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

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

Short-term rentals like Airbnb and VRBO have become increasingly popular in Squamish, a scenic mountain town north of Vancouver. However, the District of Squamish has implemented bylaws and regulations to govern short-term rentals 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 Squamish.

Starting a Short-Term Rental Business in Squamish

Under Squamish's current bylaws, short-term rentals are only allowed if the operator owns the property and it is their principal residence. The owner can leave and rent out their entire home for up to 30 days at a time.

Homeowners can only rent out a secondary suite or coach house if they obtain a Temporary Use Permit (TUP) from the District. A maximum of 30 TUPs are available for secondary suites and accessory dwelling units.

All short-term rental listings must include a valid District of Squamish business license number. Operators without a license can face fines of $500 per day per offense. In 2022, only about 50% of listings were compliant with local regulations.

As of 2023, there are 140 active business licenses for vacation rentals in Squamish. License fees range from $200-500 annually, depending on the type of rental. Additional utility fees for water and sewer were removed in 2023.

Short-Term Rental Licensing Requirement in Squamish

All short-term rental operators in Squamish are required to obtain a business license from the District and include their license number in all online listings and advertising. Operating without a valid license can result in fines of up to $500 per day per offense.

To be eligible for a short-term rental business license, the property must be the operator's principal residence. This means the operator must live in the home for at least 9 months of the year. Short-term rentals are not permitted in secondary suites or accessory dwelling units without a Temporary Use Permit.

When applying for a short-term rental business license, operators must:

• Confirm eligibility
• Meet fire and safety requirements
• Obtain permission from the property owner and/or strata if applicable
• Review the District's STR bylaws and listing/advertising rules
• Pay the applicable license fees

As of 2023, there are 140 active short-term rental business licenses in Squamish. However, this represents only about 48% compliance, as there are an estimated 300 short-term rental units operating in the community.

The District conducts both complaint-based and proactive enforcement to ensure operators are properly licensed. In 2023, Bylaw Services sent out 25 warning letters and issued 18 ticket fines to unlicensed operators.

Short-term rental business licenses must be renewed annually. Fees range from $200-500 per year, depending on the type of rental. As of April 2023, additional utility fees for STRs were eliminated.

The licensing process aims to allow residents to earn extra income by renting their homes to visitors while preventing the loss of long-term rental stock in Squamish's tight housing market. However, with over half of STRs still operating without a license, the District faces ongoing challenges with compliance and enforcement of its regulations.

Required Documents for Squamish Short-Term Rentals

When applying for a short-term rental business license in Squamish, operators must submit several required documents to demonstrate eligibility and compliance with regulations. These include:

1. Completed STR Business License Application Form
2. Proof of principal residence (minimum 2 documents), such as:
   - Driver's license
   - BCID
   - Medical Services Plan invoice
   - Income tax return
   - Utility bills
3. Proof of ownership or tenancy agreement and owner consent form if the operator is a renter
4. Strata authorization form if the property is in a strata complex and STRs are permitted
5. Parking plan showing all available on-site parking spaces
6. Fire safety plan posted at all entrances/exits
7. Designated responsible person contact information
8. Good Neighbour Agreement signed by the operator

For short-term rentals operating in secondary suites or accessory dwellings, a Temporary Use Permit (TUP) is also required before applying for a business license. TUP applications must include:

1. Completed TUP Application Form
2. Site plan showing the location of the secondary suite or accessory dwelling
3. Floor plans of the STR unit
4. Photos of the exterior and interior of the STR unit
5. Proof of ownership and principal residence documents
6. Application fee of $1200 (as of April 2023)

The District of Squamish reviews all STR license and TUP applications to verify eligibility and may request additional information or conduct an inspection of the property. Incomplete applications or those missing required documents will not be processed.

Once issued, STR business licenses must be posted in the rental unit, and the license number must be included in all online listings and advertisements. Licenses must be renewed annually and kept up to date with accurate information.

By requiring this documentation, the District aims to ensure STR operators are complying with regulations to protect long-term rental stock and minimize negative impacts on neighbors. Failure to provide required documents or operating without a valid license may result in fines and enforcement action.

Squamish Short-Term Rental Taxes

Short-term rental operators in Squamish 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. This includes hotels, motels, resorts, bed and breakfasts, and short-term 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 District of Squamish 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 Squamish 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 Squamish 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 booking 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 City of Vancouver has had its own short-term rental regulations in place since 2018, which also restrict rentals to principal residences and require a business license.

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 Squamish Strictly Enforce STR Rules?

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

A common sentiment expressed is that the District of Squamish relies primarily on complaints to identify illegal STRs rather than proactively seeking out non-compliant listings. Enforcement actions like fines are relatively rare. Some Redditors estimate that over 50% of Squamish Airbnb listings are operating without a valid license.

The high cost of long-term renting in Squamish incentivizes some property owners to continue short-term renting illegally, as they can earn significantly more income even with the risk of occasional fines. STR hosts also take advantage of loopholes like listing their units for a minimum 30-day stay to avoid the licensing requirement.

However, with the new provincial regulations coming into effect in 2024, including steeper fines of up to $3000 per day and data-sharing requirements for platforms, Squamish may start cracking down more seriously on rule-breakers. The District has indicated plans to take a stricter enforcement approach going forward.

Overall, though, Squamish seems to be less aggressive than cities like Vancouver in penalizing illegal short-term rentals. The smaller town has limited resources for enforcement and a strong economic reliance on tourism. So, in practice, many unauthorized STRs have been able to operate with minimal consequences, making Squamish a relatively friendly place for Airbnb hosts, albeit with some regulatory risk.

In summary, while Squamish has STR regulations on the books, actual enforcement has been lacking, according to anecdotes from online real estate investing communities. This has allowed a significant number of unlicensed short-term rentals to proliferate. But as provincial and municipal rules tighten, the landscape may become more challenging for non-compliant hosts in the coming years.

How to Start a Short-Term Rental Business in Squamish

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

1. Determine if your property is eligible for a short-term rental license. Your home must be your principal residence, and you can only have one short-term rental license.
2. If you are a tenant, obtain written permission from the property owner using the owner consent form. If you live in a strata property, confirm that the strata bylaws allow short-term rentals and obtain strata authorization.
3. Ensure your property meets all fire and safety requirements, including working smoke alarms, fire extinguishers, and carbon monoxide detectors. Prepare and post a fire safety plan at all entrances and exits.
4. Determine the number of bedrooms you will rent out and ensure you have the required additional parking spaces. For single-family homes and duplexes, you need 1 extra parking space per 2 bedrooms, up to a maximum of 3 additional spaces.
5. Review the District of Squamish's short-term rental bylaws, good neighbor guidelines, and parking regulations to ensure you understand your responsibilities as a host.
6. Apply for a short-term rental business license from the District of Squamish. Submit the completed application form, proof of principal residence, property title, owner/strata consent forms (if applicable), parking plan, and fire safety plan. Pay the applicable license fees.
7. If you want to rent out a secondary suite or accessory dwelling unit, you must also apply for a Temporary Use Permit (TUP) before getting a business license. The District issues a limited number of TUPs, and additional requirements apply.
8. Once you receive your business license, include your license number in all online listings and advertisements for your short-term rental. Post a copy of your license in the rental unit.
9. Ensure your guests are aware of noise bylaws, parking restrictions, garbage and recycling rules, and any other applicable regulations. Provide them with the Good Neighbour Guidelines, along with any house rules you might have.
10. Renew your short-term rental business license annually and keep all information up to date. Comply with any requests from the District for inspections or audits.

By following these steps and adhering to Squamish's short-term rental regulations, you can legally operate a vacation rental business in your principal residence. Keep in mind that rules and requirements may change over time, so stay informed and connected with the District of Squamish.

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

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

Community Planning Department

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

Email: planning@squamish.ca
Phone: 604-815-5002

Business Licensing Department

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

Phone: 604-815-5012

Bylaw Enforcement Department

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

Phone: 604-815-5067
Online complaint form: https://squamish.ca/online-services/bylaw-complaint-form/

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

Address: 37955 Second Avenue, Squamish, BC V8B 0A3
Phone: 604-892-5217
Hours: Monday to Friday, 8:30am to 4:30pm

The Municipal Hall phone line is staffed Monday to Thursday, 8am to 5pm, and Fridays, 8:30am to 4pm.

If you're unsure which department to contact, start by calling the main Municipal Hall line. The receptionist can direct you to the appropriate person or department based on the nature of your short-term rental inquiry.

By reaching out to these key contacts, you can get specific guidance on how Squamish's short-term rental rules and zoning regulations apply to your situation. The District'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.

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

Based on discussions in online real estate investing communities like Reddit and Bigger Pockets, it appears that many Airbnb hosts in Squamish have mixed feelings about the local short-term rental regulations:

Some hosts on the r/Squamish subreddit expressed frustration with the strict rules limiting short-term rentals to principal residences only. They feel this unfairly prevents property owners from earning income on secondary suites or investment properties. One Redditor complained about getting a $500 ticket for renting out their condo on Airbnb for less than 30 days, even though they were trying to help with the housing shortage.

However, other Reddit users pushed back, arguing that allowing widespread short-term rentals of non-primary residences would only worsen Squamish's housing affordability crisis. They believe the principal residence requirement is necessary to prevent investors from snapping up properties for Airbnb use. As one commenter put it: "Don't contribute to the housing crisis by being a landlord."

In a Bigger Pockets forum post, an aspiring Squamish real estate investor asked for advice on financing short-term rental properties. While some replied with financing tips, others discouraged investing in Airbnbs in Squamish. One warned: "Your not going to get many positive responses talking about doing AirBnB or anything along the lines of being a landlord."

Redditors also discussed BC's new province-wide short-term rental legislation introduced in late 2023. Many supported rules restricting STRs to principal residences in larger communities. However, some questioned whether the regulations would actually boost long-term rental supply in places like Squamish.

Hosts on both platforms noted that even with current regulations, many illegal short-term rentals still operate in Squamish due to a lack of enforcement. Discussions suggest the District relies mainly on complaints to identify non-compliant listings. But with steep new provincial penalties coming, Airbnb operators expect a crackdown.

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

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.