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

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

Lund is a small coastal community located in the qathet Regional District of British Columbia, Canada. Like many tourist destinations, Lund has seen a rise in short-term rentals (STRs) through platforms like Airbnb and VRBO in recent years. While STRs can provide economic benefits, they have also raised concerns about housing availability and neighborhood impacts. In response, the Province of BC and local governments have introduced new regulations for short-term rentals.

Starting a Short-Term Rental Business in Lund

If you're interested in operating a short-term rental in Lund, there are several key requirements to be aware of:

Principal residence requirement: As of May 1, 2024, the Province of BC is implementing a principal residence requirement that limits STRs to the host's principal residence, plus one secondary suite or accessory dwelling unit on the same property. However, this requirement does not apply in Lund and other rural areas, as the qathet Regional District is currently exempt.

Business license: The qathet Regional District does not currently require STR operators to obtain a business license. However, this may change in the future as the regional district has the authority to implement licensing requirements.

Zoning compliance: Short-term rentals are generally considered a residential use under the qathet Regional District's zoning bylaws. This means STRs are permitted in zones that allow residential uses, as long as the building is legally constructed and meets density regulations. If you are unsure if your property is eligible for an STR, contact the regional district's planning department.

Building and fire safety: Your STR must meet building code requirements and have appropriate smoke alarms, carbon monoxide detectors, and fire extinguishers. If you are renting out a secondary suite or accessory dwelling, it must have been constructed with proper building permits.

Insurance: Notify your home insurance provider that you will be operating an STR, as you may need additional coverage or a commercial policy. Most STR platforms also provide some level of host protection insurance.

Provincial registration: By late 2024 or early 2025, the Province of BC will establish a provincial STR registry. Hosts will be required to register and include their registration number in all listings. STR platforms will need to validate these registration numbers.

While the Qathet Regional District has not opted into the provincial principal residence requirement for 2024, the regional board may choose to do so in future years. STR operators in Lund should stay informed of any potential changes to regional and provincial regulations that could impact their ability to operate.

By following the existing rules and being a responsible host, you can successfully operate a short-term rental business in Lund while minimizing negative impacts on the community. This includes being a good neighbor, providing a safe and well-maintained property, and collecting and remitting applicable taxes.

Short-Term Rental Licensing Requirement in Lund

As a small coastal community in the Qathet Regional District of British Columbia, Lund is subject to both provincial and regional regulations for short-term rentals (STRs).

At the provincial level, British Columbia introduced new rules effective May 1, 2024, that limit STRs to the host's principal residence plus one secondary suite or accessory dwelling unit on the same property. This requirement applies to municipalities with a population of 10,000 or more and their surrounding communities.

However, the Qathet Regional District, which governs Lund, is currently exempt from this provincial principal residence requirement. This means STR hosts in Lund are not restricted to only renting out their primary home.

That said, the qathet Regional District does have its own STR regulations in place. Hosts must obtain a Temporary Use Permit (TUP) from the regional district to legally operate a short-term rental unless their property zoning already allows for tourist accommodation uses like hotels or resorts.

To apply for a TUP, hosts must submit:

• A completed application form
• Proof of ownership and primary residency
• A site plan and floor plans
• Parking plan
• Fire safety plan
• Septic system certification, if applicable
• Application fee of $1000-$2000

TUPs are valid for up to 3 years and can be renewed for an additional 3 years. The permit outlines conditions the STR must meet, such as occupancy limits (max 10 guests), parking requirements, and good neighbor practices.

While the Qathet Regional District does not currently require a separate business license for STRs, this may change in the future as regulations evolve. The regional district has the authority to implement additional licensing requirements if needed.

It's important to note that STR hosts in Lund must still comply with other applicable laws, such as collecting and remitting PST and GST taxes, having sufficient liability insurance, and adhering to regional noise and nuisance bylaws.

As the STR industry continues to grow, it's possible that Lund and the Qathet Regional District may update their regulations. Hosts should stay informed of any changes that could impact their ability to operate. By obtaining the proper permits and following the rules, STR operators in Lund can provide much-needed tourist accommodation while being good neighbors in their community.

Required Documents for Lund Short-Term Rentals

To operate a short-term rental (STR) in Lund, hosts must obtain a Temporary Use Permit (TUP) from the Qathet Regional District. The TUP application process requires submitting several important documents:

1. Completed TUP Application Form: This form collects basic information about the property owner, the STR property, and the proposed use. It must be signed by all owners on the title.
2. Proof of Ownership: Applicants must provide a copy of the title certificate or land title search showing they are the legal owner(s) of the property. If the property is held by a corporation or partnership, additional documentation may be required.
3. Proof of Primary Residency: Since the Qathet Regional District currently exempts Lund from the provincial principal residence requirement, proof of primary residency is not mandatory. However, it's still a good idea to have documentation like a driver's license, voter registration, or income tax assessment showing the STR address.
4. Site Plan: A detailed site plan drawn to scale is required, showing the location of buildings, parking areas, septic system (if applicable), and any other relevant features. The site plan should also indicate the STR unit and any external changes proposed to accommodate the use.
5. Floor Plans: Floor plans of the STR unit are needed, clearly labeling the use of each room (e.g. bedroom, kitchen, living room). The plans should show the dimensions of each room and the location of safety features like smoke alarms, CO detectors, and fire extinguishers.
6. Parking Plan: The TUP application must include a parking plan that shows the location and number of on-site parking spaces for STR guests. The number of spaces required is based on the STR's occupancy limit.
7. Fire Safety Plan: Applicants need to provide a fire safety plan indicating the location of smoke alarms, CO detectors, fire extinguishers, and emergency exits. The plan should also include emergency contact information and evacuation procedures.
8. Septic System Certification (if applicable): If the property is not connected to a municipal sewer system, a septic system certification from a Registered Onsite Wastewater Practitioner (ROWP) is required. This certifies that the septic system is functioning properly and sized appropriately for the proposed STR use.
9. Application Fee: The TUP application must be accompanied by the applicable fee, which ranges from $1000 to $2000 depending on the complexity of the application. This fee is non-refundable.

In addition to these required documents, the Qathet Regional District may request further information or studies to support the TUP application, such as a noise management plan or a water supply assessment.

Once a complete application is submitted, it will be reviewed by regional district staff and may require public notification and a public meeting before a decision is made. If approved, the TUP will be issued with specific conditions that the STR operator must follow.

By gathering and submitting all the necessary documents, STR hosts in Lund can demonstrate their commitment to operating responsibly and in compliance with regional regulations. This helps ensure that STRs are a positive addition to the community while minimizing any negative impacts on neighbors and local resources.

Lund Short-Term Rental Taxes

Short-term rental (STR) operators in Lund are required to collect and remit several taxes on their rental income. These taxes apply to STRs rented for periods of less than 30 consecutive days.

First, STR hosts must collect and remit the 8% Provincial Sales Tax (PST) on behalf of the Province of British Columbia. This tax applies to the rental of accommodation in B.C., including short-term rentals. Hosts must register for a PST number with the province and file regular returns.

Second, the federal Goods and Services Tax (GST) of 5% also applies to short-term rentals. STR operators must register for a GST number with the Canada Revenue Agency (CRA) and charge GST on their rental fees. They must file GST returns and remit the tax collected to the CRA.

For example, if an STR in Lund charges $150 per night:

1. PST (8%): $12
2. GST (5%): $7.50
3. Total taxes: $19.50

Total price with taxes: $169.50

It's important to note that these taxes are in addition to the income tax that STR hosts must pay on their rental earnings. Rental income is considered taxable income and must be reported on the host's personal or corporate income tax return.

STR operators should keep accurate records of their rental income and expenses, as well as the taxes collected and remitted. This documentation will be important for filing tax returns and responding to any audits or inquiries from tax authorities.

Failing to comply with tax requirements can result in penalties, interest, and legal consequences. STR hosts in Lund should familiarize themselves with their tax obligations and seek professional advice from an accountant or tax specialist if needed.

In addition to the PST and GST, some municipalities in B.C. have implemented a Municipal and Regional District Tax (MRDT) on short-term accommodations. This is an additional tax of up to 3% that goes towards local tourism marketing and development. However, the Qathet Regional District, which includes Lund, does not currently have an MRDT in place.

As the STR industry continues to evolve, it's possible that tax regulations may change. Hosts should stay informed of any updates to provincial or federal tax laws that could impact their business.

By properly collecting and remitting the required taxes, STR operators in Lund can ensure they are contributing to the local and provincial economy while avoiding any legal or financial issues. This helps maintain a level playing field with other accommodation providers and supports the long-term sustainability of the STR sector in the community.

British Columbia-Wide Short-Term Rental Rules

In addition to any specific regulations in Lund, short-term rental operators must also comply with the rules set by the Province of British Columbia. These province-wide regulations apply to all short-term rentals operating within B.C., including those in Lund and the qathet Regional District.

The key piece of provincial legislation is the Short-Term Rental Accommodations Act (STRAA), which was passed in October 2023 and is being implemented in phases. The act aims to return more short-term rental units to the long-term housing market, give local governments stronger tools to enforce their STR bylaws, and establish a new provincial role in regulating the industry.

Effective May 1, 2024, the STRAA implements a provincial principal residence requirement. This limits short-term rentals to the operator's principal residence, plus one secondary suite or accessory dwelling unit (like a laneway house) on the same property. However, this requirement only automatically applies in municipalities with a population of 10,000 or more and their surrounding communities.

Smaller communities like Lund are initially exempt, but can choose to opt in to the principal residence requirement. As of April 2024, 17 exempt communities had voluntarily opted in, including popular tourist destinations like Tofino and Bowen Island. These communities will see the requirement take effect on November 1, 2024.

Also effective May 1, 2024, the STRAA removes protections for lawful non-conforming use of properties for STRs. This means STR operators can no longer rely on being "grandfathered in" under previous rules if their use now contravenes local bylaws.

Where local governments require STR operators to have a business license, hosts must display their license number in all online listings as of May 1, 2024. Platforms like Airbnb and VRBO must remove listings without valid license numbers at the request of local governments.

To support bylaw enforcement, STR platforms will be required to share data on listings with the province on a monthly basis starting in the summer of 2024. The province is also increasing the maximum fines local governments can impose for STR bylaw infractions.

By late 2024 or early 2025, the province plans to launch a provincial STR registry. Operators will need to register and display a provincial registration number in their listings. Platforms will be required to validate these registration numbers and remove non-compliant listings.

The province is also establishing a compliance and enforcement unit to ensure the STRAA rules are being followed. This unit will conduct audits and investigations, issue administrative penalties, and share information with local governments.

While these provincial rules create a new regulatory framework for STRs in B.C., it's important to note that local governments can still set their own bylaws that are equal to or stronger than the STRAA. So STR operators need to understand and comply with both provincial and local requirements.

The introduction of the STRAA has sparked concerns among some STR operators who fear the changes will significantly impact their businesses. A group of owners has filed a legal petition challenging the act. However, the province maintains that the new rules are necessary to protect housing availability and affordability in B.C.'s communities.

As the STR landscape continues to evolve, it will be crucial for operators in Lund and across B.C. to stay informed of their obligations under provincial and local regulations. By working to understand and comply with the rules, hosts can help support a sustainable and responsible short-term rental industry in the province.

Does Lund Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, it appears that the Qathet Regional District, which includes Lund, takes a relatively permissive approach to short-term rental regulation and enforcement compared to some other jurisdictions in British Columbia.

Several Bigger Pockets members who operate STRs in the Qathet Regional District noted that while there are rules in place, such as the requirement to obtain a Temporary Use Permit (TUP), enforcement is not particularly strict. One host commented, "I've had my STR in Lund for a few years now and have never had any issues with bylaw enforcement. As long as you're not causing major problems for your neighbors, the regional district seems to take a live-and-let-live approach."

On the Lund subreddit, a few posters mentioned that there are quite a few STRs operating in the area, both with and without permits. One Redditor observed, "There are definitely some under-the-radar STRs in Lund, especially in the more rural areas outside of town. But even the ones that are properly permitted don't seem to face a lot of scrutiny from the authorities."

The general consensus among STR hosts on these forums is that Lund and the Qathet Regional District are fairly "Airbnb-friendly" compared to some other popular tourist destinations in B.C. For example, a Bigger Pockets user contrasted the situation in Lund with that of Tofino, where the municipality has capped the number of STR licenses and conducts proactive audits to identify non-compliant operators.

This perception of Lund as a relatively easy place to operate an STR is further supported by the fact that the Qathet Regional District has chosen not to opt into the province's new principal residence requirement for 2024. This means that, unlike in larger municipalities, STR operators in Lund are not limited to only renting out their primary residence.

However, it's important to note that this hands-off approach to enforcement may not last forever. As one Redditor cautioned, "Just because Lund is pretty chill about STRs now doesn't mean it will always be that way. As more people discover this hidden gem of a town, there could be a backlash against vacation rentals as we've seen in other parts of B.C."

Additionally, just because active enforcement is limited doesn't mean STR operators in Lund can completely ignore the rules. Hosts who generate repeated complaints from neighbors or flagrantly violate the TUP conditions could still face consequences from the regional district.

Overall, while Lund may be more permissive of STRs than some other B.C. communities, it's still important for hosts to follow the regional district's regulations and be responsible operators. By obtaining the necessary permits, paying applicable taxes, and being good neighbors, STR hosts can help ensure that Lund remains a welcoming place for vacation rentals while preserving the small town's unique character and charm.

How to Start a Short-Term Rental Business in Lund

If you're interested in starting a short-term rental (STR) business in Lund, here are the key steps to follow:

1. Research the regulations: Familiarize yourself with the specific rules and requirements for operating an STR in Lund and the Qathet Regional District. This includes zoning bylaws, the Temporary Use Permit (TUP) process, building and fire safety standards, and any other applicable regulations. Attend information sessions or consult with the town's planning department for guidance.
2. Determine your business model: Decide whether you want to purchase a property to use as an STR, rent a property long-term and then sublet it short-term (rental arbitrage), or manage STR properties on behalf of other owners. Consider the costs, benefits, and risks of each approach.
3. Choose a suitable property: If purchasing or renting, select a property that is eligible for STR use under Lund's zoning bylaws. Consider factors like location, size, amenities, and target guest demographics. If managing properties for others, establish criteria for the types of STRs you want to manage.
4. Obtain necessary permits and licenses: Apply for a Temporary Use Permit (TUP) from the qathet Regional District. Submit all required documents, including proof of ownership or tenancy, site and floor plans, parking and fire safety plans, and septic certification (if applicable). Pay the associated fees.
5. Set up your business: Choose a business structure (sole proprietorship, partnership, corporation) and register your business name. Open a dedicated bank account for your STR income and expenses. Obtain necessary insurance coverage.
6. Prepare your property: Ensure your STR meets all building, fire, and safety requirements. Furnish and equip the space to appeal to your target guests. Consider hiring professional cleaners and maintenance providers.
7. List your property: Create listings on popular STR platforms like Airbnb and VRBO. Craft compelling descriptions, take high-quality photos, and set competitive rates. Be sure to include your TUP number and any other required information in your listings.
8. Manage bookings and guests: Use a channel manager or property management system to sync bookings across multiple platforms. Communicate promptly with guests and provide excellent customer service. Arrange for cleaning and maintenance between stays.
9. Comply with tax obligations: Register to collect and remit the 8% Provincial Sales Tax (PST) and 5% Goods and Services Tax (GST) on your rental income. If your STR qualifies as a business, you may also need to charge the 4% Municipal and Regional District Tax (MRDT) and pay income tax on your profits.
10. Adapt and optimize: Monitor your bookings, revenue, and expenses closely. Adjust your pricing, marketing, and operations based on performance data and guest feedback. Stay up-to-date on any changes to Lund's STR regulations and adapt your business practices accordingly.

While starting an STR business in Lund requires careful planning and compliance with local rules, the potential for tapping into the growing tourism market is significant. By following these steps and providing an exceptional guest experience, you can build a successful and sustainable STR operation in this charming coastal community.

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

If you have questions or concerns about short-term rental regulations and zoning in Lund, there are several key contacts at the Qathet Regional District who can assist you:

Planning Department: The Qathet Regional District's Planning Department is responsible for land use planning, zoning, and development permits. They can provide information on where STRs are permitted, the Temporary Use Permit (TUP) process, and any other zoning-related questions.

Phone: 604-485-2260
Email: planning@qathet.ca

Building Department: The Building Department oversees building permits, inspections, and compliance with the BC Building Code. They can assist with questions about building safety requirements for STRs and the permitting process for any necessary renovations.

Phone: 604-485-2260
Email: building@qathet.ca

Bylaw Enforcement: The Qathet Regional District's Bylaw Enforcement team is responsible for enforcing regional bylaws, including those related to STRs. They can provide information on TUP conditions, noise and nuisance regulations, and the complaint process.

Phone: 604-485-2260
Email: bylaw@qathet.ca

Fire Department: The Northside Volunteer Fire Department, which serves Lund and the surrounding area, can provide guidance on fire safety requirements for STRs. This includes smoke and carbon monoxide alarms, fire extinguishers, and emergency evacuation plans.

Phone: 604-483-2250
Email: nvfd@qathet.ca

Finance Department: For questions related to the Provincial Sales Tax (PST), Municipal and Regional District Tax (MRDT), and other tax obligations for STRs, contact the Qathet Regional District's Finance Department.

Phone: 604-485-2260
Email: finance@qathet.ca

In addition to these regional district contacts, you may also want to consult with professional advisors who specialize in short-term rentals. This could include:

1. A lawyer who can provide guidance on legal matters such as contracts, liability, and compliance with regulations.
2. An accountant or bookkeeper who can assist with financial planning, tax filings, and record-keeping for your STR business.
3. A realtor who specializes in investment properties and can help you identify suitable STR opportunities in Lund.
4. A property manager who can handle the day-to-day operations of your STR, from guest communication to cleaning and maintenance.

The Qathet Regional District also maintains a website with information on regional bylaws, permits, and services. Visit www.qathet.ca for up-to-date resources and contact information.

If you have a complaint or concern about a specific STR property in Lund, you can contact the Qathet Regional District's Bylaw Enforcement team at 604-485-2260 or bylaw@qathet.ca.

By working closely with the appropriate regional district departments and professional advisors, you can ensure your STR business in Lund operates smoothly and in compliance with all applicable regulations. Don't hesitate to reach out to these contacts with any questions or concerns you may have along the way.

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

On real estate investing forums like Reddit and Bigger Pockets, short-term rental hosts in Lund have shared their experiences and opinions about the town's regulations. Here are a few notable examples:

Reddit user "LundSTRHost" posted in the r/AirbnbHosts subreddit about their experience with the permitting process: "I recently went through the Temporary Use Permit (TUP) application for my STR in Lund. It was a bit of a hassle gathering all the required documents, but the Qathet Regional District staff were helpful in guiding me through the process. Overall, it wasn't as bad as I feared."

In a thread on the Bigger Pockets forum titled "Short-Term Rental Regulations in Lund, BC," user "CoastalInvestor" shared their perspective: "Lund is a great little town for STRs, especially if you're targeting outdoor enthusiasts. The regulations are pretty reasonable compared to some other places in BC. Just make sure you do your homework and follow the rules, and you should be fine."

Reddit user "SunshineCoastRentals" commented on a post in r/VacationRentals about their experience as a host in Lund: "I've been operating an STR here for a couple of years, and I haven't had any major issues with the local regulations. The TUP process was straightforward, and the regional district seems to take a fairly hands-off approach as long as you're not causing problems."

On the Bigger Pockets podcast episode "Navigating Short-Term Rental Regulations," guest "STRGuru" mentioned Lund as an example of a smaller town with a more relaxed regulatory environment: "If you're looking to invest in an STR in BC, it's worth considering some of the more rural areas like Lund. The regulations tend to be less strict than in the big cities, and you can still tap into a strong tourism market."

In a post on the r/RealEstateCanada subreddit, user "BCInvestorNewbie" asked for advice on starting an STR in Lund. One commenter, "ExperiencedHost," replied: "Lund is a solid choice for an STR investment. The town has a good balance of regulations that protect the community without being too onerous on hosts. Just be prepared for some seasonality in your bookings."

These examples suggest that many Airbnb hosts in Lund view the town's short-term rental regulations as manageable and not overly restrictive. While there is some paperwork and process involved in obtaining a TUP, most hosts seem to feel that the benefits of operating in Lund outweigh the regulatory hurdles.

However, it's important to note that these opinions are anecdotal and may not represent the views of all STR operators in Lund. Some hosts may find the regulations more challenging or burdensome than others, depending on their specific circumstances.

Additionally, as the STR market in Lund grows and evolves, there is always the potential for regulatory changes that could impact hosts. It's crucial for STR operators to stay informed and engaged with the local community to ensure their voices are heard in any future policy discussions.

Overall, while Lund may have a more permissive approach to STR regulations compared to some larger cities, it's still essential for hosts to educate themselves on the rules and comply with all requirements. By being responsible operators and good neighbors, STR hosts can help maintain Lund's welcoming attitude towards vacation rentals while preserving the town's unique character and quality of life.

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.