As your trusted Vancouver Island real estate team, we want to keep you informed about important changes affecting property owners. British Columbia has introduced significant new regulations for short-term rentals that will impact how properties can be used for platforms like Airbnb and VRBO. Here’s what you need to know about these changes taking effect in 2025.
Meet The Shanon Kelley Realty Group: Shanon Kelley (center) – Founder and PREC. with Jamie Kennedy (left) and Justin Steele® (right) – Vancouver Island Realtors®. Together, they bring professional expertise to serve Vancouver Island’s real estate needs.
Current Principal Residence Requirement (Effective Since May 2024)
The principal residence requirement, already in effect since May 1, 2024, limits short-term rentals to:
- Your principal residence (where you live for the majority of the year)
- Plus one secondary suite or accessory dwelling unit on the same property
Early data shows this requirement has already made an impact, with a 10% decrease in whole-home listings since implementation. Studies indicate that similar short-term rental restrictions have led to rent reductions of approximately 5.7% in affected areas.
New Registry Requirements (Coming May 2025)
Provincial Registration System
- All short-term rental hosts must register with BC’s new provincial registry
- Registration numbers must be displayed on all online listings by May 1, 2025
- Non-compliant listings will be removed from platforms starting June 1, 2025
- This registration is required in addition to any existing municipal requirements and business licenses
Registration Fees and Discounts
- $100/year for principal residence rentals
- $450/year for secondary suites, cottages, or laneway homes
- $600/year for strata hotels
- Early registration incentives:
- 50% discount if registered by February 28, 2025
- 25% discount if registered by March 31, 2025
Enforcement and Compliance
The province has established strong enforcement measures:
- Fines ranging from $500 to $5,000 per day for individuals
- Up to $10,000 per day for corporations
- A dedicated compliance enforcement unit will monitor and enforce these regulations
Important Considerations for Property Owners
Local Variations
- Some communities may have stricter local bylaws
- Certain resort communities (like Whistler) have exemptions from the principal residence requirement
- Check with your local government for specific requirements in your area
Business Licensing
- Municipal business licenses are still required where applicable
- Both provincial registration and local business licenses must be displayed on listings
- Platforms must remove non-compliant listings at local government request
Current Market Impact
The implementation of these regulations has already affected the market:
- Decreased availability of whole-home short-term rentals
- Impact on property owners who previously operated multiple investment properties
- Potential opportunities in the long-term rental market
Moving Forward: What You Need to Do
- Verify Your Status
- Confirm if your property meets the principal residence requirement
- Check local bylaws and business license requirements
- Review any existing short-term rental operations
- Prepare for Registration
- Plan for early registration to take advantage of discounts
- Gather necessary documentation
- Budget for appropriate registration fees
- Consider Your Options
- Evaluate the feasibility of continuing short-term rentals
- Explore long-term rental alternatives if needed
- Assess impact on your investment strategy
Expert Guidance Available
At The Shanon Kelley Realty Group, we understand these regulations significantly impact property investment decisions on Vancouver Island.
Our team stays current with these changes to help you:
- Navigate compliance requirements
- Evaluate property investment strategies
- Understand market implications
- Make informed decisions about your real estate investments
Contact us today to discuss how these regulations affect your property plans and explore your options in Vancouver Island’s evolving real estate market.
Information current as of January 22, 2025. For the most up-to-date information, please consult BC’s official short-term rental registry or contact ServiceBC at 1-833-828-2240.
