Back

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

🤔 Confused? Get your vacation rental license, tax registration and inspections done for you

Get Help
Abbotsford, Canada

Disclaimer: This article is for informational purposes only and not legal advice. Regulations could have changed since this article was published. Check local zoning authorities and consult a legal professional before making any decisions.

⚡️
Reveal any property's Airbnb and Long-Term rental profitability

Buy this property and list it on Airbnb.

What are Short-Term Rental (Airbnb, VRBO) Regulations in Abbotsford, Canada?

Navigating the short-term rental landscape in Abbotsford, British Columbia requires a solid understanding of local regulations. As the popularity of short-term rental booking platforms like Airbnb and VRBO continues to grow, the city has implemented rules to ensure a balance between the interests of hosts, guests, and the community at large. In this article, we'll explore the key aspects of Abbotsford's short-term rental regulations and what you need to know to operate legally.

Starting a Short-Term Rental Business in Abbotsford

Before launching your short-term rental venture in Abbotsford, there are several crucial steps you must take to ensure compliance with local laws:

  • Obtain a Business License: All short-term rental operators in Abbotsford are required to obtain a valid business license from the City of Abbotsford. This license must be displayed on all advertising platforms, including your Airbnb or VRBO listing. Failure to obtain a license can result in fines and legal consequences.
  • Ensure Zoning Compliance: Not all properties in Abbotsford are permitted to operate as short-term rentals. Hosts must verify that their property is zoned for this purpose and comply with any additional rules set by strata corporations or homeowners' associations. Consulting the City of Abbotsford's Zoning Bylaw Updates can provide clarity on zoning requirements.
  • Prioritize Safety and Security: Guest safety is paramount. Hosts are obligated to equip their properties with functioning smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency lighting. Clear instructions on using safety equipment and emergency contact information must be provided to guests.
  • Obtain Adequate Insurance: Abbotsford requires hosts to carry liability insurance coverage of at least $2,000,000. This insurance must cover any damages or injuries that may occur during a guest's stay. A copy of the insurance policy must be submitted to the City of Abbotsford upon registration.
  • Adhere to Noise and Parking Regulations: Hosts are responsible for ensuring their guests do not cause excessive noise that may disturb neighbors. Clear guidelines on noise levels and quiet hours should be communicated to guests. Additionally, adequate parking must be provided, either on the property or with information on alternative parking options. Guests must not park on the street during prohibited hours or in areas designated for residents.
  • Maintain Accurate Records: To operate legally, hosts must keep detailed records of all transactions related to their short-term rental business. This includes financial transactions, guest information, and the dates and duration of each rental. These records must be made available to the City of Abbotsford upon request.

It's important to note that the short-term rental industry in British Columbia is undergoing significant changes. In January 2024, the province updated its Vacation Rental Accommodations Act, introducing measures to regulate the industry more effectively. Starting May 1, 2024, short-term rentals will be restricted to principal residences in many B.C. communities. Hosts should stay informed about these evolving regulations to ensure ongoing compliance.

Abbotsford's short-term rental regulations may seem daunting at first, but by following the proper steps and staying informed, hosts can successfully navigate the legal landscape. Remember, the City of Abbotsford may conduct inspections to ensure compliance, so it's crucial to adhere to all rules and maintain accurate records. With diligence and attention to detail, you can build a thriving short-term rental business in Abbotsford while contributing positively to the local community.

Short-Term Rental Licensing Requirements in Abbotsford

To operate a short-term rental legally in Abbotsford, hosts must obtain a valid business license from the City of Abbotsford. The process involves several steps and requirements:

  1. Complete the Business License Application: The first step is to fill out the online Business License Application form available on the City of Abbotsford website. This application is only the initial step and does not guarantee approval to operate.
  2. Pay the Application Fee: When submitting the online application, hosts must pay the required fees. For businesses located within Abbotsford, the fee depends on factors such as license type, subtype, and nature of the business. An additional administration fee of $25 is charged for all new business license applications.
  3. Undergo Inspection: All businesses located within Abbotsford, including STRs, require an inspection. After submitting the application, the License Inspector will contact the host to arrange a mutually convenient time for the inspection. This ensures the property meets all safety and zoning requirements.
  4. Obtain Necessary Permits: If any building modifications or new plumbing (including sprinklers) are required, hosts must secure the appropriate permits. Cosmetic changes like painting or carpeting do not require permits. For any signage related to the STR, hosts must comply with the regulations outlined in the Sign Bylaw No. 3429-2023.
  5. Await Approval: The City of Abbotsford will review the application and, if all requirements are met, issue the business license. It is crucial to note that the STR cannot be opened or operated until the license is granted.

The timeline for the licensing process may vary depending on the completeness of the application, the availability of inspection appointments, and the volume of applications being processed by the City of Abbotsford. Hosts should allow ample time for the process and plan accordingly.

Failure to obtain a valid business license for an STR can result in fines and legal consequences. The City of Abbotsford actively enforces its short-term rental regulations, and non-compliant hosts may face penalties. To avoid any issues, it is essential to follow the licensing requirements diligently.

Once approved, the business license is valid for a 12-month period from the date of issuance and expires on the last day of the 12th month. Hosts must renew their licenses annually to continue operating their STRs legally.

By understanding and adhering to Abbotsford's short-term rental licensing requirements, hosts can establish a compliant and successful STR business. The City of Abbotsford's Business Licences department is available to provide guidance and answer any questions throughout the application process.

Required Documents for Abbotsford Short-Term Rentals

When applying for a short-term rental business license in Abbotsford, hosts must provide several key documents to ensure compliance with local regulations. These documents help the City of Abbotsford verify the legitimacy of the STR and the host's adherence to safety and zoning requirements. The required documents include:

  1. Completed Business License Application: The first document needed is the completed online Business License Application form, which can be found on the City of Abbotsford's website. This form collects essential information about the host, the property, and the nature of the STR business.
  2. Proof of Ownership or Lease Agreement: Hosts must provide evidence that they own the property or have the legal right to operate an STR on the premises. This can be in the form of a property title or a lease agreement that explicitly allows for short-term rentals.
  3. Liability Insurance: Abbotsford requires STR hosts to carry a minimum of $2,000,000 in liability insurance coverage. A copy of the insurance policy must be submitted with the business license application to demonstrate adequate coverage for potential damages or injuries.
  4. Floor Plan: A detailed floor plan of the STR property is required, clearly indicating the rooms to be used for guest accommodation, emergency exits, and the location of safety equipment such as smoke detectors and fire extinguishers. This helps ensure guest safety and compliance with occupancy limits.
  5. Parking Plan: Hosts must submit a parking plan that outlines the available parking spaces for guests, either on the property or in designated areas nearby. This plan should comply with the City of Abbotsford's parking regulations and ensure that guests do not park illegally or disrupt the neighborhood.
  6. Safety Inspection Report: Before granting a business license, the City of Abbotsford conducts a safety inspection of the STR property. Hosts must arrange for this inspection and submit the resulting report, which verifies that the property meets all necessary safety standards.
  7. Strata or HOA Approval (if applicable): If the STR property is part of a strata corporation or homeowners' association (HOA), hosts must provide written approval from the strata council or HOA board, confirming that short-term rentals are permitted on the premises.

These documents serve as the foundation for a complete and compliant STR business license application in Abbotsford. Hosts should gather all required materials before beginning the application process to ensure a smooth and efficient experience.

The City of Abbotsford's Business Licences department is the primary point of contact for submitting these documents and any related inquiries. They can provide guidance on obtaining the necessary forms, arranging inspections, and meeting all regulatory requirements.

By carefully preparing and submitting the required documents, STR hosts in Abbotsford demonstrate their commitment to operating legally and responsibly, contributing to a thriving and well-regulated short-term rental market in the city.

Abbotsford Short-Term Rental Taxes

As a short-term rental host in Abbotsford, it's crucial to understand the various taxes that apply to your business. Failing to collect and remit these taxes can lead to penalties and legal consequences. Here's a breakdown of the key taxes you need to be aware of:

  1. Provincial Sales Tax (PST): The PST is a tax of 8% that applies to the sale of short-term accommodations in British Columbia. This tax is charged on the listing price, including any cleaning fees, for stays of 30 nights or less. As a host, you are responsible for collecting this tax from your guests and remitting it to the government.
  2. Municipal and Regional District Tax (MRDT): The MRDT is an additional tax of up to 2% that is levied on short-term accommodations in participating municipalities and regional districts. In Abbotsford, the MRDT rate is currently 2%. This tax is charged on top of the PST and is also collected by hosts and remitted to the government. The revenue from the MRDT is used to support local tourism marketing and development initiatives.
  3. Goods and Services Tax (GST): The GST is a federal tax of 5% that applies to most goods and services in Canada, including short-term rentals. As a host, you must collect this tax from your guests and remit it to the Canada Revenue Agency (CRA). If your annual revenue exceeds $30,000, you are required to register for a GST/HST account with the CRA.
  4. Speculation and Vacancy Tax: The Speculation and Vacancy Tax is an annual tax that applies to residential properties in designated taxable regions of British Columbia, including Abbotsford. The tax rate is 0.5% for Canadian citizens or permanent residents and 2% for foreign owners and satellite families. However, there are exemptions available for principal residences and long-term rentals.

It's important to note that these taxes are in addition to any income tax you may owe on your rental earnings. As a host, you are responsible for reporting your rental income and paying the appropriate income taxes.

Possible Write-Offs and Deductions

While short-term rental taxes can seem daunting, there are some possible write-offs and deductions that can help offset your tax burden. These may include:

  1. Mortgage interest
  2. Property taxes
  3. Insurance
  4. Utilities
  5. Cleaning and maintenance expenses
  6. Supplies and amenities provided to guests
  7. Depreciation of furniture and equipment used in the rental

It's always best to consult with a tax professional to determine which deductions apply to your specific situation and to ensure you are complying with all tax laws and regulations.

In summary, as an Airbnb host in Abbotsford, you are responsible for collecting and remitting the 8% PST, 2% MRDT, and 5% GST on your short-term rental income. Additionally, you may be subject to the Speculation and Vacancy Tax if your property is not exempt. By understanding these taxes and taking advantage of available deductions, you can operate your short-term rental business in compliance with the law and maximize your profitability.

British Columbia Wide Short-Term Rental Rules

In addition to Abbotsford's local regulations, short-term rental hosts must also comply with provincial laws and regulations set by the government of British Columbia. These rules are designed to address the housing crisis, return more short-term rental units to the long-term housing market, and provide local governments with stronger enforcement tools. Here are the key provincial requirements that affect Abbotsford hosts:

  1. Principal Residence Requirement: Starting May 1, 2024, short-term rentals in many B.C. communities will be restricted to principal residences only. This means that hosts can only offer short-term rentals in the home where they live most of the year. However, some areas may be exempt from this requirement.
  2. Business License Display: As of May 1, 2024, short-term rental hosts must display a valid business license number on their listings in areas where a business license is required by the local government. Platforms are obligated to remove listings that do not comply with this requirement.
  3. Removal of Non-Conforming Use Protections: Beginning May 1, 2024, protections for non-conforming use of property will no longer apply to short-term rentals. This means that hosts can no longer continue operating short-term rentals if they are against the bylaws set by the local government.
  4. Data Sharing: To assist local governments with bylaw enforcement, short-term rental platforms will be required to share information about listings on a monthly basis, starting in May 2024. This information is confidential and will not be disclosed to the public.
  5. Increased Fines: The maximum fine that regional districts can set for prosecutions of bylaw offences has increased from $2,000 to $50,000, consistent with the maximum fines for municipalities under the Community Charter.
  6. Provincial Registry: By early 2025, the Province expects to establish a short-term rental registry. Hosts will be required to include a valid provincial registry number in their listings, and platforms must remove listings without valid registry numbers.

These provincial regulations are being implemented through a phased approach over two years, with different requirements coming into effect at various times. It's crucial for Abbotsford hosts to stay informed about these evolving rules and ensure compliance to avoid penalties and legal consequences.

The Short-Term Rental Accommodations Act and its associated regulations aim to strike a balance between supporting the short-term rental industry and addressing the housing crisis in British Columbia. By adhering to both local and provincial requirements, Abbotsford hosts can operate their short-term rentals responsibly and contribute to a well-regulated and sustainable accommodation market.

Does Abbotsford Strictly Enforce STR Rules?

While Abbotsford has not been singled out as a city that is particularly strict or lenient when it comes to enforcing short-term rental regulations, the recent changes to British Columbia's provincial laws suggest that the landscape is shifting towards tighter control and enforcement across the province, including in Abbotsford.

The new provincial rules, set to take effect on May 1, 2024, introduce a principal residence requirement for short-term rentals in many B.C. communities, including Abbotsford. This requirement limits hosts to renting out their primary residence plus one additional unit on the same property, with the goal of returning more short-term rental units to the long-term housing market.

Furthermore, the Province has established a Compliance and Enforcement Unit (CEU) within the Short-Term Rental Branch to ensure that the provincial rules are being followed. This indicates a clear intention to enforce the regulations and crack down on non-compliant hosts.

Based on discussions in real estate forums like BiggerPockets and Reddit, it appears that many hosts across B.C. are concerned about the impact of these new rules on their ability to operate short-term rentals. Some have expressed frustration with the restrictions, while others are considering selling their properties or converting them to long-term rentals.

While Abbotsford may not have a reputation for being particularly strict compared to other cities, the provincial regulations will likely lead to increased enforcement and scrutiny of short-term rentals in the city. Hosts who continue to operate in violation of the rules may face penalties and legal consequences.

In conclusion, while Abbotsford's specific enforcement track record is unclear, the new B.C.-wide regulations suggest that the city will become less Airbnb-friendly in the coming years. Hosts should carefully review the rules and ensure compliance to avoid potential issues. Operating short-term rentals in defiance of the regulations is not advisable, as the Province has signaled its intent to enforce the new laws across B.C. communities like Abbotsford.

How to Start a Short-Term Rental Business in Abbotsford

Starting a short-term rental business in Abbotsford can be a lucrative venture, but it requires careful planning and adherence to local regulations. Follow these steps to successfully launch your Airbnb or VRBO business in Abbotsford:

  1. Research Zoning Regulations: Before investing in a property or listing your current home, thoroughly research Abbotsford's zoning bylaws to ensure that short-term rentals are permitted in your desired location. The city has designated specific areas where these accommodations are allowed, so verify that your property falls within an approved zone. Consult Abbotsford's zoning bylaw updates or contact the city's planning department for the most current information on short-term rental zoning.
  2. Obtain a Business License: All short-term rental operators in Abbotsford are required to obtain a valid business license from the City of Abbotsford. This license must be displayed on all advertising platforms, including your Airbnb or VRBO listing. Apply for your license through the city's licensing department and remember to renew it annually. Begin the licensing process well in advance of your planned launch date to allow ample time for application processing and any necessary inspections.
  3. Ensure Property Compliance: Before welcoming guests, make sure your property meets all safety and regulatory requirements. This includes installing functioning smoke detectors, carbon monoxide detectors, fire extinguishers, and providing clear emergency exit routes. If any renovations or repairs are needed, obtain the appropriate permits from the city. Hire a professional inspector to assess your property and identify any potential safety or compliance issues before your first guest arrives.
  4. Secure Appropriate Insurance: Protect your investment by obtaining the proper insurance coverage for your short-term rental. Abbotsford requires hosts to carry liability insurance with a minimum coverage of $2,000,000. Submit a copy of your insurance policy to the City of Abbotsford as part of your business license application. Shop around for insurance providers that specialize in short-term rental coverage to ensure you have the most comprehensive protection for your specific needs.
  5. Create a Detailed Listing: Craft an attractive and informative listing for your short-term rental on platforms like Airbnb and VRBO. Include high-quality photos, a detailed description of your property's amenities, and any unique features that set it apart. Be transparent about your property's location, parking arrangements, and house rules to help guests make informed decisions. Highlight your property's proximity to popular Abbotsford attractions, such as parks, restaurants, and shopping centers, to appeal to a wider range of potential guests.
  6. Set Competitive Prices: Research the rates of similar short-term rentals in your area to determine a competitive pricing strategy. Consider factors such as seasonality, events, and demand when setting your nightly rates. Don't forget to account for cleaning fees, taxes, and platform commissions in your pricing structure. Utilize dynamic pricing tools to automatically adjust your rates based on market conditions and optimize your occupancy and revenue.
  7. Develop a Guest Communication Plan: Establish a system for promptly responding to guest inquiries, managing reservations, and providing check-in instructions. Create a welcome guide that includes important information about your property, such as Wi-Fi passwords, appliance instructions, and local recommendations. Use automated messaging tools to streamline your guest communication and ensure a consistent level of service.
  8. Comply with Tax Obligations: As a short-term rental operator in Abbotsford, you are responsible for collecting and remitting various taxes, including the Provincial Sales Tax (PST), Municipal and Regional District Tax (MRDT), and Goods and Services Tax (GST). Familiarize yourself with the applicable tax rates and registration requirements to avoid penalties. Consult with a local tax professional to ensure you are fully compliant with all tax obligations and to explore potential deductions for your short-term rental business.

By following these steps and staying informed about Abbotsford's evolving short-term rental regulations, you can build a successful and compliant Airbnb or VRBO business in this thriving city.

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

If you have questions or need assistance navigating Abbotsford's short-term rental regulations and zoning bylaws, there are several key contacts and resources available:

  1. City of Abbotsford Planning & Development Services: For inquiries related to zoning, land use, and community planning, contact the Planning & Development Services department at planning-info@abbotsford.ca or call 604-864-5510.
  2. City of Abbotsford Business Licences: To apply for a business license or for questions about the licensing process, contact the Business Licences department at businesslicence@abbotsford.ca. You can also visit their office in person at City Hall.
  3. Abbotsford Fire Rescue Service: For questions about fire safety requirements and inspections for short-term rentals, email fire-info@abbotsford.ca.
  4. Let's Talk Abbotsford: This online platform provides updates on new housing regulations in Abbotsford, including information on Transit Oriented Areas and Small-Scale Multi-Unit Housing. Visit https://letstalkabbotsford.ca/new-housing-regulations for more details.

In addition to these official city contacts, connecting with other short-term rental hosts and property managers can be a valuable resource for navigating local regulations and sharing best practices. Consider joining online communities and forums such as:

  1. Airbnb Community Center: https://community.withairbnb.com/
  2. BiggerPockets Real Estate Investment Forum: https://www.biggerpockets.com/forums/52-short-term-and-vacation-rental-discussions
  3. VRBO Community Forum: https://community.vrbo.com/

These platforms offer opportunities to network with experienced hosts, ask questions, and stay informed about industry trends and regulatory changes.

By leveraging the expertise of Abbotsford's city departments and engaging with the short-term rental community, hosts can ensure they are operating in compliance with local rules while providing exceptional experiences for their guests.

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

Airbnb hosts in Abbotsford have been actively discussing the impact of local and provincial regulations on their short-term rental businesses. Here are some insights from real-life experiences shared on relevant forums:

Reddit - r/AirBnBHosts: In a thread titled "Vancouver, BC AirBnb hosts," a host from a Gulf Island shared their perspective on the new regulations, emphasizing the importance of thoroughly understanding the rules and the potential fines for non-compliance. They also highlighted the principal residence requirement and the limitations on claiming expenses on taxes .

Reddit - r/abbotsford: In a discussion about moving to Abbotsford, a user mentioned that the cost of living in the city is much higher compared to Saskatchewan, with rent being approximately three times more expensive. They also noted that despite earning a combined income of over $200,000 per year, they find it challenging to save for a house down payment due to the high rental costs .

BiggerPockets Forum: In a thread titled "Investing in B.C.'s lower mainland (Greater Vancouver)," investors discussed the challenges of finding cash flow positive properties in the region due to the high real estate prices. Some suggested exploring alternative strategies like rent-to-own or investing in other provinces with more favorable market conditions .

BiggerPockets Forum: A user seeking advice on house-hacking in Abbotsford or other Vancouver suburbs shared their dilemma between buying an expensive house to rent out the basement and extra rooms, or purchasing a cheaper condo to rent out entirely. They also considered investing out-of-state in Alberta to mitigate the risks associated with the high cost of real estate in B.C. .

These discussions highlight the challenges Airbnb hosts face in Abbotsford and the Greater Vancouver area, primarily due to the high cost of real estate and the increasingly stringent regulations. Hosts are grappling with the principal residence requirement, limitations on expense claims, and the potential impact on their profitability.

Despite these challenges, some hosts remain optimistic about the future of short-term rentals in Abbotsford. They believe that as the city grows, so will the amenities and opportunities for Airbnb hosts. However, they also acknowledge the need to stay informed about the evolving regulations and adapt their strategies accordingly.

Overall, the sentiment among Airbnb hosts in Abbotsford is one of cautious optimism, tempered by the recognition of the significant challenges posed by the local and provincial regulations. By sharing their experiences and insights on forums like Reddit and BiggerPockets, hosts can learn from one another and navigate this complex landscape more effectively.

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.

🤔 Confused? Get your vacation rental license, tax registration and inspections done for you

Get Help

⚡️
Reveal any property's Airbnb and Long-Term rental profitability

Buy this property and list it on Airbnb.