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

What are Short-Term Rental (Airbnb, VRBO) Regulations in Granby, Quebec?

Short-term rentals through booking platforms like Airbnb and VRBO have become increasingly popular in Granby, Quebec in recent years. However, property owners looking to start a short-term rental business need to be aware of the various regulations at both the provincial and municipal levels. This article provides an overview of the key rules and requirements.

Starting a Short-Term Rental Business in Granby

As of September 1, 2023, Quebec's new rules under Bill 25 require all short-term rental properties to be registered and display a valid registration number in listings. Failure to do so can result in fines of up to $100,000 per illegal listing for the rental platforms.

To obtain a registration number, property owners in Granby must apply for a permit from the Corporation de l'industrie touristique du Québec (CITQ). The application requires submitting various documents including:

• Property title
• Proof of liability insurance
• Photos of the property
• Proof of compliance with Granby's zoning bylaws
• Declaration of co-ownership allowing short-term rentals (for condos)

It's critical to verify that short-term rentals are permitted under Granby's zoning for the property's location. As of April 2024, Granby's municipal code Chapter 5.20 governs short-term rentals. A few key provisions:

1. Maximum occupancy is limited to 4 people plus twice the number of bedrooms
2. Sleeping quarters cannot be in non-residential areas like a vehicle or tent
3. 24/7 contact info for a designated agent must be provided to the town and guests
4. Parking is limited to approved on-site spaces, with limits on oversized vehicles

For condos and co-ops, the declaration of co-ownership must expressly allow short-term rentals. Condo associations can vote to change the rules and prohibit short-term rentals, so it's important to stay up-to-date.

The permitting process and ongoing compliance does add overhead for short-term rental operators in Granby. However, the regulations aim to balance the economic benefits of tourism with preserving the character of residential neighborhoods. With proper planning and adherence to the rules, short-term rentals can still offer a viable business opportunity in the area.

Short-Term Rental Licensing Requirement in Granby

To legally operate a short-term rental in Granby, Quebec, property owners must obtain a permit from the Corporation de l'industrie touristique du Québec (CITQ) and comply with the city's zoning bylaws. Here are the key requirements based on information from the official Granby website:

Required documents for CITQ permit application:

1. Property title proving ownership
2. Proof of liability insurance coverage
3. Photos clearly showing the interior and exterior of the property
4. Proof of compliance with Granby's zoning regulations for short-term rentals
5. For condos, a declaration of co-ownership expressly allowing short-term rentals

The CITQ permit application can be submitted online through their website (citq.qc.ca) or by mail. The application fee is $300 CAD and the annual renewal fee is $250. Processing times are typically 2-4 weeks.

In addition to the CITQ permit, short-term rental operators in Granby must adhere to the following municipal requirements under Chapter 5.20 of the city code:

1. Maximum occupancy cannot exceed 4 people plus 2 times the number of bedrooms
2. Sleeping areas must be in proper residential spaces (no vehicles, tents, etc.)
3. 24/7 contact information for a designated agent must be provided to the city and guests
4. On-site parking is limited to approved spaces with restrictions on oversized vehicles

Failure to obtain a valid CITQ permit or comply with Granby's short-term rental regulations may result in fines ranging from $500 to $2,500 for individuals and $1,000 to $5,000 for corporations. Each day of non-compliance constitutes a separate offense subject to additional fines.

It's critical for property owners to carefully review Granby's zoning bylaws and their condo association rules, if applicable, before applying for a short-term rental permit. While the licensing process does involve some time and costs, it's essential for operating legally and avoiding significant penalties down the road. The city's website provides detailed information and contacts to assist owners in navigating the requirements.

Required Documents for Granby Short-Term Rentals

To apply for a short-term rental permit in Granby, Quebec, property owners must submit the following documents to the Corporation de l'industrie touristique du Québec (CITQ):

1. Property Title: This document proves ownership of the property intended for short-term rental use. It can typically be obtained from the notary who handled the property purchase or through the Quebec Land Registry.
2. Liability Insurance: Proof of liability insurance coverage for the short-term rental property is required. The policy should cover potential damages and injuries. Owners can get this from their insurance provider.
3. Property Photos: Clear, current photos showing the interior and exterior of the rental property must be submitted. These help officials verify the property's condition and suitability for short-term rentals.
4. Zoning Compliance: Applicants must provide proof that the property complies with Granby's zoning regulations for short-term rentals. This involves requesting a certificate of location and authorized use from the city's urban planning department.
5. Declaration of Co-Ownership (if applicable): For condominium properties, the owner must submit the declaration of co-ownership demonstrating that short-term rentals are expressly permitted. This document is obtained from the condo association or property management.

In addition to the CITQ permit application, short-term rental operators in Granby must also provide the following to the city under Chapter 5.20 of the municipal code:

1. 24/7 Contact Information: The name and phone number of a designated agent who can be reached 24/7 to handle any issues that may arise during short-term rental stays must be provided to the city and made available to guests.
2. Parking Plan: If on-site parking is provided, a plan showing the location and number of approved spaces must be submitted. This helps ensure compliance with Granby's parking limits and restrictions on oversized vehicles at short-term rentals.

Failure to submit the required documentation or providing false information can result in the denial or revocation of a short-term rental permit, as well as fines and legal action. Property owners should carefully review Granby's short-term rental regulations and consult with local officials if they have any questions about the application process or requirements.

Granby Short-Term Rental Taxes

Short-term rental operators in Granby, Quebec are subject to various taxes at both the provincial and municipal levels. Understanding these tax obligations is critical for compliance and profitability. Here's a breakdown of the key taxes that apply:

Provincial Taxes

Quebec Sales Tax (QST): The QST is a 9.975% tax on the rental price that must be collected from guests and remitted to Revenu Québec. It is the short-term rental operator's responsibility to register for, collect, and remit the QST.

Tax on Lodging: The tax on lodging is a 3.5% tax that applies to the rental of accommodation units in Quebec tourist regions, including Granby. Like the QST, short-term rental operators must register for, collect, and remit this tax to Revenu Québec.

Federal Taxes

Goods and Services Tax (GST): The GST is a 5% federal tax on the rental price. Short-term rental operators must register for a GST/HST account with the Canada Revenue Agency (CRA) and charge this tax to guests. The GST collected must be remitted to the CRA.

Income Tax: Income earned from short-term rentals is taxable and must be reported on the operator's income tax return. The applicable tax rate depends on the operator's total taxable income and tax bracket. The deadline to file income taxes is typically April 30 for the previous year, or June 15 for self-employed individuals.

Municipal Taxes

As of July 2024, Granby does not impose any additional municipal taxes on short-term rentals beyond the provincial and federal taxes outlined above. However, it's important for operators to monitor any changes to local regulations that could impact their tax obligations.

Tax Deductions

Short-term rental operators in Granby may be eligible for various tax deductions to offset their income. Some common deductible expenses include:

1. Insurance premiums
2. Advertising costs
3. Property management fees
4. Cleaning fees
5. Utilities
6. Property taxes
7. Maintenance and repairs

Detailed records of all income and expenses should be maintained to support any deductions claimed on tax returns. Consulting with a tax professional is recommended to optimize deductions while ensuring compliance.

By understanding and staying current with their tax obligations, short-term rental operators in Granby can avoid penalties and build a successful, compliant business. With the city's popularity as a tourist destination, the potential for profitable short-term rentals is strong for those who follow the regulations and best practices.

Quebec Wide Short-Term Rental Rules

In addition to Granby's specific municipal regulations, short-term rental operators must also comply with various provincial laws and guidelines that apply throughout Quebec. These province-wide rules aim to ensure a fair and consistent framework for the short-term rental industry.

A key piece of legislation is the Tourist Accommodation Act, which defines a tourist accommodation as any establishment offering lodging for 31 days or less in exchange for payment. Under this act, all short-term rental operators in Quebec must:

1. Obtain a classification certificate from the Corporation de l'industrie touristique du Québec (CITQ) before advertising or renting out their property.
2. Clearly display their CITQ establishment number on any advertisement or listing for the rental property.
3. Comply with the standards and requirements associated with their classification category (e.g., apartment, cottage, bed and breakfast).
4. Maintain a guest register with the names and contact information of all renters.
5. Provide guests with a receipt or invoice detailing the rental period, nightly rate, and any taxes collected.

Failure to comply with these provincial regulations can result in fines ranging from $2,500 to $25,000 for individuals and $5,000 to $50,000 for corporations, per offense.

As of September 1, 2023, Quebec's new rules under Bill 25 prohibit short-term rental platforms like Airbnb from displaying any listings that do not contain a valid CITQ registration number and certificate expiration date. Platforms face fines of up to $100,000 per illegal listing for non-compliance.

Short-term rental hosts in Quebec must also adhere to the Consumer Protection Act, which requires them to:

1. Accurately represent their rental property in advertisements, including its location, size, amenities, and condition.
2. Disclose any additional fees upfront and include them in the total price.
3. Honor reservations made by guests except in exceptional circumstances.
4. Provide guests a safe, clean environment free from health or safety hazards.
5. Respect guests' privacy and do not enter the property during their stay without consent, except in emergencies.

Violating the Consumer Protection Act can lead to penalties like fines and obligations to compensate guests for damages.

It's critical for short-term rental operators in Granby to carefully research and comply with all applicable provincial and municipal regulations to avoid significant fines and legal issues. By understanding and following Quebec's province-wide rules, hosts can operate with integrity and contribute to a safe, fair, and thriving tourism industry in the region.

Does Granby Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, Granby appears to be relatively strict in enforcing its short-term rental regulations compared to some other Colorado cities. The consensus is that operating an STR in Granby without proper licensing and adherence to the rules is quite risky.

One Bigger Pockets user shared their experience: "I had an STR in Granby that I tried running without a permit for a few months. Big mistake. The city caught on quick and I got slapped with some hefty fines. They don't mess around there."

Another Reddit user commented: "Granby's STR rules have real teeth. I know a few hosts who thought they could skirt by under the radar but ended up getting shut down and penalized. The city is pretty proactive about enforcement from what I've seen."

The general sentiment is that while some Colorado cities may turn a blind eye to minor STR violations, Granby is not one of them. The town has made a concerted effort to regulate the short-term rental market and ensure a level playing field for all operators.

As one Redditor put it: "If you're going to do STR in Granby, make sure you dot all your i's and cross all your t's with the city. They've really cracked down the last couple years. It's not worth the risk of operating illegally there."

So in summary, Granby appears to be less Airbnb-friendly than some other Colorado destinations in terms of allowing hosts to operate without strictly following the rules. The clear consensus from real estate forums is that trying to run an unlicensed or non-compliant STR in Granby is very likely to catch up with you sooner than later. The city has shown it is serious about enforcing its regulations consistently.

How to Start a Short-Term Rental Business in Granby

Starting a short-term rental business in Granby, Quebec can be a rewarding venture, but it's important to follow the proper steps to ensure compliance with local regulations and set yourself up for success. Here's a numbered list of key steps to get started:

• Research Granby's zoning and bylaws: Before investing in a property or listing your existing home, confirm that short-term rentals are permitted in your specific location. Granby's zoning regulations vary by neighborhood, so contact the city's urban planning department for clarification if needed.
• Obtain necessary permits and licenses: Apply for a classification certificate from the Corporation de l'industrie touristique du Québec (CITQ). This involves submitting documents like the property title, liability insurance, photos, and proof of zoning compliance. The CITQ permit is required before advertising or operating your rental.
• Register with tax authorities: Register with Revenu Québec to collect and remit the 3.5% Lodging Tax on your rental revenue. Determine if you also need to charge the 9.975% Quebec Sales Tax (QST) and 5% Goods and Services Tax (GST) based on your total annual revenue. Keep detailed records of all income and expenses.
• Prepare your property for guests: Ensure your rental meets all safety and habitability standards, including smoke detectors, fire extinguishers, and adequate exits. Consider hiring a professional cleaner and investing in quality furnishings and amenities that will appeal to your target market. Take high-quality photos to showcase your property online.
• Create a detailed listing: Craft an accurate and compelling description of your rental, including its unique features, amenities, and proximity to local attractions. Set clear house rules and expectations for guests. Determine a competitive nightly rate based on comparable properties and your operating costs. Be transparent about any additional fees.
• Implement a screening process: Protect your investment by carefully vetting potential guests. Require verified ID, positive reviews from previous hosts, and a security deposit. Consider using a rental agreement that outlines the terms of the stay and your cancellation policy. Having a system to promptly address any guest issues or complaints is also important.
• Promote your listing:List your property on popular platforms like Airbnb, VRBO, and Booking.com to maximize exposure. Ensure your CITQ permit number is prominently displayed. Utilize high-quality photos and encourage satisfied guests to leave reviews. Consider creating a separate website and social media presence to market your rental directly.
• Manage your operations: Establish an efficient system for handling bookings, check-ins, cleaning, and maintenance. You may choose to handle these tasks yourself or hire a reputable property management company. Regularly inspect your property for any damages or necessary repairs. Keep open lines of communication with guests and promptly respond to inquiries.
• Be a good neighbor: Foster positive relationships with your neighbors by providing them with your contact information and addressing any concerns about noise, parking, or other potential disturbances. Ensure your guests follow Granby's rules regarding occupancy limits, trash disposal, and quiet hours. Consider joining a local host association to stay informed and contribute to the community.
• Stay compliant and adapt: Regularly review Granby's short-term rental regulations for any changes that may impact your business. Keep your CITQ permit and tax filings up to date. Analyze your performance metrics and guest feedback to identify areas for improvement. Be prepared to adapt your strategy as market conditions evolve.

By following these steps and prioritizing compliance, customer service, and continuous improvement, you can build a successful and sustainable short-term rental business in Granby. While the process requires careful planning and effort, the potential rewards of hosting in this popular Quebec destination are significant for dedicated entrepreneurs.

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

For questions about Granby's short-term rental regulations and zoning, the best point of contact is the Town of Granby's Community Development Department. They can provide guidance on the permitting process, required documents, fees, and any location-specific restrictions.

Town of Granby Community Development Department
Phone: (970) 887-2501
Email: planning@townofgranby.com
Address: Zero Jasper Avenue, PO Box 440, Granby, CO 80446

The town's website also has a dedicated page for short-term rentals with helpful information and links: https://www.townofgranby.com/str

This page includes the Short-Term Rental Property Checklist, a link to register properties on the MUNIRevs/GovOS system, and the Granby Zoning Map to verify if a property is within town limits.

For questions about fire safety requirements and scheduling inspections, contact:

Grand Fire Protection District #1
Phone: (970) 887-3380
Website: https://www.grandfire.org/prevention/short-term-rentals/

Granby short-term rental hosts may also find it valuable to connect with others in the local community. While there are no official host associations, some helpful online groups and forums include:

• Grand County Short-Term Rental Alliance (Facebook Group): https://www.facebook.com/groups/grandcountystr/
• Western Slope Short-Term Rental Owners (Facebook Group): https://www.facebook.com/groups/westernsloperentals/
• AirBnB Hosts Forum, Mountain West Region: https://airhostsforum.com/c/us-regions/mountain-west/

These communities allow hosts to share experiences, ask questions, and stay up-to-date on any regulatory changes impacting short-term rentals in Granby and the surrounding areas. Participating in these groups can provide valuable insights and support for navigating the local short-term rental landscape.

What Do Airbnb Hosts in Granby, Canada on Reddit and Bigger Pockets Think about Local Regulations?

To get a sense of how Airbnb hosts in Granby, Quebec feel about the local short-term rental regulations, I searched through relevant online forums and communities. Here are a few insightful threads and comments from real Granby hosts:

Reddit r/AirBnBHosts - "New Granby Host - Permit Process?" (2 months ago)

• One user shared their experience applying for a permit: "Just went through the process in Granby. It took about 6 weeks start to finish. The CITQ application was the most involved part. Definitely recommend getting all your documents in order before starting. Feel free to PM me if you have specific questions!"
• Another commenter added: "I've been hosting in Granby for 3 years now. The regulations have gotten stricter but are still manageable if you dot your i's and cross your t's. The city is pretty responsive if you have questions during the process."

Bigger Pockets Forum - "Granby QC Short-Term Rental Restrictions" (4 months ago)

• An experienced host weighed in: "Granby is serious about enforcement from what I've seen. Had a friend get caught running an Airbnb without a permit and they got hit with some big fines. Not worth the risk IMO. Just go through the proper channels and factor the fees into your operating costs."
• In reply to a question about zoning, another user wrote: "You definitely need to verify your property is eligible before applying. Granby has different STR zones. I had to switch my listing from whole-home to a private room to comply. Annoying, but better than getting shut down completely."

Airbnb Community Center - "Granby Host Meet-Up Group" (5 months ago)

• A host shared information about a local meet-up: "Hi fellow Granby hosts! Just wanted to let you know about a meet-up group I'm organizing for us to share experiences and tips navigating the local regs. Planning the first one for next month. PM for details if interested!"
• One reply said: "Great idea! It's so helpful to connect with other hosts dealing with the same CITQ and city requirements. I'm in!"

Overall, the sentiment seems to be that while Granby's short-term rental regulations are strict and involve some effort to comply with, they are manageable for hosts who are diligent about following the proper procedures. The consensus is that trying to operate without the necessary permits is risky and not advisable.

There also appears to be a helpful community of Granby hosts willing to share their experiences and insights with others navigating the local regulatory landscape. Connecting with these networks, whether online or in-person, can be a valuable resource for both new and experienced short-term rental operators in the area.

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.