Halifax Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Halifax, Canada?

Halifax, the capital city of Nova Scotia, recently implemented new regulations for short-term rentals (STRs) like Airbnb and VRBO that came into effect on September 1, 2023. These rules were put in place to address growing concerns related to housing availability and neighborhood disruption while still allowing some level of STR activity in the city.

Starting a Short Term Rental Business in Halifax

To start a short-term rental business in Halifax, property owners must first ensure that their rental property complies with the new land-use bylaw. In residential zones, STRs are only permitted in the host's primary residence. This means that hosts can rent out a room or a portion of their home, but they must be living on the property during the rental period. In mixed-use or commercial zones where hotels and other tourist accommodations are allowed, STRs can operate without the primary residence requirement.

These regulations are designed to prevent the proliferation of "ghost hotels" - entire homes or apartments that are used exclusively for short-term rentals, which can contribute to housing shortages and drive up rental prices for long-term residents. By requiring hosts to live on the property in residential areas, the city hopes to strike a balance between allowing some STR activity and preserving the character and livability of neighborhoods.

Short Term Rental Licensing Requirement in Halifax

Under the new regulations, all short-term rental operators in Halifax must register their property with the municipality by April 2024. This registration requirement applies to both short-term and long-term rentals. The goal of this licensing system is to create a comprehensive database of rental properties in the city, which will help officials enforce the new rules and ensure that all STRs are operating in compliance with the bylaw.

In addition to the municipal registration, STRs across Nova Scotia need to register annually with the province's Tourist Accommodations Registry and pay a fee based on the number of bedrooms in the rental unit. This provincial registration has been in place for several years, but the new municipal licensing requirement adds an extra layer of oversight specifically for STRs in Halifax.

Required Documents for Halifax Short Term Rentals

To register an STR in Halifax, hosts will need to provide several key pieces of information, including:

• The civic address of the accommodation
• The number of bedrooms in the rental unit
• The name, mailing address, email address, and phone number of the host or operator
• The previous provincial registration number, if applicable

Hosts will also need to certify that their property complies with all applicable safety and building code requirements. This may include providing proof of smoke and carbon monoxide detectors, fire extinguishers, and other safety features.

Halifax Short Term Rental Taxes

At present, Halifax does not impose any specific taxes on short-term rentals beyond the provincial registration fee. However, the city does have the ability to implement a marketing levy of up to 2% on STRs to fund tourism initiatives, but this revenue can only be used for that purpose.

Some other Canadian cities, such as Vancouver and Toronto, have implemented additional taxes on STRs to help fund affordable housing initiatives or offset the costs of enforcing STR regulations. While Halifax has not taken this step yet, it is possible that the city could consider similar measures in the future if the new regulations do not sufficiently address concerns about housing availability and affordability.

Halifax-wide Short Term Rental Rules

Under the new rules, short-term rentals are only permitted in the host's primary residence in residential zones. This means that hosts can rent out a room or a portion of their home, but they must be living on the property during the rental period. In commercial areas where hotels are allowed, STRs can operate without the primary residence requirement.

Secondary suites, such as basement apartments or backyard cottages, can only be used as STRs if the suite itself is the host's primary residence. This rule is designed to prevent property owners from converting long-term rental units into full-time STRs, which can exacerbate housing shortages and drive up rental prices.

The new regulations also include some additional requirements for STR hosts, such as providing guests with information about noise bylaws, parking restrictions, and waste management guidelines. Hosts are responsible for ensuring that their guests comply with these rules and do not disrupt the surrounding neighborhood.

Does Halifax strictly enforce STR rules? Is Halifax Airbnb friendly?

Compared to some other Canadian cities that have implemented STR regulations, Halifax appears to be taking a relatively balanced approach. While the new rules will undoubtedly impact some STR operators, particularly those who were renting out entire homes or apartments on a full-time basis, they still allow for hosted rentals in residential areas and non-hosted rentals in commercial zones.

However, enforcement of the new rules may prove to be a challenge, as the city is still working to fill several bylaw officer vacancies. The required registration process will help officials identify non-compliant listings, but it remains to be seen how proactively the city will pursue enforcement actions against hosts who violate the rules.

Reactions from Airbnb hosts in Halifax have been mixed. Some have expressed frustration with the changes, arguing that they will make it more difficult for small-scale operators to earn income from their properties. Others feel that the regulations are a reasonable compromise that will help to address some of the negative impacts of STRs on local communities.

Overall, while Halifax may not be as Airbnb-friendly as it was before the new rules took effect, the city seems to be striving for a balance between allowing some STR activity and protecting the interests of long-term residents and neighborhoods.

How to Start a Short Term Rental Business in Halifax

If you're interested in starting a short-term rental business in Halifax, here are the key steps you'll need to follow:

• Determine if your property is eligible for STR use under the new land-use bylaw. If you're in a residential zone, you'll need to ensure that the STR is in your primary residence. If you're in a commercial zone, you may be able to operate an STR without the primary residence requirement.
• Register with the provincial Tourist Accommodations Registry and pay the annual fee based on the number of bedrooms in your rental unit.
• Register with the municipal Residential Rental Registry by April 2024. This will require providing information about your property, as well as certifying that it complies with all applicable safety and building code requirements.
• Ensure that your property meets all necessary safety standards, including smoke and carbon monoxide detectors, fire extinguishers, and other required features.
• Create a listing on platforms like Airbnb or VRBO, making sure to include your provincial and municipal registration numbers.
• Familiarize yourself with the city's noise bylaws, parking restrictions, and waste management guidelines, and provide this information to your guests to help ensure that they do not disrupt the surrounding neighborhood.
• Keep accurate records of your rental activity and income, and ensure that you are complying with all applicable tax laws and regulations.

By following these steps and staying up-to-date with any changes to the city's STR regulations, you can start and operate a successful short-term rental business in Halifax.

Who to contact in Halifax about Short Term Rental Regulations and Zoning?

If you have questions about short-term rental rules and zoning in Halifax, there are several key contacts you can reach out to for assistance:

• Planning & Development Department: If you have specific questions about the land-use bylaw or zoning requirements for STRs, you can contact the Planning & Development Department at 902-490-4472 or planningapps@halifax.ca.
• 311 Contact Centre: For general inquiries about the new STR regulations or other city services, you can contact the 311 Contact Centre by dialing 311 within Halifax, calling 902-490-4000 from outside the city, or emailing contactus@halifax.ca.
• Zoning confirmation requests: If you need to confirm the zoning of a particular property, you can submit a zoning confirmation request through the city's website at https://www.halifax.ca/business/planning-development/zoning-confirmation.

In addition to these municipal contacts, you may also want to reach out to the provincial Tourism Accommodations Registry for questions about the provincial registration process and requirements. The registry can be reached at 902-424-5200 or tourismaccommodations@novascotia.ca.

What do Airbnb hosts in Halifax on Reddit and Bigger Pockets think about local regulations?

On the Halifax subreddit, opinions about the new STR regulations are mixed. Some residents feel that the rules are necessary to protect housing availability and preserve the character of residential neighborhoods, while others believe that they are too restrictive and will hurt small-scale STR operators who rely on rental income to make ends meet.

One host commented, "Primary resident, primary responsibility is an important thing," suggesting that the rules will help to curb problematic guest behavior and ensure that hosts are more accountable for what happens on their properties. Another said, "This is really tricky for me because I can't turn it into a long-term rental," expressing concern about the impact of the regulations on their ability to rent out a rural cottage that is not their primary residence.

There is limited discussion of the Halifax STR regulations on Bigger Pockets, but one post notes that the changes have "drawbacks for many people, including property owners making a living through their Airbnb and short-term rental businesses". This sentiment reflects the concerns of some hosts who feel that the new rules will make it more difficult for them to operate profitably.

Overall, it appears that Halifax has attempted to strike a balance between allowing some STR activity and preserving housing stock and neighborhood character. While not everyone is happy with the new rules, the city seems committed to enforcing them fairly and consistently.

As the regulations continue to take effect and more data becomes available about their impact on the local housing market and STR industry, it is likely that the debate over the appropriate level of regulation will continue. Hosts and residents alike will be watching closely to see how the city adapts and responds to any unintended consequences or challenges that arise from the new rules.

For now, though, anyone looking to start or continue operating a short-term rental in Halifax will need to ensure that they are in compliance with the new regulations, including the primary residence requirement, registration and licensing processes, and safety and neighborhood impact standards. By working collaboratively with the city and other stakeholders, STR hosts can help to create a more sustainable and equitable short-term rental market in Halifax.