Quebec City Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Quebec City

Quebec City has specific rules and regulations around operating short-term rentals (STRs) like Airbnb and VRBO. The city requires hosts to obtain a permit, collect taxes, and follow zoning restrictions on where STRs are allowed. Navigating these requirements can seem daunting at first, but many hosts have successfully set up legal and profitable STR businesses in Quebec City.

The key is to thoroughly research and understand all the obligations before listing your property. Don't rely on word of mouth or assume rules will not be enforced. Quebec City is known for strictly monitoring STR compliance. Fines for violations start at $2,500 and can reach $50,000 for repeat offenders.

But hosts who take the time to dot every i and cross every t can reap the rewards. Quebec City's STR market has grown steadily in recent years, driven by strong year-round tourism. The city's historic charm, world-class events, and proximity to nature attract over 4.6 million visitors annually. Hosts can capitalize on this demand while supporting the local economy.

Short Term Rental Licensing Requirement in Quebec City

To legally operate a short-term rental in Quebec City, hosts must obtain a classification certificate from the Corporation de l'industrie touristique du Québec (CITQ). This provincial body regulates tourist accommodations to ensure standards of safety and quality.

The CITQ certificate requirement applies to any accommodation rented for less than 31 consecutive days to tourists. This includes whole home rentals as well as private and shared rooms. The only exception is for primary residences rented for less than 31 days total per year.

Once obtained, the CITQ certificate number must be clearly displayed on any online listing or advertisement for the STR. This allows the city and province to track and monitor active STRs. Failure to conspicuously post the certificate number can result in fines.

The CITQ certification process can take 2-4 weeks, so hosts should plan accordingly before accepting reservations. Once issued, the certificate is valid for 2 years. Hosts must renew it to continue operating legally.

Required Documents for Quebec City Short Term Rentals

To apply for a CITQ certificate, hosts need to provide several documents, including:

• Proof of $2 million liability insurance from a licensed Canadian provider
• Signed declaration of compliance with municipal, provincial and federal regulations
• Property title or long-term lease agreement in the host's name
• Clear photos showing the interior and exterior of the rental
• Detailed description of the accommodation type, capacity, and services offered
• Floor plan with room dimensions, beds, and emergency exits
• Parking plan if applicable
• Receipt of payment for CITQ fees ($256 for 2 years)

The CITQ may request additional documentation during the approval process. This can include building permits, fire safety certificates, or corporate records for LLCs. Hosts should respond promptly to any requests to avoid delays.

Once all documents are submitted, an inspector will arrange a site visit to the property. They will verify the information provided and ensure the STR meets all safety and habitability standards. Common requirements include smoke and carbon monoxide detectors, fire extinguishers, and adequate means of egress.

If the property passes inspection, the CITQ will issue the classification certificate with a unique number. The host must then register with Revenu Québec to collect and remit taxes before welcoming any guests.

Quebec City Short Term Rental Taxes

STR hosts in Quebec City are responsible for collecting a 3.5% Lodging Tax on all bookings under 31 nights. This tax applies to the listing price including any cleaning fees, but excluding taxes and optional services.

Hosts must register with Revenu Québec to legally collect the tax. This can be done online through the agency's website. Once registered, hosts are assigned a number and must file periodic returns to report and remit the tax collected.

Depending on the host's total annual revenues across all platforms, they may also need to collect the 5% federal Goods and Services Tax (GST) and 9.975% Quebec Sales Tax (QST). Hosts should consult a licensed accountant to assess their sales tax obligations.

Proper tax compliance is essential to avoid penalties and maintain good standing with the provincial and federal governments. Hosts should keep detailed records of all STR revenues and taxes collected for at least 6 years in case of an audit.

Quebec City wide Short Term Rental Rules

In addition to obtaining a CITQ certificate and registering for taxes, STRs in Quebec City must follow several municipal bylaws. These rules aim to balance the needs of hosts, guests, and the wider community.

The most notable restrictions include:

• STRs are only allowed in the host's primary residence where they live at least 6 months per year
• A maximum of 3 bedrooms in the primary residence can be rented on a short-term basis
• No more than 4 adults are allowed per reservation, regardless of the number of bedrooms
• The minimum rental period is 2 consecutive nights (no single night bookings)
• Hosts must maintain a guest register with names, contact info, and dates of stay for 3 years
• Exterior signage for the STR is prohibited in residential zones
• Hosts are responsible for ensuring guests follow all noise, parking, and waste bylaws

These rules apply to all STR types including whole home, multi-unit, and room rentals. The primary residence requirement is the most significant, as it prohibits investors from buying up properties solely for STRs. The goal is to prevent the "hotelization" of residential neighborhoods.

Hosts must provide the address of their primary residence to the city when applying for a permit. An inspector may visit the property to confirm it is indeed the host's main home. Providing false information can lead to permit revocation and fines.

The 3 bedroom cap and 4 adult maximum occupancy further aim to limit STRs to a residential scale. This reduces potential nuisances like noise and traffic in neighborhoods not zoned for commercial activity.

Hosts are ultimately responsible for their guests' conduct and must take steps to prevent disturbances. This includes clearly communicating house rules, providing local bylaws, and promptly responding to any neighbor complaints. Failure to rein in unruly guests can jeopardize a host's permit.

Does Quebec City strictly enforce STR rules?

In a word, yes. Quebec City is known for proactively enforcing its STR regulations through random inspections, audits, and complaint investigations. The city has a dedicated team that monitors STR platforms and levies fines on non-compliant listings.

Fines for operating without a permit start at $2,500 and can reach $50,000 for corporations. Hosts who violate other bylaws like the primary residence requirement or bedroom cap also face stiff penalties. Repeat offenders risk having their permits revoked entirely.

This strict enforcement sets Quebec City apart from other Canadian markets with more hands-off approaches. Cities like Toronto and Vancouver have STR regulations on the books but have been criticized for lax enforcement. In contrast, Quebec City authorities regularly crack down on illegal listings.

As a result, most experienced hosts caution against trying to skirt the rules. On local host forums, the consensus is that operating under the radar is not worth the stress and financial risks. The vast majority of Quebec City listings are properly licensed and compliant.

That said, the city's stringent policies have not deterred the growth of STRs overall. Between 2016 and 2019, the number of active listings in Quebec City grew from 2,800 to over 4,000. Compliant hosts are still able to thrive in the market.

For hosts who follow the regulations, Quebec City is generally seen as STR-friendly. The city recognizes the benefits of STRs for the tourism economy and has not instituted overly burdensome rules like banning all listings or requiring in-person check-ins. The permit process is relatively straightforward for primary residents.

So while Quebec City is strict about enforcement, it has struck a balance between allowing STRs and protecting housing stock and neighborhood character. Hosts who operate transparently and responsibly can succeed.

How to Start a Short Term Rental Business in Quebec City

Here is a step-by-step guide to starting a legal and successful STR business in Quebec City:

• Research zoning and bylaws to confirm your primary residence is eligible for STRs. Contact the city's permits department if unsure.
• Obtain $2 million liability insurance from a licensed Canadian provider. Shop around for the best rates and coverage terms.
• Gather all required documents for the CITQ permit application, including property title, floor plans, photos, and description of the STR.
• Submit the CITQ permit application online and pay the $256 fee for a 2-year certificate. Respond promptly to any requests for more information.
• Schedule the property inspection with the CITQ. Make any necessary upgrades to meet safety and habitability standards.
• Once approved, register with Revenue Québec to collect and remit the 3.5% Lodging Tax. Determine if you also need to charge the GST and QST.
• Create a detailed and accurate listing on platforms like Airbnb and VRBO. Ensure the CITQ certificate number is prominently displayed.
• Establish clear house rules and vet potential guests carefully. Have a system for neighborly relations and prompt resolution of any issues.
• Keep thorough records of all bookings, revenues, and taxes collected. File regular tax returns and renew the CITQ permit every 2 years.
• Stay up to date on any changes to STR regulations at the municipal and provincial levels. Join local host groups to share experiences and best practices.

With diligence and care, hosts can build profitable STR businesses that provide memorable experiences for guests while contributing to Quebec City's vibrant tourism industry.

Who to contact in Quebec City about Short Term Rental Regulations and Zoning?

Hosts with questions about the CITQ permitting process can contact the agency's customer service team. Agents are available Monday to Friday from 8:30am to 4:30pm at 1-866-499-0550 or info@citq.qc.ca. The CITQ website also has a comprehensive FAQ section.

For inquiries related to zoning, building permits, or property standards, the best resource is Quebec City's permits and inspections department. Their knowledgeable staff can advise on whether a specific address is eligible for STRs and what modifications may be required.Contact the permits office at:

Ville de Québec
Gestion du territoire
295, boulevard Charest Est
Québec, QC G1K 3G8
Phone: 418-641-6000
Email: permis@ville.quebec.qc.ca

Hosts should also consult Quebec City's detailed guide on STR requirements, available at:
https://www.ville.quebec.qc.ca/en/citizens/property-evaluation-taxation/permits/short-term-rental.aspx

The guide covers everything from permit applications to building codes to waste management. It's an essential resource for any Quebec City host.

What do Airbnb hosts in Quebec City on Reddit and Bigger Pockets think about local regulations?

On the Quebec City Airbnb Hosting Facebook group, most members express a mix of frustration and resignation about the strict regulations. While many find the permitting process onerous, they acknowledge that compliance is non-negotiable.

One host shared: "Getting the CITQ certificate was a pain, but it's just the cost of doing business here. The city is really cracking down, so it's not worth the risk of operating illegally."

Another advised: "My biggest tip is to start the permit application ASAP. It can take weeks or even months, so don't wait until you have a booking to get the ball rolling. And make sure you have all your ducks in a row with insurance, fire safety, etc."

Hosts also frequently discuss strategies for maintaining positive relationships with neighbors, like proactively sharing contact info, enforcing quiet hours, and promptly removing trash. Many emphasize the importance of carefully screening guests to avoid problems.

On Reddit, the sentiment is similar. In the r/AirBnB subreddit, user u/HostQC wrote: "You absolutely need a permit in Quebec City. Inspectors are out in full force and the penalties are massive. Follow the rules to the letter or don't bother hosting here."

In response to a question about operating under the radar, u/LegalQC said: "Not worth it IMO. The city is really aggressive about enforcement and the fines are no joke. Plus, you'll be constantly stressed about getting caught. Just do things by the book and you'll be fine."The Quebec City forum on Bigger Pockets, a popular real estate investing site, echoes these themes.