, hosts must comply with any strata bylaws and obtain consent from the strata council to operate the rental.

While the provincial regulations provide a framework for short-term rentals across British Columbia, local governments like the City of Chilliwack may have more restrictive bylaws depending on local needs. Short-term rental hosts in Chilliwack must comply with both the provincial and municipal requirements to operate legally.

The new provincial rules aim to support the return of short-term rental units to the long-term housing market and ensure a level playing field for all short-term rental operators.

Does Chilliwack Strictly Enforce STR Rules?

Chilliwack has taken a balanced approach to regulating short-term rentals, aiming to support the tourism economy while preserving affordable housing and minimizing neighborhood impacts. However, the city is not as Airbnb-friendly as some other municipalities, as it has implemented a "homeshare" model that requires the rental host to live on-site for monitoring and maintenance purposes.

According to discussions on forums like Bigger Pockets and Reddit, Chilliwack is relatively strict in enforcing its STR rules compared to other cities. The new regulations, approved in October 2021, give the city "some teeth" in dealing with issues arising from short-term rentals, such as noise complaints, parking problems, and disruptive behavior by guests.

While some hosts may still operate in Chilliwack despite the rules, the city has made it clear that enforcement is a priority. The requirement for hosts to obtain a business license and comply with the "homeshare" model makes it more difficult for hosts to fly under the radar. City officials have emphasized that voluntary compliance will be the first step, but they are prepared to issue fines and penalties for those who continue to violate the regulations.

In summary, Chilliwack has taken a proactive stance in regulating short-term rentals, striking a balance between supporting tourism and preserving the quality of life for residents. While not as Airbnb-friendly as some cities, Chilliwack's approach is designed to ensure that short-term rentals operate responsibly and with minimal impact on neighborhoods. Hosts who fail to comply with the rules face a higher risk of enforcement action compared to those in more lenient municipalities.

How to Start a Short-Term Rental Business in Chilliwack

Starting a short-term rental business in Chilliwack requires careful planning and compliance with local regulations. Follow these steps to successfully launch your STR:

1. Understand the regulations: Familiarize yourself with Chilliwack's Short-Term Rental Bylaw and Zoning Bylaw. Ensure your property meets the "homeshare" model, which requires the rental host to live on-site for monitoring and maintenance purposes.
2. Prepare your property: Determine which rooms or units you will rent out and make any necessary renovations or upgrades. Ensure your property is well furnished, meets safety standards, and provides a comfortable experience for guests.
3. Obtain necessary licenses and permits: Apply for an Accessory Home Occupation Business License from the City of Chilliwack. Submit the required documents, including proof of principal residence, number of sleeping units, parking plan, owner/strata consent forms, and fire safety plan.
4. Set up your listing: Create a listing on popular short-term rental platforms like Airbnb and VRBO. Take high-quality photos, write a compelling description, and set competitive rates. Be transparent about your property's amenities and any house rules.
5. Manage bookings and communication: Respond promptly to inquiries and booking requests. Maintain a clear and friendly communication style with guests before, during, and after their stay. Consider using a property management software to streamline the process.
6. Ensure guest satisfaction: Provide a clean, well-maintained space for your guests. Offer amenities like fresh linens, toiletries, and local recommendations. Be available to address any concerns or issues that may arise during their stay.
7. Comply with tax requirements: Register your business with the Province of British Columbia and obtain a Provincial Sales Tax (PST) number. Collect and remit the 8% PST and 3% Municipal and Regional District Tax (MRDT) on the purchase price of the rental.
8. Maintain accurate records: Keep detailed records of your rental income and expenses for tax purposes. Consider working with a tax professional to ensure compliance and maximize deductions.

Tips for success:

1. Prioritize guest experience and maintain a high standard of cleanliness and safety.
2. Be proactive in your communication with guests and address any issues promptly.
3. Stay up-to-date with changes in local regulations and adapt your business as needed.
4. Network with other STR hosts in Chilliwack to share best practices and learn from their experiences.

By following these steps and prioritizing compliance and guest satisfaction, you can successfully launch and operate a short-term rental business in Chilliwack.

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

If you have questions about short-term rental regulations or the licensing process in Chilliwack, contact the Planning and Strategic Initiatives Department:

1. Phone: 604-793-2906
2. Email: planning@chilliwack.com

For inquiries related to fire safety requirements for short-term rentals, contact the Chilliwack Fire Department:

• Phone: 604-792-8713
• Email: fire@chilliwack.com

To report concerns or complaints about a specific short-term rental property, such as noise, parking, or other nuisances, contact the Bylaw Enforcement Department:

• Phone: 604-793-2908
• Email: bylawenforcement@chilliwack.com

Useful resources for short-term rental hosts in Chilliwack include:

• The City of Chilliwack's Short-Term Rentals webpage: https://www.chilliwack.com/main/page.cfm?id=2974
• The Chilliwack Short-Term Rental Operators Facebook Group: https://www.facebook.com/groups/chilliwackstrhosts/ (not an official City resource)

Hosts may also find valuable information and support by connecting with other local operators through online forums and communities, such as:

• The Chilliwack Short-Term Rental Operators thread on BiggerPockets: https://www.biggerpockets.com/forums/530/topics/922187-chilliwack-short-term-rental-operators
• The Chilliwack Airbnb Hosts subreddit: https://www.reddit.com/r/ChilliwackAirbnbHosts/ (not an official City resource)

Remember to always refer to the City of Chilliwack's official website and contact the appropriate departments for the most accurate and up-to-date information on short-term rental regulations and zoning.

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

While there are no specific Chilliwack-focused Airbnb host communities on Reddit or Bigger Pockets, some insights can be gleaned from discussions in broader short-term rental forums:

In a Reddit thread titled "Looking To Get Into AirBnb", a user mentioned that the short-term rental market has slowed down significantly, with many properties converting to long-term rentals or being sold altogether. They suggest waiting for the market to stabilize before investing in a short-term rental property.

On the Bigger Pockets forum, a user shared their experience volunteering at events hosted by the founders of Bigger Pockets in Washington state. They emphasized that the platform provides legitimate advice and resources for aspiring short-term rental hosts, and offered to provide specific tips to those looking to get started.

However, it's important to note that these discussions are not specific to Chilliwack and may not accurately reflect the experiences of local hosts.

The City of Chilliwack's official website and Engage Chilliwack platform provide the most relevant information about local short-term rental regulations:

• The City adopted new Short-Term Rental regulations on October 19, 2021, allowing short-term rentals to take place on the same property where the owner lives, either by renting out a spare room or another unit on the same property.
• The City gathered input from stakeholders and the community to ensure that the new regulations promote responsible operation of short-term rentals in Chilliwack.

For the most accurate and up-to-date information about local host experiences and opinions, it's best to reach out to the City of Chilliwack's Planning and Strategic Initiatives Department at planning@chilliwack.com or 604-793-2906.

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.