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

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

Port Alberni, a city on Vancouver Island in British Columbia, Canada, has specific regulations governing short-term rentals (STRs) through platforms like Airbnb and VRBO. These rules aim to balance the economic benefits of tourism with the need to preserve long-term housing for residents.

Starting a Short-Term Rental Business in Port Alberni

To operate a short-term rental in Port Alberni, property owners must adhere to the city's zoning bylaws and obtain the necessary permits. The Alberni-Clayoquot Regional District (ACRD) oversees land use planning and zoning for Port Alberni and the surrounding areas.

Short-term rentals are only permitted in certain zones, such as residential and mixed-use areas. Hosts must apply for a Temporary Use Permit through the ACRD's Short-Term Vacation Rentals policy. This permit allows a property to be used as a short-term rental for up to three years, with the possibility of renewal.

As of May 1, 2024, British Columbia has implemented a "principal residence requirement" that limits short-term rentals to the host's primary residence plus one secondary suite or accessory dwelling unit on the same property. This rule applies to Port Alberni and aims to prevent investment properties from being used solely as vacation rentals, thus preserving long-term housing stock.

Hosts must also obtain a valid business license from the city and display it on their rental listing. Failure to comply with these regulations can result in fines of up to $3,000 per day.

Real estate investing forums like BiggerPockets and Reddit have discussed the impact of these new rules on the short-term rental market in British Columbia. Some investors express concern about the viability of their rental properties, while others acknowledge the need to address the housing crisis.

Anecdotally, a couple named Ralph and Tina Gerlitsch shared their story of having to rethink their retirement plans due to the new regulations. They own four short-term rental units in Victoria and now face the difficult decision of selling or converting to long-term rentals.

In summary, starting a short-term rental business in Port Alberni requires careful consideration of local zoning laws, permits, and the province-wide principal residence requirement. While these regulations may pose challenges for some investors, they aim to strike a balance between supporting tourism and ensuring an adequate supply of long-term housing for residents.

Short-Term Rental Licensing Requirement in Port Alberni

To operate a short-term rental (STR) in Port Alberni, property owners must adhere to the city's zoning bylaws and obtain the necessary permits and licenses. According to the City of Port Alberni's official website, the following requirements must be met:

• Zoning compliance: STRs are only allowed within a permanent resident-occupied single-detached dwelling or guest house, as per Section 6.14 of the Port Alberni Zoning Bylaw 5074.
• Business license: Operators must obtain a valid business license from the city and display it on their rental listing. The application for a business license can be submitted to the City of Port Alberni's Finance Department.
• Permanent resident requirement: An operator of an STR must ensure that a permanent resident resides on the property.
• Occupancy limits: A maximum of two persons per bedroom are permitted when the dwelling unit is being used as an STR.
• Contact information: The owner or a caretaker must be available within 20 minutes of the property, and their contact information, along with a copy of the business license, must be visible in a public location.

To apply for a business license, STR operators must submit a completed application form, along with the required fee, to the City of Port Alberni's Finance Department. As of 2019, the business license fee for an STR was $150 per year. The processing time for a business license application is typically 2-4 weeks, depending on the completeness of the application and any additional information required by the city.

Failure to comply with these regulations can result in fines and penalties. Operating an STR without a valid business license may lead to a fine of up to $500 per day, as outlined in the Business Licence Bylaw No. 4980.

It is crucial for STR operators to familiarize themselves with the city's bylaws and regulations to ensure compliance and avoid potential fines. The City of Port Alberni's official website provides detailed information on the requirements and application process for short-term rental business licenses.

Required Documents for Port Alberni Short-Term Rentals

To operate a short-term rental (STR) in Port Alberni, property owners must submit the following documents as part of their Temporary Use Permit (TUP) application to the Alberni-Clayoquot Regional District (ACRD):

• Completed TUP Application Form: This form provides essential information about the property, the owner, and the proposed STR. It can be downloaded from the ACRD website at www.acrd.bc.ca/str[1].
• Site Plan: A detailed site plan of the property showing all legal dimensions, buildings, setbacks, services, and parking. This helps the ACRD assess the suitability of the property for an STR.
• Floor Plan: A floor plan of the rental unit, indicating the area to be rented and the locations of all bedrooms, bathrooms, and other facilities. This ensures the STR meets occupancy and safety requirements.
• Sewerage System Letter of Certification: A letter from a Registered Onsite Wastewater Practitioner confirming the property's sewerage system can handle the additional load of an STR. This is crucial for properties not connected to municipal sewer systems.
• Other Documentation: Depending on the property, additional documents may be required, such as home warranty information or proof of ownership.
• Business License Application: Once the TUP is approved, STR operators must apply for a business license from the City of Port Alberni. The application form can be submitted to the City's Finance Department, along with the required fee of $150 per year (as of 2019).

It's important to note that the ACRD has specific zoning requirements for STRs. As per Section 6.14 of the Port Alberni Zoning Bylaw 5074, STRs are only allowed within a permanent resident-occupied single-detached dwelling or guest house. The property owner or a caretaker must be available within 20 minutes of the property, and their contact information must be visible to guests.

Failure to comply with these regulations can result in fines of up to $500 per day, as outlined in the Business Licence Bylaw No. 4980. Therefore, it's crucial for STR operators to carefully review and adhere to all requirements when applying for a TUP and business license in Port Alberni.

Port Alberni Short-Term Rental Taxes

When operating a short-term rental (STR) business in Port Alberni, it's essential to understand the various taxes that apply and the potential deductions you can claim. Here's a breakdown of the taxes and deductions related to STRs in Port Alberni:

• Provincial Sales Tax (PST): The general PST rate in British Columbia is 7%. STR operators must collect and remit this tax on the rental of accommodations.
• Municipal and Regional District Tax (MRDT): The MRDT is a 3% tax applied to short-term accommodations in British Columbia. This tax is collected by the province and helps fund tourism marketing and development initiatives.
• Additional Major Events MRDT: Port Alberni may impose a temporary additional MRDT to help fund major events in the city. The rate and duration of this tax vary depending on the specific event.
• Property Tax: STR operators must pay property taxes on their rental properties. The City of Port Alberni is proposing a 16.86% tax increase for 2024, which may impact STR owners.

It's crucial for STR operators to register with the provincial government and collect the appropriate taxes from their guests. Failure to comply with tax regulations can result in fines and penalties.

Potential Deductions and Write-offs

STR operators in Port Alberni may be eligible for various tax deductions that can help offset their tax liability. Some potential deductions include:

• Depreciation: Depreciating your rental property over 27.5 years (excluding the land) allows for an annual deduction that can substantially decrease your taxable income.
• Property Taxes: The entirety of property taxes paid on a business-classified rental property can be deducted.
• Maintenance and Repairs: Expenses incurred in maintaining or repairing the property to keep it in rentable condition are fully deductible.
• Mortgage Interest: The interest component of mortgage payments on the property is deductible.
• Insurance Premiums: Premiums paid for rental property insurance are deductible.
• Cleaning Expenses: All expenses related to the cleaning of the rental property are deductible.
• Advertising and Marketing: Expenses incurred in marketing and advertising the rental property are deductible.
• Professional Fees: Expenses paid for property management services and legal counsel are deductible.

It's essential to keep accurate records of all income and expenses related to your STR business to maximize your deductions and ensure compliance with tax regulations. Consulting with a tax professional can help you navigate the complexities of STR taxation and optimize your tax strategy.

British Columbia Wide Short-Term Rental Rules

In addition to local regulations in Port Alberni, short-term rental hosts must also comply with province-wide rules set forth in the Short-Term Rental Accommodations Act (STRAA), which came into effect on May 1, 2024.

The most significant requirement is the "principal residence requirement," which limits short-term rentals to the host's primary residence, plus one additional unit, secondary suite, or accessory dwelling on the same property. This rule applies to communities with populations over 10,000, including Port Alberni.

As of May 1, 2024, legal non-conforming use protections no longer apply to short-term rentals. This means that even if a property was previously used for short-term rentals before the new rules, it must now comply with the STRAA and local bylaws.

Hosts are required to display a valid business license number on their listings where mandated by local governments. Platforms must share data with the province and remove listings that do not comply with local business license requirements upon request from the municipality.

The STRAA also establishes a Provincial Short-Term Rental Compliance and Enforcement Unit, which can conduct investigations and issue fines ranging from $500 to $5,000 for non-compliance. By early 2025, the province expects to launch a mandatory short-term rental registry for all hosts and platforms.

Certain types of accommodations, such as strata hotels and motels that were operating similarly to hotels before December 8, 2023, and meet specific criteria, are exempt from the principal residence requirement. However, this exemption does not automatically apply to all strata properties.

In summary, Port Alberni short-term rental hosts must adhere to both local regulations and the provincial STRAA rules, which aim to return more short-term rentals to the long-term housing market while providing stronger enforcement tools to local governments.

Does Port Alberni Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that Port Alberni does not strictly enforce short-term rental regulations compared to some other cities in British Columbia. While the Alberni-Clayoquot Regional District (ACRD) has a policy requiring Temporary Use Permits for STRs in residential zones, actual enforcement seems to be lacking.

On Reddit, one user commented, "Port Alberni doesn't currently have any licensing system in place for short-term rentals. Stew Young and previous council would have been opposed to doing so." This suggests that the city government has not prioritized cracking down on non-compliant STRs.

Another Redditor noted, "The City of Port Alberni does not currently require a business license for short-term rentals." While the ACRD's TUP policy exists, the city itself appears to be hands-off when it comes to STR regulation and enforcement.

Compared to cities like Vancouver and Victoria, that have implemented strict rules and dedicated significant resources to enforcement, Port Alberni seems to be more Airbnb-friendly in practice, even if not explicitly in policy. Hosts are likely operating STRs in the city despite not always following the ACRD's permit process.

The lack of active enforcement has probably emboldened some hosts to continue running STRs without proper permits. Unless local residents file complaints, many of these rentals presumably fly under the radar.

In conclusion, while Port Alberni has an STR permit policy on the books, the city does not appear to be strictly enforcing the rules compared to other jurisdictions in BC. The STR market operates with minimal interference, making Port Alberni a relatively Airbnb-friendly place in practice, if not on paper. However, hosts should be aware that the regulatory environment could change if the city decides to step up enforcement in the future.

How to Start a Short-Term Rental Business in Port Alberni

Starting a short-term rental (STR) business in Port Alberni requires careful planning and adherence to local regulations. Follow these steps to successfully launch your STR venture:

• Research local regulations: Familiarize yourself with the Alberni-Clayoquot Regional District's (ACRD) Short Term Vacation Rentals policy and the City of Port Alberni's zoning bylaws. Determine if your property is eligible for STR use and what permits or licenses you may need.
• Obtain necessary permits and licenses: Apply for a Temporary Use Permit (TUP) through the ACRD if required for your property. Once approved, apply for a business license from the City of Port Alberni's Finance Department.
• Prepare your property: Ensure your rental space is clean, well-maintained, and equipped with essential amenities. Consider hiring a professional photographer to capture high-quality images of your property for your listing.
• Choose a rental platform: Select a popular STR platform like Airbnb or VRBO to list your property. Create a detailed and engaging listing that highlights your property's unique features and amenities.
• Establish house rules and policies: Develop clear house rules and policies for your guests, including check-in/check-out times, occupancy limits, noise restrictions, and pet policies.
• Manage bookings and guest communication: Respond promptly to booking inquiries and guest questions. Use a calendar system to keep track of reservations and avoid double bookings.
• Ensure guest satisfaction: Provide excellent customer service to your guests throughout their stay. Be available to address any concerns or issues that may arise.
• Comply with tax requirements: Register with the provincial government to collect and remit the required taxes, including the Provincial Sales Tax (PST) and Municipal and Regional District Tax (MRDT).

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in Port Alberni. Remember to prioritize guest satisfaction and maintain open communication with local authorities to ensure the long-term success of your venture.

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

For questions about short-term rental regulations and zoning in Port Alberni, contact the Alberni-Clayoquot Regional District (ACRD) Planning Department:

Phone: 250-720-2700
Email: planning@acrd.bc.ca
Address: 3008 Fifth Ave, Port Alberni, BC V9Y 2E3
Website: www.acrd.bc.ca/str

The ACRD Planning Department can provide information on the Temporary Use Permit (TUP) application process, zoning requirements, and other regulations related to operating a short-term rental in Port Alberni.

For questions about business licenses for short-term rentals, contact the City of Port Alberni's Finance Department:

Phone: 250-723-2146
Email: finance@portalberni.ca
Address: 4850 Argyle Street, Port Alberni, BC V9Y 1V8

The City of Port Alberni's Zoning Bylaw 5074 only allows short-term rentals within a permanent resident-occupied single-detached dwelling or guest house (Section 6.14). A business license from the city is required to operate a short-term rental, with a fee of $150 per year (as of 2019).

Hosts in Port Alberni may find it helpful to connect with other short-term rental operators and stay informed about local regulations through online communities and forums, such as:

• Airbnb Community - British Columbia Hosts forum: https://community.withairbnb.com/t5/British-Columbia-Hosts/bd-p/BC-Hosts
• VRBO Community - Canada forum: https://community.vrbo.com/t5/Canada/bd-p/Canada
• BiggerPockets - Short-Term Rental forum: https://www.biggerpockets.com/forums/530-short-term-rental

While these forums are not specific to Port Alberni, they can provide valuable insights and support from experienced hosts navigating the evolving regulatory landscape of short-term rentals in British Columbia.

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

To get a sense of how short-term rental hosts in Port Alberni feel about the local regulations, I searched through relevant online forums and communities. Here are a few insightful comments and experiences shared by hosts:

On the Airbnb Community forum, one host expressed frustration with the permit process in Port Alberni, saying, "The city doesn't currently require a business license for short-term rentals, but the regional district has a Temporary Use Permit policy that is very difficult to navigate. The application fee alone is $600, and there's no guarantee it will be approved."

In a thread on the r/VancouverIsland subreddit, a user mentioned that "Port Alberni doesn't currently have any licensing system in place for short-term rentals. Previous council would have been opposed to doing so." This suggests that enforcement of STR regulations has been lax in the city.

Another Redditor commented that "The City of Port Alberni does not currently require a business license for short-term rentals," confirming the lack of a robust licensing framework. However, they noted that stays over 90 days will likely not be subject to the new provincial rules coming into effect.

On the BiggerPockets forums, there wasn't much discussion specifically about Port Alberni's short-term rental scene. However, one post highlighted the importance of thoroughly researching local regulations before investing in or operating a vacation rental, as rules can vary significantly between jurisdictions.

Overall, it appears that Port Alberni has not had strict enforcement of short-term rental rules to date, with no business licensing requirement from the city itself. However, hosts seem aware that this relaxed environment may change as new provincial regulations take effect. The consensus is that it's crucial for hosts to stay informed about evolving STR policies to ensure compliance and avoid potential penalties.

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.