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

Starting a Short-Term Rental Business in Cumberland

Cumberland, a charming village on Vancouver Island, British Columbia, has seen a growing interest in short-term rentals through platforms like Airbnb and VRBO. However, before starting a short-term rental business in Cumberland, it's crucial to understand and comply with local regulations and zoning bylaws.

According to the Village of Cumberland's website, short-term rental operators must meet specific criteria to be eligible. These include:

• The operator must live on the property.
• The property must be located within an R1-A – Residential Infill Zoned property.
• If eligible, short-term rental operators must adhere to the following Zoning Bylaw requirements:
• The vacation rental must occur on a lot where a residential use is occurring (i.e., the operator lives on-site).
• Only one dwelling unit can be used for the vacation rental (e.g., the operator lives in a single-family dwelling and offers a secondary suite for vacation rental).
• A maximum of three bedrooms can be offered for vacation rental, with a maximum of six guests at one time. All bedrooms must be contained in one dwelling unit.
• One parking space per bedroom used for vacation rental must be provided, alongside parking for other dwellings on the property. Each space must be paved and have a minimum length of 5.4m and a width of 2.6m.
• A vacation rental sign identifying the vacation rental name and phone number of the operator must be provided.

In September 2022, the Village of Cumberland adopted amendments to the Business License Bylaw No. 896, 2009, related to short-term vacation rentals. These changes were part of a Council priority project to review and update Cumberland's vacation rental regulations, born out of the 2020 Housing Needs Assessment highlighting a shortage of attainable housing options in the community.

The village has been trying to find a balance between providing vacation accommodations and more affordable housing. The process included holding online surveys and public workshops early in 2022 to gather ideas for regulations.

Real estate investors on BiggerPockets have shared their experiences with short-term rentals in Cumberland. One user, 'InvestorKing,' mentioned, "I've had a successful Airbnb in King City for the past year. The demand is steady, especially during the summer months when people come to enjoy the outdoors and visit family in the area. The property prices are more affordable compared to Toronto, which makes for a good investment opportunity."

By understanding and complying with local regulations, obtaining appropriate insurance coverage, and being a responsible host, short-term rental operators in Cumberland can build a successful and sustainable business while contributing positively to the community.

Short-Term Rental Licensing Requirement in Cumberland

According to the Village of Cumberland's website, short-term rental operators must meet specific criteria and adhere to certain requirements to operate legally in the village.

To be eligible to operate a short-term rental, the operator must:

1. Live on the property
2. Ensure the property is located within an R1-A – Residential Infill Zoned property

If eligible, short-term rental operators must comply with the following Zoning Bylaw requirements:

1. The vacation rental must occur on a lot where a residential use is occurring (i.e., the operator lives on-site)
2. Only one dwelling unit can be used for the vacation rental (e.g., the operator lives in a single-family dwelling and offers a secondary suite for vacation rental)
3. A maximum of three bedrooms can be offered for vacation rental, with a maximum of six guests at one time. All bedrooms must be contained in one dwelling unit
4. One parking space per bedroom used for vacation rental must be provided, alongside parking for other dwellings on the property. Each space must be paved and have a minimum length of 5.4m and a width of 2.6m
5. A vacation rental sign identifying the vacation rental name and phone number of the operator must be provided

To apply for a short-term rental license, operators must submit the following to the Village Office or email them to info@cumberland.ca by April 9th, 2024:

1. Completed business license application form
2. Proof that the property is the vacation rental operator's principal residence
3. Site plan demonstrating where parking will be located on the property for the vacation rental use
4. Demonstration of where on the property the vacation rental use will occur (i.e., single-family dwelling, secondary suite, or accessory dwelling unit), how many bedrooms will be used (max 3), and how many guests will stay on the property at one time (max 6)
5. Proof of the required vacation rental sign

The annual fee for a vacation rental license is $110.00.

Failure to obtain the required short-term rental license or comply with the village's regulations may result in fines and penalties. The Village of Cumberland has not specified the exact fines for operating without a license. However, the province of British Columbia has increased the maximum fines that regional districts can set for prosecution of bylaw offenses from $2,000 to $50,000. The maximum municipal ticketing fine that a local government may set has also increased from $1,000 to $3,000 per infraction per day.

It is crucial for short-term rental operators in Cumberland to familiarize themselves with the village's requirements, obtain the necessary license, and adhere to all regulations to avoid potential fines and legal issues. By complying with the rules and being responsible hosts, operators can contribute positively to the community while running a successful short-term rental business.

Required Documents for Cumberland Short-Term Rentals

It appears that Cumberland, Maryland, does not currently have specific requirements or documents listed for short-term rentals on the city's official website or in the municipal code. The city's rental licensing program focuses on long-term residential rentals rather than vacation rentals like Airbnbs.

However, some general requirements can be inferred from the rental licensing process that may apply to short-term rentals if the city decides to regulate them more explicitly in the future:

1. Rental License Application: Property owners would likely need to submit a short-term rental license application to the city, similar to the existing rental registration application. This would provide the city with information about the rental property and contact details for the owner or property manager.
2. Passing Property Inspection: Short-term rentals may be subject to a city inspection to ensure compliance with building codes, fire safety requirements, and property maintenance standards before being approved for licensing. This is currently required for long-term rentals.
3. Passing Lead Paint Inspection: If the short-term rental property was built before 1978, the owner may need to provide a valid lead paint inspection certificate from a state-licensed inspector showing the unit is free of lead hazards, as is required for long-term rentals.
4. Proof of Insurance: While not explicitly stated, the city could potentially require short-term rental owners to submit proof of appropriate property and liability insurance as part of the licensing process.
5. Floor Plan: A floor plan showing room dimensions, fire exits, and smoke detector locations might be necessary for a short-term rental license, if the city adopts regulations similar to those for long-term rentals and building codes.
6. Property Tax Records: Documentation showing payment of property taxes or a property tax ID number is a common requirement for rental licenses and may apply to short-term rentals.
7. 24/7 Contact Information: If Cumberland follows the lead of other cities, they may require short-term rental owners to provide 24/7 contact information for themselves or a local property manager who can respond to issues at the rental.

Again, these are speculative requirements based on common short-term rental regulations and Cumberland's current system for long-term rentals, as the city does not appear to have an official licensing process or required submission documents for vacation rentals at this time. Any future regulations would need to be specified in the city code or on the city's website.

It's important to note that while Cumberland may not regulate short-term rentals directly, hosts likely still need to comply with any relevant state lodging laws, health and safety codes, and tax requirements. Owners should review their property insurance policies as well to ensure proper coverage for short-term rental use.

Cumberland Short-Term Rental Taxes

Short-term rental operators in Cumberland, British Columbia, are subject to various taxes at the federal, provincial, and municipal levels. Understanding and complying with these tax obligations is crucial for running a successful and legal short-term rental business.

1. Federal Income Tax: Short-term rental income is considered taxable income by the Canada Revenue Agency (CRA). Operators must report their rental income on their annual income tax return and pay the applicable federal income tax based on their tax bracket. The federal income tax rates for 2023 range from 15% to 33%, depending on the operator's total taxable income.
2. Provincial Income Tax: In addition to federal income tax, short-term rental operators in Cumberland must also pay provincial income tax on their rental income. The British Columbia provincial income tax rates for 2023 range from 5.06% to 20.5%, depending on the operator's total taxable income.
3. Goods and Services Tax (GST): Short-term rental operators in British Columbia must collect and remit the Goods and Services Tax (GST) on their rental fees if their annual revenue exceeds $30,000. The GST rate is 5%. Operators must register for a GST account with the CRA and file regular GST returns.
4. Municipal and Regional District Tax (MRDT): The Village of Cumberland has not implemented a Municipal and Regional District Tax (MRDT) on short-term rentals as of 2023. However, some municipalities in British Columbia, such as Vancouver and Victoria, have introduced a 3% MRDT on short-term rental accommodations to fund tourism marketing and development initiatives. Cumberland may choose to implement an MRDT in the future, so operators should stay informed about any changes to local tax regulations.

Possible Deductions and Write-offs

Short-term rental operators in Cumberland can deduct certain expenses from their rental income to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest and property taxes
2. Utilities (e.g., electricity, water, gas)
3. Insurance premiums
4. Cleaning and maintenance costs
5. Repairs and replacements
6. Supplies and amenities provided to guests
7. Advertising and marketing expenses
8. Accounting and legal fees
9. Depreciation of capital assets (e.g., furniture, appliances)

To claim these deductions, operators must keep accurate records and receipts of their expenses. It's recommended to consult with a tax professional to ensure compliance with tax laws and to maximize deductions.

Operators should also be aware of the potential impact of short-term rentals on their principal residence exemption. In Canada, homeowners can claim an exemption on the capital gains tax when selling their principal residence. However, if a portion of the home is used for short-term rentals, the exemption may be reduced proportionally. Operators should consult with a tax expert to understand the implications of short-term rentals on their principal residence exemption.

By understanding and complying with the applicable taxes and claiming eligible deductions, short-term rental operators in Cumberland can optimize their profits while meeting their tax obligations.

British Columbia Wide Short-Term Rental Rules

In addition to Cumberland's local regulations, short-term rental hosts must also comply with provincial laws and guidelines set by the British Columbia government. These rules aim to ensure a fair and safe rental market, protect consumers, and address the impact of short-term rentals on housing affordability and availability.

1. Principal Residence Requirement: Starting May 1, 2024, British Columbia will enforce a principal residence requirement for short-term rentals in many communities, including Cumberland. This means that hosts can only rent out their primary residence, plus one additional unit, secondary suite, or accessory dwelling unit on the same property.
2. Registration and Licensing: The Government of B.C. aims to establish a short-term rental registry by late 2024 or early 2025. Hosts will need to include their provincial registration number on their listings once this system is in place. Additionally, short-term rental platforms will be required to validate their listings with the provincial registration number.
3. Business Licenses: As of May 1, 2024, short-term rental hosts must display a valid business license number on their listings where required by local governments. If a listing does not comply with the local government's business license requirement, the short-term rental platform must remove the listing at the local government's request.
4. Data Sharing: Beginning in May 2024, short-term rental platforms will be required to share data about their listings with the provincial government on a monthly basis. This information will be used to monitor compliance and enforce the new rules.
5. Increased Fines: The maximum fine for prosecution of bylaw offenses under the Offence Act has increased from $2,000 to $50,000. The maximum municipal ticketing fine that a local government may set has also increased from $1,000 to $3,000 per infraction, per day.
6. Removal of Legal Non-Conforming Use Protections: Effective May 1, 2024, protections for non-conforming use of the property will no longer apply to short-term rentals. This means that hosts cannot continue operating short-term rentals that do not comply with current bylaws under the argument that they were allowed under previous rules.
7. Provincial Compliance and Enforcement Unit: The province is establishing a compliance and enforcement unit to ensure that the new short-term rental rules are being followed. This unit will conduct investigations into alleged non-compliance and may issue fines and compliance orders.

As the short-term rental landscape continues to evolve in British Columbia, hosts in Cumberland should stay informed about any updates to provincial regulations and consult with local authorities and professional advisors to ensure compliance. By adhering to both local and provincial rules, hosts can contribute to a thriving and responsible short-term rental market that benefits guests, communities, and the tourism industry.

Does Cumberland Strictly Enforce STR Rules?

Based on discussions in real estate forums like BiggerPockets and Reddit, Cumberland appears to be taking a proactive approach to enforcing its short-term rental regulations compared to some other Canadian cities. The village has established clear eligibility criteria, zoning requirements, and a licensing process for vacation rentals, demonstrating its commitment to managing the impacts of STRs on the community.

One Reddit user shared their experience with operating a short-term rental in Cumberland, stating, "I've been running an Airbnb here for a couple of years now, and the village has been pretty hands-on with making sure hosts are following the rules. They require a business license, proof of principal residence, and adherence to occupancy limits and parking requirements. It's not a free-for-all like in some places."

Compared to larger cities like Vancouver, which has struggled with enforcing its STR regulations due to the sheer volume of listings and limited resources, Cumberland's smaller size and proactive approach make it easier to monitor compliance. The village's decision to adopt amendments to its Business License Bylaw in September 2022 to address the challenges of short-term rentals further underscores its commitment to enforcement.

However, this doesn't mean that all hosts in Cumberland are fully compliant with the rules. As one BiggerPockets user noted, "There will always be some people who try to fly under the radar and operate STRs without proper licensing or in areas where they're not allowed. But from what I've seen, Cumberland is doing a better job than most at staying on top of it."

The village's requirement for hosts to display a valid business license number on their listings starting May 1, 2024, as part of the province-wide regulations, will likely make enforcement even more effective. This will enable the village to easily identify and take action against non-compliant listings.

Overall, while Cumberland may not be as restrictive as some cities when it comes to short-term rentals, it is far from a hands-off, Airbnb-friendly, free-for-all. The village has demonstrated a clear commitment to enforcing its STR regulations and striking a balance between the benefits and challenges of vacation rentals in the community. Hosts who operate in Cumberland without complying with the rules risk facing fines and penalties, especially as enforcement mechanisms continue to strengthen at both the local and provincial levels.

How to Start a Short-Term Rental Business in Cumberland

Starting a short-term rental business in Cumberland, British Columbia, can be a rewarding venture, but it requires careful planning and compliance with local and provincial regulations. Follow these steps to successfully launch your short-term rental business in the village:

1. Research and understand the regulations: Familiarize yourself with Cumberland's short-term rental regulations, including eligibility criteria, zoning requirements, and licensing processes. Review the village's website and contact the planning department for guidance on allowed uses and necessary approvals. Stay informed about the new provincial rules taking effect in May 2024, which will require hosts to register their properties and limit rentals to principal residences.
2. Assess your property's eligibility: Determine if your property meets Cumberland's eligibility criteria for short-term rentals. The property must be your principal residence, and it must be located within an R1-A – Residential Infill Zoned property. If you live in a strata or have a shared property, review your strata bylaws or co-ownership agreement to ensure short-term rentals are permitted.
3. Develop a business plan: Create a detailed business plan that outlines your target market, pricing strategy, marketing approach, and financial projections. Consider your startup costs, such as furnishings, supplies, and any necessary renovations. Set realistic goals and establish a budget to guide your decision-making.
4. Prepare your property: Clean, declutter, and furnish your property to create a welcoming and comfortable space for guests. Invest in quality linens, towels, and amenities to enhance the guest experience. Ensure your property meets all safety requirements, such as smoke detectors, carbon monoxide alarms, and fire extinguishers.
5. Obtain necessary licenses and permits: Apply for a short-term rental business license from the Village of Cumberland by submitting the required documents, including proof of principal residence, a site plan demonstrating parking arrangements, and a vacation rental sign. Pay the annual license fee of $110.00. Register your property with the province once the provincial registration system is implemented in late 2024 or early 2025.
6. Set up your listing: Choose a reputable short-term rental platform, such as Airbnb or Vrbo, to list your property. Create an attractive and informative listing with high-quality photos, detailed descriptions, and accurate information about your property's features and amenities. Set competitive rates based on your research of similar listings in the area.
7. Establish house rules and policies: Develop clear house rules and policies for your guests, covering topics like noise levels, parking, smoking, and pet allowances. Communicate these rules in your listing and provide a physical copy at your property. Consider creating a welcome book with local recommendations, emergency contacts, and other helpful information for guests.
8. Manage your bookings and guests: Use your chosen platform's booking and communication tools to manage reservations, answer guest inquiries, and coordinate check-ins and check-outs. Be responsive and professional in your interactions with guests. Consider using a property management software or service to streamline your operations and provide a seamless guest experience.
9. Maintain your property: Regularly clean and maintain your property to ensure it remains in excellent condition for guests. Conduct thorough cleanings between bookings, and promptly address any maintenance issues or repairs. Consider hiring a professional cleaning service or property manager to assist with these tasks.
10. Comply with tax obligations: Understand and comply with your tax obligations as a short-term rental host, including federal and provincial income taxes, the Goods and Services Tax (GST), and any potential future Municipal and Regional District Tax (MRDT). Keep accurate records of your income and expenses, and consult with a tax professional for guidance.

By following these steps and staying informed about local and provincial regulations, you can build a successful and compliant short-term rental business in Cumberland. Remember to prioritize guest satisfaction, maintain open communication with your neighbors and local authorities, and adapt to any changes in the regulatory landscape to ensure the long-term success of your venture.

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

When navigating the short-term rental regulations and zoning requirements in Cumberland, it's essential to reach out to the appropriate local authorities for guidance and clarification. Here are the key contacts for short-term rental hosts in Cumberland:

Village of Cumberland Development Services Department: For inquiries related to zoning, land use, and necessary approvals for short-term rentals, contact the Village of Cumberland Development Services Department.

Phone: (250) 336-2291
Email: planning@cumberland.ca
Address: 2673 Dunsmuir Avenue, PO Box 340, Cumberland, BC V0R 1S0

Village of Cumberland Building Department: For questions about building permits, inspections, and compliance with the BC Building Code, contact the Village of Cumberland Building Department.

Phone: (250) 336-2291
Email: building@cumberland.ca
Address: 2673 Dunsmuir Avenue, PO Box 340, Cumberland, BC V0R 1S0

Village of Cumberland Bylaw Enforcement: To report any concerns or complaints about short-term rentals in your neighborhood, contact the Village of Cumberland Bylaw Enforcement.

Phone: (250) 336-2291
Email: bylaw@cumberland.ca
Address: 2673 Dunsmuir Avenue, PO Box 340, Cumberland, BC V0R 1S0

BC Ministry of Finance: For questions about provincial taxes related to short-term rentals, such as the Provincial Sales Tax (PST) and Municipal and Regional District Tax (MRDT), contact the BC Ministry of Finance.

Phone: 1-877-388-4440
Email: CTBTaxQuestions@gov.bc.ca
Website: https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst

Destination BC: For general advice and support related to tourism and short-term rentals in British Columbia, contact Destination BC, the province's destination marketing organization.

Phone: 1-800-435-5622
Email: ContactTourism@DestinationBC.ca
Website: https://www.destinationbc.ca/

In addition to these official contacts, short-term rental hosts in Cumberland can benefit from connecting with local host communities and industry associations. These groups can provide valuable insights, support, and networking opportunities to help hosts navigate the complexities of the short-term rental market.

Some notable organizations include:

BC Lodging and Campgrounds Association (BCLCA): The BCLCA represents the interests of short-term rental operators and provides resources, advocacy, and education for its members.

Website: https://www.travel-british-columbia.com/
Email: info@bclca.com

Airbnb Host Community - Vancouver Island: This Facebook group is a platform for Airbnb hosts on Vancouver Island, including Cumberland, to connect, share experiences, and support one another.

Facebook Group: https://www.facebook.com/groups/vancouverislandandthegulfislandsairbnbhosts/

By proactively engaging with local authorities and industry peers, short-term rental hosts in Cumberland can stay informed about regulations, access valuable resources, and contribute to the development of a fair and sustainable short-term rental market in the community.

What Do Residents and Tourists in Cumberland on Reddit and Bigger Pockets Think about the City?

Residents and visitors to Cumberland have shared their experiences and opinions about the village on various online platforms, including Reddit and BiggerPockets. These first-hand accounts provide valuable insights into what makes Cumberland an attractive destination for both living and short-term rentals.

In a Reddit thread titled "Hidden Gems on Vancouver Island," user 'VanIsleExplorer' shared, "Cumberland is a charming little village that's often overlooked by tourists. It has a great small-town vibe, friendly locals, and some of the best mountain biking trails on the island. The historic downtown is perfect for a leisurely stroll, and there are plenty of cute shops and cafes to explore."

On the VancouverIsland subreddit, user 'NatureEnthusiast' commented on Cumberland's outdoor recreation opportunities, saying, "If you're into hiking, biking, or just enjoying nature, Cumberland is a must-visit. The trails around Comox Lake are stunning, and the village is surrounded by lush forests and mountains. It's a great base for exploring the Comox Valley and beyond."

In a BiggerPockets forum discussion about investing in Vancouver Island real estate, user 'IslandInvestor' shared their experience with short-term rentals in Cumberland, stating, "I've had a successful Airbnb in Cumberland for a couple of years now. The demand is steady, especially during the summer months and ski season. The village's proximity to Mount Washington and other outdoor attractions makes it a popular choice for tourists looking for a more laid-back, authentic experience."

Reddit user 'CumberlandLocal' praised the village's sense of community in a thread about living on Vancouver Island, saying, "I've lived in Cumberland for over a decade, and it's the tight-knit community that keeps me here. People look out for one another, and there's always something going on, whether it's a farmers' market, a music festival, or a community potluck. It's a great place to put down roots and be part of something special."

On a BiggerPockets thread about emerging markets in British Columbia, user 'BCInvestor' highlighted Cumberland's potential, commenting, "Cumberland is one to watch for real estate investment. It's close enough to Courtenay and Comox to benefit from their amenities, but it has a unique character and charm that sets it apart. The village's focus on sustainable growth and preserving its heritage makes it an attractive option for both residents and visitors."

Based on these experiences and stories shared by residents and visitors, Cumberland emerges as a promising location for starting a short-term rental business. The village's small-town charm, friendly community, and stunning natural surroundings make it an appealing destination for travelers seeking an authentic and memorable experience.

Moreover, Cumberland's proximity to popular outdoor recreation areas, such as Mount Washington and Comox Lake, creates a steady demand for accommodations, particularly during the summer and winter seasons. The village's focus on sustainable growth and preserving its unique character also suggests that it will continue to attract visitors looking for a more laid-back and genuine experience.

By leveraging Cumberland's distinctive assets and tapping into the experiences of successful hosts, aspiring short-term rental entrepreneurs can build thriving businesses that cater to the needs and preferences of visitors while contributing to the local economy and community. As the village continues to grow and evolve, the potential for short-term rental success in Cumberland looks bright.

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.