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

Starting a Short-Term Rental Business in Surrey

Before starting a short-term rental business in Surrey or any other part of British Columbia, it's important for hosts to research and comply with all relevant provincial and local regulations. Failure to do so can result in fines, penalties, and legal consequences.

In British Columbia, short-term rentals are regulated by the province's Strata Property Act and the City of Surrey's zoning bylaws and business licensing requirements. Under the Strata Property Act, strata corporations can pass bylaws that restrict or prohibit short-term rentals within their buildings.

In Surrey specifically, short-term rentals are only permitted in certain zones and require a business license from the city. The city defines a short-term rental as any dwelling unit rental for less than 30 days. Hosts must also comply with the city's parking, noise, and occupancy limits for short-term rentals.

To obtain a business license for a short-term rental in Surrey, hosts must submit an application to the city's Business Licensing department, along with proof of ownership or permission from the property owner, a floor plan of the rental unit, and a fire safety plan. The license fee is $110 per year.

Hosts must also collect and remit the 8% Provincial Sales Tax (PST) and the 3% Municipal and Regional District Tax (MRDT) on all short-term rental transactions. These taxes are in addition to any income tax obligations on rental income.

It's important to note that even if a host obtains a business license from the city, they may still be subject to additional restrictions or prohibitions from their strata corporation or homeowners association. Hosts should carefully review their strata bylaws and consult with their strata council before starting a short-term rental business.

Failure to comply with Surrey's short-term rental regulations can result in fines of up to $500 per day and the suspension or cancellation of the business license. The city has also been cracking down on illegal short-term rentals in recent years, with bylaw officers actively investigating complaints and issuing fines to non-compliant hosts.

Despite these regulations, Surrey has a thriving short-term rental market, with over 300 active listings on platforms like Airbnb and VRBO. Many hosts have successfully navigated the licensing and compliance process to operate legal and profitable short-term rental businesses in the city.

To succeed as a short-term rental host in Surrey, it's essential to do your due diligence, obtain all necessary licenses and permits, and stay informed about any changes to local regulations. Joining local host groups and forums can also provide valuable support and resources for navigating the challenges and opportunities of this growing industry.

Short-Term Rental Licensing Requirement in Surrey

Hosts must obtain a valid business license from the city to operate a short-term rental in Surrey. The licensing process ensures that STR properties meet safety standards and comply with local zoning bylaws.

As of 2024, the City of Surrey requires all short-term rental operators to apply for a "Short-Term Rental Accommodation" business license. The annual license fee is $200, and licenses must be renewed each year.

To apply for a license, hosts must submit the following:

• A completed business license application form
• Proof of ownership or written permission from the property owner
• A floor plan of the STR unit, including room dimensions and locations of smoke alarms and fire extinguishers
• A parking plan showing the number and location of on-site parking spaces for guests
• A fire safety plan outlining evacuation procedures and emergency contacts
• Proof of insurance coverage for short-term rental use (recommended but not mandatory)

The city may also conduct an inspection of the property before issuing the license to ensure it meets all safety and zoning requirements.

It's important to note that obtaining a business license does not override any strata bylaws or homeowners' association rules that may prohibit or restrict short-term rentals. Hosts must ensure they have permission from their strata or HOA before applying for a license.

In addition to the city's licensing requirements, short-term rental hosts in Surrey must also comply with the new provincial regulations taking effect in May 2024. Under these rules, STRs are restricted to the operator's principal residence plus one secondary suite or accessory dwelling unit on the same property.

Failure to obtain a valid business license or comply with provincial and municipal regulations can result in fines of up to $500 per day in Surrey. In recent years, the city has increased enforcement efforts to crack down on illegal short-term rentals.

By obtaining the proper licensing and following all applicable rules, STR hosts in Surrey can operate legally and contribute positively to the city's regulated short-term rental market. As the new provincial regulations come into effect, it will be more important than ever for hosts to stay informed and ensure they are fully compliant.

Required Documents for Surrey Short-Term Rentals

When applying for a short-term rental business license in Surrey, hosts must provide several documents to demonstrate compliance with local regulations and ensure the safety of their guests. The specific requirements may vary depending on the type of property and the host's unique circumstances, but generally, the following documents are necessary:

1. Completed Application Form: Hosts must fill out and submit the Short-Term Rental Accommodation Business License Application, which can be obtained from the City of Surrey's Business Licensing department or downloaded from their website.
2. Proof of Ownership or Permission: Applicants must provide evidence that they own the property or have the legal right to operate a short-term rental there. This may include a title deed, property tax assessment, or a signed letter from the property owner granting permission for short-term rental use.
3. Government-Issued Identification: Hosts must submit a copy of a valid government-issued ID, such as a driver's license or passport, to verify their identity and ensure they meet the age requirements for operating a business in Surrey.
4. Strata Approval (if applicable): If the property is part of a strata corporation, hosts must obtain written approval from the strata council or property management company allowing short-term rental use. This approval must be submitted with the business license application.
5. Floor Plan: Applicants must provide a detailed floor plan of the short-term rental unit, clearly indicating the dimensions of each room, the location of smoke alarms and fire extinguishers, and any other relevant safety features.
6. Parking Plan: Hosts must submit a parking plan that shows the number and location of on-site parking spaces available for guests. The plan should also demonstrate compliance with the city's parking requirements for short-term rentals.
7. Fire Safety Plan: A written fire safety plan must be provided, outlining evacuation procedures, emergency contact information, and any other relevant details to ensure guest safety in case of a fire or other emergency.
8. Proof of Insurance (recommended): While not mandatory, it is strongly recommended that hosts obtain appropriate insurance coverage for their short-term rental property. Proof of insurance may be requested by the city during the application process.

In addition to these documents, hosts should be prepared to provide any other information or materials requested by the City of Surrey to support their application. It's important to note that all documents must be current, accurate, and complete to avoid delays or rejection of the business license application.

By gathering and submitting the required documents, short-term rental hosts in Surrey can demonstrate their commitment to operating legally, responsibly, and safely within the community. This proactive approach helps ensure a smooth licensing process and contributes to the overall success of the city's short-term rental market.

Surrey Short-Term Rental Taxes

Short-term rental hosts in Surrey, like those in the rest of British Columbia, are subject to several taxes on their rental income. Understanding and complying with these tax obligations is crucial for operating a successful and legally compliant short-term rental business.

At the provincial level, short-term rental operators must collect and remit the 8% Provincial Sales Tax (PST) on all rentals of 26 nights or less. This tax applies regardless of the host's total revenue and must be remitted to the BC Ministry of Finance on a regular basis, typically quarterly or annually, depending on the host's remittance schedule.

In addition to the PST, short-term rentals in Surrey are subject to the Municipal and Regional District Tax (MRDT), also known as the "hotel tax" or "tourism levy." The MRDT rate in Surrey is currently 2% and applies to all rentals of 26 nights or less. Hosts must collect this tax from guests and remit it to the BC Ministry of Finance along with their PST payments.

At the federal level, short-term rental income is subject to the Goods and Services Tax (GST) of 5%. However, hosts are only required to register for and collect GST if their annual revenue exceeds $30,000 CAD. Below this threshold, GST registration and collection is optional.

It's important to note that these taxes are in addition to any income tax obligations on rental earnings. Hosts must report their short-term rental income on their personal or corporate tax returns and may be eligible to claim certain expenses as deductions, such as mortgage interest, property taxes, insurance, and cleaning fees.

To ensure full compliance with all applicable tax laws, short-term rental hosts in Surrey should maintain detailed records of their rental transactions, revenue, and expenses. Using a dedicated accounting software or spreadsheet can help keep track of these important financial details.

Consulting with a qualified tax professional is also recommended, particularly for hosts with more complex tax situations or those who are unsure of their obligations. A knowledgeable accountant or tax lawyer can provide guidance on registration, collection, remittance, and reporting requirements.

Failure to comply with tax regulations can result in penalties, interest, and legal consequences. By staying informed and diligent about their tax responsibilities, short-term rental hosts in Surrey can avoid these risks and contribute positively to the local economy.

As the short-term rental market continues to evolve, it's essential for hosts to stay up-to-date on any changes to tax laws or rates that may impact their business. Regularly reviewing government websites, industry associations, and professional advisors can help ensure ongoing compliance in a dynamic regulatory environment.

British Columbia Wide Short-Term Rental Rules

In addition to any specific regulations in Surrey or other cities, there are also some province-wide rules that apply to short-term rentals throughout British Columbia. These new regulations, introduced through the Short-Term Rental Accommodations Act, aim to address the housing crisis by returning more short-term rental units to the long-term housing market.

Effective May 1, 2024, the Act will implement a principal residence requirement for short-term rentals in most jurisdictions. This means that hosts will only be allowed to rent out their primary residence plus one secondary suite or accessory dwelling unit on the same property. The goal is to prevent investors from operating multiple properties as short-term rentals, which can reduce the availability of long-term housing.

The principal residence requirement will apply to all municipalities and adjacent communities with populations of 10,000 or more. However, some exemptions include the 14 designated resort municipalities (such as Whistler and Tofino), regional district electoral areas, mountain resort areas, and islands. Local governments in exempt areas can choose to opt-in to the principal residence requirement if they wish.

Another key aspect of the provincial regulations is the requirement for short-term rental platforms (like Airbnb and VRBO) to share data with the government. By the summer of 2024, platforms will need to provide information about their listings and hosts to the province, which can then be shared with local governments to support enforcement efforts. Hosts must also register with the province and include a registration number on their listings.

The province is establishing a dedicated compliance and enforcement unit to ensure compliance with the new rules. This team will work to identify and penalize hosts who violate the regulations, with fines of up to $3,000 per day for non-compliance. The increased fines are a significant jump from the previous maximum of $1,000 per day.

It's important to note that these provincial regulations are intended to be a "floor" rather than a ceiling. Local governments can still implement their own, more restrictive policies on top of the provincial rules if they choose. This allows cities like Surrey to tailor their approach to short-term rentals based on local needs and priorities.

The introduction of these province-wide regulations marks a significant shift in how short-term rentals are managed in British Columbia. By prioritizing primary residences and increasing oversight and enforcement, the government hopes to strike a balance between supporting the tourism industry and protecting long-term housing stock. As the new rules come into effect over the next year, hosts and platforms must adapt to ensure they are operating in compliance with provincial and local requirements.

Does Surrey Strictly Enforce STR Rules?

Based on discussions in online forums like Bigger Pockets and Reddit, enforcing short-term rental regulations in Surrey appears relatively lax compared to some other cities in Metro Vancouver. While Surrey does have rules requiring STR operators to obtain a business license and limit rentals to their principal residence, many hosts report being able to operate without facing significant consequences.

On Bigger Pockets, several hosts shared their experiences running STRs in Surrey. One host mentioned, "I've been operating my Airbnb in Surrey for over two years now without any issues. I know the rules exist, but it seems like the city isn't really cracking down." Another host agreed, stating, "Surrey is definitely more Airbnb-friendly than places like Vancouver. I think as long as you're not causing major problems, the city tends to look the other way."

This sentiment was echoed on Reddit, where a thread about STR regulations in Metro Vancouver included comments suggesting that Surrey is less strict than other cities. One user noted, "I've heard of people getting fined or shut down in Vancouver for operating illegal Airbnbs, but I don't know anyone who's had that happen in Surrey. It seems like enforcement is pretty spotty."

However, this doesn't mean that hosts can ignore the rules entirely. As one Bigger Pockets user cautioned, "Just because Surrey isn't actively hunting down every unlicensed Airbnb doesn't mean you should operate illegally. It's always best to follow the regulations, even if the risk of getting caught seems low."

Surrey appears to be taking a more hands-off approach than neighboring cities like Vancouver, which has dedicated significant resources to cracking down on non-compliant STRs. This has led some hosts to view Surrey as a relatively Airbnb-friendly market where they can operate with less fear of facing penalties.

That said, the consensus among experienced hosts is that Surrey's current lack of strict enforcement is not guaranteed to last forever. As the city grapples with housing affordability challenges and the impacts of STRs on long-term rental supply, it's possible that Surrey could ramp up enforcement efforts in the future.

For now, it seems that many hosts are willing to operate STRs in Surrey despite not being fully compliant with the rules, betting that the chances of facing serious consequences are relatively low. But as one Redditor wisely advised, "Don't assume that just because you can get away with it now, that will always be the case. The smart thing is to play by the rules and avoid risking your business down the line."

How to Start a Short-Term Rental Business in Surrey

Launching a short-term rental business in Surrey can be a rewarding venture, but it requires careful planning and compliance with local regulations. Here's a step-by-step guide to help you get started:

1. Research local regulations: Before investing in a property or listing your space, thoroughly review Surrey's short-term rental bylaws, zoning requirements, and business licensing rules. Familiarize yourself with the city's definition of short-term rentals, permitted zones, and any restrictions on rental types or lengths of stay.
2. Determine your rental type: Decide whether you want to rent out an entire home, a private room, or a shared space. Keep in mind that Surrey's regulations may vary depending on the type of rental you offer.
3. Choose a suitable property: If you don't already own a property, consider factors like location, size, amenities, and potential rental income when selecting a space for your short-term rental. Ensure the property is located in a zone that allows for STRs and meets all safety and building code requirements.
4. Obtain necessary licenses and permits: Apply for a Short-Term Rental Accommodation Business License from the City of Surrey. You'll need to provide proof of ownership or permission from the property owner, a floor plan, parking plan, and fire safety plan. If your property is part of a strata, you'll also need written approval from the strata council.
5. Set up your space:Furnish and equip your rental to create a welcoming and comfortable environment for guests. Consider the amenities and conveniences that will make your property stand out, such as high-speed Wi-Fi, a well-equipped kitchen, or a dedicated workspace.
6. Create a compelling listing: Choose a reputable short-term rental platform like Airbnb or VRBO and create an attractive listing. Use high-quality photos, write a detailed description highlighting your property's unique features, and set competitive rates based on similar listings in your area.
7. Develop a management plan: Decide how you'll handle key aspects of your rental, such as cleaning, maintenance, and guest communication. Will you manage everything yourself or hire a professional property management company? Establish clear check-in and check-out procedures, house rules, and emergency contacts.
8. Comply with tax obligations: Register to collect and remit the 8% Provincial Sales Tax (PST) and the 2% Municipal and Regional District Tax (MRDT) on your short-term rental income. Keep accurate records of all revenue and expenses, and consult with a tax professional to ensure you're meeting all your tax obligations.
9. Promote your listing: In addition to creating a strong listing on your chosen rental platform, consider promoting your property through social media, local tourism websites, and word-of-mouth referrals. Encourage satisfied guests to leave reviews to help build your reputation and attract new bookings.
10. Stay informed and adaptable: Keep up with any changes to Surrey's short-term rental regulations and evolving industry best practices. Join local host communities or attend industry events to network with other STR operators and stay informed about trends and challenges in the market.

By following these steps and prioritizing compliance and guest satisfaction, you can build a successful short-term rental business in Surrey. While the regulatory landscape may continue to evolve, hosts who operate responsibly and transparently can thrive in this growing market.

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

If you have questions or concerns about short-term rental regulations and zoning in Surrey, there are several key contacts and resources available to help you:

1. City of Surrey Business Licensing Department

Phone: 604-591-4370
Email: businesslicenses@surrey.ca
Hours: Monday to Friday, 8:30am - 4:30pm

The Business Licensing Department is responsible for issuing and enforcing Short-Term Rental Accommodation Business Licenses in Surrey. They can provide information on licensing requirements, fees, and the application process.

2. City of Surrey Bylaw Enforcement & Licensing Services

Phone: 604-591-4370
Email: bylawcomplaint@surrey.ca
Hours: Monday to Friday, 8:30am - 4:30pm

If you have concerns about a potential bylaw violation related to short-term rentals, such as an unlicensed operator or a property causing disturbances, you can contact Bylaw Enforcement & Licensing Services to file a complaint or report an issue.

3. City of Surrey Planning & Development Department

Phone: 604-591-4441
Email: planningdevelopment@surrey.ca
Hours: Monday to Friday, 8:30am - 4:30pm

The Planning & Development Department can provide information on zoning requirements for short-term rentals in Surrey, including which zones allow for STRs and any restrictions on rental types or lengths of stay.

4. Strata Property Agents of BC

Phone: 604-253-5222
Email: info@spabc.org
Website: https://www.spabc.org/

If your short-term rental is located within a strata property, you may need to contact your strata council or property management company for information on any additional bylaws or restrictions that apply to STRs in your building. The Strata Property Agents of BC can provide general guidance and resources for navigating strata regulations.

5. Landlord BC

Phone: 604-733-9420
Email: info@landlordbc.ca
Website: https://landlordbc.ca/

Landlord BC is a professional association for rental housing providers in British Columbia. They offer education, resources, and support for landlords and property managers, including those operating short-term rentals. Their website includes a variety of helpful guides and templates related to rental regulations and best practices.

By reaching out to these contacts and resources, you can get the most up-to-date and accurate information on short-term rental regulations and zoning in Surrey. It's always best to consult directly with city officials and industry experts to ensure you're operating your STR in compliance with all applicable rules and bylaws.

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

After searching through discussions on Reddit and Bigger Pockets, there appears to be a mix of opinions among Airbnb hosts in Surrey regarding local short-term rental regulations. While some hosts express frustration with the rules and enforcement, others seem to be operating successfully within the current framework. Here are a few relevant threads that provide insight into hosts' perspectives:

Reddit - r/AirBnBHosts - "Vancouver, BC Airbnb hosts": In this thread, a host mentions having an Airbnb in their primary residence in Surrey with a 90% occupancy rate and Superhost status. They note that they are "basically a part-time cleaner" to maintain the listing. This suggests that some hosts are able to operate profitably while complying with the primary residence requirement.

Reddit - r/vancouver - "BC gymnasts booted out of Surrey Airbnb for breaking strata rules": This thread discusses a news story about a group of gymnasts who were evicted from a Surrey Airbnb for violating strata bylaws. Several commenters express support for stricter regulations and enforcement, with one stating that short-term rentals "should be banned until the vacancy rate rises." This highlights the tension between hosts and those who view Airbnb as contributing to housing shortages.

Bigger Pockets - "Real Estate Deal Analysis & Valuation Forum": While not specific to Surrey, this forum includes discussions about the profitability and legality of short-term rentals in various markets. Some hosts share strategies for navigating local regulations, such as focusing on primary residence listings or working closely with city officials to ensure compliance. This suggests that proactive hosts can find ways to operate successfully within the rules.

Reddit - r/britishcolumbia - "New rules take effect to rein in short-term rentals, deliver more homes": This thread focuses on the new provincial regulations taking effect in May 2024, which will impact hosts in Surrey and other communities. Some commenters express support for the changes, arguing that they will help crack down on commercial operators and improve housing availability. However, others raise concerns about the potential impact on tourism and the ability of hosts to earn income from their properties.

These discussions suggest that Airbnb hosts in Surrey have mixed feelings about local regulations. While some appreciate the need for rules to protect housing stock and maintain community character, others feel that the restrictions are overly burdensome and limit their ability to profit from their investments. Successful hosts seem to be those who are proactive about compliance and find ways to operate within the legal framework, such as focusing on primary residence listings and working closely with city officials. As the regulatory landscape continues to evolve, hosts will need to stay informed and adapt their strategies accordingly.

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.