BC’s Short-Term Rental Rules: How They Impact Homeowners & Investors

Published on 28 January 2025, 06:46:44 PM

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British Columbia’s short-term rental market is undergoing significant changes due to new provincial regulations designed to improve housing availability.

What Are the Rules?

The BC government introduced the Short-Term Rental Accommodations Act (“STRAA”), which limits short-term rentals (such as Airbnb, VRBO, or Booking.com) primarily to principal residences in certain jurisdictions. This means that homeowners can only list properties they personally live in, with some exceptions for secondary suites or carriage homes. For the purposes of STRAA, “short-term” is defined as rentals with terms of 90 days or less.

Additionally, municipalities have been given stronger enforcement powers, including increased fines for non-compliance and better data-sharing with platforms like Airbnb, which are now required to share information with the government about short-term listings on a regular basis. The provincial government hopes these measures will encourage more long-term rental availability by reducing the number of investment properties used solely for short-term stays.

How Do These Rules Affect Homeowners?

For those who previously relied on short-term rentals as a source of income, these new restrictions could mean significant changes to their rental strategy. Homeowners with multiple properties in key markets may need to shift their investment toward long-term rentals, furnished mid-term rentals (e.g., corporate stays, traveling professionals), or selling properties that are no longer eligible for short-term rentals. Additionally, some investors might reconsider purchasing properties in BC altogether, leading to a shift in investment toward provinces with more flexible rental regulations, such as Alberta. This could impact property values in BC, especially in neighborhoods where short-term rental demand was high.

In cities where demand for housing is high, these changes may help stabilize rental prices by increasing the supply of available long-term rental units. However, some homeowners argue that these rules limit their ability to generate extra income, particularly in popular tourist areas.

What This Means for Renters & the Housing Market

While these rules present challenges for property owners, they could have positive long-term effects for renters. By converting more short-term rentals into long-term housing, the government hopes to increase rental supply and lower costs in key cities. For prospective homebuyers, these changes may also ease competition in the real estate market, as some investors exit the short-term rental business and put properties up for sale.

What Homeowners Should Do Next

  • Review your rental strategy: If you own a secondary property used for short-term rentals, consider transitioning to long-term rentals or exploring alternative rental options.
  • Stay compliant: Ensure your short-term rental follows municipal regulations to avoid fines.
  • Monitor market trends: Keep an eye on how these changes affect BC’s real estate market, as they could impact property values and rental demand.

Final Thoughts

BC’s new short-term rental regulations mark a significant shift in the province’s approach to addressing housing challenges. While these changes present challenges for some homeowners and investors, they may also help create a more balanced housing market. Whether you’re a property owner or renter, staying informed about these policies is crucial in navigating BC’s evolving real estate landscape.

For more updates on real estate laws and market trends, visit axesslaw.com/blog.