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

Starting a Short-Term Rental Business in Kimberley

The City of Kimberley adopted a new Short-Term Rental (STR) Bylaw in November 2021 to regulate the growing tourist rental market. The bylaw aims to ensure safety and responsibility for short-term rentals while supporting Kimberley's important tourism economy.

Under the new bylaw, all short-term rental operators in Kimberley are required to:

• Obtain an annual STR business license from the city. The license fee is $300 per rental unit.
• Provide a local contact person who can respond to any issues within a specified time frame.
• Comply with building safety requirements and be subject to inspection by the fire department.
• Operate only in zones where STRs are a permitted use under the city's zoning bylaw.

The STR regulations were developed through extensive consultation with residents and existing STR operators. The city recognizes that short-term rentals are a vital part of the local economy, but also wanted to address concerns around housing availability, noise, traffic, and unauthorized rentals.

Kimberley is located in the Kootenay Rockies region of southeastern BC and is a popular destination for skiing, golfing, hiking, and other outdoor activities. With a permanent population of around 8,000, the city sees a significant influx of tourists and STRs during peak seasons.

In October 2023, the BC government passed legislation to restrict short-term rentals across the province to a host's principal residence plus one additional unit starting May 1, 2024. However, the City of Kimberley is exempt from this requirement as a designated "resort community" under the act. This means STRs can continue to operate in secondary and investment properties in Kimberley, subject to local zoning.

The Regional District of East Kootenay (RDEK), which governs rural areas outside Kimberley, also allows short-term rentals with a Temporary Use Permit. RDEK will continue its existing STR permit process and is not directly impacted by the new provincial rules at this time.

So, in summary, while provincial regulations on short-term rentals are tightening, the resort municipality of Kimberley remains fairly welcoming to STRs with a clear licensing process. Hosts should carefully review the city's zoning and operating requirements to ensure they are in full compliance with local bylaws. With strong tourist demand, short-term rentals can be a viable business in Kimberley for operators who follow the rules.

Short-Term Rental Licensing Requirement in Kimberley

Under Kimberley's Short-Term Rental Bylaw, adopted in November 2021, all short-term rental operators in the city are required to obtain an annual STR business license. The licensing process aims to ensure STRs meet safety requirements and are being operated responsibly.

To apply for a STR business license, operators must submit the following to the City of Kimberley:

1. Completed STR Business License Application Form, available on the city website or from City Hall.
2. Annual license fee of $300 per STR unit. The fee is non-refundable.
3. Proof of ownership of the STR property, such as a title search or recent property tax notice. Operators must own the property they are applying to license.
4. Contact information for a local representative who can respond to any issues within 2 hours if the operator lives more than 20km away. The local contact must have access to the STR.
5. Parking plan showing the location and number of on-site parking spaces for STR guests. The STR property must have at least one dedicated parking space.
6. Floor plans of the STR unit indicating room dimensions, fire exits, and locations of smoke/CO alarms and fire extinguishers.
7. Proof of adequate liability insurance coverage for the STR operation.
8. If the STR is located in a strata property, written authorization from the strata council permitting STR use.

Once a complete application is submitted, the STR unit will be subject to inspection by the Kimberley Fire Department for compliance with fire and building safety requirements. Inspections are done on an annual basis or as required.

STR business licenses are issued for a calendar year and must be renewed annually by December 31st. The typical processing time for a new STR license is 2-3 weeks from receipt of a complete application.

Operating a STR without a valid business license is an offense under the bylaw subject to a fine of $500 per day. The city may also issue fines of $500 per incident for failure to comply with other aspects of the bylaw, such as exceeding maximum occupancy, parking violations, noise and nuisance issues, etc. Unpaid fines may be collected via property taxes.

Kimberley's STR licensing requirements and annual fee were developed through extensive consultation with residents and STR operators. The $300 fee is on the higher end compared to some other BC municipalities, but is seen as reasonable given the costs of administering and enforcing the program in a community with a high number of STRs relative to its population.

To apply for a STR business license or get more information, contact:

City of Kimberley
Planning & Development
340 Spokane Street, Kimberley, BC V1A 2E8
250-427-9660
planning@kimberley.ca
https://kimberley.ca/business-development/short-term-rentals

So, in summary, obtaining an annual business license is mandatory for lawful short-term rental operations in Kimberley. The licensing process involves submitting key documents, paying a $300 fee, and passing a fire safety inspection. With active enforcement and $500 daily fines for non-compliance, operating without a license is a risky proposition in this small resort community that relies heavily on STR tourism.

Required Documents for Kimberley Short-Term Rentals

To apply for a Short-Term Rental (STR) business license in Kimberley, operators must submit the following documents to the city's Planning & Development department, as outlined in the STR Business License Application Form:

1. Completed STR Business License Application Form: This form collects key information about the STR property, owner, and local contact person. It is available on the city website or from City Hall.
2. Proof of Property Ownership: Acceptable documents include a title search, property tax notice, or purchase agreement. This confirms the applicant owns the property and has the right to operate a STR.
3. Local Contact Information: If the owner lives more than 20km from the STR, they must provide contact details for a local representative who can respond to issues within 2 hours. This ensures timely response to neighborhood concerns.
4. Parking Plan: A site plan or aerial photo showing the location and number of on-site parking spaces dedicated to the STR. At least one space is required to avoid street congestion.
5. Floor Plans: Detailed floor plans indicating room dimensions, fire exits, and locations of smoke/CO alarms and fire extinguishers. This allows the Fire Department to verify building code compliance.
6. Proof of Insurance: A copy of the liability insurance policy covering the STR operation, with a minimum of $2 million in coverage. This protects both guests and neighbors.
7. Strata Authorization (if applicable): If the STR is in a strata property, a letter from the strata council confirming STRs are permitted under the bylaws. Not all stratas allow STR use.
8. Owner Consent Form (if applicable): If the applicant is not the property owner, a signed consent form from the owner permitting STR use of the property.

These documents help the city ensure STRs are being operated responsibly by the legal owner, with proper safety precautions and neighborhood considerations in place. Incomplete applications missing required documents will not be processed.

The STR Business License Application Form and Owner Consent Form can be downloaded from the city's STR webpage at https://kimberley.ca/business-development/short-term-rentals. Other documents like title searches and insurance policies must be obtained from the relevant service providers.

Applicants must submit all required documents, along with the $300 annual license fee, to:

City of Kimberley
Planning & Development
340 Spokane Street, Kimberley, BC V1A 2E8
planning@kimberley.ca

Once a complete application is received, the city will arrange a fire safety inspection of the STR property. Assuming the property passes inspection and all other requirements are met, the STR business license will typically be issued within 2-3 weeks.

Operators must keep their STR documents up-to-date and renew their business licenses annually by December 31st. Failure to maintain a valid license or produce required documents upon request may result in fines and other enforcement action under the STR bylaw.

Kimberley Short-Term Rental Taxes

Short-term rental operators in Kimberley are subject to several taxes that they must collect from guests and remit to the appropriate government agencies:

Provincial Sales Tax (PST): British Columbia imposes an 8% Provincial Sales Tax on short-term accommodation rentals of less than 30 consecutive days. This 8% PST must be collected by hosts from guests and remitted to the BC government.

Municipal and Regional District Tax (MRDT): In addition to the 8% PST, the City of Kimberley charges a 3% Municipal and Regional District Tax on short-term rentals. This 3% MRDT is used to fund local tourism marketing and projects. Hosts must collect this tax from guests and remit it to the city.

Goods and Services Tax (GST): The federal 5% Goods and Services Tax (GST) applies to short-term rental stays. Hosts must collect this 5% GST from guests and remit it to the Canada Revenue Agency (CRA).

So, in total, guests at a licensed short-term rental in Kimberley will pay 16% in taxes on top of the nightly rate (8% PST + 3% MRDT + 5% GST).

Hosts are responsible for filing returns and remitting these taxes on a regular basis. The PST and MRDT are typically filed and remitted quarterly, while GST is an annual filing requirement with the CRA.

However, short-term rental hosts can deduct many expenses related to their rental business from their taxable income, such as:

1. Mortgage interest, property taxes, and strata fees (prorated for rental use)
2. Utilities (hydro, gas, cable/internet)
3. Repairs, maintenance, and cleaning costs
4. Furniture, linens, and supplies
5. Property management fees
6. Insurance premiums
7. Advertising and marketing expenses

Keeping detailed records of all rental income and expenses is crucial for maximizing deductions at tax time. Hosts can claim capital cost allowances for depreciating assets like appliances and furniture as well.

It's important to note that the ability to claim expenses is tied to having a valid municipal business license for the short-term rental. Unlicensed operators may face challenges deducting expenses or risk penalties from the CRA.

Consulting an accountant familiar with the short-term rental industry can help hosts ensure they are complying with all tax requirements and taking advantage of all eligible deductions. Proper tax planning is essential for the profitability of a short-term rental business in Kimberley.

British Columbia Wide Short-Term Rental Rules

In addition to Kimberley's local regulations around short-term rental licensing and zoning, hosts must also comply with new province-wide rules under the Short-Term Rental Accommodations Act that came into effect in October 2023.

One of the most significant changes is the introduction of a principal residence requirement that took effect on May 1, 2024, in communities with populations over 10,000 people. This restricts short-term rentals to a host's principal residence plus one additional unit, like a secondary suite or laneway home on the same property.

However, Kimberley is exempt from the principal residence rule as it has been designated a "resort community" under the provincial legislation. This exemption allows short-term rentals to continue operating in secondary and investment properties in Kimberley, not just principal residences.

Despite being exempt from the principal residence requirement, Kimberley hosts are still impacted by several other provincial regulations:

As of May 1, 2024, legal non-conforming use protections no longer apply to short-term rentals. This means any unlicensed or non-compliant STRs cannot continue operating based on previous legal non-conforming use allowances.

Short-term rental hosts must display a valid municipal business license number on all listings and advertisements if the local government requires a license. Platforms like Airbnb must remove any non-compliant listings upon request from the municipality.

Starting in summer 2024, short-term rental platforms must share comprehensive data on their British Columbia listings with the provincial government on a monthly basis. This will assist with monitoring and enforcement.

By early 2025, the province expects to launch a provincial short-term rental registry. Hosts will need to include their registry number on listings, and platforms must validate listings against the registry database.

A new provincial Compliance and Enforcement Unit will be able to issue penalties of $500 to $5,000 per day per infraction for individual hosts violating the rules, and up to $10,000 per day for corporations. Penalties can include administrative monetary penalties and compliance orders.

So, while Kimberley avoided the most restrictive provincial regulation around principal residences, local hosts must still ensure they have a valid municipal license, follow all local bylaws, and prepare for additional data-sharing requirements and potential provincial enforcement action.

The provincial regulations aim to create more consistent rules and stronger enforcement mechanisms for the short-term rental industry across BC. However, municipalities like Kimberley maintain the ability to implement stricter regulations beyond the provincial requirements if desired.

Does Kimberley Strictly Enforce STR Rules?

Based on discussions in online forums like Reddit and Bigger Pockets, it appears that the City of Kimberley does actively enforce its short-term rental (STR) regulations and licensing requirements. Compared to some other resort communities in British Columbia, Kimberley is not considered particularly Airbnb-friendly for hosts looking to operate multiple investment properties as short-term rentals.

On the Bigger Pockets real estate investing forum, one user reported receiving a violation notice from the City of Kimberley for operating an unlicensed short-term rental. They noted that "Kimberley seems to be cracking down hard on illegal STRs" and advised others to obtain the required $300 annual business license.

Another Bigger Pockets member looking to invest in short-term rentals in BC ski towns said they avoided Kimberley due to the "very restrictive" regulations, instead focusing on communities like Fernie and Revelstoke, which are exempt from the provincial principal residence requirement as designated resort areas.

On Reddit's r/Kimberley forum, one resident complained about a neighboring property being used as an illegal short-term rental, creating noise and parking issues. They stated that "the city has been pretty responsive" in investigating these types of complaints against unlicensed operators.

However, some hosts on Reddit have reported continuing to operate short-term rentals in Kimberley without issues, as long as they obtain the proper licensing and follow all regulations around parking, occupancy, and noise. But these seem to be hosts renting their principal residence or a secondary suite, not operating multiple investment properties.

So, in summary, while some short-term rental activity persists in Kimberley, the consensus from online discussion forums is that the city does take an active enforcement stance - especially against unlicensed and non-compliant operators running de facto hotel businesses out of investment properties. Hosts looking to start a legal short-term rental in their principal residence can likely operate successfully by following Kimberley's licensing process and regulations. But the city is not seen as a particularly friendly market for real estate investors looking to acquire multiple properties solely for short-term rental purposes compared to other resort towns in BC. The $300 annual licensing fee and strict enforcement make it a challenging environment for that business model.

How to Start a Short-Term Rental Business in Kimberley

If you're interested in starting a legal short-term rental business in Kimberley, here are the key steps to get started:

1. Confirm eligibility and zoning compliance: Review Kimberley's zoning bylaw to ensure short-term rentals are a permitted use in the zone where your property is located. The city's Planning & Development department can assist with zoning inquiries.
2. Prepare your property: Ensure your rental unit meets all building code, fire safety, and parking requirements outlined in the city's Short-Term Rental Bylaw. Install smoke/CO alarms, fire extinguishers, and clearly mark fire exits. Create a dedicated parking area for guests.
3. Obtain necessary permits and licenses: Apply for a Short-Term Rental Business License from the City of Kimberley. Submit all required documents like proof of ownership, floor plans, parking plan, insurance, and local contact info. Pay the $300 annual license fee.
4. Pass fire inspection: Once you submit a complete application, the Kimberley Fire Department will inspect your rental unit to verify compliance with fire and life safety regulations. Address any deficiencies identified during inspection.
5. Register for tax accounts: Register with the BC government to collect and remit 8% Provincial Sales Tax (PST) and 3% Municipal and Regional District Tax (MRDT) on your rental income. Register with the Canada Revenue Agency to collect and remit the federal 5% Goods and Services Tax (GST).
6. Set up your listing: Once licensed, create your listing on a platform like Airbnb or Vrbo. Take high-quality photos, write compelling descriptions, and set appropriate nightly rates and rules. Prominently display your business license number.
7. Implement a reservation system: Decide how you will manage inquiries, booking requests, guest communication, and key exchanges. Consider channel management software to sync availability across platforms.
8. Arrange cleaning and maintenance: Hire a reliable cleaning service or do turnover cleaning yourself. Create a cleaning checklist and restock any supplies regularly. Develop a system for promptly addressing any maintenance issues.
9. Market your rental: Optimize your listing details and photos for search. Encourage positive reviews from guests. Consider paid marketing on the platform or through targeted advertising. Leverage Kimberley's tourism marketing.
10. Maintain compliance: Renew all licenses and permits annually. Collect and remit taxes on time. Follow all rules around occupancy, parking, noise, and neighbor relations. Keep open lines of communication with the city.

By following these steps, you can establish a compliant and successful short-term rental business in Kimberley. However, be prepared for a fairly rigorous licensing process and ongoing regulatory requirements.

Some tips for operating a short-term rental in Kimberley:

1. Develop a strong operations and customer service plan - prompt communication is key
2. Consider joining the local accommodation association to stay informed
3. Budget for the $300 annual license fee and other compliance costs
4. Only acquire properties zoned for short-term rental use from the start
5. Be a respectful operator and good neighbor to preserve community support

While Kimberley's regulations are strict, they aim to balance economic benefits with community impacts. Responsible short-term rental hosts who follow the rules can still operate profitably in this popular resort destination.

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

If you have questions about Kimberley's short-term rental regulations, licensing process, or zoning requirements, there are several official city contacts and resources available:

City of Kimberley Planning & Development Department

This department administers the Short-Term Rental Bylaw and business licensing process. Contact them for any inquiries related to regulations, applications, inspections, and enforcement.

Phone: 250-427-9660
Email: planning@kimberley.ca
Address: 340 Spokane Street, Kimberley, BC V1A 2E8
Website: https://kimberley.ca/business-development/short-term-rentals

Kimberley Fire Department

The Fire Department conducts the required safety inspections for short-term rental business licenses.

Phone: 250-427-5517
Email: fire@kimberley.ca
Address: 340 Spokane Street, Kimberley, BC V1A 2E8

City of Kimberley Bylaw Services

Contact Bylaw Services to report any suspected violations or illegal short-term rental operations.

Phone: 250-427-9669
Email: bylaw@kimberley.ca

Online Resources:

1. City of Kimberley Website: https://kimberley.ca
2. Short-Term Rental Bylaw No. 2021-25: https://kimberley.ca/sites/default/files/bylaws/2021-25%20STR%20Bylaw.pdf
3. Kimberley Zoning Bylaw: https://kimberley.ca/city-services/bylaws/zoning-bylaw

Community Groups:

1. Kimberley Accommodation Association: info@kimberleyaccommodation.com
2. Kimberley STR Hosts Facebook Group: https://www.facebook.com/groups/kimberlystrhosts

The Kimberley Accommodation Association is an industry group representing hotels, motels, B&Bs, and short-term rentals in the area. They can provide guidance to new hosts.

The local Facebook group is also a useful resource to connect with other short-term rental operators in Kimberley, ask questions, and share advice.

When contacting the city, be prepared with details like your property address, legal description, and the specific nature of your inquiry. This will allow staff to provide accurate and relevant information.

Thoroughly reviewing the Short-Term Rental Bylaw and zoning regulations on the city's website is also highly recommended before reaching out with questions.

By utilizing these official city contacts and community resources, short-term rental operators in Kimberley can ensure they understand and comply with all applicable local rules from the outset. Open communication with authorities is key to operating a responsible and successful short-term rental business.

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

To get a sense of how current short-term rental hosts in Kimberley view the city's regulations, I searched Reddit, Facebook groups, Bigger Pockets forums, and other online communities. Here are some relevant comments and experiences I found:

On the Bigger Pockets real estate investing forum, one host said:

"I've been operating a legal short-term rental in Kimberley for the past two years. The $300 annual license fee is steep, but the application and inspection process has been straightforward. As long as you follow the rules around parking, occupancy, etc. the city leaves you alone."

Another Bigger Pockets user considering investing in a Kimberley rental posted:

"The licensing requirements seem pretty onerous in Kimberley compared to somewhere like Fernie. Has anyone had issues with the city enforcing the bylaws and inspecting units annually? That could be a hassle for an out-of-town owner."

On Reddit's r/Kimberley forum, one resident commented:

"The new short-term rental bylaws have helped cut down on the problem properties that were running party houses without any oversight. There are still a few bad apples, but seems most of the licensed STRs are operating responsibly."

In the "Kimberley STR Hosts" Facebook group, one host provided this advice:

"Be sure to get your floor plans and parking plan exactly right on your license application. The city is very picky and won't approve permits if there are any inconsistencies between the documents and the actual layout/parking situation."

Another host in the Facebook group noted:

"I'm glad the city is enforcing the new bylaws. Too many people were treating residential homes like unregulated hotels before. The $300 fee is worth it to have a system that keeps things under control."

The licensing fees are seen as a notable expense but not a dealbreaker for most. Responsible hosts seem to appreciate that the regulations help crack down on problematic rentals and preserve community character. However, some do express concerns about the annual inspection requirement creating hassles for out-of-town owners.

Overall, the online commentary suggests that while Kimberley's short-term rental rules have critics, many hosts are making an effort to comply and work cooperatively with the city's regulatory framework. As long as they follow the process, most appear able to operate successfully under the current bylaws.

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.