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

Short-term rentals (STRs) like Airbnb and VRBO have become increasingly popular in Chemainus and across British Columbia in recent years. However, new provincial legislation and local zoning bylaws are changing the landscape for STR operators in the region. Here's what you need to know about the current regulations.

Starting a Short-Term Rental Business in Chemainus

As of May 1, 2024, new rules restricting short-term rentals to principal residences plus one additional unit on the same property came into effect in many B.C. communities, including Chemainus. The Cowichan Valley Regional District (CVRD), which includes Chemainus, has opted into these new provincial regulations in six of its nine electoral areas.

Under the CVRD's current zoning bylaws, most residentially-zoned parcels do not permit short-term rentals. Fewer than 100 parcels of land throughout the CVRD allow STRs. Traditional bed and breakfasts are generally permitted in most residential zones, provided the owner or operator resides within the dwelling and serves breakfast to guests.

Wyatt Dahl and Brett Mason, proprietors of an Airbnb property in Chemainus, recently shared their experience with the new regulations. The couple manages two listings on their property - a suite within their house and a newly built cabin. However, the new rules prohibit having more than one STR per property. As a result, the Dahls will have to stop renting out their cabin, which primarily serves as Brett Mason's home office during the week.

"Financially, this is a significant setback for us," Mason told CBC News. "We built this tiny cabin earlier this year, anticipating that it would serve as both an office and an Airbnb. Unfortunately, we will not recoup the funds invested in it by only operating it for less than a year."

Despite the financial impact, Dahl and Mason understand the rationale behind the legislation, which aims to return long-term housing stock to the market amidst a rental crisis. "It's essential to prioritize the needs of the community over our personal interests," Mason stated.

The province has reported that the top 10% of Airbnb hosts in B.C. generate nearly 50% of STR revenue. Some operators have criticized the new regulations as punitive, particularly for those who have followed zoning rules and obtained necessary licenses. However, housing advocates like Rohana Rezel generally welcome the legislation, hoping it will hold platforms like Airbnb and VRBO accountable and reduce competition for law-abiding operators.

In summary, starting a short-term rental business in Chemainus has become more challenging due to new provincial legislation and local zoning bylaws. Prospective STR operators should carefully review the regulations and consult with the CVRD's Development Services department (ds@cvrd.bc.ca) to determine if their property permits short-term rentals. While the changes may impact some operators financially, the goal is to prioritize long-term housing availability in the community.

Short-Term Rental Licensing Requirement in Chemainus, Canada

Short-term rentals, such as Airbnb and VRBO, are subject to licensing requirements in Chemainus and the broader Cowichan Valley Regional District (CVRD). According to the CVRD's website, most residentially-zoned parcels do not permit short-term rentals, with fewer than 100 parcels throughout the district allowing STRs. Traditional bed and breakfasts are generally permitted in most residential zones, provided the owner or operator resides within the dwelling and serves breakfast to guests.

To operate a short-term rental legally in Chemainus, property owners must:

1. Ensure their property is zoned to allow short-term rentals. Consult the CVRD's Zoning Bylaw and use the online Web Map to determine the permitted uses for the specific property.

2. Obtain a business license from the Municipality of North Cowichan. Fill out the application form and email it to licensing@northcowichan.ca or submit it in person at the North Cowichan Municipal Hall (7030 Trans Canada Hwy, North Cowichan).

3. Pay the applicable fees:

• Yearly License Fee: $100
• Yearly Inter-Community Licence Fee (for mobile businesses operating across communities): $270
• Late Fee (after February 28 or February 29 in a Leap Year): $25
• Pro-Rated Fee (after July 1): $50

Processing times for business licenses vary depending on whether approvals from other departments are required. Allow a few weeks to 2-3 months for the license to be issued, depending on the type of license and the review the application must undergo.

Penalties for operating a short-term rental without a proper license can be severe. In North Cowichan, fines for noncompliance can be as much as $1,500 per day. As of October 2023, there were 226 Airbnb listings in North Cowichan, but only 23 had registered business licenses with the municipality.

It's important to note that the CVRD has opted into the province's new Bill-35, which restricts short-term rentals to principal residences and either a secondary suite or accessory dwellings in six of its nine electoral areas. Where STRs are allowed, the owner must live on-site, and whole-home short-term rentals are not permitted. These new rules aim to combat the housing crisis by returning more short-term rental units to the long-term housing market.

Prospective short-term rental operators in Chemainus should carefully review the zoning bylaws and consult with the CVRD's Development Services department (ds@cvrd.bc.ca) to ensure compliance with local regulations. While the new rules may impact some operators financially, the goal is to prioritize long-term housing availability in the community.

Required Documents for Chemainus, Canada Short-Term Rentals

To operate a short-term rental (STR) legally in Chemainus, property owners must submit several documents when applying for a business license with the Municipality of North Cowichan. The following documents are required:

Completed Business License Application Form: This form provides essential information about the business, including the owner's contact details, the property address, and the type of business. The form can be downloaded from the Municipality of North Cowichan's website and submitted via email to licensing@northcowichan.ca or in person at the North Cowichan Municipal Hall.

Proof of Property Ownership or Lease Agreement: Applicants must provide evidence that they own the property or have permission from the owner to operate a short-term rental. A copy of the property title or a signed lease agreement is required.

Zoning Compliance Confirmation: Short-term rentals are only permitted in specific zones within Chemainus and the Cowichan Valley Regional District (CVRD). Applicants must confirm that their property is zoned to allow STRs by consulting the CVRD's Zoning Bylaw and using the online Web Map.

Floor Plan: A detailed floor plan of the property, including the areas to be used for the short-term rental, must be submitted. The plan should clearly indicate the number of bedrooms, bathrooms, and any common areas accessible to guests.

Parking Plan: Applicants must provide a parking plan that shows the number and location of available parking spaces for guests. The plan should comply with the parking requirements outlined in the Municipality of North Cowichan's Zoning Bylaw.

Emergency Contact Information: The name and contact information of a local representative who can be reached 24/7 in case of emergencies must be provided. This person should be able to address any issues or concerns that may arise during a guest's stay.

Proof of Insurance: Applicants must submit proof of liability insurance coverage for their short-term rental business. The insurance should cover potential damages, accidents, or injuries that may occur on the property.

Payment of Applicable Fees: The required fees, including the yearly license fee ($100), inter-community license fee (if applicable, $270), and any late fees (after February 28 or February 29 in a Leap Year, $25) or pro-rated fees (after July 1, $50), must be paid when submitting the application.

By providing these documents and ensuring compliance with local zoning bylaws, property owners in Chemainus can legally operate short-term rentals. It is essential to consult with the Municipality of North Cowichan and the CVRD's Development Services department (ds@cvrd.bc.ca) to ensure all requirements are met before commencing operation.

Chemainus, Canada Short-Term Rental Taxes

When operating a short-term rental business in Chemainus, British Columbia, several taxes apply at the federal and provincial levels. Understanding these taxes is crucial for hosts to remain compliant and avoid penalties.

Goods and Services Tax (GST): The federal Goods and Services Tax (GST) is a value-added tax of 5% applicable to most goods and services, including short-term rental accommodations under 30 nights. If your total annual revenue from short-term rental activities exceeds $30,000 in a 12-month period, you must register for and collect GST from your guests.

Provincial Sales Tax (PST): In British Columbia, an 8% Provincial Sales Tax (PST) applies to short-term room rentals by hotels, motels, cottages, inns, resorts, and other roofed accommodations. Airbnb and Vrbo collect and remit the PST on behalf of hosts for bookings made through their platforms.

Municipal and Regional District Tax (MRDT): The Municipal and Regional District Tax (MRDT) of up to 3% applies to short-term accommodations in participating areas of B.C., in addition to the 8% PST. The MRDT is used to fund local tourism marketing, programs, and projects. Airbnb and Vrbo also collect and remit the MRDT on behalf of hosts.

For example, if you provide a room in Chemainus for $200 per night, your guest would pay:

1. Purchase Price: $200
2. GST ($200 x 5%): $10
3. PST ($200 x 8%): $16
4. MRDT ($200 x 2%): $4
5. Total (not including cleaning fees or service fees): $230

As a host, you can deduct reasonable expenses incurred to earn rental income on your tax return, which can help offset your tax liability. Some deductible expenses include:

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

Keeping accurate records of your income and expenses is essential for claiming deductions and preparing your tax returns. Consult with a tax professional to ensure you are taking advantage of all available deductions and remaining compliant with federal and provincial tax laws.

By understanding the applicable taxes and allowable deductions, short-term rental hosts in Chemainus can better manage their business finances and optimize their profitability.

British Columbia Wide Short-Term Rental Rules

In addition to local regulations in Chemainus, short-term rental hosts must also comply with provincial laws set forth in the Short-Term Rental Accommodations Act, which came into effect on May 1, 2024. These rules apply to all communities in British Columbia with a population over 10,000, including Chemainus.

The most significant provincial requirement is the principal residence rule. Hosts can only rent out their primary residence, where they live for most of the year, plus one additional unit on the same property, such as a secondary suite or accessory dwelling. This means investment properties and second homes can no longer be used as short-term rentals in Chemainus and other designated areas.

Another key change is that legal non-conforming use protections no longer apply to short-term rentals as of May 1, 2024. Previously, some properties were grandfathered in and allowed to operate STRs even if they didn't conform to current zoning. Now, all STRs must comply with updated local bylaws that restrict this use.

The province has also given regional districts like the Cowichan Valley Regional District, which includes Chemainus, the authority to regulate and license short-term rentals in a manner similar to municipalities. Regional districts can now set fines up to $50,000 for STR bylaw violations, a substantial increase from the previous $2,000 maximum.

Looking ahead, the province plans to establish a short-term rental registry by early 2025. Once launched, hosts will need to display a provincial registration number in their listings, and booking platforms like Airbnb and Vrbo will be required to validate these numbers. The registry will help the province and local governments track and enforce compliance.

To summarize, the key provincial short-term rental requirements affecting Chemainus hosts are:

1. Restricting STRs to principal residences plus one additional on-site unit
2. Eliminating legal non-conforming use protections for STRs
3. Enabling regional districts to implement stricter regulations and penalties
4. Establishing a provincial STR registry for improved monitoring and enforcement

Hosts should carefully review both local Chemainus regulations and overarching provincial rules to ensure their short-term rental is fully compliant and avoid potentially hefty fines. The new laws aim to crack down on STRs operating illegally and return more units to the long-term rental market amidst BC's housing crisis.

Does Chemainus, Canada Strictly Enforce STR Rules?

Chemainus, as part of the Cowichan Valley Regional District (CVRD), has opted into British Columbia's new short-term rental regulations under Bill 35. These rules, which take effect on November 1, 2024, for the CVRD, restrict STRs to principal residences plus one additional on-site unit. However, the question remains: will Chemainus strictly enforce these new rules?

According to discussions on real estate forums like BiggerPockets and Reddit, the general consensus is that Chemainus and the CVRD will likely take a firm stance on STR compliance. As of October 2023, there were 226 Airbnb listings in the Municipality of North Cowichan, which includes Chemainus, but only 23 had registered business licenses with the municipality. This suggests that many hosts are currently operating outside of local regulations.

With the new provincial legislation granting more enforcement powers to local governments, including the ability for regional districts to set fines up to $50,000 for STR bylaw violations, it is expected that Chemainus will crack down on non-compliant listings. The CVRD has already expressed its intention to prioritize long-term housing availability over short-term rentals, with six of its nine electoral areas opting into the principal residence requirement.

Compared to other tourism-dependent communities like Tofino and Whistler, which have been granted exemptions from the new rules, Chemainus appears less Airbnb-friendly. While some hosts may continue to operate despite the regulations, the risk of hefty penalties and the removal of legal non-conforming use protections will likely deter many from doing so.

In summary, based on the available information from real estate forums and local news sources, Chemainus and the CVRD are expected to strictly enforce the new short-term rental rules once they take effect. Hosts who continue to operate non-compliant listings will face significant fines and potential legal consequences. As the community prioritizes long-term housing, Chemainus may become a less attractive destination for Airbnb operators compared to other tourism hotspots with more lenient regulations.

How to Start a Short-Term Rental Business in Chemainus, Canada

Starting a short-term rental (STR) business in Chemainus requires careful planning and compliance with local regulations. Follow these steps to launch your STR venture:

Determine if your property is zoned for short-term rentals: Consult the Cowichan Valley Regional District's (CVRD) Zoning Bylaw and use the online Web Map to confirm your property's zoning allows STRs. Most residentially-zoned parcels in the CVRD do not permit STRs, with fewer than 100 parcels throughout the district allowing this use. Traditional bed and breakfasts are generally permitted in most residential zones, provided the owner or operator resides within the dwelling and serves breakfast to guests. Contact the CVRD's Development Services department (ds@cvrd.bc.ca) for guidance on your property's zoning and permitted uses.

Comply with the principal residence requirement: As of May 1, 2024, new provincial legislation restricts STRs to principal residences plus one additional on-site unit in Chemainus and other designated areas. Ensure your STR operation aligns with this rule, meaning you must live on the property and cannot rent out entire investment properties or second homes. Review the province's STR regulations and interactive map to confirm the principal residence requirement applies to your location.

Obtain a business license: Apply for a business license from the Municipality of North Cowichan. Fill out the application form and email it to licensing@northcowichan.ca or submit it in person at the North Cowichan Municipal Hall. Provide all required documents and pay the applicable fees ($100 yearly license fee, plus additional fees if applicable). Allow a few weeks to 2-3 months for your license to be processed, depending on the type of license and required approvals.

Prepare your property: Ensure your rental space is clean, well-maintained, and equipped with necessary amenities. Develop a comprehensive listing description, high-quality photos, and an accurate calendar to showcase your property's features and availability. Highlight unique selling points, such as proximity to local attractions or special amenities, to make your listing stand out.

Set competitive rates: Research similar listings in your area to determine a competitive nightly rate. Consider factors like seasonality, events, and demand when adjusting your prices. Offer special promotions or discounts during slower periods to attract bookings and maintain occupancy.

Establish house rules and guest communication: Create clear house rules that outline expectations for guest behavior, parking, noise levels, and other important considerations. Develop a system for effective guest communication before, during, and after their stay. Use automated messaging templates to streamline guest interactions while maintaining a personalized touch.

Manage bookings and operations: Choose a platform like Airbnb or Vrbo to list your property and manage reservations. Implement a system for handling check-ins, check-outs, cleaning, and maintenance tasks. Consider hiring a professional cleaning service or property manager to assist with day-to-day operations, especially if you have multiple listings or limited availability.

Comply with tax obligations: Register for and collect the 5% federal Goods and Services Tax (GST) if your annual STR revenue exceeds $30,000. The 8% Provincial Sales Tax (PST) and up to 3% Municipal and Regional District Tax (MRDT) will be collected and remitted by Airbnb and Vrbo on your behalf. Keep accurate records of your income and expenses to claim allowable deductions and prepare your tax returns.

By following these steps and staying informed about local regulations, you can successfully launch and operate a compliant short-term rental business in Chemainus. Remember to prioritize guest satisfaction, maintain open communication with local authorities, and adapt to any changes in the regulatory landscape to ensure the long-term success of your venture.

Who to Contact in Chemainus, Canada about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations and zoning in Chemainus, British Columbia, there are several key contacts and resources available:

Cowichan Valley Regional District (CVRD) Development Services: For inquiries about whether your property permits the use of a short-term rental, contact the CVRD's Development Services department at ds@cvrd.bc.ca.

Municipality of North Cowichan Bylaw Enforcement: If you have a question about a bylaw or want to speak to the Bylaw Enforcement team, call 250-746-3108 or email bylaw@northcowichan.ca. To report a bylaw violation, use the online reporting form available on the Bylaw Services page.

Municipality of North Cowichan Legislative Services: For help locating a specific copy of a bylaw, email the Legislative Services department.

CVRD Building Inspections: For general building permit and inspection questions, contact the CVRD Building Inspections department at 250-746-2610 or email inspections@cvrd.bc.ca.

In addition to these official contacts, there are several online communities and forums where Chemainus short-term rental hosts can connect, share experiences, and seek advice:

BiggerPockets Forum: This popular real estate investing forum has a dedicated section for short-term rentals and Airbnb investments. It's an active community with over 1.3 million posts, making it a great resource for hosts to stay updated on market trends and connect with peers.

Airbnb Community Center: The official Airbnb forum is a valuable resource for hosts, offering a wide range of topics and discussions related to managing short-term rentals. The community is quite active, providing solutions to common issues faced by hosts.

Airbnb Subreddit: With more than 364,000 users, the Airbnb Subreddit is a thriving community for guests and hosts to discuss all aspects of the short-term rental business. Users can view trending topics, find answers to burning questions, and discover vacation rental news.

By reaching out to the appropriate local government contacts and engaging with online host communities, Chemainus short-term rental owners can stay informed about regulations, zoning, and best practices to ensure the success of their businesses.

What Do Airbnb Hosts in Chemainus, Canada, on Reddit and Bigger Pockets Think about Local Regulations?

After searching through various online forums and communities, including Reddit and BiggerPockets, there appears to be limited discussion, specifically from Airbnb hosts in Chemainus regarding local short-term rental regulations. However, a few relevant threads provide some insight into the experiences and opinions of hosts in the broader Cowichan Valley region:

Reddit - r/VancouverIsland - "Life in Chemainus?": In this thread from 2021, a user inquires about the quality of life and property investment potential in Chemainus. While not directly related to short-term rentals, the responses suggest that the area is generally seen as a desirable place to live, with a strong sense of community and access to outdoor activities.

BiggerPockets Forum - "NEWBIE looking to start investing in British Columbia, Canada!!": A new investor seeks advice on getting started with real estate investing in British Columbia, including the Cowichan Valley. Although the discussion doesn't specifically mention short-term rentals, it highlights the importance of researching local regulations and zoning bylaws before investing in a property.

Reddit - r/VictoriaBC - "Airbnbs for sale! LoL": This 2023 thread discusses the challenges faced by some Airbnb operators in the Victoria area, with properties being listed for sale due to the impact of new regulations. While not directly related to Chemainus, it suggests that the regulatory landscape for short-term rentals is evolving across Vancouver Island.

Despite the limited direct feedback from Chemainus Airbnb hosts, these discussions indicate a growing awareness of the importance of understanding and complying with local short-term rental regulations. As the Cowichan Valley Regional District and other jurisdictions on Vancouver Island continue to adapt their policies, hosts will need to stay informed and engaged to ensure the long-term viability of their businesses.

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.