Saskatoon Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Saskatoon

Saskatoon requires a business license to operate short-term accommodations under the Business License Bylaw 9746 and Zoning Bylaw 8770. There are two types of short-term rental accommodations in Saskatoon:

Homestays: Rental accommodations in the host's primary residence. Hosts renting 1-2 bedrooms in their home do not need a license. Those renting to more than 2 guests require a commercial business license.

Short-Term Rental Properties: Rental accommodations not in the host's primary residence, such as a second home or investment property. All hosts need a commercial business license.

Short-term rentals have increased rapidly in Saskatoon in recent years. In October 2019, there were 610 active Airbnb listings, up from just over 100 in 2015. This represents 0.05% of Saskatoon's total housing stock. The city implemented new regulations in 2020 to better monitor and control the growing industry.

The rise of short-term rentals has been fueled by the growth of online platforms like Airbnb and VRBO that make it easy for hosts to list their properties and connect with travelers. Saskatoon has seen a surge in tourism in recent years, with over 2.5 million visits in 2019, up 5% from 2018. Short-term rentals have helped accommodate this growth by providing more options for visitors.

However, the rapid proliferation of short-term rentals has also raised concerns about impacts on housing affordability, neighborhood character, and safety. In response, Saskatoon has joined a growing number of cities worldwide in regulating the industry.

Short Term Rental Licensing Requirement in Saskatoon

Hosts are responsible for completing the Host Declaration Form and applying for a business license online. The license fee is $125. However, if you are only hosting 1-2 guests in your primary residence (homestay), you do not need to register for a license.

All short-term rental properties require a commercial business license regardless of the number of guests. Homestays with more than 2 guests also need a commercial license.

The licensing process is designed to ensure short-term rentals meet basic health, safety, and zoning standards. It also helps the city track the number and location of short-term rentals operating in Saskatoon.

However, the licensing requirement has been controversial among some hosts who feel it is overly burdensome and expensive. They argue that occasional home-sharing should not be subject to the same rules as full-time vacation rentals.

The city has defended the licensing system as a necessary tool to regulate the industry and protect public interests. It points out that the $125 fee is lower than many other cities and covers the costs of administration and enforcement.

Required Documents for Saskatoon Short Term Rentals

To obtain a short-term rental license in Saskatoon, you need to provide:

• Host Declaration Form
• Written permission from the property owner (if applicable)
• Written permission from the condo corporation (if applicable)
• Discretionary use approval for certain residential zoning districts

Discretionary use approval is required to operate a short-term rental property in low and medium density residential zones, including R1, R1A, R1B, R2, R2A, RMHL, RMTN, RMTN1, RM1, RM2, RM3, and RM4. The discretionary use application costs $2500 and involves notifying neighbors within 75 meters, who can object to the rental operating in their area. City council makes the final decision to approve or reject applications.

The discretionary use process has been a major point of contention for many hosts. They argue that the $2500 fee is excessive and the approval criteria are too subjective. Some have complained that the process is being used by NIMBY (Not In My Backyard) neighbors to unfairly block short-term rentals.

The city says the discretionary use process is important to give residents a say in how their neighborhoods are used and to prevent over-concentration of short-term rentals. It has also noted that most applications are approved as long as they meet the basic requirements.

In 2021, the city streamlined the discretionary use process by allowing approvals to be granted by the planning department rather than city council in some cases. It also reduced the notification radius to 50 meters. However, some hosts say more reforms are needed.

Saskatoon Short Term Rental Taxes

Guests who book Airbnb listings in Saskatchewan pay a 6% Provincial Sales Tax (PST) on the listing price for stays 30 nights or shorter, excluding tent/trailer campsites. Hosts are responsible for collecting and remitting the PST.The PST applies to all types of short-term accommodations, including hotels, motels, bed and breakfasts, and vacation rentals. It is part of a broader effort by the provincial government to level the playing field between traditional accommodations and online platforms.

Some hosts have complained that the PST is an added burden that makes it harder to compete with hotels. They argue that short-term rentals provide a unique service that should not be taxed like traditional accommodations.

However, supporters of the tax say it is a fair way to ensure short-term rentals contribute to the costs of public services and infrastructure they benefit from. They point out that many other provinces and countries have similar taxes on short-term rentals.

Saskatoon-wide Short Term Rental Rules

Short-term rentals in Saskatoon have the following requirements:

• Maximum of 6 guests for houses, 3 for secondary suites, 2 for duplexes/condos
• 1-2 on-site parking spaces required in most zoning districts
• Discretionary use approval needed for short-term rental properties in many residential zones
• Permission required from property owner and condo corporation (if applicable)

The guest limits aim to prevent overcrowding and "ghost hotels" where a large portion of a multi-unit building operates as short-term rentals with few long-term residents. Parking requirements mitigate traffic and parking impacts on neighbors.

The rules have been praised by some as a reasonable compromise between the rights of hosts and the needs of the community. They allow short-term rentals to operate while preventing the worst excesses seen in some other cities.

However, critics argue that the rules are too restrictive and arbitrary. They say the guest limits are too low for larger properties and the parking requirements are excessive. Some have also questioned why short-term rentals are singled out for special regulation.

The city has said the rules are based on extensive public consultation and research into best practices from other jurisdictions. It has emphasized that the goal is not to ban short-term rentals but to ensure they operate responsibly and with minimal impact on neighbors.

Does Saskatoon strictly enforce STR rules?

Saskatoon has implemented a temporary moratorium on new licenses for short-term rental properties effective January 31, 2024 to prioritize long-term rental availability. The vacancy rate must be above 3% to issue new licenses, and it's currently only 2%.

This indicates Saskatoon is taking steps to limit short-term rentals compared to other cities. The city wants to prevent the housing stock from being converted to mostly short-term accommodations.

However, many unlicensed Airbnbs still operate under the radar. As of January 2020, there were 610 active Airbnb listings in Saskatoon, but only 15 licensed short-term rental businesses. The city is still working on enforcement and identifying all operators.

Hosts are frustrated that the vast majority of current listings are operating illegally outside of the rules. As of late 2019, only 15 out of 610 active listings were properly licensed. Many feel the complaint-based enforcement system is not proactive enough at identifying violations.

The city relies largely on complaints to identify illegal listings. It has limited resources to actively monitor compliance. Bylaw inspectors investigate complaints and issue violation notices. Repeat offenders can face fines up to $10,000. But with so many unlicensed operators, enforcement is a major challenge.

In 2022, the city issued 50 violation notices to unlicensed short-term rentals. This was a significant increase from previous years but still a small fraction of the total number of illegal listings. The city has said it is working to improve its enforcement efforts but needs more cooperation from platforms like Airbnb to identify non-compliant hosts.

Some have argued that the city's enforcement approach is too reactive and punitive. They say the focus should be on education and incentives to encourage compliance rather than punishment. Others counter that strong enforcement is necessary to deter violations and ensure a level playing field for licensed operators.

The debate over enforcement is likely to continue as the city grapples with the challenges of regulating a rapidly evolving industry. Some have suggested that more resources and staff are needed to keep up with the growth of short-term rentals. Others say the underlying issues of housing affordability and neighborhood impact need to be addressed through broader policy changes.

Does Saskatoon strictly enforce STR rules? Is Saskatoon Airbnb friendly?

Saskatoon has taken steps recently to limit and regulate short-term rentals (STRs), indicating it is less Airbnb-friendly compared to some other cities. In January 2024, the city implemented a temporary ban on issuing new licenses for dedicated STR properties until the rental vacancy rate rises above 3% (it's currently around 2%).3

This moratorium aims to prioritize the availability of long-term rental housing.However, enforcement of STR rules remains a major challenge. As of early 2020, there were over 600 active Airbnb listings in Saskatoon, but only 15 were properly licensed under the city's regulations.4

Many unlicensed STRs continue to operate illegally. The city relies largely on a complaint-based system to identify violations, and has limited resources for proactive monitoring.14

Some Saskatoon residents argue the city needs to crack down harder on illegal STRs to protect housing affordability and neighborhood character.45 There are concerns about a proliferation of "ghost hotels" and the loss of long-term rentals.3 The current complaint-driven enforcement is seen as inadequate by many.1

On the other hand, some hosts feel Saskatoon's STR regulations are overly restrictive compared to other jurisdictions. In particular, the discretionary use approval process for STRs in residential areas is considered burdensome due to the $2500 application fee and potential for neighbor objections.24

Occupancy limits are also a point of contention for those who rent larger properties.

Overall, while Saskatoon allows STRs, the city has moved to impose tighter regulations and limits in recent years. Enforcement remains spotty as many unlicensed listings continue to operate. Compared to cities with few or no rules, Saskatoon is less accommodating of Airbnb and STRs, though some hosts argue it has swung too far in that direction. The city is trying to find a balance between the benefits of STRs and their impacts on housing.

How to Start a Short-Term Rental Business in Saskatoon

Here are the key steps to legally operate a short-term rental in Saskatoon under the current rules:

• Determine if your property is eligible for STR use under zoning laws. Dedicated STR properties require discretionary use approval in most residential areas.
• Complete the city's Host Declaration Form with details about the property.
• Obtain written permission from the property owner and/or condo corporation.
• Apply for discretionary use approval from the city if required for your property type and zoning. This involves a $2500 fee and potential neighbor feedback.
• Apply for and obtain a commercial business license from the city. The annual license costs $125.
• Ensure your STR meets all operating requirements, including occupancy limits (e.g. max 6 guests in a house), parking rules (1-2 on-site spaces), and safety standards.
• Collect and remit the 6% Provincial Sales Tax (PST) on all bookings.

Keep in mind the city has paused new licenses for dedicated STR properties as of January 2024 due to low rental vacancy rates. Homestays renting 1-2 rooms have fewer requirements.123

Who to contact in Saskatoon about Short-Term Rental Regulations and Zoning?

For questions about Saskatoon's STR rules and zoning, contact:

City of Saskatoon
Business License Program
222 3rd Avenue North
Saskatoon, SK S7K 0J5
Phone: 306-975-2760
Email: business.license@saskatoon.ca

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

In threads from 2022-2023, Saskatoon Airbnb hosts expressed frustration with the city's evolving STR regulations and enforcement:

• Many hosts feel the licensing process and fees are overly burdensome, especially the discretionary use approval requirement for dedicated STRs in residential zones. The $2500 application cost is seen as too high.4
• Some argue the occupancy caps are too restrictive and make it harder to rent larger properties to groups and families.4
• There are complaints that most STRs are operating illegally without licenses, creating an uneven playing field. Hosts want the city to crack down on unlicensed operators.45
• Some feel the city's recent curbs on new STR licenses are an overreaction that will hurt the local economy and tourism. Others say it's needed to protect housing affordability.5
• However, there is also acknowledgement that STRs can negatively impact neighborhoods if left unchecked. Concerns include noise, parties, parking issues, and loss of community character.145
• Ideas to improve regulations include streamlining the licensing process, providing more education to hosts, and distinguishing between occasional home-sharing and full-time STR businesses.4

The overall sentiment is that while some regulation of STRs is appropriate, Saskatoon has work to do to strike the right balance. Better enforcement, clearer rules and a more collaborative approach with hosts are seen as key to an effective STR policy.45