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

Starting a Short-Term Rental Business in Fernie

In Fernie, British Columbia, short-term rentals like Airbnb and VRBO are regulated by the City of Fernie's zoning bylaws and provincial legislation. According to the City of Fernie's website, starting May 1st, 2024, the Province of British Columbia requires short-term rentals to meet new regulations, including a principal residence requirement.

To operate a legal short-term rental in Fernie, residents must apply for a business license and meet the following requirements:

• The rental must be in your primary residence, either a room, apartment, or house.
• Condo/hotel properties zoned as C-1, C-HWY, CD-2, and R3R are also permitted for short-term rentals.
• Secondary suites, detached suites, garden suites, and secondary homes do not qualify for short-term rentals.

The City of Fernie's Business Licencing and Regulation Bylaw No. 2028 outlines the regulations that must be met for short-term rentals. Additionally, the Province of British Columbia requires short-term rental hosts to remit Provincial Sales Tax (PST) and local tourism tax for guest stays of 26 days or less.

According to a Reddit discussion, some mountain resort towns like Fernie may be exempt from the principal residence requirement of the new provincial legislation. However, the exemption areas are unique to each resort, and the City of Fernie retains the option to make changes to its bylaws at any time.

Short-Term Rental Licensing Requirement in Fernie

Operating a short-term rental in Fernie requires obtaining a business license from the municipality. The licensing application process is outlined on the City of Fernie's website, and hosts must submit the completed application along with supporting documents in person at City Hall.

The Business Licencing and Regulation Bylaw No. 2028 sets out the regulations that short-term rental operators must comply with to obtain and maintain their license. Licenses must be renewed annually, with fees payable to the City.

According to local business owner Ryland Nelson of Beyondbnb, a vacation rental services provider, the licensing requirement is not consistently enforced. Nelson claims to have compiled a list of potentially unlicensed or non-compliant short-term rentals for the City's bylaw officers to investigate, but alleges no action has been taken.

The City of Fernie acknowledges the challenges in identifying and enforcing short-term rental regulations. Michael Boronowski, the Chief Administrative Officer, stated that the City is working on seasonal enforcement and analysis, with plans to present a report to the council in September 2023. This report will compare the volume of short-term rentals to the number of business licenses issued, providing options for confirming where unlicensed rentals are operating and strengthening enforcement efforts.

Boronowski also highlighted the difficulty in determining compliance based solely on online listings, as some property owners may retain their Airbnb or VRBO accounts even when not actively renting out their properties.

To ensure compliance, short-term rental hosts in Fernie are advised to familiarize themselves with the local bylaws, obtain the necessary business license, and renew it annually. Failure to comply may result in enforcement actions, including fines or orders to cease operations.

Required Documents for Fernie Short-Term Rentals

To obtain a business license for operating a short-term rental in Fernie, hosts must provide several documents as part of the application process. The required documents may vary depending on the type of property and the specific circumstances, but generally include the following:

1. Completed Business License Application Form: This form must be filled out accurately with details about the property owner, the rental unit, and the proposed business operations.
2. Proof of Ownership or Tenancy Agreement: Applicants must provide documentation proving their ownership of the property or a valid tenancy agreement if they are renting the unit themselves.
3. Site Plan or Floor Plan: A detailed site plan or floor plan of the property may be required, clearly indicating the areas designated for short-term rental use.
4. Parking Plan: Depending on the location and zoning of the property, a parking plan may be necessary, demonstrating adequate off-street parking for guests.
5. Proof of Insurance: Short-term rental hosts must provide evidence of appropriate insurance coverage for their rental operations, including liability insurance.
6. Safety Inspection Report: A safety inspection report from a qualified professional may be required to ensure the rental unit meets all necessary safety standards and building codes.
7. Neighborhood Notification: In some cases, applicants may need to provide proof of notifying neighboring properties about their intention to operate a short-term rental.
8. Payment of Fees: The City of Fernie charges various fees for processing the business license application, which must be paid at the time of submission.

It's important to note that the specific requirements may change over time, and it's advisable for short-term rental hosts to consult with the City of Fernie's Business Licensing department to ensure they have the most up-to-date information on the required documents.

Failure to provide the necessary documentation or meet the requirements can result in delays or denial of the business license application, potentially leading to fines or enforcement actions for operating an unlicensed short-term rental.

Fernie Short-Term Rental Taxes

Operating a short-term rental in Fernie comes with certain tax obligations that hosts must comply with. These taxes are imposed by both the provincial government and the municipality to regulate and collect revenue from the short-term rental industry.

Provincial Sales Tax (PST):

Short-term rental hosts in Fernie are required to collect and remit Provincial Sales Tax (PST) on guest stays of 26 days or less. The current PST rate in British Columbia is 8%, which must be added to the rental charges and remitted to the provincial government.

Municipal and Regional District Tax (MRDT):

In addition to the PST, short-term rental hosts in Fernie must collect and remit the Municipal and Regional District Tax (MRDT). This tax is imposed by the municipality and the Regional District of East Kootenay (RDEK) to support tourism marketing and development initiatives.

The MRDT rate in Fernie is currently set at 3% of the rental charges. Hosts are responsible for collecting this tax from guests and remitting it to the appropriate authorities along with the PST.

Business License Fees:

As mentioned earlier, short-term rental hosts in Fernie are required to obtain a business license from the municipality. This license comes with an annual fee, which varies depending on the type of rental property and the number of guest rooms or units.

Failure to comply with tax obligations or obtain the necessary business license can result in penalties, fines, or enforcement actions from the provincial government, the municipality, or the RDEK.

It's crucial for short-term rental hosts in Fernie to familiarize themselves with the applicable tax regulations, collect and remit taxes accurately, and maintain proper records for tax purposes. Consulting with a tax professional or seeking guidance from the relevant authorities can help ensure compliance and avoid potential legal issues.

Fernie Wide Short-Term Rental Rules

Fernie has established specific regulations governing short-term rentals across the city. These rules aim to strike a balance between accommodating visitors and preserving housing availability for long-term residents. Here are the key Fernie-wide short-term rental rules:

Principal Residence Requirement: Short-term rentals are only permitted in properties that serve as the owner's principal residence. This means renting out secondary homes, investment properties, or non-primary residences is not allowed for short-term rental purposes.

Zoning Restrictions: Certain zoning designations limit where short-term rentals can operate. STRs are permitted in residential zones only for primary residences. However, properties zoned as C-1 (Commercial), C-HWY (Highway Commercial), CD-2 (Comprehensive Development), and R3R (Residential Resort) can also be used for short-term rentals, even if they are not the owner's primary residence.

Rental Duration Limit: Fernie defines short-term rentals as accommodations rented for less than 30 consecutive days. Rentals exceeding this duration may be subject to different regulations or may not be permitted.

Business Licensing: All short-term rental operators must obtain a valid business license from the City of Fernie. This license must be renewed annually, and failure to comply can result in fines or enforcement actions.

Safety and Inspection Requirements: Short-term rental properties may be subject to home safety inspections and must meet specific building codes and safety standards. Hosts may need to provide documentation, such as a self-inspection checklist or a professional inspection report, as part of the licensing process.

Taxation and Remittance: Short-term rental hosts are required to collect and remit applicable taxes, including Provincial Sales Tax (PST) and the Municipal and Regional District Tax (MRDT), for guest stays of 26 days or less.

Enforcement and Penalties: The City of Fernie has implemented measures to identify and address illegal or non-compliant short-term rentals. Hosts operating without a license or violating the regulations may face warning notices, fines, or orders to cease operations.

It's important to note that these rules are subject to change, and short-term rental hosts should regularly check with the City of Fernie and relevant authorities to ensure they are up-to-date with the latest regulations and requirements.

Does Fernie Strictly Enforce STR Rules? Is Fernie Airbnb friendly?

Based on discussions on Reddit and other online forums, Fernie appears to be relatively strict in enforcing its short-term rental rules compared to some other cities. While there are likely some hosts who operate illegally without proper licensing, the overall sentiment suggests that Fernie is not particularly Airbnb-friendly for those looking to circumvent the regulations.

According to a Reddit discussion, the City of Fernie has engaged a third-party company, Granicus, to identify illegal short-term rentals in the community and cross-reference them with existing business licenses. This has led to the identification of potentially 72 illegal short-term rentals that the city plans to address through enforcement actions.

Ryland Nelson, a local business owner, has been vocal about the issue, alleging that many properties advertised for short-term rentals are either unlicensed or non-compliant units. Nelson claims to have compiled a list of potentially illegal rentals for the city's bylaw officers to investigate but alleges that no action has been taken so far.

However, the City of Fernie has stated that it takes bylaw complaints seriously and follows up on unlicensed rentals by contacting the operators and requiring them to register or cease operations. The city also plans to conduct seasonal enforcement and analysis, comparing the volume of short-term rentals to the number of business licenses issued and presenting options to council for strengthening enforcement efforts.

While some hosts may attempt to operate illegally, the general consensus from online discussions is that Fernie is actively working to identify and address non-compliant short-term rentals. The city's engagement of third-party services and plans for increased enforcement suggests that it is taking a stricter approach compared to some other municipalities.

Overall, based on the available information, it appears that Fernie is not particularly Airbnb-friendly for hosts looking to operate outside of the established rules and regulations. While some illegal rentals may exist, the city seems committed to enforcing its bylaws and cracking down on unlicensed operations.

How to Start a Short-Term Rental Business in Fernie

To start a legal short-term rental business in Fernie, British Columbia, follow these steps:

1. Ensure Your Property Qualifies: Verify that your property meets the zoning and eligibility requirements for short-term rentals in Fernie. Only primary residences, properties zoned as C-1, C-HWY, CD-2, or R3R are permitted for short-term rentals.
2. Obtain a Business License: Apply for a business license from the City of Fernie. This is a mandatory requirement for operating a short-term rental. The application process involves submitting a completed form, self-inspection checklist, and supporting documents in person at City Hall.
3. Complete the Self-Inspection Checklist: As part of the licensing process, you'll need to complete a self-inspection checklist to ensure your rental property meets safety and building code standards.
4. Provide Required Documents: Gather and submit the necessary documents, including proof of ownership or tenancy agreement, site plan or floor plan, parking plan, proof of insurance, and any other required documentation specified by the City.
5. Pay Licensing Fees: The City of Fernie charges fees for processing the business license application, which must be paid at the time of submission.
6. Register with Provincial Authorities: Starting May 1st, 2024, the Province of British Columbia requires short-term rental hosts to register with the government and comply with new regulations, including a principal residence requirement.
7. Collect and Remit Taxes: Short-term rental hosts in Fernie must collect and remit Provincial Sales Tax (PST) and the Municipal and Regional District Tax (MRDT) for guest stays of 26 days or less. Ensure you understand and comply with these tax obligations.
8. Maintain Compliance: Familiarize yourself with the City of Fernie's zoning bylaws, regulations, and any updates or changes to the short-term rental rules. Ensure ongoing compliance to avoid potential fines or enforcement actions.
9. Renew License Annually: Short-term rental business licenses in Fernie must be renewed annually. Stay up-to-date with the renewal process and requirements.
10. Consider Professional Services: If desired, you can engage professional property management companies to assist with managing your short-term rental business and ensuring compliance with regulations.

It's important to note that the regulations and requirements for short-term rentals in Fernie are subject to change, and it's advisable to consult with the City of Fernie's Bylaw Services department for the most up-to-date information and guidance.

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

If you have questions or need assistance regarding short-term rental regulations, zoning, and licensing in Fernie, you can contact the following departments and officials:

City of Fernie Bylaw Services:
Phone: 250-423-2244
Email: bylawservices@fernie.ca

The Bylaw Services department is responsible for enforcing the City of Fernie's bylaws, including those related to short-term rentals. They can provide information on licensing requirements, zoning regulations, and assist with any inquiries or complaints regarding short-term rental operations.

City of Fernie Development Services:
Phone: 250-423-6817
Email: developmentservices@fernie.ca

The Development Services department handles zoning inquiries, permit applications, and can provide guidance on the zoning requirements for short-term rentals in different areas of Fernie.

Regional District of East Kootenay (RDEK) Development Services:
Phone: 250-489-2791 or Toll-free: 1-888-478-7335

If your short-term rental property is located within the RDEK's jurisdiction, you can contact their Development Services department for information on temporary use permit requirements, zoning details, and any additional regulations that may apply.

Michael Boronowski, Chief Administrative Officer (CAO), City of Fernie:
Phone: 250-423-6817
Email: cao@fernie.ca

As the CAO, Michael Boronowski oversees the administration and enforcement of the City of Fernie's bylaws and regulations. You can contact him or his office for inquiries or concerns related to short-term rental policies and enforcement efforts.

It's advisable to contact the relevant departments directly for the most up-to-date information and guidance on short-term rental regulations in Fernie. Additionally, you can attend City Council meetings or review the meeting minutes to stay informed about any proposed changes or discussions related to short-term rental bylaws.

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

From discussions on Reddit and the Bigger Pockets forums, there are mixed opinions among Airbnb hosts in Fernie regarding the local regulations:

Some hosts express frustration with the principal residence requirement, as it limits their ability to operate multiple short-term rental properties. They argue that the regulations are too restrictive and negatively impact their business.

Others acknowledge the need for regulations to address housing concerns but believe the rules could be more balanced. They suggest allowing a certain percentage of non-principal residences to operate as short-term rentals.

A few hosts mention exploring loopholes or strategies to circumvent the regulations, such as listing properties for longer rental periods (e.g., 3-month leases) to avoid the short-term rental classification.

Hosts who operate legal secondary suites or laneway homes within their principal residences generally seem more accepting of the regulations, as they can continue their short-term rental operations.

There are concerns about the enforcement of regulations, with some hosts claiming that unlicensed or non-compliant rentals continue to operate without consequences.

Overall, the sentiment among hosts on these forums leans towards a desire for more flexibility in the regulations, particularly for those who rely on short-term rentals as a significant source of income or investment strategy.

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.