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

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

Short-term rentals like Airbnb and VRBO have become increasingly popular in recent years, including in the city of Mission, British Columbia. However, hosts looking to start a short-term rental business in Mission need to be aware of the regulations and permitting requirements.

Starting a Short-Term Rental Business in Mission

To legally operate a short-term rental in Mission, hosts must obtain a business license from the city. The process involves:

• Completing a business license application form
• Providing proof of ownership or a signed rental agreement if you are a tenant
• Paying the applicable business license fee

Short-term rental hosts in Mission are also subject to the province of British Columbia's new regulations that took effect on May 1, 2024. Under these rules, short-term rentals are restricted to the host's principal residence, plus one additional unit such as a secondary suite or laneway house on the same property.

Mission is one of the 65 municipalities in BC where these principal residence requirements apply, as it has a population over 10,000. Hosts who violate the regulations can face penalties ranging from $500-$5000 per day, while short-term rental platforms like Airbnb could be fined up to $10,000 daily for non-compliance.

Some Mission residents have inquired on Reddit forums about the process to obtain a short-term rental permit in the city. Responses note that in addition to the business license, hosts need to ensure they are following the provincial rules around principal residences.

The new regulations aim to crack down on commercial short-term rental operations and return more units to the long-term housing market amidst BC's housing crisis. However, they still allow homeowners to occasionally rent out their own home or a secondary unit.

Aspiring short-term rental hosts in Mission should carefully review both the municipal business licensing requirements and provincial regulations to ensure they are in full compliance before listing their property. Consulting with local officials can also provide greater clarity on the rules and permitting process.

Short-Term Rental Licensing Requirements in Mission

To legally operate a short-term rental in Mission, British Columbia, hosts must obtain a business license from the city. The process involves:

1. Completing the Business Licence Application Form, available as a fillable PDF on the city website.
2. Providing proof of ownership or a signed rental agreement if you are a tenant.
3. Paying the applicable business license fee.
4. Ensuring the STR is your principal residence, plus potentially one additional unit like a secondary suite or laneway house on the same property, per new provincial regulations as of May 1, 2024.

Aspiring STR hosts should submit their completed application, along with the required documentation and payment, to the City of Mission Bylaws and Licensing Division at 7337 Welton Street, Mission BC V2V 3X1. Applications can be submitted in person or via email to businesslicence@mission.ca.

Business license fees for STRs in Mission were not specified on the city website. Processing times were also not provided, but the site mentioned it can take 3-5 business days for online payments to be processed.

Hosts operating an STR without a valid business license can face penalties. While exact fine amounts for unlicensed STRs in Mission were not listed, the city website stated that under the new provincial rules, hosts violating the regulations can be fined $500-$5000 per day. STR platforms like Airbnb could face daily fines of up to $10,000 for non-compliance.

The City of Mission encourages potential STR operators to schedule a preliminary business license meeting with city staff to discuss plans, ask questions, and gain a clear understanding of zoning, building requirements, signage, and other licensing stipulations before proceeding. This optional pre-application service aims to clarify the process and identify any property modifications that may be needed for the STR.

Required Documents for Mission Short-Term Rentals

To apply for a short-term rental business license in Mission, you will need to submit the following documents:

1. Business License Application Form: This fillable PDF form, available on the City of Mission website, collects key information about your short-term rental business. It must be completed in full and submitted as part of your application package.
2. Proof of Ownership or Rental Agreement: You must provide documentation showing you either own the property or have permission from the owner to operate a short-term rental there. For owners, this could be a property title or tax assessment. Renters need to provide a copy of their lease agreement.
3. Strata Approval (if applicable): If your short-term rental is in a strata-titled property, you must obtain written approval from the strata council to operate the rental. This ensures your business will comply with any strata bylaws around short-term rentals.
4. Parking Plan: Your application should include a sketch or description of where guests will park, in compliance with City of Mission parking requirements for your property's zone. The parking plan helps the city assess potential neighborhood impacts.
5. Fire and Safety Plan: You need to prepare and submit a fire safety plan showing the locations of smoke alarms, carbon monoxide detectors, fire extinguishers and exits in your rental. This is to ensure your property meets fire code and guest safety requirements.
6. Owner Consent Form (for renters): If you are a tenant wanting to operate a short-term rental, you must complete the Owner Consent Form and have it signed by the property owner. This documents that you have the landlord's permission to use the property for short-term rentals.

These documents should be compiled and submitted together with your Business License Application Form to the City of Mission Bylaws and Licensing Division at 7337 Welton Street, either in person or by email to businesslicence@mission.ca.

Incomplete applications without all required documents will experience delays in processing. The City encourages scheduling a preliminary meeting with staff to review application requirements and procedures before submitting.

Mission Short-Term Rental Taxes

Short-term rental hosts in Mission, British Columbia are subject to various taxes at the provincial and federal levels:

Provincial Sales Tax (PST): The province of BC charges an 8% PST on all short-term room rentals, including those offered through platforms like Airbnb and VRBO. This tax is applied to the listing price and any additional guest fees. As the host, you are responsible for collecting this tax from guests and remitting it to the province on a regular basis, typically quarterly.

Goods and Services Tax (GST): The federal GST of 5% also applies to short-term rentals in Mission. Like the PST, you must collect this tax from guests and remit it to the Canada Revenue Agency. If your annual revenue exceeds $30,000, you need to register for a GST number.

Income Tax: Income earned from your short-term rental is taxable and must be reported on your annual income tax return. The amount of income tax you owe will depend on your total income and tax bracket. Be sure to keep detailed records of all rental income and expenses.

It's important to note that as of January 1, 2024, the federal government can deny income tax deductions for expenses related to non-compliant short-term rentals. To be compliant, you must have all required permits and licenses from the City of Mission and follow any other provincial or municipal regulations.

Possible Deductions and Write-Offs

Short-term rental hosts in Mission can typically deduct expenses directly related to their rental business, as long as they are operating in compliance with all rules. Potential deductions may include:

1. Mortgage interest and property taxes (prorated for the percentage of the property used for the rental)
2. Utilities like electricity, water, internet, etc.
3. Cleaning fees and maintenance costs
4. Supplies provided to guests, like toiletries, linens, coffee, etc.
5. Repairs directly related to the rental portion of your property
6. Insurance for the rental business
7. Booking fees charged by platforms like Airbnb or VRBO
8. Depreciation on furniture and equipment used in the rental

Consult with a tax professional to determine which deductions apply to your specific situation and to ensure you are maintaining proper records. As long as your Mission short-term rental is fully compliant with local regulations by December 31, 2024, you should be able to deduct relevant expenses for the 2024 tax year under the new federal rules.

British Columbia Wide Short-Term Rental Rules

In addition to Mission's local short-term rental regulations, hosts must also comply with new province-wide rules that took effect on May 1, 2024. These rules, introduced through the Short-Term Rental Accommodations Act, aim to return more short-term rental units to the long-term housing market.

Under the new provincial regulations, short-term rentals in Mission and other communities with populations over 10,000 are restricted to the host's principal residence, plus one additional unit such as a secondary suite or laneway house on the same property. This means investment properties and second homes can no longer be used for short-term rentals in these areas.

Hosts must obtain a provincial registration number by early 2025, in addition to their municipal business license. Short-term rental platforms like Airbnb will be required to remove listings without valid provincial registration numbers.

The province has increased the maximum fines for violating short-term rental bylaws. Hosts can now face penalties of $500 to $5,000 per day for non-compliance, while platforms could be fined up to $10,000 daily.

As of May 1, 2024, protections for legal non-conforming use no longer apply to short-term rentals. This means pre-existing rentals that don't meet the new principal residence requirement must cease operations, even if previously allowed.

Short-term rental platforms are required to share data on listings with the province monthly as of May 2024 to aid in enforcement. Platforms have five days to remove illegal listings when notified by the province, or face penalties.

The new rules define a short-term rental as any accommodation offered for less than 90 consecutive days. This 90-day limit is significantly longer than the 30-day threshold used by many municipalities previously.

While the regulations aim to increase long-term rental supply, some worry they may negatively impact B.C.'s tourism sector and travelling workers who rely on short-term rentals. However, the province has exempted vacation destinations like Whistler and Tofino from the principal residence requirement.

Mission short-term rental hosts must carefully review both local and provincial regulations to ensure full compliance and avoid costly penalties. Consulting with municipal officials and tax professionals is advised.

How to Start a Short-Term Rental Business in Mission

Starting a short-term rental business in Mission requires careful planning and adherence to local regulations. Follow these steps to legally establish your STR:

1. Review Zoning and Regulations: Thoroughly read through Mission's zoning bylaws and STR regulations to confirm your property is eligible. STRs are restricted to your principal residence plus one additional unit on the same property. Contact the Development Services Department with any questions.
2. Schedule a Preliminary Business License Meeting: Take advantage of Mission's optional pre-application meeting to discuss your STR plans with city staff. They'll help identify necessary building permits, home inspections, and bylaw requirements specific to your property. This upfront consultation can prevent surprises down the road.
3. Prepare Your Property: Make any upgrades or modifications outlined in the preliminary meeting to ensure your STR complies with building and fire codes. This may include installing fire extinguishers, smoke and carbon monoxide detectors, and emergency lighting.
4. Gather Required Documents: Compile all necessary paperwork for your business license application. This includes the application form, proof of ownership or lease agreement, strata approval if applicable, parking plan, fire safety plan, and owner consent form for tenants. Use the city's checklist to ensure you don't miss anything.
5. Submit Your Business License Application: Fill out the Business License Application Form completely and submit it with all required documents to the Bylaws and Licensing Division. You can apply in person at 7337 Welton Street or email everything to businesslicence@mission.ca.
6. Pay the Business License Fee: Remit payment for your business license fee as outlined in Schedule A of Business License Bylaw 3964-2007. Fees vary based on business type and can be paid via cash, check, debit in person, or online banking using your 8-digit business license number.
7. Obtain Required Inspections: Schedule any necessary building or fire inspections to verify your STR is safe and code-compliant. These will be outlined during your preliminary meeting and are separate from the license fee. Promptly address any deficiencies to avoid delaying your license.
8. Register with the Province: Once licensed by Mission, register with the province to obtain your provincial registration number before early 2025. This will be required to list on platforms like Airbnb and avoid fines under BC's new STR regulations.
9. Prepare to Launch: As you await license and registration approvals, create your STR listing, set competitive rates, and establish guest screening protocols. Automate booking and check-in processes to streamline operations. Vet potential guests carefully to avoid parties that could jeopardize your license.
10. Comply and Renew: Strictly adhere to all municipal and provincial STR regulations to avoid fines or license revocation. Promptly address any guest complaints or issues to maintain positive neighbor relations. Renew your business license annually by December 31st and watch for any regulatory changes.

By following Mission's permitting process step-by-step and implementing a responsible hosting strategy, you'll establish a compliant and successful short-term rental business. Consult with city staff, legal and tax professionals as needed to ensure you're covering all your bases.

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

For questions about Mission's short-term rental regulations, business licensing requirements, or zoning, contact the Development Services Department:

Development Services
7337 Welton Street
Mission, BC V2V 3X1
Phone: 604-820-3748
Email: planning@mission.ca

The Bylaws and Licensing Division handles business license applications and enforcement of the city's various regulatory bylaws, including those related to short-term rentals. Their contact information is:

Bylaws and Licensing Division
7337 Welton Street
Mission, BC V2V 3X1
Phone: 604-820-3727
Fax: 604-826-7951
Email: businesslicence@mission.ca

For general inquiries related to starting a business in Mission, you can also contact the Economic Development Office:

Economic Development Office
7337 Welton Street
Mission, BC V2V 3X1
Phone: 604-820-3789
Email: ecd@mission.ca

In addition to city contacts, connecting with other short-term rental hosts in the area can provide valuable insights and support. While there aren't any Mission-specific host groups, some helpful online communities include:

Airbnb Community Center - B.C. Regulations Forum: https://community.withairbnb.com/t5/British-Columbia/bd-p/CA-BC

Hosts discuss regulatory changes and share tips for compliance.

Airbnb Hosts Forum on Reddit: https://www.reddit.com/r/AirBnBHosts/

An active community of hosts worldwide, with some B.C. and Fraser Valley participants.

VRBO Community Forum: https://community.vrbo.com/s/

Similar to the Airbnb forum, VRBO hosts discuss a variety of topics including local regulations.

Staying connected to these online communities, as well as any local networking events for hosts and tourism operators, can help you navigate the evolving regulatory landscape in Mission and across B.C. Be sure to also regularly check the city's Business Licensing page for any bylaw updates or new information.

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

Discussions on Reddit and Bigger Pockets forums provide some insights into how short-term rental hosts in Mission and the surrounding Fraser Valley Regional District (FVRD) feel about local regulations:

In a Reddit thread titled "Business permit Mission,BC", a user inquired about obtaining a permit to operate an Airbnb in Mission. One commenter responded that the FVRD isn't zoned for short-term stays, making it doubtful there is even a business permit available for STRs.

Another Redditor shared their experience trying to get information on short-term rental permits in Mission. They noted difficulty finding any details online, despite the provincial requirement for STR permits. The lack of clear municipal processes seems to be a source of frustration.

On the Bigger Pockets forums, an investor asked about the pros and cons of different areas in BC's interior for rental properties, including Kamloops and Kelowna. A respondent advised that while the Mission area of Kelowna is great, prices there make it harder to get good returns compared to some other neighborhoods. This suggests that even in more STR-friendly cities, local zoning affects viability.

In a thread on Bigger Pockets about intentionally renting to high-risk tenants, a few commenters mentioned potential issues with local regulations. One noted there are often limits on how much of a security deposit can be charged, which could be problematic with riskier renters. Another said that setting higher rents for this demographic may not be allowed in some areas. While not specific to Mission, this highlights how municipal rules can impact different STR strategies.

Overall, the limited discussions of Mission's STR regulations paint a picture of an unclear and restrictive environment. Hosts seem unsure of the permitting process and express doubt that the FVRD zoning even allows for short-term rentals. The lack of clear information from the city appears to be a pain point. Broader discussions also illustrate how local rules on things like zoning, rental terms, and pricing can make or break an STR investing strategy.

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.