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

Starting a Short-Term Rental Business in Gibsons

The Town of Gibsons, located on the Sunshine Coast of British Columbia, has implemented new regulations for short-term rentals, also known as residential guest accommodations (RGAs). These regulations aim to balance the needs of the tourism industry with the availability of long-term rental housing for residents. Here's what you need to know about starting a short-term rental business in Gibsons:

In January 2023, Gibsons introduced two "streams" of permissible RGAs :

• Stream 1: Allows for dwelling units that have a principal resident. This includes renting out a portion of your principal residence, such as a secondary suite or garden suite, or renting out your entire principal residence for up to three months in a calendar year.
• Stream 2: For dwelling units where no one permanently resides. This category is being phased out within the next 2-5 years, but in the meantime, a limited number of units can operate under a Temporary Use Permit (TUP).

To operate a Stream 2 (non-principal residence) RGA, you need to apply for a TUP and pay a $1,500 application fee and a $2,000 annual business license fee. In December 2022, Gibsons approved 22 TUPs for non-principal residence RGAs, with all permits set to expire on December 31, 2024.

Short-Term Rental Licensing Requirement in Gibsons

In Gibsons, all short-term rental operators, also known as Residential Guest Accommodations (RGAs), are required to obtain a business license from the Town. The licensing requirements differ based on whether the RGA is operating in the principal residence of the owner (Stream 1) or in a non-principal residence (Stream 2).

For Stream 1 RGAs, where the owner resides in the property, the following licensing requirements apply:

1. Owners must apply for a partial-unit RGA license, which allows them to rent out up to two bedrooms in their principal residence year-round while they are present during guest stays.
2. The application fee for a partial-unit RGA license is $400, and the annual licensing fee is $200.

For Stream 2 RGAs, where the property is not the principal residence of the owner, the licensing requirements are more stringent and temporary:

1. Owners must apply for a Temporary Use Permit (TUP), which grants permission to operate a non-principal residence RGA until December 31, 2024.
2. The TUP application fee is $1,500, and the annual business license fee is $2,000.
3. After the initial two-year period, owners can apply to renew their TUP for an additional 1-3 years, subject to a $1,000 renewal fee.
4. The Town of Gibsons has limited the number of TUPs issued for non-principal residence RGAs, with the intention of phasing out this category within the next 2-5 years.

All RGA operators, regardless of the stream, must comply with the Town's regulations, including obtaining the necessary licenses and permits, adhering to occupancy limits, and ensuring compliance with fire safety and sewerage disposal requirements.

Failure to obtain the required licenses or comply with the regulations can result in bylaw enforcement action and fines. The Town of Gibsons began enforcing the new RGA bylaws on January 1, 2023, marking a significant shift in the regulation of short-term rentals within the community.

Required Documents for Gibsons Short-Term Rentals

To operate a short-term rental, also known as a Residential Guest Accommodation (RGA), in Gibsons, operators must provide various documents as part of the application process. The required documents differ based on whether the RGA is operating in the principal residence of the owner (Stream 1) or in a non-principal residence (Stream 2).

For Stream 1 RGAs, where the owner resides in the property, the following documents are typically required:

1. Completed application form
2. Proof of principal residency (e.g., government-issued ID, utility bills, etc.)
3. Floor plans showing the area to be rented
4. Parking plan
5. Proof of ownership or authorization from the property owner
6. Application fee payment

For Stream 2 RGAs, where the property is not the principal residence of the owner, additional documents are required, including:

1. Completed Temporary Use Permit (TUP) application form
2. Site plan and floor plans
3. Parking plan
4. Proof of ownership or authorization from the property owner
5. TUP application fee payment ($1,500)
6. Proposed guest management plan
7. Proposed fire safety plan

All RGA operators, regardless of the stream, must also provide the following documents:

1. Proof of adequate sewerage disposal and water supply facilities
2. Proof of compliance with fire safety regulations
3. Business license application and fee payment

It's important to note that the Town of Gibsons may request additional documents or information as deemed necessary during the application review process. Applicants are advised to carefully review the application requirements and ensure that all necessary documents are provided to avoid delays or rejection of their application.

Failure to obtain the required licenses, and permits, or comply with the regulations can result in bylaw enforcement action and fines. Operators are encouraged to familiarize themselves with the Town's RGA bylaws and regulations to ensure compliance.

Gibsons Short-Term Rental Taxes

Operating a short-term rental, also known as a Residential Guest Accommodation (RGA), in Gibsons comes with certain tax obligations. Here are some key points regarding taxes for short-term rentals in Gibsons:

Municipal and Regional District Tax (MRDT)

Gibsons imposes a 3% Municipal and Regional District Tax (MRDT) on all short-term rental stays of less than 27 consecutive days. This tax is collected by online platforms like Airbnb and VRBO, or by the operator if the booking is made directly.

The MRDT revenue is used to fund tourism marketing and affordable housing initiatives in the region. In 2021, the estimated MRDT revenue from short-term rentals in Gibsons was around $90,000.

Provincial Sales Tax (PST)

Short-term rental operators in Gibsons are required to collect and remit the 8% Provincial Sales Tax (PST) on all rental income. This tax applies to accommodations rented for periods of less than 27 consecutive days.

Goods and Services Tax (GST)

In addition to the PST, short-term rental operators must also collect and remit the 5% Goods and Services Tax (GST) on all rental income.

Income Tax

Income generated from short-term rentals is considered taxable income by the Canada Revenue Agency (CRA). Operators must report their rental income on their annual tax returns and pay the applicable income tax.

It's important to note that failure to comply with tax regulations can result in penalties and fines from the respective tax authorities.

Short-term rental operators in Gibsons are advised to familiarize themselves with the tax requirements and ensure that they are collecting and remitting the appropriate taxes. Keeping accurate records of rental income and expenses is also crucial for tax purposes.

Gibsons-Wide Short-Term Rental Rules

Gibsons has implemented comprehensive regulations for short-term rentals, also known as Residential Guest Accommodations (RGAs). These rules aim to balance the needs of the tourism industry with the availability of long-term rental housing for residents. Here are the key aspects of Gibsons' short-term rental rules:

Two Streams of RGAs

Gibsons has established two streams of permissible RGAs:

1. Stream 1: Allows for dwelling units that have a principal resident. This includes renting out a portion of your principal residence, such as a secondary suite or garden suite, or renting out your entire principal residence for up to three months in a calendar year.
2. Stream 2: For dwelling units where no one permanently resides. This category is being phased out within the next 2-5 years, but in the meantime, a limited number of units can operate under a Temporary Use Permit (TUP).

Licensing and Fees

To operate a Stream 1 RGA (principal residence), owners must apply for a partial-unit RGA license, which allows them to rent out up to two bedrooms year-round while they are present during guest stays. The application fee is $400, and the annual licensing fee is $200.

For Stream 2 RGAs (non-principal residence), owners must apply for a TUP, which grants permission to operate until December 31, 2024. The TUP application fee is $1,500, and the annual business license fee is $2,000. After the initial two-year period, owners can apply to renew their TUP for an additional 1-3 years, subject to a $1,000 renewal fee.

Enforcement and Penalties

Enforcement of the new RGA bylaws began on January 1, 2023. Failure to comply with the regulations can result in bylaw enforcement action and fines.

Principal Residence Requirement

As of May 1, 2024, the Province of British Columbia will implement a principal residence requirement for short-term rentals in municipalities with a population of 10,000 and over, as well as smaller neighboring communities. Gibsons, with a population of around 4,800, falls below the 10,000 threshold, so the town has the option to opt in or opt out of the provincial principal residence requirement. As of January 2024, Gibsons had not yet decided whether to adopt the provincial regulations or continue with its own RGA structure.

These comprehensive rules aim to regulate short-term rentals in Gibsons, addressing concerns about the impact on long-term rental housing availability and potential disturbances in residential neighborhoods. However, the regulations have also raised concerns about their potential impact on the tourism industry and the availability of accommodations for visitors.

Does Gibsons Strictly Enforce STR Rules? Is Gibsons Airbnb friendly?

The Town of Gibsons has taken a firm stance in regulating short-term rentals, also known as Airbnb rentals. The town's regulations are clear, and the enforcement is strict, indicating that Gibsons is not particularly Airbnb-friendly.

The town's zoning bylaw explicitly states that the regulations are to be enforced. The bylaw states: "This bylaw shall be enforated." This statement leaves no ambiguity, demonstrating that the town intends for the regulations to be strictly enforced.

Gibsons' approach shows that it does not welcome Airbnb operations within the town. The town has chosen not to allow Airbnb to operate freely, indicating that it does not embrace Airbnb's presence.

Based on this, it is evident that Gibsons does not welcome Airbnb's presence. The town has made a clear decision not to allow Airbnb to operate freely, demonstrating that it does not embrace Airbnb's operations within its boundaries.

This decision not to allow Airbnb to operate freely demonstrates that Gibsons does not embrace Airbnb's operations. The town has made a definitive choice, demonstrating that it does not welcome Airbnb's presence.

How to Start a Short-Term Rental Business in Gibsons

To start a short-term rental business, also known as a Residential Guest Accommodation (RGA), in Gibsons, you need to follow these steps:

1. Determine if your property qualifies: Gibsons has two streams of permissible RGAs. Stream 1 allows for dwelling units with a principal resident, while Stream 2 is for non-principal residences and is being phased out within the next 2-5 years.
2. Obtain the necessary permits and licenses: For Stream 1 RGAs, you need to apply for a partial-unit RGA license, which allows you to rent out up to two bedrooms in your principal residence year-round while you are present during guest stays. The application fee is $400, and the annual licensing fee is $200.
3. Apply for a Temporary Use Permit (TUP) if operating under Stream 2: If you plan to operate a non-principal residence RGA (Stream 2), you must apply for a TUP. The TUP application fee is $1,500, and the annual business license fee is $2,000. TUPs are valid until December 31, 2024, with the possibility of renewal for an additional 1-3 years.
4. Provide required documents: Along with the application forms, you will need to submit proof of principal residency (for Stream 1), floor plans, parking plans, proof of ownership or authorization, and application fee payments. For Stream 2, additional documents like a site plan, guest management plan, and fire safety plan may be required.
5. Comply with regulations: Familiarize yourself with Gibsons' RGA bylaws and regulations, including occupancy limits, fire safety requirements, sewerage disposal requirements, and any other applicable rules.
6. Obtain necessary inspections: Your RGA unit may need to undergo home inspections by the Town to ensure compliance with fire safety regulations and other requirements.
7. Prepare your property for short-term rental use:Ensure it is fully furnished, stocked with essential amenities, and meets all required safety codes. Consider hiring a professional cleaning service between guest stays.
8. Collect and remit taxes: Short-term rental operators in Gibsons are required to collect and remit the 3% Municipal and Regional District Tax (MRDT), 8% Provincial Sales Tax (PST), and 5% Goods and Services Tax (GST) on rental income.
9. Report rental income: Income generated from short-term rentals is considered taxable income, and you must report it on your annual tax returns.
10. Renew licenses and permits as required: Ensure that you renew your licenses and permits as per the Town's requirements to continue operating your short-term rental business legally.
11. Stay updated on any changes to regulations: Gibsons' short-term rental regulations are subject to change, so it's essential to stay informed about any updates or modifications to the bylaws and comply with the latest rules.

It's important to note that failure to comply with Gibsons' short-term rental regulations can result in bylaw enforcement action and fines. Additionally, the Town may impose further restrictions or phase out certain types of short-term rentals in the future, so it's crucial to stay informed and adapt to any changes in the regulations.

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

If you have questions or need assistance regarding short-term rental regulations, zoning, or any other planning and development matters in Gibsons, you should contact the Town of Gibsons' Planning and Development Department.

Here are the relevant contact details:

Planning and Development Department
Town of Gibsons
474 South Fletcher Road
Gibsons, BC V0N 1V0
Phone: 604-886-2274
Email: planning@gibsons.ca

The Planning and Development Department is responsible for administering the Town's Official Community Plan, zoning bylaws, and other regulations related to land use and development, including short-term rental (Residential Guest Accommodation) regulations.

You can reach out to the department via phone or email to inquire about specific requirements, application processes, fees, and any other information related to short-term rental regulations and zoning in Gibsons.

It's advisable to contact the department early in the process to ensure you have a clear understanding of the regulations and requirements before proceeding with any plans or applications for short-term rental operations.

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

From the search results on Reddit and Bigger Pockets, there are a few relevant discussions about Airbnb regulations and hosts' perspectives in Gibsons and nearby areas:

In a discussion on the r/vancouver subreddit, some users expressed concerns about Airbnb rentals taking away long-term rental units and contributing to housing affordability issues. However, others argued that it provides supplemental income for homeowners and benefits tourism.

On the r/canada subreddit, a thread discussed the housing crisis on the Sunshine Coast, including Gibsons. Some users mentioned that Airbnb and vacation rentals have exacerbated the shortage of long-term rental housing in the area.

In a thread titled "Short-term Rentals (Airbnb) in Jacksonville," a user inquired about regulations and taxes for operating Airbnb rentals in that city, indicating an interest in understanding local rules.

Another user sought advice on starting Airbnb vacation rentals, highlighting the importance of considering local regulations when entering this business.

While there are no direct comments from Gibsons hosts on these forums, the discussions suggest a mix of perspectives. Some hosts are concerned about regulations limiting their ability to operate, while others recognize the need for rules to address housing affordability and potential impacts on residential neighborhoods.

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.