Sun Peaks, Canada Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Sun Peaks, British Columbia?

Sun Peaks, a popular ski resort municipality located in British Columbia's interior, attracts many visitors throughout the year. With the rise of short-term rental platforms like Airbnb and VRBO, many property owners in Sun Peaks have turned to renting out their homes to tourists. However, it's crucial for property owners to understand and comply with the local regulations governing short-term rentals to avoid potential fines and legal issues.

Starting a Short-Term Rental Business in Sun Peaks

Before listing your property on Airbnb or VRBO in Sun Peaks, it's essential to familiarize yourself with the municipality's short-term rental regulations. Sun Peaks Mountain Resort Municipality (SPMRM) has specific rules in place to regulate the short-term rental market.

According to the SPMRM's official website, short-term rentals are permitted in properties zoned for Tourist Accommodation (TA) or through a Temporary Use Permit (TUP) in residential zones. Properties zoned TA include many condo and townhouse complexes, while the TUP process allows up to 25% of single-family homes in a neighborhood to operate as short-term rentals.

To legally rent out your property short-term in Sun Peaks, you must:

• Ensure your property is zoned for tourist accommodation or obtain a Temporary Use Permit.
• Obtain a business license from the municipality. As of May 1, 2024, you will be required to display your business license number on any online listings.
• Collect and remit the 8% Provincial Sales Tax (PST) and up to 3% Municipal and Regional District Tax (MRDT) on your rental revenue.
• Adhere to any additional regulations, such as occupancy limits, parking restrictions, and noise bylaws.

Failure to comply with these regulations can result in significant fines and legal consequences. In 2022, the municipality increased the maximum fines for bylaw offenses from $2,000 to $50,000.

It's worth noting that Sun Peaks is exempt from the province's new principal residence requirement for short-term rentals, which limits STRs to the operator's primary residence in many larger communities starting May 1, 2024. However, the local government could choose to adopt this requirement in the future.

As a resort municipality, Sun Peaks aims to balance the needs of property owners, visitors, and long-term residents. By understanding and following the local short-term rental regulations, hosts can operate their businesses responsibly and contribute positively to the community.

Short-Term Rental Licensing Requirement in Sun Peaks

To legally operate a short-term rental (STR) in Sun Peaks, property owners must obtain a business license from the Sun Peaks Mountain Resort Municipality (SPMRM). This requirement applies to all properties zoned for Tourist Accommodation (TA) or those operating under a Temporary Use Permit (TUP) in residential zones.

According to the SPMRM's official website, the following are the requirements for obtaining a short-term rental business license:

1. Complete a Business License Application form, available on the municipality's website or at the municipal office.
2. Provide proof of property ownership or a signed letter from the owner authorizing the use of the property for short-term rentals.
3. If your property is not zoned TA, provide a copy of your approved Temporary Use Permit.
4. Pay the annual business license fee, which varies based on the type of property:
   - Single-family dwelling: $200
   - Duplex: $200 per unit
   Multi-unit complex (3+ units): $100 per unit
5. As of May 1, 2024, display your business license number on any online listings or advertisements for your short-term rental.

Applications can be submitted in person at the SPMRM office (106 - 3270 Village Way) or by email to info@sunpeaksmunicipality.ca. The processing time for business license applications is typically 2-4 weeks, depending on the completeness of the application and any additional information required.

Failure to obtain a business license for your short-term rental can result in significant fines and legal consequences. In 2022, the SPMRM increased the maximum fines for bylaw offenses from $2,000 to $50,000. Repeat offenders may face additional penalties, including the revocation of their business license.

To ensure compliance and avoid penalties, property owners should contact the SPMRM at 250-578-2020 or info@sunpeaksmunicipality.ca with any questions or concerns regarding the short-term rental licensing process.

Required Documents for Sun Peaks Short-Term Rentals

To legally operate a short-term rental in Sun Peaks, property owners must obtain a business license from the Sun Peaks Mountain Resort Municipality (SPMRM). This requires submitting several documents, as outlined on the municipality's official website and in the Business Licensing and Regulation Bylaw No. 0203.

The required documents for registering a short-term rental in Sun Peaks include:

1. Business License Application Form: This form collects information about the property owner(s), the rental property location, number of bedrooms, and maximum occupancy. It is available on the SPMRM website under "Business Licenses" or at the municipal office.
2. Site Plan: A detailed site plan showing parking availability, landscaping, and snow storage is required for properties zoned RS-1 or operating under a Temporary Use Permit (TUP). This helps ensure the property can accommodate guest parking and maintain the residential character of the neighborhood.
3. Proof of Property Ownership: Applicants must provide proof of ownership or a signed letter from the owner authorizing the use of the property for short-term rentals.
4. Temporary Use Permit (if applicable): If the property is not zoned for tourist accommodation (TA), owners must obtain a TUP before applying for a business license. The TUP application process involves a public hearing and council approval.
5. Garbage Disposal Plan: All short-term rental properties must submit a plan outlining how guest garbage will be managed and disposed of to minimize wildlife attractants and maintain cleanliness.
6. $1,000 Refundable Deposit (for TUP properties): Owners of properties operating under a TUP must provide a $1,000 deposit to cover the costs of responding to verified complaints and bylaw violations.

These documents must be submitted to the SPMRM office along with the applicable business license fees, which vary based on the type and size of the rental property. Fees range from $140 to $500 per unit, with RS-1 and TUP properties subject to higher rates than strata properties.

It's important to note that the SPMRM limits the number of TUPs issued per residential street or subdivision to 25% of properties. Additionally, all short-term rentals must have a designated on-site contact person to address any guest issues or complaints.

By gathering and submitting the required documents, property owners can ensure compliance with Sun Peaks' short-term rental regulations and operate their rental business responsibly within the community.

Sun Peaks Short-Term Rental Taxes

Short-term rental operators in Sun Peaks, British Columbia are subject to several taxes at the federal, provincial, and municipal levels. It's crucial for hosts to understand and comply with these tax obligations to avoid potential fines and legal issues.

Goods and Services Tax (GST)

The federal Goods and Services Tax (GST) is a value-added tax of 5% that applies to most goods and services, including short-term rentals. If your total annual revenue from your rental activities exceeds $30,000 in a 12-month period, you are required to register for, collect, and remit GST.

Provincial Sales Tax (PST)

In British Columbia, an 8% Provincial Sales Tax (PST) is charged on all short-term room rentals by hotels, motels, cottages, inns, resorts, and other roofed accommodations. This tax applies to rentals of less than 27 consecutive days.

Municipal and Regional District Tax (MRDT)

Sun Peaks is one of the provincially approved municipalities that charges a Municipal and Regional District Tax (MRDT) of up to 3% on short-term room rentals. This tax is used to fund local tourism marketing, projects, and programs.

As of 2018, the combined PST and MRDT rate for short-term rentals in Sun Peaks is 11%. Hosts are responsible for collecting these taxes from guests and remitting them to the appropriate authorities.

Possible Deductions and Write-offs

Short-term rental hosts in Sun Peaks may be able to deduct certain expenses related to their rental business to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Utilities
5. Cleaning and maintenance costs
6. Supplies
7. Advertising

It's important to keep accurate records and consult with a tax professional to ensure you are claiming all eligible deductions and complying with tax laws.

In summary, short-term rental operators in Sun Peaks must navigate a complex web of federal, provincial, and municipal taxes, with a combined tax rate of up to 16% (5% GST + 8% PST + 3% MRDT) on their rental income. By understanding these tax obligations, registering with the appropriate authorities, and taking advantage of available deductions, hosts can ensure a successful and compliant rental business in this popular resort town.

British Columbia Wide Short-Term Rental Rules

In addition to the specific regulations in Sun Peaks, short-term rental hosts must also comply with province-wide laws and ordinances in British Columbia. These rules apply to all vacation rentals across the province, including those in Sun Peaks.

The primary province-wide legislation governing short-term rentals is the Short-Term Rental Accommodations Act, which was passed in October 2023. This act aims to return more short-term rental units to the long-term housing market, provide local governments with stronger enforcement tools, and establish a new provincial role in regulating short-term rentals.

Under the act, starting May 1, 2024, a principal residence requirement will be implemented, limiting short-term rentals to the host's principal residence plus one secondary suite or accessory dwelling unit. This requirement applies to communities with a population of 10,000 or more, as well as smaller neighboring communities. However, certain property types and communities, such as ski resorts like Sun Peaks, are exempt from this requirement.

The act defines a short-term rental as an accommodation provided to the public for a period of less than 90 consecutive days in exchange for money. The new rules apply to all short-term rentals offered on platforms like Airbnb, VRBO, and Expedia, as well as listings on other online forums and classified ads.

Other key aspects of the Short-Term Rental Accommodations Act include:

1. Increased fines for bylaw offenses, with regional districts able to set fines up to $50,000 and municipalities able to issue tickets up to $3,000 per infraction per day.
2. Requirement for hosts to display a valid business license number on their listings starting May 1, 2024, if required by the local government.
3. Removal of legal non-conforming use protections for short-term rentals as of May 1, 2024.
4. Data sharing between short-term rental platforms and the province, with the information then shared with local governments for enforcement purposes.
5. Establishment of a provincial short-term rental registry by late 2024 or early 2025, requiring platforms to validate listings against the registry data.

In addition to the Short-Term Rental Accommodations Act, hosts in British Columbia must also collect and remit the 8% Provincial Sales Tax (PST) and up to 3% Municipal and Regional District Tax (MRDT) on their rental revenue. Income earned from short-term rentals is generally subject to federal and provincial income tax as well.

It's crucial for Sun Peaks short-term rental hosts to stay informed about both local and province-wide regulations to ensure compliance and avoid potential fines or legal consequences. Consulting with local authorities, legal professionals, and tax experts can help hosts navigate the complex regulatory landscape and operate their short-term rentals successfully.

Does Sun Peaks Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, Sun Peaks appears to be fairly strict in enforcing short-term rental regulations compared to some other resort towns. The general consensus is that the Sun Peaks Mountain Resort Municipality (SPMRM) has been increasing enforcement efforts in recent years.

Several hosts have mentioned that Sun Peaks requires all short-term rentals to obtain a business license and include the license number in any online listings. Failure to do so can result in significant fines. One Reddit user noted that as of May 1, 2024, the SPMRM will be using monitoring software called Granicus to scan short-term rental advertisements and ensure compliance with occupancy limits and licensing requirements.

While Sun Peaks is a resort community that relies heavily on tourism, the municipality seems to be striving to balance the needs of visitors with those of local residents. Recent amendments to the short-term rental policy in 2022 aimed to address issues like parking, noise, and garbage disposal. Some neighborhoods, like Lookout Ridge, have pushed back against the proliferation of vacation rentals.

Compared to other ski resort areas, Sun Peaks is not exceptionally Airbnb-friendly. The municipality allows short-term rentals in properties zoned for tourist accommodation or those with a temporary use permit, but caps the number of permits per residential street at 25%. Hosts who violate occupancy limits can face fines of $500 per day.

While some hosts may still attempt to operate under the radar, the risks and consequences appear to be increasing. The prevailing sentiment on forums is that following the rules and obtaining proper licensing is essential for running a successful and compliant short-term rental business in Sun Peaks.

In summary, based on the experiences shared by BiggerPockets and Reddit users, Sun Peaks does enforce its short-term rental regulations consistently, with increasing strictness in recent years. The municipality aims to strike a balance between supporting tourism and preserving residential communities. Hosts should carefully review and comply with all local requirements to avoid penalties and maintain positive relationships with the town and neighbors.

How to Start a Short-Term Rental Business in Sun Peaks

Starting a short-term rental (STR) business in Sun Peaks can be a rewarding venture, but it requires careful planning and compliance with local regulations. Follow these steps to successfully launch your STR in this popular ski resort town:

1. Determine your property's eligibility: Check if your property is zoned for tourist accommodation (TA) or if you need to apply for a Temporary Use Permit (TUP). TUPs are limited to 25% of properties per residential street. Contact the Sun Peaks Mountain Resort Municipality (SPMRM) for guidance.
2. Obtain necessary permits and licenses: Apply for a business license from the SPMRM, which requires submitting a completed application form, proof of ownership, site plan, garbage disposal plan, and applicable fees. If your property is not zoned TA, you'll need to secure a TUP before applying for a business license.
3. Prepare your property: Ensure your rental meets all safety and occupancy requirements. Install smoke and carbon monoxide detectors, fire extinguishers, and clearly marked exits. Provide sufficient parking and snow storage as per your site plan. Consider hiring a professional to assess your property and make any necessary upgrades.
4. Develop a marketing strategy: Research your target audience and local competition. Create attractive listings on popular STR platforms like Airbnb and VRBO, highlighting your property's unique features and proximity to ski lifts, trails, and village amenities. Invest in high-quality photos and compelling descriptions.
5. Set competitive rates: Analyze market trends and adjust your pricing based on factors like seasonality, events, and demand. Consider offering discounts for longer stays or repeat guests. Use dynamic pricing tools to optimize your revenue.
6. Establish house rules and policies: Create clear guidelines for guests regarding noise levels, parking, occupancy limits, pet policies, and smoking restrictions. Communicate these rules in your listings and rental agreements to set expectations and minimize issues.
7. Arrange cleaning and maintenance: Hire a reliable cleaning service to ensure your rental is spotless between guests. Develop a maintenance schedule to address any repairs or upkeep promptly. Stock essential supplies like linens, toiletries, and kitchen items.
8. Comply with tax obligations: Register to collect and remit the 8% Provincial Sales Tax (PST) and 3% Municipal and Regional District Tax (MRDT) on your rental income. Keep accurate records and consult with a tax professional to ensure compliance and maximize deductions.
9. Provide exceptional guest experiences: Go above and beyond to create memorable stays for your guests. Offer local recommendations, ski trail maps, and thoughtful amenities. Be responsive to guest inquiries and address any concerns promptly. Encourage guests to leave reviews to attract future bookings.
10. Stay informed and adaptable: Keep up with any changes in local regulations, such as the new requirement to display your business license number on listings starting May 1, 2024. Join local host communities and attend town meetings to stay connected and advocate for fair policies.

By following these steps and prioritizing compliance, guest satisfaction, and proactive management, you can build a successful short-term rental business in Sun Peaks. Remember to showcase your property's unique charm while being a responsible host and contributing positively to the local community.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Sun Peaks, here are the key contacts and resources:

Sun Peaks Mountain Resort Municipality
106-3270 Village Way
Sun Peaks, BC V0E 5N0
Phone: 250-578-2020
Email: info@sunpeaksmunicipality.ca
Website: https://sunpeaksmunicipality.ca/

The Sun Peaks Mountain Resort Municipality (SPMRM) is responsible for administering the town's short-term rental regulations, including the business licensing process and enforcement of bylaws. They can provide information on zoning requirements, temporary use permits, and compliance with local rules.

Director of Corporate Services - Nicky Jonsson

Email: njonsson@sunpeaksmunicipality.ca
Phone: 250-578-2020

As the Director of Corporate Services, Nicky Jonsson oversees the short-term rental licensing process and can answer specific questions about applications, required documents, fees, and timelines.

Bylaw Enforcement

Phone: 778-257-2275
Email: bylaw@sunpeaksmunicipality.ca

The Bylaw Enforcement office investigates complaints and enforces the municipality's short-term rental regulations. Contact them to report potential violations or ask questions about compliance.

In addition to these official resources, Sun Peaks hosts may find support and advice from local vacation rental communities and online forums:

1. Sun Peaks Neighbours Facebook Group: https://www.facebook.com/groups/sunpeaksneighbours/ - A private group for Sun Peaks residents and property owners to connect, share information, and discuss local issues, including short-term rentals.
2. Sun Peaks Owners & Guests Forum on TripAdvisor: https://www.tripadvisor.ca/ShowForum-g181788-i2453-Sun_Peaks_British_Columbia.html - An active forum where Sun Peaks property owners, guests, and residents share experiences, ask questions, and provide recommendations.
3. AlluraDirect Sun Peaks Owners Forum: https://www.alluradirect.com/regions/sun-peaks/owners-forum/ - A platform for Sun Peaks property owners to discuss various topics, including rental management, regulations, and best practices.

Remember, while online communities can provide valuable insights, always verify information with official sources and consult with local authorities or legal professionals for guidance on compliance with short-term rental regulations in Sun Peaks.

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

To gauge the opinions of Airbnb hosts in Sun Peaks regarding local short-term rental regulations, I searched through relevant threads and comments on Reddit, Bigger Pockets, and other online forums. Here are a few notable examples of real-life experiences and perspectives shared by Sun Peaks hosts:

In a Reddit thread titled "New short-term rental rules in Sun Peaks," a user mentioned that the municipality had recently increased fines for bylaw violations and introduced a requirement for hosts to display their business license number on listings starting May 1, 2024. They expressed concern about the impact of these changes on their rental business but acknowledged the need for balanced regulations.

On the Bigger Pockets forum, a host shared their experience with the Temporary Use Permit (TUP) process in Sun Peaks. They noted that obtaining a TUP for their property in a residential zone was challenging, as the municipality caps the number of permits per street at 25%. The host advised others to start the application process early and be prepared for public hearings and potential opposition from neighbors.

In a Facebook group for Sun Peaks property owners, a member posted about the municipality's increased enforcement efforts, including the use of Granicus software to monitor short-term rental listings for compliance. Some hosts expressed frustration with the stricter rules, while others argued that responsible operators should have nothing to fear.

A TripAdvisor forum thread titled "Short-term rentals in Sun Peaks" featured a discussion about the town's regulations and their impact on the local housing market. One long-time resident argued that the proliferation of vacation rentals had made it difficult for local workers to find affordable housing. However, a property manager countered that short-term rentals provide crucial income for many homeowners and support the town's tourism-based economy.

On the AlluraDirect Sun Peaks Owners Forum, a host shared their positive experience working with the municipality to bring their property into compliance with the short-term rental regulations. They emphasized the importance of open communication and a willingness to adapt to the evolving regulatory landscape.

Overall, the sentiment among Sun Peaks hosts on Reddit, Bigger Pockets, and other forums appears to be mixed. While some express frustration with the increasing regulations and enforcement, others recognize the need for balance and the importance of compliance. Many hosts acknowledge that operating a short-term rental in Sun Peaks requires careful planning, attention to detail, and a commitment to being a responsible member of the community.

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.