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

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

Invermere, a picturesque town in British Columbia's Columbia Valley, has seen a surge in short-term rentals through platforms like Airbnb and VRBO in recent years. As the popularity of STRs has grown, so has the need for regulations to balance the interests of property owners, residents, and the local tourism economy. This article will explore the current state of STR regulations in Invermere and what aspiring STR operators need to know.

Starting a Short-Term Rental Business in Invermere

As of May 2024, the District of Invermere has implemented a two-pronged approach to regulating STRs using both temporary use permits (TUPs) and business licenses. All STR operators in Invermere are required to obtain a business license. Additionally, those operating STRs in areas not already zoned for such use, primarily single-family residential neighborhoods, must also secure a TUP.

The new regulations include several restrictions aimed at minimizing the impact of STRs on the community:

• A maximum of eight guests per STR at any time
• No more than four bedrooms and two persons per bedroom in a STR
• A limit of one business license or TUP per STR owner
• Noise monitoring systems as a licensing requirement for each STR unit
• One dedicated off-street parking stall for 1-4 guests and two for 5-8 guests
• No outdoor pools are allowed in STRs unless permitted by TUP

Fines for operating an STR without the necessary permits start with a friendly warning and can escalate up to $5,000 and referral to provincial court for repeat offenses.

It's important to note that Invermere, as a resort community with a population under 10,000, is exempt from the provincial Short-Term Rental Accommodations Act that took effect on May 1, 2024. This means that Invermere's STR regulations may differ from those in larger cities like Vancouver or Kelowna.

Aspiring STR operators should consult the District of Invermere's zoning bylaws and STR project page for the most up-to-date information on the application process and requirements for business licenses and TUPs.

While some STR owners have expressed concerns that the new regulations are too restrictive and may impact their businesses, the District of Invermere maintains that the rules are necessary to strike a balance between allowing STRs and preserving the character of the community.

Despite the challenges posed by the regulations, Invermere remains an attractive destination for STR investors and operators. With its stunning natural beauty, outdoor recreation opportunities, and thriving tourism industry, the town offers ample potential for success in the STR market. By staying informed about local regulations and working closely with the District of Invermere, STR owners can navigate the evolving regulatory landscape and build successful, compliant businesses.

Short-Term Rental Licensing Requirement in Invermere

As of May 2024, all short-term rental (STR) operators in Invermere are required to obtain a business license from the District of Invermere. Additionally, those operating STRs in areas not zoned for such use, primarily single-family residential neighborhoods, must also secure a Temporary Use Permit (TUP).

To apply for an STR business license and TUP, operators must submit the following:

1. Completed application form (available at the District's Municipal Office or online)
2. Proof of ownership or lease agreement for the property
3. Floor plan of the STR unit, indicating the number and location of bedrooms
4. Parking plan, showing the location and number of dedicated off-street parking stalls
5. Proof of installation of a noise monitoring system
6. Any relevant certificates or licenses required by provincial or federal governments to operate the business

Applications can be submitted via email to info@invermere.net or, planning@invermere.net, or in-person at the District of Invermere office located at 914 8th Avenue between 8:30 am and 4:30 pm, Monday through Friday.

Payments for the business license application fee and TUP can be made by e-transfer to finance@invermere.net (no password required, simply list your four-digit customer number and/or business name) or by cash, cheque, or debit at the District of Invermere office.

The time required to process a license application depends on the approvals needed but typically takes 7 to 10 working days, although it may take longer in some cases. Staff can provide updates on the status of an application upon request.

Fines for operating an STR without the necessary permits start with a friendly warning and can escalate up to $5,000 and referral to provincial court for repeat offenses. The District of Invermere intends to establish a set of escalating fines to address bylaw and TUP violations through pending amendments to the Municipal Ticketing Information Bylaw No. 1130.

It's important for STR operators to stay informed about the evolving regulatory landscape in Invermere. By adhering to the licensing requirements, submitting the necessary documentation, and paying the associated fees, STR owners can ensure compliance with local regulations and avoid potential fines or penalties.

Required Documents for Invermere Short-Term Rentals

To apply for a Short-Term Rental (STR) business license and Temporary Use Permit (TUP) in Invermere, operators must submit the following documents:

1. Completed application form: The application form is available on the District of Invermere website and must be filled out completely. It provides the District with essential information about the STR property and owner.
2. Proof of ownership or written permission from the property owner: STR operators must demonstrate that they own the property or have the owner's consent to use it as an STR. This ensures that the property is being used legally and with the owner's knowledge.
3. Floor plan of the STR unit: The floor plan must indicate the number and location of bedrooms in the STR. This information helps the District verify that the STR complies with occupancy limits and safety requirements.
4. Parking plan: The parking plan should show the location and number of dedicated off-street parking stalls for the STR. Invermere requires one stall for 1-4 guests and two stalls for 5-8 guests to minimize the impact of STRs on neighborhood parking.
5. Proof of installation of a noise monitoring system: Noise monitoring systems are a licensing requirement for each STR unit in Invermere. Proof of installation must be submitted with the application to ensure that STR operators can effectively manage noise levels and respond to complaints.
6. Relevant certificates or licenses required by provincial or federal governments: Depending on the nature of the STR business, additional permits or licenses may be required by higher levels of government. Operators must provide copies of these documents to demonstrate compliance with all applicable regulations.

These documents are essential for the District of Invermere to assess the eligibility and suitability of an STR application. They help ensure that STRs are operated safely, responsibly, and in accordance with local bylaws and regulations. By requiring this information upfront, the District can streamline the application process and minimize the potential for non-compliant or disruptive STRs in the community.

Invermere Short-Term Rental Taxes

Short-term rental (STR) operators in Invermere must collect and remit various taxes as part of their business obligations. These taxes include the Provincial Sales Tax (PST), Municipal and Regional District Tax (MRDT), and the Goods and Services Tax (GST). It's crucial for STR owners to understand these taxes and their respective rates to ensure compliance and avoid penalties.

Provincial Sales Tax (PST)

In British Columbia, an 8% PST is charged on all short-term room rentals by hotels, motels, cottages, inns, resorts, and other roofed accommodation providers. STR operators in Invermere must collect this tax from their guests and remit it to the provincial government. The PST is calculated based on the total rental price, including any additional fees or charges related to the accommodation.

Municipal and Regional District Tax (MRDT)

The MRDT is an additional tax that has to be charged on most short-term rentals in BC. As of February 1, 2024, the MRDT rate for the Invermere and Panorama area increased from 2% to 3%. This tax is collected by the STR operator and remitted to the provincial government, which then distributes the funds to the applicable municipality or regional District to support tourism marketing, programs, and projects.

Goods and Services Tax (GST)

The GST is a federal tax that applies to most goods and services in Canada, including short-term rental accommodations. The current GST rate is 5%, which STR operators must collect from their guests and remit to the Canada Revenue Agency (CRA). The GST is calculated based on the total rental price, including the PST and MRDT.

In summary, the total tax rate for short-term rentals in Invermere is 16%, broken down as follows:

1. 8% Provincial Sales Tax (PST)
2. 3% Municipal and Regional District Tax (MRDT)
3. 5% Goods and Services Tax (GST)

Tax Deductions and Write-Offs

STR operators in Invermere may be eligible for various tax deductions and write-offs to help offset their tax liabilities. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Repairs and maintenance
6. Advertising and marketing expenses
7. Cleaning and supplies
8. Professional fees (e.g., accounting, legal)
9. Depreciation on furniture and equipment

It's important to note that the Canada Revenue Agency (CRA) has specific rules and regulations regarding tax deductions for rental properties. STR owners should consult with a tax professional or accountant to ensure they are claiming the appropriate deductions and maintaining proper records.

By understanding the applicable taxes and available deductions, STR operators in Invermere can better manage their finances and ensure compliance with federal, provincial, and local tax requirements.

British Columbia Wide Short-Term Rental Rules

In addition to local regulations set by the District of Invermere, short-term rental (STR) hosts must also comply with province-wide rules introduced through the Short-Term Rental Accommodations Act (STRAA) and its associated regulations.

As of May 1, 2024, the following key requirements apply to STR hosts and platforms operating in British Columbia:

1. Principal Residence Requirement: In communities with populations greater than 10,000, STRs can only be offered in the principal residence of a host, plus one additional unit, secondary suite, or accessory dwelling on the property. This requirement does not apply to Invermere and other resort communities that are currently exempt, unless they choose to opt-in.
2. Business License Display: STR hosts must display a valid business license number on their listings where required by local governments. Platforms may be asked to remove listings that do not comply with local licensing requirements.
3. Data Sharing: STR platforms are required to share data on listings with the provincial government on a monthly basis, starting in May 2024.
4. Removal of Legal Non-Conforming Use Protections: As of May 1, 2024, legal non-conforming use protections no longer apply to STRs. This means existing STRs that do not conform to current local bylaws may be subject to enforcement action.

The Province has established a Compliance and Enforcement Unit to ensure provincial STR rules are being followed. Fines for non-compliance can range from $500 to $5,000 per infraction.

By early 2025, the Province plans to launch a mandatory STR registry. Hosts will be required to include a provincial registration number on their listings, and platforms must validate these numbers against the registry data.

It is important to note that these province-wide rules set a minimum standard for STR regulation. Local governments, including the District of Invermere, may introduce additional or more restrictive bylaws to manage STRs in their communities.

STR hosts in Invermere should stay informed about both local and provincial regulations to ensure compliance and avoid potential penalties. Consulting with the District of Invermere's planning department and monitoring updates from the Province can help hosts navigate the evolving regulatory landscape.

Does Invermere Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, it appears that the District of Invermere takes a relatively balanced approach to enforcing its new short-term rental regulations. While the rules are designed to provide oversight and minimize community impacts, Invermere is generally seen as more "Airbnb-friendly" than some other municipalities in British Columbia.

Several Bigger Pockets members who operate short-term rentals in the Kootenay region have commented positively on Invermere's regulatory framework. One host noted, "Invermere's STR rules seem pretty reasonable overall. The licensing process is straightforward, and as long as you follow the guidelines around occupancy, parking, and noise, they don't seem too heavy-handed with enforcement."

On the Invermere subreddit, a few posters mentioned that while there are certainly some unlicensed short-term rentals operating, the District doesn't appear to be cracking down aggressively on those who make good-faith efforts to comply. "I got my STR license as soon as Invermere's new rules came into effect," shared one Redditor. "A few neighbors were skeptical, but the District has been pretty chill about it so far."

This perception of Invermere as a relatively permissive environment for short-term rentals is further supported by the number of active Airbnb and VRBO listings in the area. As of early 2025, there were over 100 licensed short-term rentals registered with the District, suggesting a significant portion of hosts have embraced the new regulations.

Compared to larger cities like Vancouver or Victoria, which have implemented stricter principal residence requirements and higher licensing fees, Invermere is seen as more accommodating to the short-term rental industry. "Invermere seems to have struck a decent balance with their STR bylaws," opined one Bigger Pockets user. "They're not trying to ban vacation rentals outright, but they do have some sensible rules in place."

However, this is not to say that Invermere is a complete free-for-all when it comes to short-term rentals. The District has made it clear that it will take enforcement action against operators who flagrantly violate the licensing requirements or generate repeated complaints from neighbors. Fines of up to $1,000 per offense can be levied against unlawful short-term rentals.

Overall, while some hosts may choose to operate under the radar, the general consensus on Bigger Pockets and Reddit is that Invermere has adopted a relatively balanced and "Airbnb-friendly" approach to regulating short-term rentals. By obtaining the proper licenses and following the District's rules around occupancy, parking, and noise, most hosts seem to feel they can operate successfully without facing overly burdensome enforcement from local authorities.

Of course, as Invermere's regulations continue to evolve and the District gains more experience with their implementation and impacts, the level of enforcement could potentially change. But for now, the community appears to be striking a reasonable middle ground that allows short-term rentals to contribute to the local tourism economy while still prioritizing neighborhood livability.

How to Start a Short-Term Rental Business in Invermere

Starting a short-term rental (STR) business in Invermere requires careful planning and adherence to local regulations. Follow these steps to successfully launch your STR venture:

1. Research local regulations: Familiarize yourself with Invermere's STR rules, including zoning bylaws, business licensing requirements, and Temporary Use Permit (TUP) obligations. Consult the District of Invermere's website and attend public meetings to stay informed about any updates or changes to the regulations.
2. Determine your property's eligibility: Assess whether your property is eligible for STR use based on its location and zoning. If it is not in an area already zoned for STRs, you will need to apply for a TUP. Consider factors such as occupancy limits, parking requirements, and noise monitoring when evaluating your property's suitability.
3. Develop a business plan: Create a comprehensive business plan that outlines your target market, pricing strategy, marketing approach, and financial projections. Research the local STR market to identify demand patterns, competitive rates, and potential challenges. A well-crafted business plan will help guide your decision-making and increase your chances of success.
4. Obtain necessary permits and licenses: Apply for a business license and TUP (if required) from the District of Invermere. Gather all necessary documents, such as proof of ownership, floor plans, parking plans, and noise monitoring system installation. Allow sufficient time for the application process and be prepared to pay any associated fees.
5. Prepare your property: Ensure your property meets all safety requirements and is equipped with essential amenities for guests. Consider hiring a professional cleaning service to maintain high standards of cleanliness and hygiene. Invest in quality furnishings, linens, and décor to create an inviting atmosphere that will attract positive reviews.
6. List your property on STR platforms: Create listings on popular STR platforms like Airbnb and VRBO. Craft compelling descriptions, showcase high-quality photos, and highlight unique features of your property. Be transparent about your pricing, house rules, and any restrictions to manage guest expectations.
7. Implement a robust management system: Establish efficient processes for handling bookings, guest communication, check-ins, and check-outs. Consider using STR management software to automate tasks and streamline operations. Develop a system for addressing guest inquiries and concerns promptly to maintain high levels of satisfaction.
8. Promote your listing: Utilize various marketing channels to promote your STR listing and attract bookings. Leverage social media, create a website, and consider partnering with local businesses or tourism organizations to increase visibility. Encourage satisfied guests to leave reviews and recommendations to build trust and credibility.
9. Comply with tax obligations: Understand and comply with all applicable tax requirements, including the Provincial Sales Tax (PST), Municipal and Regional District Tax (MRDT), and Goods and Services Tax (GST). Consult with a tax professional to ensure proper collection and remittance of taxes.
10. Monitor and adapt to market trends: Stay attuned to changes in the local STR market and regulatory environment. Regularly review your pricing, amenities, and marketing strategies to remain competitive. Be prepared to adapt your business model as needed to ensure long-term success.

By following these steps and seeking guidance from experienced STR operators and professionals, you can establish a thriving short-term rental business in Invermere. Remember to prioritize compliance, guest satisfaction, and continuous improvement to build a sustainable and profitable venture.

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

If you have questions or concerns about short-term rental (STR) regulations and zoning in Invermere, there are several key contacts and resources available to assist you:

District of Invermere Planning Department:

The Planning Department is responsible for administering and enforcing STR regulations, including business licensing and Temporary Use Permits (TUPs). They can provide guidance on zoning, application processes, and compliance requirements.

1. Phone: (250) 342-9281
2. Email: planning@invermere.net
3. Address: 914 8th Avenue, PO Box 339, Invermere, BC V0A 1K0
4. Website: https://invermere.net/operations/departments/planning/

District of Invermere Bylaw Enforcement:

Bylaw Enforcement officers are responsible for investigating complaints and enforcing STR regulations. They can answer questions about noise, parking, and occupancy requirements, as well as the consequences of non-compliance.

1. Phone: (250) 342-9281
2. Email: bylaw@invermere.net
3. Address: 914 8th Avenue, PO Box 339, Invermere, BC V0A 1K0
4. Website: https://invermere.net/operations/departments/bylaw-enforcement/

District of Invermere Short-Term Rentals Project Page:

The District of Invermere maintains a dedicated webpage for the Short-Term Rentals Project, which provides up-to-date information on the status of STR regulations, public engagement opportunities, and frequently asked questions.

Website: https://invermere.net/short-term-rentals-project/

District of Invermere Council Meetings:

Attending District of Invermere Council meetings can be an effective way to stay informed about STR policy discussions and decisions. Meetings are typically held on the second and fourth Tuesday of each month at 7:00 pm in the Council Chambers at the District office.

1. Phone: (250) 342-9281
2. Email: info@invermere.net
3. Address: 914 8th Avenue, PO Box 339, Invermere, BC V0A 1K0
4. Website: https://invermere.net/operations/district-council/council-meetings/

By reaching out to these contacts and utilizing the available resources, you can obtain the most accurate and current information about STR regulations and zoning in Invermere. Don't hesitate to ask questions and seek clarification to ensure that you are operating your STR in compliance with all applicable rules and requirements.

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

Residents and tourists alike have shared their experiences and opinions about Invermere on various online forums, providing valuable insights into life in this picturesque town. Here are a few notable examples:

• Reddit user's experience living in Invermere part-time: A part-time resident of Invermere shared their perspective on the town, noting that the weather is often warmer than in the prairies during winter and that there are some young people working at the local ski hill. They also mentioned that summer tourism can swell the population by 5 to 10 times, but it's spread throughout the Columbia Valley, making it more manageable.
• Childhood memories of growing up in Invermere: A Reddit user who grew up in Invermere reminisced about the great outdoors activities available, such as hiking, skiing, swimming, and mountain biking. They also highlighted local businesses like Kicking Horse Coffee, Hopkins Harvest, and Gerry's Gelato, which contribute to the town's unique character.
• Positive experience for mountain enthusiasts: Another Reddit user shared that Invermere is an amazing place for those who love the mountains, with hot and dry summers, decent skiing at Panorama, and world-class mountain biking trails nearby. They also noted that the locals are friendly and have a hippie/hillbilly/mountain vibe.
• Doctor's plea to Albertan neighbors during the COVID-19 pandemic: In a heartfelt letter shared on the Calgary subreddit, a doctor from Invermere requested that Albertans consider the town's limited medical resources before visiting during the pandemic. This post highlighted the close-knit community and the importance of responsible tourism.

Based on these experiences and stories, Invermere appears to be a promising location for starting a short-term rental business. The town's stunning natural beauty, abundant outdoor activities, and friendly community make it an attractive destination for tourists seeking a mountain getaway. The influx of visitors during the summer months, particularly from nearby Alberta, suggests a strong demand for short-term accommodations.

Moreover, the part-time resident's insight about the milder weather compared to the prairies indicates that Invermere could be a desirable year-round destination, potentially extending the short-term rental season beyond the summer months. The presence of young people working at the local ski hill also hints at the potential for winter tourism, further supporting the viability of a short-term rental business.

However, it is essential to consider the concerns raised by the local doctor regarding the town's limited medical resources. Responsible short-term rental operators should prioritize the well-being of both guests and the local community, ensuring that their business practices align with the town's capacity to handle increased tourism.