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

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

The Village of Pemberton has implemented bylaws and regulations to govern short-term rentals like Airbnb and VRBO in order to protect long-term rental housing stock. Here's what you need to know about the rules for operating a vacation rental in Pemberton.

Starting a Short-Term Rental Business in Pemberton

To launch and operate a short-term rental in Pemberton, the property must be the host's principal residence. Hosts can rent out their entire home or a room within their home.

The number of short-term rental licenses available in Pemberton is capped at 5% of the total single-family dwellings in each neighborhood. As of 2023, there were approximately 140 active short-term rental licenses in the Village.

Hosts must apply for a short-term rental business license from the Village of Pemberton. The application requires:

• Proof of principal residence (minimum 2 documents)
• Parking plan showing available on-site parking
• Fire safety plan posted at entrances/exits
• Signed Good Neighbour Agreement

License fees range from $200-500 annually. Utility fees for short-term rentals were eliminated in 2023.

All online listings must include a valid Pemberton business license number. Operating without a license can result in fines of $500 per day.

Short-Term Rental Licensing Requirement in Pemberton

Short-term rental operators in Pemberton must obtain a business license from the Village and include their license number in all online listings and advertising.

To be eligible for a license, the property must be the host's principal residence where they live for at least 9 months of the year. Rentals are not permitted in secondary suites or accessory dwellings without a Temporary Use Permit.

When applying for a license, hosts must confirm eligibility, meet safety requirements, obtain owner/strata permission if applicable, review bylaws, and pay applicable fees. Licenses must be renewed annually.

As of 2023, only about 48% of estimated short-term rentals in Pemberton were properly licensed. The Village conducts complaint-based and proactive enforcement, with unlicensed operators facing potential fines of $500 per day.

Required Documents for Pemberton Short-Term Rentals

When applying for a short-term rental business license in Pemberton, hosts must submit:

1. Completed STR Business License Application
2. Proof of principal residence (min. 2 documents)
3. Proof of ownership or tenancy agreement and owner consent
4. Strata authorization, if applicable
5. Parking plan
6. Fire safety plan
7. Responsible person contact info
8. Signed Good Neighbour Agreement

For rentals in secondary suites or accessory dwellings, a Temporary Use Permit (TUP) is also required before applying for a business license. TUP applications have additional requirements.

Incomplete applications or those missing required documents will not be processed. Licenses must be posted in the rental unit and kept up to date.

Pemberton Short-Term Rental Taxes

Short-term rental operators in Pemberton are required to collect and remit several taxes on their rental income. These include:

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

The 8% PST applies to all short-term accommodations in British Columbia, including hotels, motels, resorts, bed and breakfasts, and vacation rentals like Airbnb. PST must be charged on the total price of accommodation, including any cleaning fees or other additional charges.

The 2% MRDT is a tax levied by the Village of Pemberton on short-term accommodations. This tax is used to fund tourism marketing, programs and projects in the community. Like the PST, the MRDT applies to the total price of accommodation.

The 5% GST is a federal value-added tax that applies to most goods and services in Canada, including short-term rentals. GST is calculated on the rental price plus any PST and MRDT charged.

As an example, if a short-term rental in Pemberton charges $200 per night, the taxes would be:

1. 8% PST = $16
2. 2% MRDT = $4
3. Subtotal = $220
4. 5% GST = $11
5. Total with taxes = $231

Short-term rental operators are responsible for registering to collect these taxes, charging the appropriate amounts to guests, and remitting the taxes to the respective governments. Failure to do so can result in penalties and interest charges.

Operators must register for a PST number with the province and a GST/HST number with the Canada Revenue Agency. They must also file regular tax returns reporting their rental income and tax collected.

It's important for short-term rental hosts to keep accurate records of their rental income and expenses for tax purposes. Hosts can claim deductions for expenses related to the rental, such as a portion of their mortgage interest, property taxes, utilities, insurance, and maintenance costs.

Short-term rental income is also subject to income tax. Hosts must report their net rental income (after expenses) on their personal or corporate income tax return. Depending on their situation, hosts may be able to take advantage of the small business deduction or capital cost allowance to reduce their taxable income.

In summary, short-term rental operators in Pemberton have several tax obligations they must meet, including collecting and remitting PST, MRDT, and GST on their rental charges. Hosts should ensure they are charging the correct amounts, keeping good records, and reporting their rental income to avoid potential penalties and interest. Consulting with a tax professional can help ensure compliance with all tax requirements.

British Columbia Wide Short-Term Rental Rules

The province of British Columbia has introduced new rules and regulations for short-term rentals that apply across the province. These rules, which started coming into effect in 2023, aim to return more short-term rental units to the long-term housing market and establish a new provincial role in regulating short-term rentals.

One of the key changes is the principal residence requirement, which takes effect on May 1, 2024. This rule restricts short-term rentals to the host's principal residence plus one additional unit, such as a secondary suite or laneway home on the same property. The requirement applies to communities with populations greater than 10,000 people, which covers over 60 communities in B.C.

However, some exemptions apply. Strata hotels and motels that were operating similarly to a hotel before December 8, 2023, and meet certain criteria are exempt from the principal residence requirement. Additionally, smaller communities, designated tourist areas like mountain resorts, B.C. Parks, Agricultural Land Reserves, and First Nations lands are exempt unless they choose to opt in.

The province has also given local governments stronger tools to enforce their short-term rental bylaws. Maximum fines for bylaw offenses have increased from $2,000 to $50,000. Municipalities can now issue tickets with fines up to $3,000 per infraction per day, up from the previous $1,000 limit. Regional districts have also been granted the authority to regulate and license short-term rentals.

Starting May 1, 2024, short-term rental hosts must display a valid business license number on their listings if required by their local government. Short-term rental platforms like Airbnb and Vrbo will be required to share data on B.C. listings with the provincial government and remove listings that do not comply with regulations.

The province is establishing a short-term rental registry, expected to launch in late 2024 or early 2025. Hosts will need to include their provincial registration number on listings, and platforms must validate these numbers against the registry.

To enforce the new rules, the province has created a Short-Term Rental Compliance and Enforcement Unit. This unit will conduct investigations into alleged non-compliance and may issue fines ranging from $500 to $5,000.

The new regulations have sparked concerns among some small short-term rental operators who fear financial losses. However, the provincial government maintains that the changes are necessary to increase long-term rental housing stock in communities facing affordability challenges. With over 19,000 entire homes listed as short-term rentals in B.C. as of March 2024, the province aims to return a significant portion of these to the long-term market.

Municipalities can still introduce additional bylaws that are more restrictive than the provincial rules. For example, the Village of Pemberton has opted into the provincial regulations, so the principal residence requirement will apply there as of November 1, 2024.

The introduction of province-wide short-term rental regulations marks a significant shift in B.C.'s approach to managing the impacts of the growing vacation rental industry. As the new rules come into effect, hosts, platforms, and local governments will need to adapt to ensure compliance and balance the needs of residents, visitors, and communities across British Columbia.

Does Pemberton Strictly Enforce STR Rules?

Based on discussions from online real estate investing communities like Bigger Pockets and Reddit, it appears that Pemberton does not strictly enforce its short-term rental regulations compared to some other cities in British Columbia. Many hosts continue to operate STRs in Pemberton without proper licensing and in violation of the rules.

Pemberton relies primarily on complaints from residents to identify illegal short-term rentals rather than proactively monitoring listings and seeking out non-compliant properties. Enforcement actions like fines are relatively rare. Some Redditors estimate that a significant portion of Pemberton's Airbnb listings are operating without a valid license.

The high cost of long-term renting in Pemberton incentivizes some property owners to continue short-term renting illegally, as they can earn more income even with the risk of occasional penalties. STR hosts also take advantage of loopholes like listing their unit with a 31+ day minimum stay to avoid the requirement for a business license.

Compared to cities like Vancouver, that have dedicated significant resources to enforcement, Pemberton is quite friendly to Airbnb and other short-term rental hosts in practice. The small town has limited bylaw staff and a strong economic reliance on tourism, so many unauthorized STRs have been able to operate with minimal consequences.

However, with BC's new province-wide STR regulations coming into effect in late 2024, including steeper fines and data-sharing requirements for platforms, Pemberton will likely start cracking down more seriously on rule-breakers. The principal residence requirement and other restrictions may also push more hosts in Pemberton to pursue long-term tenants instead.

Overall, while Pemberton has STR regulations on the books, actual enforcement has been lacking, according to anecdotes from online communities. This has allowed a significant number of unlicensed short-term rentals to proliferate, making Pemberton a relatively easy place to be an Airbnb host currently, albeit with some risk of future penalties as local and provincial rules tighten.

How to Start a Short-Term Rental Business in Pemberton

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

1. Confirm your property is eligible for a short-term rental business license. It must be your principal residence where you live for at least 9 months per year. You can rent your entire home or a room within it.
2. If you are a renter, get written permission from the property owner using the Village's consent form. If you live in a strata property, verify that the bylaws allow short-term rentals and obtain a signed authorization form.
3. Ensure your property meets all fire and safety requirements, including working smoke and carbon monoxide detectors, fire extinguishers, and an evacuation plan posted at all entrances.
4. Determine how many bedrooms you will rent and ensure you have the required on-site parking. You need 1 additional parking space per 2 bedrooms rented, up to 3 extra spaces maximum.
5. Review the Village of Pemberton's short-term rental bylaws, good neighbor agreement, and other regulations to understand your responsibilities as a host.
6. Gather the required documents for your business license application:
   1. Completed application form
   2. Proof of principal residence (2+ documents)
   3. Owner/strata consent forms if applicable
   4. Parking plan
   5. Fire safety plan
   6. Designated responsible person contact info
   7. Signed Good Neighbour Agreement
7. Submit your short-term rental business license application to the Village of Pemberton, along with all required documents and fees. As of 2023, license fees range from $200-500 annually.
8. If you want to rent a secondary suite or accessory dwelling, you must also obtain a Temporary Use Permit (TUP) before applying for a business license. Only a limited number of TUPs are available.
9. Once you receive your business license, include the license number in all online listings and advertisements for your rental property. Post a copy of the license in the rental unit.
10. Ensure your guests are aware of noise bylaws, parking rules, garbage and recycling procedures, and other applicable regulations. Provide them with a copy of the Good Neighbour Agreement. Also, give them a copy of any house rules you might have.
11. Collect and remit the required taxes on your rental income, including the 8% PST, 2% MRDT, and 5% GST. Register for a PST number and GST/HST number and file regular returns.
12. Keep accurate records of your rental income and expenses for tax purposes. You can deduct eligible expenses like a portion of your mortgage interest, property taxes, utilities, insurance, and maintenance costs.
13. Renew your short-term rental business license annually and keep all information up to date. Comply with any requests from the Village for inspections or audits.

By following these steps and adhering to Pemberton's short-term rental regulations, you can legally operate a vacation rental business in your principal residence. However, keep in mind that with the new provincial rules coming into effect in late 2024, you may need to make changes to ensure ongoing compliance. Stay informed and connected with the Village of Pemberton for the latest updates.

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

If you have questions about short-term rental regulations or zoning in Pemberton, there are several key contacts at the Village of Pemberton who can assist you:

Development Services Department

For questions about zoning and land use for your short-term rental property

Email: developmentservices@pemberton.ca
Phone: 604-894-6135 ext. 249

Business Licensing Department

For questions about obtaining or renewing a short-term rental business license

Email: businesslicences@pemberton.ca
Phone: 604-894-6135

Bylaw Enforcement Department

To report a suspected illegal short-term rental or make a bylaw complaint

Phone: 604-894-6135
Email: bylaw@pemberton.ca

For general inquiries related to short-term rentals, you can also contact the Village of Pemberton Municipal Hall:

Address: 7400 Prospect Street, Pemberton, BC V0N 2L0
Phone: 604-894-6135
Hours: Monday to Friday, 8:30am to 4:30pm

The Municipal Hall phone line is staffed during regular business hours. If you're unsure which department to contact, start by calling the main line, and the receptionist can direct you to the appropriate person based on the nature of your short-term rental inquiry.

By reaching out to these key contacts, you can get specific guidance on how Pemberton's short-term rental rules and zoning regulations apply to your situation. The Village's staff can help you navigate the licensing process, understand your obligations as an STR operator, and ensure you're in compliance with all applicable bylaws and policies.

What Do Airbnb Hosts in Pemberton Think about Local Regulations?

Discussions on online forums like Reddit and Bigger Pockets suggest many Airbnb hosts in Pemberton have mixed feelings about the local short-term rental regulations:

Some hosts on Reddit expressed frustration with the strict rules limiting STRs to principal residences only, feeling it unfairly prevents earning income on secondary suites or investment properties. One Redditor complained about a $500 ticket for renting their condo on Airbnb for less than 30 days.

However, other Reddit users argued allowing widespread STRs in non-primary residences would worsen Pemberton's housing affordability issues. They believe the principal residence rule is needed to prevent investors from buying up housing stock for Airbnbs.

On Bigger Pockets, an aspiring investor was discouraged from buying STR properties in Pemberton, with commenters warning, "you're not going to get many positive responses talking about doing Airbnb or anything along the lines of being a landlord."

Hosts on both platforms noted that even with current rules, many illegal STRs still operate in Pemberton due to a lack of enforcement, with the Village relying mainly on complaints. But with steep new provincial penalties coming, Airbnb operators expect a crackdown.

Overall, online discussions indicate while some Pemberton hosts oppose strict STR regulations, many residents support tough rules to prevent short-term rentals from cannibalizing long-term housing. The real estate investing community appears divided on the viability of Airbnb investments in Pemberton, given the regulatory constraints.

In summary, Pemberton has implemented detailed requirements for short-term rentals in an effort to protect housing availability, but enforcement challenges remain. With BC's new provincial STR legislation set to take effect, the landscape for Airbnb hosts in Pemberton is poised for significant changes in the coming years.

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.