How BC’s New Short-Term Rental Rules Affect Buyers and Sellers
To address the housing shortage in British Columbia, the provincial government has introduced new laws that significantly impact short-term rentals. The Short-Term Rental Accommodations Act, effective May 1, 2024, introduces stricter regulations for homeowners who offer short-term rentals. Here’s what buyers and sellers need to know:
What are the key changes in the new law?
- Short-term rentals are now limited to the host’s primary residence and one additional unit (e.g., a suite or accessory dwelling unit) in most major BC communities (populations over 10,000 or nearby areas).
- Regional districts now have the authority to regulate short-term rentals outside municipal boundaries.
- Platforms like Airbnb and Vrbo must share data with the government for better enforcement.
- Historical short-term rental use is no longer grandfathered (i.e., past permissions no longer apply).
- A provincial short-term rental registry and enforcement unit are being created.
- The rules do not apply to hotels, motels, strata hotels, timeshares, fishing lodges, First Nations reserve lands, or modern treaty lands (unless those First Nations choose to opt in).
- Municipalities can still enforce stricter rules than the provincial baseline.
How does this affect homeowners who currently operate short-term rentals?
If you’re renting out your property on a short-term basis, you should check whether your use is still legal under both the new provincial law and your local municipal or strata rules. If your property does not meet the new requirements, you may need to transition to long-term rentals or explore alternative uses.
Are all communities in BC affected by these rules?
No. While most larger cities are affected, small municipalities (under 10,000 people), resort towns, and some other areas are exempt—at least initially. However, some smaller municipalities may choose to opt in to the new restrictions. If you’re unsure about your area, check the latest government updates or consult a real estate professional.
What should buyers consider if they want to purchase a property for short-term rentals?
If you’re looking to invest in a short-term rental property, be aware that regulations are constantly evolving. Some municipalities already had restrictions in place before this new law. Buyers should carefully review:
- Local zoning and bylaws
- Provincial restrictions under the Short-Term Rental Accommodations Act
- Additional regulations such as the Speculation and Vacancy Tax and the Foreign Buyers Ban
It’s crucial to include legal due diligence as part of your purchase conditions to ensure your intended use aligns with current laws.
What if I purchased a pre-sale condo expecting to use it for short-term rentals?
If you already committed to buying a pre-sale condo with short-term rental plans, you should review your purchase contract and disclosure statement. Developers are required to update buyers about material changes, and you may have options depending on the contract terms. Seek legal advice to understand your rights.
As a seller, do I need to disclose these changes to potential buyers?
Because this law has been widely announced, it is not considered a hidden defect requiring mandatory disclosure. However, sellers may still choose to inform buyers to prevent issues at closing, especially if the buyer had planned to use the property as a short-term rental.
Can a strata building opt out of the new rules?
No. While local governments may opt out of the restrictions if the rental vacancy rate is 3% or higher for two consecutive years, individual buildings or properties cannot request exemptions.
Final Thoughts
These new short-term rental regulations will impact many aspects of BC’s real estate market, including buying, selling, and investment strategies. If you are affected, it’s important to stay informed and seek professional guidance to navigate these changes effectively.