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

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

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Comox and across British Columbia in recent years. However, new provincial legislation and local zoning bylaws are changing the short-term rental landscape in Comox. Here's what you need to know:

Starting a Short-Term Rental Business in Comox

As of May 1, 2024, the Province of British Columbia is implementing 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. This means property owners in Comox will only be able to operate a short-term rental if it is their primary residence.

The Town of Comox's zoning bylaw allows "Bed and Breakfast" use as a home occupation in some residential zones. A "Bed and Breakfast" is defined as providing bedrooms and breakfast within a principal dwelling for stays of less than 30 consecutive days. Property owners who want to operate a short-term rental in a different format, such as a whole home rental or a carriage house, will need to apply for a site-specific zoning amendment or temporary use permit from the Town.

Comox Mayor Nicole Minions predicts the new provincial legislation will have a minimal effect locally, as the majority of current Airbnb listings in Comox appear to be secondary suites or rooms in a primary residence. However, she notes there are currently 5-10 entire home vacation rentals that will likely be impacted.

The Comox Valley Regional District (CVRD) is taking a wait-and-see approach to the new provincial rules. The CVRD board has directed staff to monitor the local impact on housing and bring forward short-term rental policies for consideration as part of an update to the Rural Official Community Plan in 2025.

Property owners who operate a short-term rental will need to register their units with the new provincial registry launching in late 2024 or early 2025. Fines for non-compliance with the new rules can reach up to $50,000.

While the tourism impacts are expected to be minimal, Comox Valley mayors are cautiously optimistic the new legislation could help ease the local housing crunch by returning some short-term rentals to the long-term market. However, they acknowledge it is just one small piece of the housing affordability puzzle.

To navigate the changing short-term rental landscape, homeowners should carefully review both provincial regulations and local zoning bylaws. Getting legal advice is also recommended for any uncertain accommodation arrangements.

The bottom line is short-term rentals will still be allowed in Comox, but in a much more limited form tied to primary residences starting in May 2024. Time will tell how significantly this reshapes the local vacation rental market and housing availability. For now, town officials, property owners, and residents are all watching to see how it plays out on the ground.

Short-Term Rental Licensing Requirement in Comox

The Town of Comox requires all short-term rental operators to obtain a valid business license. Here are the key requirements based on information from the official Town of Comox website:

All businesses, including short-term rentals and home-based businesses, operating within Comox must have a business license.

Business licenses are valid for each calendar year and can be applied for at any time.

To apply, fill out the Comox Business Licence Application form available on the town website. The application requires information about the business owner, business name, location, and description.

For short-term rentals, the property owner must occupy either the primary residence or the secondary suite being rented. Only one secondary suite is permitted per residential property.

The secondary suite must be completely contained within the main house, have a separate entrance, and not exceed 90m2 or 40% of the home's total floor area, whichever is less.

Two off-street parking spaces (one for the main residence and one for the suite) must be provided.

Completed business license applications can be submitted in person at Comox Town Hall (1809 Beaufort Avenue) or mailed to:

Town of Comox
1809 Beaufort Avenue
Comox, BC V9M 1R9

The business license fee is $150 annually. Payments can be made by cash, cheque, or debit at Town Hall. Credit cards are not accepted.

The business licensing process typically takes 3-4 weeks from the time a complete application is received. Comox bylaw officers may follow up to conduct an inspection of the short-term rental property to ensure compliance with zoning and building code requirements.

Failure to obtain a valid business license for a short-term rental can result in fines of up to $450 per day that the unit is rented without a license. With the new provincial legislation taking effect, these fines could potentially increase to $3000 per day for municipal infractions and up to $5000 per day from the provincial enforcement unit.

It's important for short-term rental operators in Comox to carefully review both the local business licensing requirements and the new provincial regulations to ensure they are in full compliance by the May 1, 2024 deadline. Consulting with the town's planning department and obtaining legal advice is recommended for any uncertain situations.

Required Documents for Comox Short-Term Rentals

To apply for a short-term rental business licence in the Town of Comox, you will need to submit the following documents along with your completed application form:

• Proof of Principal Residence: You must provide two documents proving the short-term rental property is your principal residence. One document must include government-issued photo ID such as a driver's licence. The other can be a recent utility bill, property tax assessment, or other official mail showing your name and address. This is required to demonstrate compliance with the provincial principal residence requirement for short-term rentals effective May 1, 2024.
• Parking Plan: A simple sketch or site plan showing the location and dimensions of the two required off-street parking spaces on your property (one for the main dwelling and one for the secondary suite). This helps confirm your short-term rental meets the parking requirements in the zoning bylaw.
• Strata Council Approval (if applicable): If your property is part of a strata, you must provide a letter or signed form from your strata council confirming they allow short-term rentals. Some stratas prohibit or restrict short-term rentals in their bylaws.
• Proof of Home Insurance: Contact your home insurance provider and obtain documentation showing your home insurance policy allows short-term rental use and provides adequate liability coverage. Some providers may require you to add a short-term rental endorsement to your existing policy.
• Floor Plans: Scaled floor plans of your short-term rental clearly showing the layout and dimensions of bedrooms, bathrooms, kitchen, living spaces, and exits. Label the short-term rental unit and include calculations of its total floor area. This helps confirm compliance with size restrictions for secondary suites in the zoning bylaw.
• Property Owner Consent (if you are a tenant): If you rent the property but wish to operate a short-term rental in a secondary suite or accessory dwelling, you must provide a signed letter from the property owner consenting to this use.

Incomplete applications missing any required documents will not be processed, so it's important to carefully review the checklist before submitting. The Town of Comox building inspection department can answer any questions about the required documents or assist with your application.

Once you have gathered all these documents, submit your complete application package in person or by mail to:

Town of Comox
Building Inspection Department
1809 Beaufort Avenue
Comox, BC V9M 1R9

The licensing process typically takes 3-4 weeks from the time a complete application is received. You cannot begin operating your short-term rental until you have received your licence.

Failure to obtain a valid short-term rental business licence can result in fines of $450 per day. With the new provincial enforcement unit conducting audits, fines for non-compliant operators could potentially reach up to $5000 per day. Doing your due diligence and obtaining proper licensing helps ensure your short-term rental is set up for success.

Comox Short-Term Rental Taxes

Short-term rental operators in Comox are subject to several types of taxes, including income tax, GST/HST, and the Municipal and Regional District Tax (MRDT). Understanding your tax obligations is crucial for running a compliant and profitable short-term rental business.

Income Tax

Income earned from short-term rentals is taxable and must be reported on your personal income tax return. The amount of tax you owe depends on your total income and tax bracket. For the 2023 tax year, the federal income tax rates are:

1. 15% on the first $53,359 of taxable income
2. 20.5% on the portion of taxable income over $53,359 up to $106,717
3. 26% on the portion of taxable income over $106,717 up to $165,430
4. 29% on the portion of taxable income over $165,430 up to $235,675
5. 33% on the portion of taxable income over $235,675

In addition to federal income tax, British Columbia has its own provincial income tax rates. For 2023, the BC tax rates are:

1. 5.06% on the first $45,654 of taxable income
2. 7.7% on the portion of taxable income over $45,654 up to $91,310
3. 10.5% on the portion of taxable income over $91,310 up to $104,835
4. 12.29% on the portion of taxable income over $104,835 up to $127,299
5. 14.7% on the portion of taxable income over $127,299 up to $172,602
6. 16.8% on the portion of taxable income over $172,602 up to $240,716
7. 20.5% on the portion of taxable income over $240,716

GST/HST

Short-term rental operators must collect and remit Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on their rental income. In British Columbia, the GST rate is 5%. You must register for a GST/HST account with the Canada Revenue Agency if your gross annual revenue from worldwide taxable supplies exceeds $30,000.

Municipal and Regional District Tax (MRDT)

The Municipal and Regional District Tax is a 2-3% tax on short-term accommodation rentals in participating areas to fund local tourism marketing and development. Comox is located in the Comox Valley MRDT participating area, which has a 3% MRDT rate.

Short-term rental platforms like Airbnb collect and remit the MRDT on behalf of their hosts. In 2018, Airbnb paid $9.2 million in MRDT to municipalities and regional districts in BC, double the amount originally anticipated.

Possible Tax Deductions

While short-term rentals generate taxable income, hosts can deduct many expenses to reduce their tax liability. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Cleaning fees
6. Repairs and maintenance
7. Supplies
8. Advertising
9. Platform service fees
10. Accounting and legal fees
11. Depreciation on capital assets like appliances and furniture

Short-term rental hosts may also be eligible for the capital cost allowance (CCA) to deduct the cost of the rental property itself over several years.

Hosts who use a portion of their principal residence for short-term rentals may be able to claim the business-use-of-home deduction for expenses like mortgage interest, property taxes, insurance, utilities, and maintenance.

It's important to keep detailed records of all your rental income and expenses to support your tax deductions. Consult with a qualified tax professional to ensure you are claiming all the deductions you are entitled to and complying with all tax laws.

By understanding the various taxes that apply to short-term rentals in Comox and taking advantage of available deductions, hosts can minimize their tax burden and maximize their rental profits. With the new provincial regulations coming into effect, it's more important than ever for short-term rental operators to stay informed about their tax obligations.

British Columbia Wide Short-Term Rental Rules

In addition to municipal regulations, short-term rental hosts in Comox must also comply with new province-wide rules introduced through the Short-Term Rental Accommodations Act. The act, which took effect on May 1, 2024, aims to return more short-term rentals to the long-term housing market and give local governments stronger tools to enforce their bylaws.

The key province-wide requirements that Comox hosts need to be aware of include:

1. Principal Residence Requirement: Effective May 1, 2024, short-term rentals are restricted to a host's principal residence, plus one secondary suite or accessory dwelling unit on the same property. This applies to communities with populations over 10,000, which includes Comox.
2. Removal of Legal Non-Conforming Use Protections: As of May 1, 2024, legal non-conforming use protections no longer apply to short-term rentals. This means properties that were previously allowed to operate short-term rentals despite not conforming with current zoning bylaws have lost that grandfathered status.
3. Business Licence Display: Where required by local governments, short-term rental hosts must display a valid business licence number on their listings starting May 1, 2024. Failure to do so can result in the listing being removed by the booking platform at the request of the local government.
4. Data Sharing: Short-term rental platforms like Airbnb and Vrbo will be required to share data about their B.C. listings with the provincial government on a monthly basis starting in summer 2024. This data will be used to help local governments enforce their short-term rental bylaws.
5. Provincial Registration: The province plans to launch a short-term rental registry in late 2024 or early 2025. Once implemented, hosts will need to include their provincial registration number in all listings. Booking platforms will be required to validate these registration numbers against the provincial database.
6. Fines and Penalties: The act increases the maximum fines for non-compliance to $50,000 for prosecutions of bylaw offences. Municipal ticketing fines have also increased to $3,000 per infraction per day. A new provincial compliance and enforcement unit will have the power to conduct investigations and issue fines of up to $5,000 per day for violations.

These province-wide rules apply in addition to any local regulations set by the Town of Comox. Some communities, like Vancouver, have even stricter short-term rental bylaws that further restrict who can operate.

The new provincial legislation has faced pushback from some property owners and short-term rental advocates. A group of nearly 300 owners has filed a petition challenging the constitutionality of the act. They argue it unfairly targets compliant operators and will result in significant financial losses.

Premier David Eby has defended the new rules, stating they are necessary to crack down on commercial operators running "mini-hotels" and return much-needed housing stock to the long-term rental market. The province estimates over 19,000 entire homes in B.C. are currently being used as short-term rentals for the majority of the year, worsening the housing crisis.

As the May 1 deadline has now passed, short-term rental hosts in Comox and across B.C. are scrambling to understand and comply with the complex web of new provincial and municipal regulations. Those with summer bookings are working to confirm their properties meet all the new criteria.

Significant questions and gray areas still remain around issues like how the principal residence requirement will be enforced. With the province not planning to launch its registration system for several more months, it will take time for the full impacts of the new rules to become clear. For now, both hosts and guests are closely watching how it all unfolds.

Does Comox Strictly Enforce STR Rules?

Based on discussions in online forums like Reddit and Bigger Pockets, it appears that Comox and the surrounding Comox Valley have been relatively lax in enforcing short-term rental regulations compared to larger cities in British Columbia, like Vancouver and Victoria.

Many hosts seem to operate short-term rentals in Comox despite not being fully compliant with zoning bylaws that restrict rentals to the "bed and breakfast" format within a principal residence. Enforcement has been complaint-driven and inconsistent, allowing a significant number of entire home vacation rentals to proliferate.

However, this is likely to change with the new provincial legislation taking effect. The increased fines of up to $3000 per day and the new provincial enforcement unit conducting audits will make operating a non-compliant short-term rental in Comox much riskier. The town's bylaw officers may also step up proactive enforcement now that they have stronger tools and provincial backing.

While Comox has generally been more short-term rental friendly than major cities, it is not a free-for-all. The town does require a business license for legal bed-and-breakfast-style rentals in a principal residence. Hosts operating entire home rentals not allowed under the zoning bylaw are still subject to complaints and potential fines, even if enforcement has been spotty to date.

As the May 1, 2024, deadline for the new provincial rules has now passed, the era of lax enforcement appears to be ending. Hosts in Comox are scrambling to understand and comply with the complex web of new provincial and municipal regulations. Many are facing tough decisions about canceling future bookings that are no longer allowed or converting their entire home vacation rentals into long-term rentals.

The bottom line is that Comox is transitioning from being a relatively easy place to operate a short-term rental to a jurisdiction with much stricter rules and enforcement. Hosts who fail to get compliant could face severe financial consequences. While some may still try to fly under the radar, the risks are increasing substantially. The days of Comox being an STR-friendly wild west are likely numbered as the new legislation reshapes the vacation rental landscape across British Columbia.

How to Start a Short-Term Rental Business in Comox

Starting a short-term rental business in Comox has become more complex with the introduction of new provincial regulations. However, it is still possible to operate a successful and compliant vacation rental with careful planning and execution. Here are the key steps to get started:

1. Confirm your property is eligible: Review the Town of Comox zoning bylaw and the new provincial short-term rental legislation to confirm your property is eligible to operate as a vacation rental. As of May 1, 2024, short-term rentals are restricted to a host's principal residence, plus one secondary suite or accessory dwelling unit on the same property. In Comox, the zoning bylaw further restricts short-term rentals to the "bed and breakfast" format, meaning you must be present on the property during guest stays.
2. Obtain necessary licenses and permits: Apply for a business license from the Town of Comox. You will need to provide documentation confirming your short-term rental is your principal residence, as well as a parking plan, floor plans, and proof of insurance. If your property is part of a strata, you will also need to provide written approval from your strata council. Once the provincial registration system launches in late 2024 or early 2025, you will also need to register your short-term rental and include your registration number in all listings.
3. Prepare your space for guests: Ensure your short-term rental is safe, clean, and well-equipped for guests. This may involve upgrading furniture and amenities, making repairs, and obtaining necessary supplies like linens and toiletries. Consider hiring a professional photographer to take high-quality photos of your space for your listings.
4. Create a compelling listing: Sign up for short-term rental platforms like Airbnb and Vrbo and create a detailed, accurate listing for your space. Use an attention-grabbing title and description that highlights your rental's best features and amenities. Be transparent about any quirks or limitations to manage guest expectations. Make sure to include your business license number and provincial registration number (once available) in your listing to comply with regulations.
5. Set competitive rates: Research similar short-term rentals in Comox to determine competitive nightly rates for your space. Consider using dynamic pricing tools to automatically adjust your rates based on demand. Factor in additional costs like cleaning fees, service fees, and taxes when setting your rates to ensure profitability.
6. Establish house rules and policies: Create clear house rules and policies for your short-term rental, including check-in/check-out times, occupancy limits, noise restrictions, and pet policies. Communicate these rules to guests in your listing and in a physical welcome book in your rental. Consider requiring guests to sign a rental agreement acknowledging the rules and policies.
7. Implement a cleaning and maintenance plan: Develop a thorough cleaning checklist and hire reliable cleaners to turnover your rental between guests. Schedule regular deep cleans and maintenance checks to keep your space in top condition. Consider using a property management system to automate cleaning and maintenance scheduling.
8. Provide excellent customer service: Respond promptly and professionally to guest inquiries and requests. Provide detailed check-in instructions and a local guidebook with recommendations for restaurants, attractions, and activities. Consider offering additional amenities like a welcome basket or local discounts to enhance the guest experience.
9. Stay compliant and keep good records: Regularly review provincial and municipal short-term rental regulations to ensure ongoing compliance. Keep detailed records of all rental income and expenses to support your tax filings. Consider working with a qualified accountant or bookkeeper to ensure proper financial management.

Starting a short-term rental business in Comox requires careful attention to regulatory compliance, as well as a commitment to providing an exceptional guest experience. By following these steps and staying informed about local and provincial rules, hosts can build a successful and sustainable vacation rental operation. With the new legislation reshaping the short-term rental landscape in British Columbia, adaptability and professionalism will be key to thriving in this dynamic industry.

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

If you have questions or need assistance with short-term rental regulations and zoning in Comox, there are several key contacts and resources available:

Town of Comox Planning Department: The Planning Department is responsible for administering and enforcing the town's zoning bylaw, which regulates short-term rentals. They can provide information on zoning requirements, permitted uses, and the application process for temporary use permits or zoning amendments.

Town of Comox Planning Department
1809 Beaufort Avenue
Comox, BC V9M 1R9
Phone: 250-339-2202
Email: planning@comox.ca

Town of Comox Building Department: The Building Department handles business licensing for short-term rentals in Comox. They can assist with the application process, required documentation, and inspections.

Town of Comox Building Department
1809 Beaufort Avenue
Comox, BC V9M 1R9
Phone: 250-339-2202
Email: building@comox.ca

Comox Valley Regional District Planning and Development Services: If your short-term rental is located in the rural areas outside the Town of Comox but within the Comox Valley Regional District, the CVRD Planning and Development Services department can provide information on applicable zoning bylaws and regulations.

Comox Valley Regional District
Planning and Development Services
600 Comox Road
Courtenay, BC V9N 3P6
Phone: 250-334-6000
Email: planning@comoxvalleyrd.ca

BC Government Short-Term Rentals Information Line: The province has set up a dedicated information line to answer questions about the new provincial short-term rental legislation, including the principal residence requirement, registration process, and enforcement provisions.

BC Government Short-Term Rentals Information Line
Phone: 1-844-554-2512
Email: str@gov.bc.ca

In addition to these official contacts, there are several online resources and forums where short-term rental hosts can connect with each other and share information:

1. Comox Valley Short-Term Rental Association: A local industry group for short-term rental operators in the Comox Valley. They provide education, advocacy and resources for members.
2. Comox Valley Short-Term Rentals Facebook Group: A private Facebook group for short-term rental hosts and property managers in the Comox Valley to share news, tips and advice.
3. Bigger Pockets Short-Term Rental Forum: An online forum for short-term rental investors and operators across North America to discuss strategies, regulations, and best practices.
4. Airbnb Community Center: Airbnb's official forum for hosts to connect with each other and get support from Airbnb staff.

By reaching out to these contacts and engaging with the short-term rental community, hosts in Comox can stay informed about evolving regulations and access the resources they need to run successful and compliant vacation rentals. With significant regulatory changes reshaping the industry, proactive communication and education will be essential for navigating the new landscape.

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

Several threads on Reddit and Bigger Pockets provide insight into how residents and visitors perceive Comox as a place to live and vacation. Here are a few notable examples:

"Buying a vacation rental in Comox, BC" (Bigger Pockets Forums): In this post, an investor asks for advice on purchasing a vacation rental property in Comox. Respondents note that the Comox Valley has a strong and growing tourism economy, with attractions like Mount Washington ski resort, golf courses, and beaches drawing visitors year-round. They caution that the new provincial short-term rental regulations may impact the viability of vacation rentals going forward, but suggest that properties with legal zoning for short-term rentals may become more valuable as the supply shrinks.

"Hidden Gems in the Comox Valley" (Reddit r/ComoxValley): Locals share their favorite lesser-known spots in the Comox Valley in this thread. Recommendations include secluded beaches like Seal Bay Park and Stotan Falls, scenic drives like Forbidden Plateau Road, and cozy cafes like Tidal Cafe and Avenue Bistro. The Kingfisher Oceanside Resort and Spa is also praised for its stunning ocean views and luxurious amenities.

Based on these discussions, Comox appears to be a highly desirable destination for both residents and tourists alike. Its stunning natural beauty, outdoor recreation opportunities, and charming small-town atmosphere make it an appealing place to live or visit.

For short-term rental operators, Comox's strong tourism economy and year-round attractions suggest a healthy demand for vacation accommodations. The town's relaxed, family-friendly vibe may be particularly well-suited for vacation rental properties that cater to families and outdoor enthusiasts.

However, the new provincial and municipal regulations around short-term rentals are a significant consideration for anyone looking to start a vacation rental business in Comox. Properties that are not the host's principal residence or do not conform to the town's zoning bylaw may no longer be viable as short-term rentals.

That said, properties with legal zoning for vacation rentals, such as those with a "bed and breakfast" designation, may become increasingly valuable as the supply of short-term rentals shrinks. Hosts who are able to navigate the new regulatory landscape and provide exceptional accommodations and service may be well-positioned to succeed in Comox's evolving vacation rental market.

Overall, while the short-term rental industry in Comox is undergoing significant changes, the town's enduring appeal as a destination suggests that opportunities still exist for savvy and compliant operators. By staying informed about regulations, connecting with the local community, and delivering memorable guest experiences, short-term rental hosts can tap into Comox's thriving tourism economy and build successful businesses in this beautiful coastal town.

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.