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

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

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Panorama, British Columbia in recent years. However, property owners looking to start a short-term rental business need to be aware of the various regulations and restrictions that apply. The rules governing short-term rentals can often be found in local zoning codes, planning codes, ordinances, and real estate forums. Here's an overview of what you need to know:

Starting a Short-Term Rental Business in Panorama

Panorama is a designated mountain resort area in British Columbia. As such, it is exempt from the province's new principal residence requirement that limits short-term rentals to a host's primary residence in many other areas. This means that both primary residences and secondary vacation properties can be used as short-term rentals in Panorama.

The Panorama Area Official Community Plan Bylaw provides guidance on short-term rentals:

• The current zoning regulations do not include a specific zone for short-term rentals of single-family dwellings or secondary suites. Temporary Use Permits (TUPs) can be used to allow short-term rentals in residential zones on a case-by-case basis.
• When considering a TUP application for short-term rentals, the Regional District of East Kootenay (RDEK) Board will look at factors like the potential impact on adjacent properties, provision of adequate parking and septic capacity, proposed duration of the use, and compliance with the OCP.
• TUP conditions may restrict which buildings can be used, operating hours, maximum number of guests, and require a local contact available 24/7 to manage issues.

In July 2023, the RDEK Board adopted a new Short-Term Rental TUP Policy that streamlines the approval process in the region's electoral areas (rural regions):

• Short-term rental TUPs can now be approved directly by RDEK staff for properties with up to 10 guests, rather than requiring Board approval.
• TUP application fees were set at $1000 for staff-issued permits and $2000 for permits that still require Board approval.
• All short-term rentals without zoning approval require a TUP to operate. Fines and legal action may be imposed on non-compliant operators.
• TUP applicants must submit documents including a site plan, floor plans, parking plan, septic capacity, and a fire and safety plan. Proof of insurance and a local contact are also required.

So, in summary, while short-term rentals are allowed in Panorama, owners must obtain a TUP and meet various conditions set by the RDEK. This provides some oversight to manage community impacts while still enabling vacation rentals in the resort area.

Prospective short-term rental operators in Panorama should carefully review the RDEK's detailed TUP requirements and application process. Consulting with the RDEK's Development Services staff and local property managers experienced with the short-term rental market is also advised.

With the proper planning, permits and management practices in place, short-term rentals can be a viable business opportunity in Panorama. However, owners need to be prepared to comply with the applicable regulations to avoid fines and operating restrictions.

Short-Term Rental Licensing Requirement in Panorama

To legally operate a short-term rental in Panorama, property owners must obtain a Temporary Use Permit (TUP) from the Regional District of East Kootenay (RDEK). The RDEK's Short-Term Rental TUP Policy outlines the following key requirements and application process:

Requirements:

• The property must be located in an RDEK electoral area (rural region) and does not have existing zoning approval for short-term rentals
• The rental unit must be a single-family dwelling or a secondary suite within a single-family dwelling
• The maximum number of guests allowed is based on the property's septic capacity and parking availability
• The property must have adequate parking (1 space per bedroom), a fire and safety plan, and a local contact available 24/7 to manage any issues
• The owner must have liability insurance coverage of at least $2 million

To apply for a TUP:

1. Contact the RDEK Development Services staff to discuss your proposed short-term rental and confirm eligibility

2. Submit a complete TUP application package to the RDEK office, including:

• Completed application form and owner authorization
• Site plan showing buildings, parking, septic field, water sources, etc.
• Floor plans of the rental unit with room dimensions and uses
• Parking plan (1 space per bedroom)
• Septic capacity assessment from a qualified professional
• Fire and safety plan, including emergency contacts and evacuation procedures
• Proof of insurance ($2 million liability)
• Local contact information (available 24/7)

3. Pay the application fee:

• $1000 for TUPs that can be issued directly by RDEK staff (up to 10 guests)
• $2000 for TUPs that require RDEK Board approval (over 10 guests)

4. RDEK staff will review the application and may request additional information or site inspections

5. For staff-issued TUPs, the permit will be issued within 4-6 weeks if all requirements are met

6. For Board-approved TUPs, the application will be considered at a future Board meeting, which can take 2-3 months. Public notice will be given and area residents can provide input.

7. If approved, the TUP will be issued with property-specific conditions and an expiry date (max. 3 years). The owner must adhere to all TUP conditions and renew the permit before expiry to continue operating.

Fines and Penalties:

Operating a short-term rental without a valid TUP is a bylaw offense subject to fines and legal action. The RDEK's Bylaw Enforcement staff investigates complaints and can issue violation notices with fines starting at $500 per offense. Continued non-compliance can result in court proceedings and fines of up to $10,000 per offense.

It's important to note that the RDEK's TUP requirements are in addition to any other applicable regulations, such as the BC Building Code, fire safety requirements, health and safety standards, and tax obligations. Owners should ensure they are aware of and compliant with all relevant laws before operating a short-term rental.

The RDEK's Short-Term Rental TUP Policy aims to balance the demand for vacation rentals in Panorama with the need to manage community impacts and ensure public safety. By obtaining a TUP and following the permit conditions, owners can operate short-term rentals legally and responsibly in this popular resort destination.

Required Documents for Panorama Short-Term Rentals

To apply for a Short-Term Rental Temporary Use Permit (STR TUP) in Panorama and other electoral areas of the Regional District of East Kootenay (RDEK), property owners must submit the following documents as part of their application package:

1. Completed STR TUP Application Form: This form collects basic information about the applicant, the property, and the proposed short-term rental operation. It is available online at the RDEK website or at RDEK offices in Cranbrook and Invermere.
2. Site Plan: A detailed site plan showing the location of the rental unit on the property, parking areas, septic field, water sources, and any other relevant features. This helps the RDEK assess the suitability of the property for short-term rental use.
3. Floor Plans: Floor plans of the rental unit with room dimensions and proposed uses (e.g. bedrooms, living areas). This information is used to determine the maximum occupancy of the unit based on BC Building Code requirements.
4. Parking Plan: A plan showing the number and location of on-site parking spaces for guests (minimum 1 space per bedroom). Adequate parking is required to minimize impacts on neighboring properties.
5. Septic Capacity Assessment: For properties on septic systems, a capacity assessment from a qualified professional is required to ensure the system can handle the additional load from short-term rental use.
6. Fire Safety Plan: A detailed fire safety plan for the rental unit, including the location of smoke and carbon monoxide detectors, fire extinguishers, and emergency evacuation routes. This is critical for ensuring guest safety.
7. Proof of Insurance: Documentation showing the property has at least $2 million in liability insurance coverage. Many standard homeowner policies do not cover short-term rental use, so a specialized policy may be needed.
8. Local Contact Information: The name and 24/7 contact information for a local person (within 30 km of the property) who can respond to any issues or complaints from guests or neighbors. This is required to ensure responsible operation of the short-term rental.
9. Owner Consent Form: If the applicant is not the property owner, a signed consent form from the owner authorizing the STR TUP application is required.
10. Application Fee: A non-refundable application fee payable to the RDEK - $1,000 for staff-issued TUPs (up to 10 guests) or $2,000 for Board-issued TUPs (over 10 guests). This fee covers the RDEK's costs to process and monitor the permit.

These documents must be compiled into a complete application package and submitted to the RDEK by mail, in person, or via email to planningdept@rdek.bc.ca. Incomplete applications will not be processed.

RDEK staff are available to assist applicants in preparing their STR TUP submission and can be reached at 250-489-2791 or toll-free at 1-888-478-7335. Consulting with staff early in the process is recommended to ensure all requirements are met.

Once issued, an STR TUP is valid for up to 3 years and must be renewed before expiry to continue operating. Permit holders must abide by all conditions on their permit, which may include restrictions on occupancy, parking, noise, and other operational requirements.

By submitting a complete and well-documented STR TUP application, short-term rental operators in Panorama can demonstrate their commitment to running a safe, responsible, and compliant business that benefits both guests and the wider community.

Panorama Short-Term Rental Taxes

Operating a short-term rental business in Panorama, British Columbia comes with several tax obligations that owners need to be aware of. Here's a breakdown of the key taxes that apply:

Provincial Sales Tax (PST):

• Short-term rentals of less than 27 days are subject to 8% PST on the full rental amount charged to guests.
• This includes any additional fees for cleaning, pet fees, etc.
• Owners must register for a PST number with the BC Government and remit the tax regularly.

Municipal and Regional District Tax (MRDT):

• The MRDT is a up to 3% tax applied to short-term accommodation in designated areas to fund tourism marketing and programs.
• In Panorama, the MRDT rate is 3%.
• This tax is collected from guests and remitted to the province along with PST.

Federal Goods and Services Tax (GST):

• The 5% GST applies to short-term rentals of residential accommodation.
• Owners must register for a GST/HST number with the Canada Revenue Agency.
• The GST is combined with the PST to form the Harmonized Sales Tax (HST) of 13% in BC.

Income Tax:

• Income earned from short-term rentals must be reported as business income on your personal tax return.
• Expenses related to operating the rental can be deducted to reduce taxable income.
• Owners may need to remit quarterly income tax installments if rental income is significant.
• In total, short-term rental guests in Panorama can expect to pay around 16% in taxes (13% HST + 3% MRDT) on their rental fees.

Possible Deductions:

• To reduce taxable rental income, owners can deduct legitimate business expenses such as:
• Mortgage interest, property taxes, and strata fees (if applicable)
• Utilities (hydro, gas, cable/internet) for the rental portion
• Repairs, maintenance, and cleaning costs
• Advertising and platform (e.g. Airbnb) service fees
• Rental insurance premiums
• Office supplies and other direct operating costs

It's important to keep detailed records of all rental income and expenses. Many owners choose to work with an accountant to ensure they are remitting the proper taxes and taking advantage of all available deductions.

The tax obligations for short-term rentals can be complex, especially for new operators. Owners should review the latest guidance from the Canada Revenue Agency, BC Government, and their municipal tax authority to understand their responsibilities.

Failure to collect and remit taxes properly can result in fines, interest charges, and other penalties from the respective tax agencies. Remaining compliant protects owners from potential legal issues down the road.

British Columbia Wide Short-Term Rental Rules

In addition to any local regulations set by municipalities or regional districts, short-term rental hosts in Panorama and across British Columbia must comply with provincial rules under the Short-Term Rental Accommodations Act (STRAA). Here are some key provincial requirements:

Principal Residence Requirement

Effective May 1, 2024, the STRAA implemented a principal residence requirement for designated municipalities with populations over 10,000 people. This limits short-term rentals to a host's principal residence plus one secondary suite or laneway home on the same property.

However, this principal residence rule does not currently apply in Panorama or the Regional District of East Kootenay (RDEK), as the RDEK has chosen not to opt into this requirement for 2024. The RDEK can opt-in starting in future years by providing notice to the province by March 31.

Business Licensing Display

As of May 1, 2024, short-term rental hosts must display a valid business license number on their listing if the local government requires a business license for short-term rentals. Platforms must remove non-compliant listings upon request from the local government.

Data Sharing with Province

Short-term rental platforms like Airbnb and VRBO must share monthly data on listings with the provincial government starting in May 2024. This allows the province to identify non-compliant hosts.

Provincial Registration Coming in 2025

The province plans to launch a provincial short-term rental registry by early 2025. Once established, hosts will need to include a provincial registration number on their listing, and platforms must validate these numbers against the registry.

Enforcement and Penalties

A new provincial Compliance and Enforcement Unit has been created to monitor short-term rental rules and issue penalties for violations. Fines can range from $500 to $5,000 for individual hosts.

The province has also increased the maximum fines that local governments can levy for short-term rental bylaw offenses to $50,000 for regional districts and $3,000 per day for municipalities.

Tax Requirements

Short-term rental income is subject to provincial sales tax (8% PST), the municipal and regional district tax (up to 3% MRDT), and federal goods and services tax (5% GST). Hosts must register to collect and remit these taxes.

Rental income must also be reported and taxed as business income on the host's personal tax return. Allowable expenses can be deducted.

While the STRAA provides a provincial framework, it allows local governments flexibility to implement their own more restrictive rules if desired through zoning bylaws, business licensing, and other regulations.

Hosts should carefully review all applicable provincial and local requirements in their area before listing a short-term rental. Consulting the RDEK planning department, provincial guidance documents, and experienced local property managers is advisable to ensure full compliance.

Does Panorama Strictly Enforce Short-Term Rental Rules?

Based on discussions on forums like Bigger Pockets and Reddit, the consensus is that Panorama and the surrounding Regional District of East Kootenay (RDEK) take a relatively permissive approach to regulating short-term rentals compared to many other municipalities in British Columbia.

Panorama is considered an Airbnb-friendly destination, especially for property owners looking to operate vacation rentals. This is largely due to two key factors:

Panorama's status as a designated resort area exempts it from BC's new principal residence requirement that restricts short-term rentals in most other communities to a host's primary residence only.

The RDEK allows short-term rentals across its rural electoral areas through a Temporary Use Permit (TUP) system, rather than outright prohibiting them.

On the Bigger Pockets forum, one host who operates an Airbnb in Panorama stated:

"The RDEK has been very reasonable with approving TUPs for short-term rentals in Panorama as long as you follow the application process. I had no issues getting my permit renewed for another 3 years."

Another host echoed this sentiment in a Reddit thread:

"Panorama is one of the few areas in BC where you can still legally operate a non-owner occupied short-term rental without too many hoops to jump through, at least for now. The TUP process is straightforward if your property meets the requirements."

However, hosts do need to go through the proper channels and obtain a TUP from the RDEK to legally operate in Panorama. Those operating without a permit face fines and potential legal action, as the RDEK has been cracking down on unlicensed short-term rentals in recent years.

A post on the Airbnb Community forum advised:

"Don't try to fly under the radar in Panorama without a TUP. The RDEK does actively monitor listings and issue violation notices to hosts not playing by the rules. It's really not worth the risk of huge fines."

Overall, while Panorama may have a more welcoming environment for short-term rentals compared to highly restrictive cities like Vancouver, hosts must still follow the RDEK's regulations and permitting process. Those who make the effort to obtain a TUP and operate responsibly tend to have a positive experience running a vacation rental business in this popular resort area.

For prospective short-term rental hosts, Panorama presents a viable option in BC to invest in a non-owner occupied rental property. However, doing your due diligence on the TUP requirements and maintaining compliance with all applicable rules is essential to avoid penalties and potential shutdown of your operation.

How to Start a Short-Term Rental Business in Panorama

Starting a short-term rental business in Panorama requires following the proper steps to obtain the necessary permits and approvals from the Regional District of East Kootenay (RDEK). Here's a numbered guide on how to get started:

1. Determine if your property is eligible for short-term rentals.

• Review the RDEK's zoning bylaws and Official Community Plan to confirm short-term rentals are permitted in your area.
• Ensure your property meets requirements like adequate parking, septic capacity, and fire safety standards.

2. Prepare a Temporary Use Permit (TUP) application package.

• Contact the RDEK Development Services department to discuss your plans and application requirements.
• Compile all necessary documents like site plans, floor plans, parking plans, septic assessments, fire safety plans, and proof of insurance.
• Ensure you have a local contact available 24/7 to manage the rental.

3. Submit your complete TUP application to the RDEK.

• Include the application form, all supporting documents, and the applicable fee ($1,000 for staff approval or $2,000 for Board approval).
• RDEK staff will review the application for completeness and may request additional information.

4. Await TUP approval and adhere to all conditions.

• For staff-approved TUPs (up to 10 guests), a decision is typically made within 4-6 weeks.
• For Board-approved TUPs, the process takes 2-3 months as it requires public notification and a Board meeting.
• If approved, the TUP will include specific conditions you must follow regarding occupancy limits, parking, noise, etc.

5. Register for tax accounts and obtain any required business licenses.

• Register with the Canada Revenue Agency for a GST/HST number to collect federal taxes.
• Register with the BC Provincial Sales Tax system for a PST number.
• Check if any municipal or regional district business licenses are required in your area.

6. Prepare your property for rental guests.

• Ensure the rental unit meets all building, fire, and safety code requirements.
• Stock the unit with essential furnishings, linens, kitchenware, and guest amenities.
• Consider hiring professional cleaners and a property management company if needed.

7. Create your listing on short-term rental platforms.

• Take high-quality photos and write compelling descriptions highlighting your property's best features.
• Set competitive nightly rates based on comparable rentals in Panorama.
• Clearly outline house rules, check-in/out procedures, and cancellation policies.

8. Actively manage bookings and guest communications.

• Respond promptly to inquiries and booking requests.
• Send guests detailed arrival instructions and be available to address any issues during their stay.
• Encourage guests to leave reviews to help improve your listing's visibility.

9. Maintain compliance with regulations and permit renewals.

• Collect and remit all applicable taxes on your rental income.
• Keep meticulous records of income, expenses, and guest stays for tax purposes.
• Renew your TUP before it expires (maximum 3-year term) to continue operating legally.

By following these steps, you can establish a legitimate and well-managed short-term rental business in Panorama that provides an exceptional guest experience while respecting local regulations.

Some additional tips:

• Join online host communities to learn best practices and stay updated on regulatory changes.
• Consider working with an accountant familiar with short-term rental taxation.
• Maintain open communication with neighbors to address any concerns proactively.
• Provide guests with information on local attractions, restaurants, and activities to enhance their stay.

With proper planning, permitting, and attention to detail, short-term rentals can be a lucrative business venture in the popular resort destination of Panorama.

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

For questions about short-term rental regulations and zoning in Panorama, hosts should contact the following agencies and resources:

Regional District of East Kootenay (RDEK) Development Services:

The RDEK is responsible for issuing Temporary Use Permits (TUPs) for short-term rentals in Panorama and surrounding electoral areas.

Phone: 250-489-2791 or toll-free 1-888-478-7335
Email: planningdept@rdek.bc.ca
Website: https://www.rdek.bc.ca/departments/planning/planning_applications/temporary_use_permits

RDEK Bylaw Enforcement:

For complaints or questions about short-term rental enforcement:

Phone: 250-489-2791 or toll-free 1-888-478-7335
Email: bylawservices@rdek.bc.ca
Website: https://www.rdek.bc.ca/departments/bylaw_enforcement/

BC Consumer Protection:

For information on provincial short-term rental regulations:

Phone: 1-844-323-7374
Website: https://www2.gov.bc.ca/gov/content/housing-tenancy/strata-housing/operating-a-strata/short-term-rentals

Canada Revenue Agency:

For questions about GST/HST registration and tax obligations:

Phone: 1-800-959-5525
Website: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html

In addition to these official resources, hosts may find the following online communities and resources helpful:

BC Short Term Rental Association: A non-profit organization advocating for short-term rental operators in British Columbia.

• Website: https://bcstra.org/
• Facebook Group: https://www.facebook.com/groups/bcstra/

Airbnb Community Center - British Columbia: An official forum for Airbnb hosts to connect and share experiences.

Website: https://community.withairbnb.com/t5/British-Columbia/bd-p/British-Columbia

Bigger Pockets - Short Term Rental Investing Forum: A popular real estate investing forum with discussions on short-term rentals.

Website: https://www.biggerpockets.com/forums/530-short-term-rental-investing

Reddit - r/AirBnB: A subreddit for Airbnb hosts and guests to discuss various topics, including regulations.

Website: https://www.reddit.com/r/AirBnB/

Panorama Mountain Resort - Owner Resources: While not specifically for short-term rentals, this page provides useful information for property owners in Panorama.

Website: https://www.panoramaresort.com/real-estate/owner-resources/

By engaging with these agencies and online communities, hosts can stay informed about the latest short-term rental regulations in Panorama and connect with other hosts for support and advice. However, for specific legal guidance, hosts should consult with a qualified attorney who specializes in short-term rental law and local regulations.

Remember that regulations can change, so it's important to periodically check with official sources like the RDEK for the most up-to-date information on short-term rental requirements in Panorama.

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

To get a sense of how short-term rental hosts in Panorama view the local regulations, I searched through relevant threads on Reddit, Bigger Pockets, and other online forums. Here are some real-life experiences and opinions shared by hosts:

Bigger Pockets Forum - "Short Term Rental Regulations in BC"

A host who operates an Airbnb in Panorama commented: "The RDEK has been very reasonable in approving TUPs for short-term rentals in Panorama as long as you follow the process. I had no issues getting my permit renewed for another 3 years."

They noted that the $1,000 TUP fee was reasonable compared to some other areas, and appreciated the RDEK's more permissive approach to vacation rentals.

Reddit - r/AirBnB - "Airbnb legal in Panorama, BC?"

A first-time Airbnb host asked about regulations in Panorama. Another user replied: "You need a temporary use permit from the RDEK, but they are pretty easy to get for Panorama compared to other areas that have outright bans."

They advised thoroughly reviewing the TUP requirements like parking, septic, and having a local contact, but said "Panorama is one of the few areas in BC where non-owner occupied rentals are still allowed."

Airbnb Community Forum - "Operating an Airbnb in Panorama"

One host stated: "Don't try to fly under the radar in Panorama without a TUP. The RDEK does actively monitor listings and issue violation notices to hosts not playing by the rules. It's really not worth the risk of huge fines."

However, they said the TUP process was "straightforward" if you have all the required documents like site plans and parking diagrams.

Facebook - BC Short Term Rental Association Group

A Panorama host asked about the TUP renewal process, saying: "My 3-year permit is expiring soon. Has anyone had issues renewing their TUP with the RDEK? I've had no complaints or violations."

Another member replied: "As long as you were following all the conditions on your original TUP, renewals are usually pretty simple if nothing has changed with your operation."

Overall, the sentiment from hosts operating legal short-term rentals in Panorama seems to be that the RDEK's regulations are reasonable and the Temporary Use Permit process, while requiring some effort, is navigable compared to more restrictive rules in other parts of BC.

Hosts appreciate that Panorama allows for non-owner occupied rentals and doesn't have strict caps on rental nights like some municipalities. However, they emphasize the importance of obtaining the proper TUP and adhering to all conditions to avoid penalties for non-compliance.

Some concerns were raised about the RDEK actively monitoring listings and issuing violation notices to illegal operators. But hosts following the rules feel they can run successful short-term rental businesses in this resort area within the regulatory framework.

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.