Wondering what the Canmore Airbnb rules are and just need a straight answer?
Nearly every day I have clients asking me about how they can get into the highly lucrative Airbnb market in Canmore. With the explosive popularity of the Canadian Rockies, it’s no wonder Canmore has become a key market for short term rental investment properties in Canada. Ask most real estate agents, homeowners, or even Canmore government officials what the Airbnb rules are though, and they usually can’t come up with a straight answer.
Today, lets decode the Canmore Airbnb rules, so you can make sense of what could be a strong investment in Canmore real estate.
Taking one look around the communities of Canmore and Banff, you would immediately notice a large number of one thing – hotels! With the stunning scenery and world-class activities we enjoy here in the Canadian Rockies, there is no shortage of visitors to the region. Thats why the hotel and nightly lodging industry in the area stretches way back to 1888 and the times of CP rail. The landmark Banff Springs Hotel is a testament to the long-lasting and lucrative tourism of the area. Hotels here have been likened to a “printing press” for money in some cases.
Websites like Airbnb & VRBO capitalize on everyday homeowners who want to rent out their home nightly to make money when they aren’t using it. Its a brilliant model that has obviously done well for everyone involved!
As a Canmore homeowner myself, I certainly know what my answer would be. The thing is though, Canmore and other popular mountain towns like Aspen & Jackson Hole have a major shortage when it comes to all types of housing. This is particularly true when it comes to affordable housing. We also have a huge array of “traditional operators” *cough* hotels *cough* who obviously have a vested interest in protecting their monopoly.
With this in mind, the town of Canmore sought to regulate Airbnb’s.
The key Canmore Airbnb Rules are:
These are the basic rules, but it gets a bit more complex.
Areas zoned by the town of Canmore as “Hotel Condo” or “tourist home” are the two key options for Airbnb.
These terms are essentially interchangeable!
The key thing about this zoning is that it is viewed more like a commercial property by the municipality and lenders. What does this mean? Think of it as “owning a hotel room” or, owning a hotel business. Taxes are a bit higher. Lenders require a more significant down payment. It is subject to GST nearly every time it is sold. Key rules for this zoning:
Even if the property you are considering is in a hotel rental pool, it can likely be removed and self-managed via Airbnb. Ask me how.
This can be the most desirable zoning in Canmore for Airbnb, particularly if you want to also use it as a primary residence (or “dwelling unit” in the eyes of the municipality). The key distinction is that Tourist Homes can be lived in full time, and rented short-term.
From the town of Canmore site:
A tourist home is any dwelling that can be used as a permanent residence or for short-term stays. The formal definition of a tourist home is: “a dwelling unit operated as a temporary place to stay, with or without compensation, and includes all vacation rentals of a dwelling unit.”
The characteristics that distinguish a tourist home from a dwelling unit used as a residence may include any of the following:
Tourist Homes in Canmore often ask a higher price because of this zoning, and can be in a beat up shape. Unless you also wish to use it as a residence, Hotel Condo properties can be a better option.
The town of Canmore has been notoriously ruthless when it comes to illegal vacation rental enforcement. They have been known to issue $2,500 first offence fines without warning – for simply listing a property on Airbnb or VRBO websites. Subsequent fines are $5,000. Yikes!
Don’t let the daunting fines or complex rules deter you. Owning a short-term rental property in Canmore is a major opportunity to cash in on passive income if done right. Rental income can pad out your retirement or portfolio, while you get to visit the property yourself whenever you want. Read my article on how to own an Airbnb in Canmore, or call/text/email me today to learn about available properties on the market right now.
Like this post? Check out some of my other articles to learn more:
Feel free to call, text, or email Dan today for no-pressure advice,
tips and insights into the Canmore & Banff real estate market.