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

What are Short-Term Rental (Airbnb, VRBO) Regulations in Kicking Horse, British Columbia?

Kicking Horse is a popular ski resort town located in Golden, British Columbia. Like many tourist destinations, the town has specific regulations around short-term rentals like Airbnb and VRBO to balance the needs of visitors and residents. Here's what you need to know about operating a short-term rental in Kicking Horse.

Starting a Short-Term Rental Business in Kicking Horse

The Town of Golden, which includes Kicking Horse, adopted bylaws in 2020 to regulate short-term rentals. These regulations aim to allow STRs as a form of accommodation while protecting long-term rental housing. The key requirements are:

• All STR operators must have a business license from the Town of Golden. As of April 5, 2024, the town has launched an online application process.
• In residential zones, STRs are limited to the operator's principal residence, plus either a secondary suite or accessory dwelling unit on the same property. This aligns with the province's new principal residence requirement taking effect May 1, 2024.
• In commercial zones, STRs are permitted without the principal residence requirement, to allow for more visitor accommodation in the downtown core.
• Bed and breakfasts (B&Bs) can continue operating as long as the owner lives on the property.

Importantly, Kicking Horse itself is exempt from BC's new principal residence requirement as it is located within a designated mountain resort area. This means STRs can continue operating in the resort village without the owner needing to live on-site. However, STRs in the surrounding Town of Golden are subject to the regulations described above.

The Town of Golden is taking an education-first approach to enforcement but will eventually issue fines of up to $500/day for non-compliance if needed. The province can also request STR platforms remove non-compliant listings.

To legally operate a short-term rental in Kicking Horse, you'll need to:

1. Determine if your property is zoned for STRs under the Town of Golden's bylaws
2. If required, ensure the STR is your principal residence or an approved secondary unit
3. Obtain a business license from the Town of Golden and include the license number in all listings
4. Register with the province's STR registry once launched in late 2024
5. Collect and remit applicable taxes, including PST and MRDT (hotel tax)
6. Comply with all health and safety standards, such as installing fire alarms and providing fire extinguishers

By following these rules, you can operate an STR in Kicking Horse that provides a great experience for guests while respecting the needs of the local community. The Town of Golden and the Province of BC provide further details on the short-term rental regulations.

Short-Term Rental Licensing Requirement in Kicking Horse

To legally operate a short-term rental in Kicking Horse and the surrounding Town of Golden, you must obtain a business license from the Town of Golden. The specific requirements depend on the type of property:

1. Bed and Breakfast: For renting rooms in your primary residence. The owner must live on-site.
2. STR in Residential Zone: For renting a secondary suite or accessory dwelling on your primary residence property. The owner must live on-site in the main dwelling.
3. STR in Commercial Zone: For renting units in commercial areas. No primary residence requirement.

To apply for a short-term rental business license, you'll need to submit:

1. Completed application form, available online as of April 5, 2024
2. Annual inspection and declaration form
3. Floor plan of the short-term rental unit
4. Parking plan showing on-site parking spaces
5. Proof of ownership or owner consent
6. Application fee of $100 for properties with 1-4 rooms, or $200 for 5+ rooms

Applications can be submitted online at www.golden.ca/shorttermrentals or in person at the Town of Golden Planning Department. Processing times are not specified but may take months due to high volume.

Once licensed, you must display your business license number in all advertisements and listings. You'll also need to provide 24/7 contact information for an emergency contact person.

Failure to obtain the required STR license can result in fines of up to $500 per day for non-compliance. The Town plans to use software to identify unlicensed listings and will seek voluntary compliance before issuing penalties. However, STRs operating after being denied a license may face immediate enforcement.

It's crucial to carefully review the regulations, submit a complete application, and obtain a license before operating a short-term rental in Kicking Horse. This ensures you avoid delays or costly fines while supporting the local tourism economy.

Required Documents for Kicking Horse Short-Term Rentals

To apply for a short-term rental business license in Kicking Horse and the Town of Golden, you'll need to submit the following documents:

1. Completed Application Form: This form collects key information about your short-term rental property and operation. It's available online at the Town of Golden website as of April 5, 2024.
2. Annual Inspection and Declaration Form: This form verifies that your short-term rental unit complies with health and safety standards. It must be completed and signed by the property owner annually.
3. Floor Plan: You must provide a detailed floor plan of the short-term rental unit, clearly labeling each room and space. This helps confirm the property meets zoning and building code requirements.
4. Parking Plan: The parking plan must show the location and number of on-site parking spaces dedicated to the short-term rental unit. This ensures your property has adequate parking and will not create traffic issues.
5. Proof of Ownership or Owner Consent: If you own the property, you'll need to provide a copy of the title or property tax assessment as proof of ownership. If you're not the owner, you must submit a signed letter of consent from the legal owner allowing you to operate an STR.

These documents help the Town of Golden verify that your short-term rental property is safe, compliant with regulations, and a good fit for the neighborhood. Submitting clear and complete documentation can streamline the licensing process.

The application form and inspection form are available on the Town of Golden's website. Floor plans and parking plans can be created by the applicant or a professional. Proof of ownership or consent should be obtained from the appropriate sources.

Remember to allow sufficient time to gather these required documents before submitting your short-term rental business license application to the Town of Golden. A complete application package will be processed most efficiently.

Kicking Horse Short-Term Rental Taxes

When operating a short-term rental (STR) in Kicking Horse and the Town of Golden, you'll need to collect and remit several taxes:

Goods and Services Tax (GST): This federal value-added tax is 5% on short-term accommodations and related fees. You must register for GST if your annual revenue exceeds $30,000. If registered, you'll collect GST from guests and may claim input tax credits on eligible expenses.

Provincial Sales Tax (PST): British Columbia charges 8% PST on short-term accommodations of 26 nights or less. This applies to the rental fee and any guest or cleaning fees. You must register to collect and remit PST to the province.

Municipal and Regional District Tax (MRDT): This tax of up to 3% applies to STRs in many BC municipalities, including Golden and Kicking Horse. It's charged on the same nightly rate and fees as the PST. You'll collect the MRDT and remit it to the province along with your PST.

So, in total, guests will pay 16-18% tax on STRs in Kicking Horse - 5% GST, 8% PST, and 2-3% MRDT. As the operator, you're responsible for collecting these taxes and filing regular returns. Platforms like Airbnb may collect and remit PST and MRDT on your behalf, but you'll still need to account for GST.

Note that different tax rates and exemptions may apply to long-term rentals over 26-30 nights.

Deductions and Write-Offs

As a short-term rental business, you can deduct many current and capital expenses to offset your rental income at tax time. Allowable deductions may include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Repairs and maintenance
6. Cleaning and management fees
7. Advertising costs
8. Office expenses
9. Vehicle expenses for the rental business
10. Depreciation on furniture and equipment

Consult a tax professional to ensure you're claiming all eligible deductions and optimizing your after-tax returns. Proper expense tracking is key to maximizing write-offs.

By understanding the tax requirements and deduction opportunities for short-term rentals in Kicking Horse, you can ensure compliance and profitability. Stay organized, keep good records, and get professional advice to navigate the evolving regulatory landscape.

British Columbia Wide Short-Term Rental Rules

In addition to local regulations in Kicking Horse and Golden, short-term rental hosts must also comply with provincial rules in British Columbia. The Short-Term Rental Accommodation Act, which took effect in October 2023, aims to return more short-term rentals to the long-term housing market. Key provincial requirements include:

1. Principal Residence Requirement (effective May 1, 2024): In communities with populations over 10,000, short-term rentals are limited to a host's principal residence, plus one secondary suite or accessory dwelling unit on the same property. This applies to Kicking Horse and Golden.
2. Business License Requirements (effective May 1, 2024): Where required by local governments, short-term rental listings must display a valid business license number. Platforms must remove listings without a license when notified by the local government.
3. Removal of Non-Conforming Use Protections (effective May 1, 2024): Properties can no longer rely on legal non-conforming use status to operate short-term rentals if they don't comply with current local zoning bylaws.
4. Provincial Registration (launching late 2024/early 2025): The province will establish a short-term rental registry. Hosts will need to include their provincial registration number in listings, and platforms must validate these numbers against the registry.
5. Data Sharing (starting summer 2024): Short-term rental platforms must share data on BC-based listings monthly with the provincial government to support local enforcement efforts.
6. Increased Fines: Maximum fines for non-compliance have increased - up to $50,000 for bylaw offenses (set by regional districts) and $3,000 per infraction per day for municipal violations.

The province has established a compliance unit to enforce these rules, track violations, and issue penalties. Fines will range from $500 to $5,000.

It's crucial for short-term rental hosts in Kicking Horse to understand and follow both local and provincial regulations. Failure to comply could result in significant financial penalties and the removal of non-compliant listings by platforms. By adhering to these rules, hosts can legally operate while supporting the province's goals of protecting long-term rental housing.

Does Kicking Horse Strictly Enforce STR Rules?

Based on discussions in online forums like Bigger Pockets and Reddit, Kicking Horse and the Town of Golden appear to be taking a balanced approach to short-term rental enforcement. The regulations aim to allow STRs while protecting long-term housing, but the town is not overly strict compared to some other cities.

The Town of Golden plans to start with education and voluntary compliance before moving to active enforcement and potential fines of up to $500 per day for non-compliant listings. They will use third-party software to monitor listings across over 125 platforms and can request removal of unlicensed listings. However, officials have said they will not immediately request removals until initial applications are processed and hosts have a chance to come into compliance.

Compared to cities with very restrictive rules, Kicking Horse itself is quite Airbnb-friendly. The resort village is exempt from BC's new principal residence requirement, meaning investment properties can continue operating as STRs. The surrounding Town of Golden allows STRs in the host's primary residence plus one secondary suite or accessory dwelling.

While some hosts may still attempt to skirt the rules, the licensing process and active monitoring will likely bring most into compliance over time. The resort's dependence on tourism provides an incentive for both hosts and the town to make the system work. Overall, Kicking Horse strikes a reasonable balance - allowing responsible STR operations with some guardrails to preserve housing and community character.

How to Start a Short-Term Rental Business in Kicking Horse

Starting a short-term rental business in Kicking Horse requires careful planning and compliance with local regulations. Here are the key steps to get your STR up and running:

1. Determine if your property is eligible for an STR license. Review the Town of Golden's zoning bylaws to confirm your property is in an allowed zone for STRs. In residential zones, the STR must be your primary residence, and you can only rent a portion of your home. In commercial zones, the entire unit can be rented without the primary residence requirement.
2. Prepare your STR unit. Ensure your rental space is safe, clean, and well-furnished. Install required safety features like smoke detectors, fire extinguishers, and egress windows. Create a welcoming space with comfortable furniture, linens, and amenities that will appeal to guests.
3. Obtain required licenses and permits. Apply for a business license from the Town of Golden. You'll need to provide proof of ownership or owner consent, a floor plan, a parking plan, and pay the applicable license fee ($100-$200 based on number of bedrooms). You'll also need to register for a Sales and Use Tax License to collect and remit taxes.
4. Secure appropriate insurance. Contact your insurance provider to obtain the required $1 million liability coverage for your STR. You may need a commercial policy or rider to ensure you're properly protected.
5. Create your listing. Take high-quality photos of your space and write a detailed, engaging description. Decide on your nightly rate, minimum stay, house rules, and cancellation policy. List your property on popular platforms like Airbnb and VRBO, being sure to include your business license number in the listing.
6. Implement a guest screening process. To protect your property and neighborhood, consider requiring guest identity verification and positive reviews from past hosts. Clearly communicate your house rules and expectations prior to booking.
7. Develop a property management plan. Decide if you will manage the property yourself or hire a management company. Create a cleaning and maintenance schedule to keep your STR in top shape. Provide local contact information to guests in case of emergencies or issues during their stay.
8. Keep good records. Maintain organized records of all bookings, income, and expenses related to your STR. This will make tax reporting easier and provide documentation if any disputes arise. Use bookkeeping software to simplify the process.
9. Be a good neighbor. Educate your guests on neighborhood policies around parking, noise, and trash disposal. Respond promptly to any neighbor concerns and work to be a responsible member of the community. Building positive relationships can help your STR succeed long-term.
10. Stay up-to-date on evolving regulations. Short-term rental rules are constantly changing at both the local and provincial levels. Monitor communications from the Town of Golden and Province of BC to ensure you remain in compliance. Join local host groups or forums to stay informed and share best practices.

By following these steps and prioritizing compliance and professionalism, you can launch a successful short-term rental business in Kicking Horse. Focus on creating a great guest experience while being a respectful operator to maximize your STR's potential.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Kicking Horse and the Town of Golden, you can contact the following:

Town of Golden Planning Department
Phone: 250-344-2271 ext. 236
Email: planning@golden.ca

The Planning Department is responsible for administering and enforcing the Town's short-term rental bylaws and regulations. They can provide information on zoning requirements, the application process for obtaining necessary permits and licenses, and guidance on ensuring compliance with the rules.

Phil Armstrong, Manager of Development Services
Phone: 250-344-2271 ext. 236
Email: parmstrong@golden.ca

As the Manager of Development Services for the Town of Golden, Phil Armstrong oversees the department and can offer detailed guidance on Golden's short-term rental regulations, the consultation process, enforcement strategies, and any updates or changes to the bylaws.

Residents and prospective short-term rental operators are encouraged to reach out to the Planning Department or directly to Phil Armstrong with any inquiries related to operating a short-term rental in Kicking Horse or Golden.

In addition to official Town contacts, there are several online communities where Kicking Horse hosts can connect, share experiences, and get advice:

/r/GoldenBC subreddit: A community for discussing local news, events, and issues in Golden, including short-term rentals.

Kicking Horse Short-Term Rental Hosts Facebook Group: A private group for Kicking Horse Airbnb and VRBO hosts to network, ask questions, and stay updated on regulations.

Bigger Pockets Golden, BC Real Estate Investing Forum: A subforum on the popular real estate investing site where Golden investors and hosts discuss local market conditions, regulations, and strategies.

Participating in these online groups can provide valuable insights from experienced hosts and help you navigate the evolving regulatory landscape for short-term rentals in Kicking Horse. However, always verify any information or advice against official Town sources.

By staying informed, connected with the local host community, and maintaining open communication with Town officials, you'll be well-positioned to operate a successful and compliant short-term rental business in Kicking Horse.

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

While there aren't many discussions specifically about Kicking Horse, hosts on Reddit and Bigger Pockets have shared their thoughts on British Columbia's new province-wide short-term rental regulations that will impact Kicking Horse:

In a Reddit thread about the new BC law, hosts expressed concerns about the impact on those operating multiple full-time Airbnb properties. One commenter noted, "I know there are a bunch of cities with tons of homes dedicated to full-time AirBnB use that are on the list. I also know there are quite a few private corporations that own multiple properties specifically for AirBnb or VRBO rentals."

However, others felt the law struck a good balance, with one Redditor commenting, "It's sensible policy. It doesn't restrict people from using Airbnb as intended, nor does it restrict resort communities where it makes sense to rent out whole units short term."

In another Reddit discussion, a commenter emphasized the importance of enforcement, saying, "That's great as long as there are no loopholes, and there's enforcement."

On the Bigger Pockets forums, a host shared their strategy of renting apartments from landlords and then re-renting them on Airbnb, keeping the profits. This approach may become more difficult under BC's new rules requiring the STR to be in the host's principal residence.

Another Bigger Pockets thread on choosing Airbnb locations highlighted the importance of researching local regulations, with a host advising "Make sure you understand the laws and regulations in the area you are looking to invest in."

Overall, while some hosts are concerned about the impact of stricter regulations on their Airbnb businesses, many acknowledge the need to balance short-term rentals with housing availability. Kicking Horse's specific exemption from the principal residence requirement as a resort community may make it an attractive location for STR operators compared to other parts of BC. However, hosts emphasize the importance of understanding and complying with all applicable local rules to run a successful and sustainable short-term rental.

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.