Surrey Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Surrey

The City of Surrey allows short-term rentals (STRs) like Airbnb and VRBO, but there are specific regulations that hosts must follow. As of May 1, 2024, the province of British Columbia is implementing new rules that restrict STRs to principal residences plus one secondary suite or accessory dwelling unit in many communities, including Surrey. This means you can only rent out your primary home and either a basement suite or laneway house on the same property.

To start an STR business in Surrey, you'll need to ensure your property complies with the city's zoning bylaws and obtain a business license. The property must be a single-family dwelling or duplex, and no more than two bedrooms can be used for the STR. You'll also need to provide on-site parking for guests and live on the premises during their stay.

It's important to note that the new provincial regulations taking effect in 2024 will significantly limit the types of properties that can be used for STRs in Surrey. If you currently operate an STR that is not your principal residence, you may need to cease operations or sell the property. Consulting with the city's business licensing and planning departments can help clarify how the new rules apply to your specific situation.

Short Term Rental Licensing Requirement in Surrey

To operate a short-term rental in Surrey, you must obtain a valid business license from the city. The license application requires providing details about your STR property and operation, including:

• Address and type of property (single-family, duplex, etc.)
• Number of bedrooms to be used for the STR
• Maximum number of guests
• Parking plan for guests
• Fire safety plan and emergency contact information

The annual license fee for an STR in Surrey is currently $110 CAD. Licenses must be renewed each year, and the city may inspect your property to ensure compliance with regulations. Operating an STR without a valid license can result in fines of up to $500 per day.

It's important to note that obtaining a business license does not override any strata bylaws or homeowner association rules that may prohibit or restrict STRs in your building or complex. Always check with your strata council or HOA before applying for a license.

Required Documents for Surrey Short Term Rentals

When applying for a short-term rental business license in Surrey, you will need to provide the following documents:

• Completed business license application form
• Proof of ownership or written permission from the property owner to operate an STR
• Floor plans of the STR unit(s), including room dimensions and locations of smoke alarms and fire extinguishers
• Site plan or parking plan showing the location and number of on-site parking spaces for STR guests
• Fire safety plan outlining evacuation procedures, assembly points, and emergency contact information
• Proof of insurance coverage for short-term rental use (recommended but not required)

The city may request additional documentation or conduct an inspection of your property before issuing the license. Processing times can vary, so it's best to apply well in advance of when you plan to start hosting guests.

If any information about your STR operation changes after obtaining the license (e.g. number of bedrooms, maximum occupancy, etc.), you must notify the city and update your license accordingly. Failure to do so could result in fines or revocation of your license.

Surrey Short Term Rental Taxes

Short-term rental hosts in Surrey must charge and remit the following taxes on their bookings:

Goods and Services Tax (GST) - 5%

• Applies to all rentals of 30 nights or less
• Must be collected and remitted to the Canada Revenue Agency (CRA) if your annual STR revenue exceeds $30,000 CAD
• If under the $30,000 threshold, GST registration and collection is optional

Provincial Sales Tax (PST) - 8%

• Applies to all rentals of 26 nights or less
• Must be collected and remitted to the BC Ministry of Finance
• PST registration is required for all STR operators, regardless of revenue

Municipal and Regional District Tax (MRDT) - 2-3%

• Also known as the "hotel tax" or "tourism levy"
• Applies to all rentals of 26 nights or less in participating municipalities, including Surrey
• Must be collected and remitted to the BC Ministry of Finance along with the PST
• Current MRDT rate in Surrey is 2%

As an STR operator, it's your responsibility to register for these taxes, collect them from your guests, and remit them to the appropriate government agencies. Failure to do so can result in penalties, interest, and legal action.Keeping accurate records of your STR income and expenses is crucial for tax compliance. You may also be eligible to claim certain expenses as deductions, such as mortgage interest, property taxes, insurance, and cleaning fees. Consult with a tax professional to ensure you are meeting all your obligations and maximizing your deductions.

Surrey-wide Short Term Rental Rules

In addition to the new provincial regulations limiting STRs to principal residences, the City of Surrey's zoning bylaws have specific requirements for short-term rentals:

• Property type: STRs are only permitted in single-family dwellings or duplexes, not in multi-unit buildings like apartments or condos.
• Bedroom limit: No more than 2 bedrooms in the dwelling can be used for the STR. If you have a secondary suite or coach house, those bedrooms count towards the total.
• Operator presence: The STR operator must live on-site during all guest stays. This means you cannot rent out your entire home while you are away.
• Parking: One additional on-site parking space must be provided for STR guests, in addition to the parking required for the dwelling unit.
• Safety: All STRs must comply with fire and building safety codes, including having working smoke alarms, carbon monoxide detectors, and fire extinguishers.
• Noise and nuisance: STR operators are responsible for ensuring their guests do not create excessive noise or disturbances that impact neighbors. Failure to control guest behavior can result in fines or loss of license.
• Signage: No exterior signage is permitted to advertise the STR.

These rules apply across the entire City of Surrey, but additional restrictions may be imposed in certain zones or neighborhoods. Always check with the city's planning department to confirm the specific regulations for your property.

It's important to note that strata corporations and homeowner associations may have their own bylaws that prohibit or restrict STRs, even if they are allowed by the city. Always review your strata or HOA rules before starting an STR business.

Does Surrey strictly enforce STR rules?

Based on discussions in online forums and host communities, it appears the City of Surrey does actively enforce its short-term rental regulations through several means:

• Business license compliance: The city regularly checks STR listings on platforms like Airbnb and VRBO to ensure all active listings have a valid business license. Hosts operating without a license may receive warning letters or fines.
• Zoning and bylaw enforcement: The city investigates complaints from neighbors about STRs operating in violation of zoning rules, such as renting out more than 2 bedrooms or causing excessive noise and parking issues. Bylaw officers may conduct site visits and issue tickets for non-compliance.
• Strata and HOA enforcement: Many condo buildings and townhouse complexes in Surrey prohibit STRs through their strata bylaws or HOA rules. Hosts who violate these rules may face fines, legal action, or forced removal by their strata council or HOA.

However, some hosts report being able to operate STRs that don't fully comply with the rules, particularly in less dense suburban areas of Surrey where enforcement is more challenging. The city tends to prioritize enforcement based on complaints received.

Overall, Surrey has a more permissive approach to STRs compared to neighboring cities like Vancouver, which has much stricter regulations and enforcement. But this is likely to change in 2024 when the new provincial restrictions on STRs take effect, limiting them to principal residences only.

Hosts and industry experts anticipate the new rules will significantly reduce the number of STRs operating in Surrey, as many current listings are investment properties or second homes that will no longer qualify. The city is expected to ramp up enforcement once the new regulations are in place.

So while Surrey is currently considered relatively "Airbnb-friendly" compared to other Metro Vancouver cities, this may not be the case for much longer. Hosts should carefully review the new rules and consult with the city to ensure their STRs will be compliant come May 2024.

How to Start a Short Term Rental Business in Surrey

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

• Confirm eligibility: Review the City of Surrey's zoning bylaws and the new provincial regulations to confirm your property is eligible to operate as an STR. As of May 2024, only principal residences will be allowed.
• Obtain strata or HOA approval: If your property is in a strata building or homeowners association, review their bylaws to ensure STRs are permitted. If not, you may need to seek an exemption or bylaw amendment from the strata council or HOA board.
• Prepare the space: Furnish and equip the STR unit with all necessary amenities, including linens, kitchenware, toiletries, and cleaning supplies. Install smoke alarms, carbon monoxide detectors, and fire extinguishers as required by law.
• Develop house rules and procedures: Create a set of house rules for guests to follow, including noise limits, parking instructions, and pet policies. Establish procedures for cleaning, maintenance, and emergency situations.
• Apply for a business license: Submit an application for a short-term rental business license to the City of Surrey, along with all required documentation and fees. The city may inspect your property before approving the license.
• Register for taxes: Register to collect and remit GST, PST, and MRDT on your STR bookings. Consult with a tax professional to ensure you are meeting all your obligations.
• Create listings: Set up listings for your STR on platforms like Airbnb and VRBO. Take high-quality photos, write detailed descriptions, and set competitive rates based on similar listings in your area.
• Manage bookings and guests: Once your listings are live, respond promptly to booking inquiries and guest questions. Coordinate check-ins, check-outs, and cleaning between stays. Provide excellent customer service to encourage positive reviews.
• Comply with regulations: Ensure ongoing compliance with all applicable laws and regulations, including the City of Surrey's STR bylaws, the provincial Strata Property Act, and any strata or HOA rules. Keep accurate records and renew your business license annually.

Starting an STR business in Surrey can be a rewarding venture, but it's important to do your due diligence and stay informed about the changing regulatory landscape. With careful planning and adherence to the rules, you can create a successful and compliant STR operation.

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:

City of Surrey Business Licensing Department:

• Email: businesslicensing@surrey.ca
• Phone: 604-591-4370
• Website: https://www.surrey.ca/services-payments/licenses-permits-approvals/business-licenses/short-term-rentals
• Responsible for issuing and renewing STR business licenses, enforcing licensing requirements, and investigating complaints related to licensed STRs.

City of Surrey Planning & Development Department:

• Phone: 604-591-4441
• Email: planningdevelopment@surrey.ca
• Website: https://www.surrey.ca/services-payments/licenses-permits-approvals/zoning-land-use
• Responsible for administering the city's zoning bylaws, including those related to STRs. Can provide information on allowed zones, property types, and land use restrictions.

City of Surrey Bylaw Enforcement Department:

• Phone: 604-591-4370
• Email: bylawcomplaint@surrey.ca
• Website: https://www.surrey.ca/services-payments/licenses-permits-approvals/bylaw-enforcement
• Responsible for enforcing the city's bylaws, including those related to noise, parking, and property maintenance. Investigates complaints about unlicensed or non-compliant STRs.

BC Government Housing & Tenancy Branch:

• Phone (Toll-Free): 1-800-665-8779
• Email: HSRTO@gov.bc.ca
• Website: https://www2

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

On Reddit, discussions suggest Surrey is generally more lax about enforcing STR rules compared to Vancouver, but that could change next year under the new provincial restrictions10. Some investor hosts are considering selling their STR properties that will no longer comply.

The Airbnb Community forum has hosts discussing the impacts of BC's new principal residence requirement, with some concerned it will make operating STRs very difficult19. However, the rules don't take effect until May 2024.

Overall, Surrey remains a relatively friendly city for short-term rentals currently, but hosts are anxiously awaiting more details on how the new 2024 regulations will be implemented and enforced at the municipal level. Consulting with the city and obtaining proper licensing is crucial for operating legally.