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

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

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in tourist destinations like Sechelt. However, the rapid growth has led to new regulations on these rentals. Here's what you need to know about short-term rental rules in Sechelt.

Starting a Short-Term Rental Business in Sechelt

In September 2022, the District of Sechelt passed new bylaws that severely restrict short-term rentals. The regulations, which came into effect in January 2023, were a response to community complaints about noise, parking issues, and "party houses" caused by some short-term rentals.

Under the new rules, "commercial" short-term rentals where the entire property is rented out are capped at just 15 licenses for the whole community. This is a significant reduction, as there were an estimated 249 active short-term rental listings in Sechelt as of September 2021.

Short-term rentals are still allowed without a cap if the rental is a secondary suite or cabin on a property where the primary resident lives on-site. However, un-hosted secondary residence rentals are no longer permitted as of 2024 due to incoming provincial regulations.

To operate a short-term rental in Sechelt, hosts must acquire a business license. The license fees vary based on the type of rental:

• Type 1 (room rental in primary residence): $500/year
• Type 2 (secondary suite on primary residence property): $900/year
• Type 3 (secondary residence, un-hosted): $3000/year

Sechelt's strict 15-license cap on un-hosted rentals has raised concerns from the tourism industry. The Sunshine Coast Tourism Association warned the rules could reduce tourist accommodation options by 75%, negatively impacting businesses that depend on visitors.

However, many residents support the crackdown, arguing short-term rentals were disrupting neighborhoods and worsening the housing crisis. In 2015, Sechelt had 500 long-term rental homes available, but by 2023, there were only 2 long-term rentals and over 500 Airbnb listings.

The District of Sechelt says it will monitor and adjust the regulations as needed to balance tourism with community needs. Prospective short-term rental operators should carefully review the new rules and be prepared for active enforcement. Fines for operating without a license start at $500 and increase for repeat offenses.

Short-Term Rental Licensing Requirement in Sechelt

The District of Sechelt requires all short-term rental operators to obtain a business license in order to legally rent out their properties. The licensing process ensures that STRs meet safety standards and comply with local regulations.

As of 2023, Sechelt has implemented a new licensing system that categorizes STRs into three types:

1. Type 1: Room rental in a principal residence where the owner lives and is present during guest stays. License fee is $500 per year.
2. Type 2: Rental of up to two self-contained suites on a principal residence property where the owner lives and is present. License fee is $900 per year.
3. Type 3: Un-hosted rental of an entire secondary residence. License fee is $3,000 per year, and licenses are capped at just 15 for the entire community.

To apply for an STR business license, operators must submit a completed application form along with supporting documents. These include proof of principal residence (for Type 1 and 2), ownership confirmation, strata council consent (if applicable), parking plan, and a signed self-assessment checklist.

The application deadline is July 31st for the current calendar year. Licenses are valid from January 1st to December 31st and must be renewed annually. Operating an STR without a valid license is an offense subject to fines starting at $500.

It's important to note that as of 2024, un-hosted secondary residence STRs (Type 3) will no longer be permitted due to incoming provincial regulations. The Province of BC is introducing legislation requiring all STRs to have a principal resident operator on-site.

Existing Type 3 STRs with a Temporary Use Permit (TUP) or Non-Conforming Use approval will no longer be allowed once the provincial rules take effect. This aligns with Sechelt's 15-license cap on un-hosted rentals, which aims to limit the impact of STRs on long-term housing availability.

The District of Sechelt is actively monitoring STR listings and investigating complaints of unlicensed or non-compliant operators. Bylaw officers can issue fines and revoke licenses for violations of the STR regulations or other applicable bylaws.

While the licensing process adds some administrative work for STR hosts, it helps ensure a standard of safety and responsibility. By obtaining the required business license and following all rules, STR operators in Sechelt can run successful and compliant short-term rental businesses.

Required Documents for Sechelt Short-Term Rentals

To apply for a short-term rental (STR) business license in Sechelt, operators must submit several required documents along with their application form. Having these documents prepared in advance can help streamline the licensing process.

The key required documents for a Sechelt STR business license application include:

1. Completed STR Business License Application Form
2. Proof of principal residence (for Type 1 and 2 STRs)
   - Government-issued ID with address
   - Recent utility bill or property tax statement
3. Proof of ownership or owner consent
   - Title search or property tax assessment
   - Signed owner authorization form (if operator is not the owner)
4. Strata council approval (if the property is a strata unit)
   - Letter from strata council confirming STR use is permitted
5. Parking plan sketch
   - Diagram showing location and number of on-site parking spaces for guests
6. Self-assessment safety checklist
   - Signed declaration confirming the STR meets building code and fire safety requirements
7. Floor plan with room descriptions (for Type 1 and 2 STRs)
   - Sketch or blueprint showing the layout of the STR and identifying bedrooms, exits, smoke alarms, etc.
8. Application fee payment
   - Non-refundable fee varies by STR type: $500 for Type 1, $900 for Type 2, $3,000 for Type 3

The STR Business License Application Form collects key details about the property, operator, and rental type. Proof of principal residence and ownership ensures the applicant has the legal right to operate an STR and meets the on-site residency requirements for Type 1 and 2 rentals.

If the property is a strata unit, written approval from the strata council is necessary to confirm that STR use is permitted under the strata bylaws. The parking plan and self-assessment checklist verify that the STR has adequate guest parking and meets safety standards.

For Type 1 and 2 STRs, a floor plan is required to show the layout of the rental and the specific rooms being rented to guests. This helps ensure compliance with occupancy limits and fire safety requirements.

Submitting a complete application package with all required documents is essential to obtaining STR business license approval in Sechelt. The District may request additional information or conduct an inspection before issuing the license.

Operators should keep all documentation related to their STR business license on file and be prepared to provide it to bylaw officers upon request. Failure to produce a valid license can result in fines and other penalties.

By carefully reviewing and organizing the required documents, STR hosts in Sechelt can navigate the licensing process smoothly and ensure their rental operates in compliance with local regulations.

Sechelt Short-Term Rental Taxes

In addition to licensing and registration requirements, short-term rental operators in Sechelt must also collect and remit applicable taxes. Understanding the tax obligations is crucial for running a compliant rental business.

Short-term rentals in Sechelt are subject to the 8% Provincial Sales Tax (PST) and the 5% Goods and Services Tax (GST). These taxes apply to the rental fee, cleaning fees, and any other additional charges related to the accommodation.

As of January 1, 2022, short-term accommodations in Sechelt are also subject to the 3% Municipal and Regional District Tax (MRDT). This tax is collected on behalf of the province to support tourism marketing, programs, and projects.

So, in total, short-term rental guests in Sechelt pay a combined tax rate of 16% (8% PST + 5% GST + 3% MRDT). For example, if the nightly rental rate is $200, the total taxes would be $32 per night.

It is the responsibility of the short-term rental operator to register for, collect, and remit these taxes to the appropriate authorities:

1. PST and MRDT are remitted to the Province of BC
2. GST is remitted to the Canada Revenue Agency

Operators must register for a PST number and an MRDT account with the province. They must also register for a GST/HST account with the CRA if their worldwide revenues exceed $30,000 over four consecutive quarters.

Detailed records of all short-term rental transactions, taxes collected, and taxes remitted must be kept. These records may be requested in the event of an audit.

In addition to consumption taxes, short-term rental income is subject to income tax. Operators must report their rental income on their annual tax return. Certain expenses like insurance, utilities, and cleaning can be claimed to offset the income.

Failing to comply with tax obligations can result in fines, penalties, and legal action. Working with a qualified accountant is recommended to ensure full compliance.

As the short-term rental industry evolves, it's possible that tax requirements may change. Operators should stay informed of any updates and adjust their processes accordingly. By properly collecting and remitting taxes, short-term rental hosts contribute to the economic well-being of Sechelt and the province as a whole.

Sechelt Wide Short-Term Rental Rules

In addition to the licensing and registration requirements, Sechelt has several rules that apply to all short-term rentals citywide. These regulations aim to balance the needs of residents, neighborhoods, and the tourism industry.

Some key Sechelt-wide STR rules include:

1. STR Types: There are three types of permitted STRs in Sechelt as of 2023:
   Type 1: Rental of up to three bedrooms inside the operator's principal residence. The owner or long-term renter must live on-site and be present during guest stays.
   Type 2: Rental of up to two self-contained suites (e.g. secondary suite, carriage house) on the operator's principal residence property. The owner or long-term renter must live on-site and be present during guest stays.
   Type 3: Un-hosted rental of an entire secondary residence. Capped at 15 total licenses for the community. Will no longer be permitted as of 2024 due to incoming provincial regulations.
2. Principal Residence Requirement: As of 2024, all STRs must have a principal resident operator living on-site, per new provincial rules. This means un-hosted secondary residence rentals (Type 3) will be phased out.
3. Business License: All STR operators must obtain an annual business license from the District of Sechelt. License fees vary by type: $500 for Type 1, $900 for Type 2, $3,000 for Type 3.
4. Temporary Use Permits: Type 3 STRs must also obtain a Temporary Use Permit prior to getting a business license. However, Council has capped these at 15 total for the community.
5. Occupancy Limits: The number of permitted bedrooms/suites depends on the STR type. Maximum of 3 bedrooms for Type 1, and 2 self-contained suites for Type 2.
6. Parking Requirements: On-site parking must be provided for STR guests. Parking plan must be submitted with license application.
7. Safety Standards: STRs must meet building code and fire safety requirements. Operators must complete a self-assessment safety checklist with their license application.
8. Noise and Nuisance: STR guests must not create excessive noise or disturbances that negatively impact neighbors. Operators are responsible for addressing any issues.
9. Enforcement: The District actively monitors STR listings and investigates complaints. Operating without a license or violating other bylaws can result in fines starting at $500.

These community-wide rules are in addition to the specific requirements of Sechelt's STR licensing and registration process. The regulations attempt to allow STRs while mitigating potential negative impacts on long-term rental supply, neighborhood character, and community livability.

As Sechelt aligns its STR program with new provincial legislation taking effect in 2024, the focus is shifting to hosted rentals where the operator lives on-site (Types 1 and 2). Un-hosted secondary residence rentals are being phased out to protect housing stock.

By complying with Sechelt's comprehensive STR rules, operators can run responsible and sustainable short-term rental businesses as part of the community's tourism economy. The District continues to monitor the program and make adjustments as needed to strike the right balance.

Does Sechelt Strictly Enforce STR Rules?

Based on discussions from real estate investing forums like Bigger Pockets and Reddit, Sechelt appears to be cracking down on short-term rental regulations compared to other Canadian cities. Many locals feel the proliferation of Airbnbs is negatively impacting housing availability and affordability in the community.

One Reddit user shared an infographic showing that in 2015, Sechelt had 500 long-term rental homes available. In 2023, there were only 2 long-term rentals but over 500 Airbnb listings. This suggests short-term rentals have drastically reduced the housing stock for residents.

On the Bigger Pockets forums, several hosts have warned that Sechelt is actively enforcing its new STR rules that cap non-resident hosted rentals at just 15 licenses total. One host mentioned they were denied a license for their secondary property STR and are now suing the District over the restrictions.

Compared to other vacation destinations, Sechelt is taking a harder line stance against STRs, especially those operated by non-resident owners. The strict license cap and requirement for on-site hosts aim to curb the impact on long-term rentals.

While some hosts are still trying to operate under the radar, Sechelt bylaw officers are investigating complaints and issuing fines for non-compliance. The District seems committed to upholding its new rules despite pushback from some operators.

So in summary, Sechelt is not very Airbnb-friendly, especially compared to other tourism hot spots. The community's focus on preserving housing for locals is driving a more restrictive regulatory approach. Hosts who continue to operate STRs without a license or off-site are facing enforcement action. Investors should be cautious about banking on Airbnb income in Sechelt given the tight regulations and active monitoring by the District.

How to Start a Short-Term Rental Business in Sechelt

Starting a short-term rental business in Sechelt requires careful planning and compliance with local regulations. Here are the key steps to get started:

1. Determine your short-term rental type:
   - Type 1: Rent up to three bedrooms inside your principal residence where you live and are present during guest stays.
   - Type 2: Rent up to two self-contained suites on your principal residence property where you live and are present during guest stays.
2. Ensure your property is eligible for short-term renting based on zoning and any strata bylaws or restrictions. If you are a long-term renter, obtain written consent from the property owner.
3. Complete the STR Business License Application form and submit it along with the following:
   - Self-Assessment Safety Checklist and Attestation form
   - Parking plan sketch
   - Owner Consent form (if you are a long-term renter)
   - Strata Council Consent form (if your home is part of a strata)
   - $200 one-time application fee
4. Prepare your property for guests by furnishing and ensuring it meets all health and safety requirements outlined in the Self-Assessment Checklist. This includes having working smoke and carbon monoxide detectors, fire extinguishers, and clearly marked exits.
5. Once your application is approved, pay the annual STR business license fee:
   - $500 per year for Type 1 rentals
   - $900 per year for Type 2 rentals
6. Obtain appropriate insurance coverage for your short-term rental business. Consult with your insurance provider to ensure you have adequate liability coverage.
7. Create a detailed listing for your short-term rental on popular platforms like Airbnb and VRBO. Include high-quality photos, an accurate description of the space and amenities, and your STR business license number.
8. Establish house rules and communicate them clearly to guests. Cover topics like parking, maximum occupancy, noise levels, and pet policies.
9. Implement a system for managing bookings, cleaning, and maintenance between guest stays. Consider hiring a professional cleaning service to ensure consistent quality.
10. Keep detailed records of all short-term rental income and expenses for tax purposes. Consult with an accountant familiar with STR regulations to ensure you are reporting and remitting taxes correctly.

By following these steps and adhering to Sechelt's short-term rental regulations, you can launch a successful and compliant STR business. Stay informed of any changes to local bylaws and provincial legislation to ensure ongoing compliance. With careful planning and responsible hosting, your Sechelt STR can thrive in this popular Sunshine Coast destination.

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

For questions about short-term rental regulations and zoning in Sechelt, contact the District of Sechelt's Planning and Development Services department or Bylaw Enforcement division.

Planning and Development Services:
Phone: 604-885-1986
Email: planning@sechelt.ca
Address: 2nd Floor, 5797 Cowrie Street, Sechelt, BC V0N 3A0
Hours: Monday to Friday, 8:30 AM to 4:30 PM

The Planning and Development Services department can provide information on zoning requirements for short-term rentals and assist with the business licensing process. They can also answer questions about the District's STR regulations and any upcoming changes.

Bylaw Enforcement:
Phone: 604-885-1986
Email: bylaw@sechelt.ca
Address: 2nd Floor, 5797 Cowrie Street, Sechelt, BC V0N 3A0
Hours: Monday to Friday, 8:30 AM to 4:30 PM

The Bylaw Enforcement division is responsible for enforcing Sechelt's short-term rental regulations and investigating complaints. They can provide guidance on operating a compliant STR and answer questions about fines and penalties for violations.

For general inquiries, you can also contact the District of Sechelt's main office at:

District of Sechelt:
Phone: 604-885-1986
Email: info@sechelt.ca
Address: 2nd Floor, 5797 Cowrie Street, Sechelt, BC V0N 3A0
Hours: Monday to Friday, 8:30 AM to 4:30 PM

The District's staff can direct your questions to the appropriate department and provide general information about short-term rentals in the community.

By working closely with these local government contacts, you can ensure your short-term rental business operates smoothly and in compliance with all applicable rules and regulations in Sechelt.

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

Discussions on real estate investing forums like Reddit and Bigger Pockets provide insight into how Airbnb hosts view Sechelt's short-term rental regulations:

On the r/britishcolumbia subreddit, a post about B.C.'s new provincial short-term rental rules garnered comments about the situation in Sechelt. One user mentioned that the mayor of Sechelt stated in a CBC interview that the town had roughly 50 Airbnb listings, even though only 15 non-resident hosted STR licenses will be allowed under the new rules. This suggests many current listings may be operating without proper approvals.

In a separate Reddit thread about the housing crisis on B.C.'s Sunshine Coast, several commenters pointed to the proliferation of Airbnbs as a key factor in the lack of long-term rentals. One anecdote described a homeowner in Sechelt who purchased a new building specifically to operate as a short-term rental rather than providing housing for local residents.

On the Bigger Pockets forums, a host shared their frustration with trying to get clear information from the city of Sechelt about short-term rental regulations. They were considering investing in a property to operate as a luxury STR, but the city would not provide a full copy of the draft rules. The host expressed concern about investing without knowing if future rule changes could make their rental non-compliant.

Another Bigger Pockets thread about the cheapest places to invest in B.C. had a warning about Sechelt's restrictive STR regulations. The commenter noted that the 15-license cap on non-resident-hosted rentals and the requirement for STRs to be in a principal residence as of 2024 severely limits investment potential.

Overall, the sentiment among Airbnb hosts on these forums is that Sechelt's strict short-term rental regulations are making it increasingly difficult to operate, especially for non-resident investors. There is a sense that the rules unfairly target STRs and may not effectively solve the housing issues. However, some local residents argue the restrictions are necessary to prevent further loss of long-term rentals. Hosts are frustrated by the lack of clarity around the evolving regulations and the impact on their investments. As Sechelt aligns with B.C.'s incoming provincial STR rules, the feasibility of non-resident hosted Airbnbs appears to be dwindling.

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.