More than a year ago CRA announced it would deny certain tax deductions (including repairs and property taxes) if a short term rental (STR) property was not compliant with provincial or municipal regulations and licensing. Hosts had until December 31, 2024 to become fully compliant. If that deadline was met, CRA will retroactively apply that status to all of 2024.  

In B.C., STR owners in communities with more than 10,000 residents must adhere to the provincial Short-Term Rental Accommodations Act (STRAA) passed in 2023, plus local bylaws. STRAA has been rolled out in phases and additional regulations take effect May 1, 2025. Hosts must register with the provincial government and pay a fee by May 1, with a 25% discount applied to registrations completed by March 31.¹

The growth of the STR market

Between 2017 and 2023, total STR units in Canada grew by 60%, but remain less than 1% of all housing units nationwide. Revenue from the vacation rentals market is projected to hit approximately US$1.92 billion by 2025.² According to Statistics Canada, as of 2023, there were 107,266 STR units that could potentially serve as long-term dwellings in Canada, or about 30% of all STRs in Canada. This subset of STRs is defined as entire units listed for more than 180 days a year and excludes personal vacation properties.

Across Canada the percentage of potential long-term dwellings among all housing units is highest in ski destinations. And Whistler had the most, with 35% of all housing units there being STRs that could be potential long-term housing. ³

STR listings in communities covered by STRAA are down

In B.C., STRAA defines a STR period as less than 90 consecutive days. An earlier phase of the law that took effect in 2024 limited STRs to a host’s own principal residence, plus one secondary suite or accessory dwelling (a self-contained unit on the same property), in municipalities with more then 10,000 residents. Close to 80 communities in B.C. are thought to be affected by the legislation. Local governments in towns with fewer than 10,000 residents can opt in to the regulations

A study commissioned by the B.C. Hotel Association reported in September 2024 that listings in communities subject to STRAA have decreased since it was enacted. The report found the largest declines were on Vancouver Island and in northern B.C. ⁴

What happens on May 1, 2025?

• This is the deadline for hosts to register a property with the B.C. government before listing it on any rental platform (Airbnb, VRBO, Bookings.com, Facebook, strata hotel platforms, etc., and others). The unique, government issued registration number must be displayed in rental listings.
• Rental platforms must remove host listings without a registration number.
• Platforms must confirm property registration numbers with the provincial registry. The platforms are required to share listing information with the government every month.
• Platforms must also register with the B.C. government. Registration for hosts and platforms can be done online.
• Fines of up to $3,000 per day for individuals and $10,000 per day for corporations violating the rules will take effect May 1.

Annual registration fees:

• $100 for an STR the host lives in, such as an entire house the host rents out while away or a bedroom in it.
• $450 if the STR is as a secondary suite, cottage or laneway home on the same property.
• $600 for an entire strata hotel.

• A 25% discount applies for registrations completed by March 31, 2025. ⁵

As of June 1, 2025 platforms must remove any advertising, prevent new bookings and cancel any existing bookings for a listing without a valid registration number. So if you’re a guest booking dates that fall after June 1 make sure the listing has a registration number. If it doesn’t, your reservation could be being cancelled.

Local municipal regulations apply too

In addition to STRAA, local governments around B.C. have their own bylaws. For example, in a recent news release Columbia Shuswap Regional District urged owners to contact local planning staff to confirm if zoning regulations permit an STR on their land. If not, the municipality is offering to discuss possible options such as Temporary Use Permits, which can run for three years.⁶ And more municipalities are requiring STRs to have a local business license (which is separate from the new B.C. STR registration number). As of Jan. 1, 2025, STR hosts in Sidney must apply for one and since last November STR owners on Bowen Island must submit a principal residence declaration to maintain their business license. ⁷

Legal challenge fails, for now

A legal challenge to STRAA launched by a group of B.C. property owners in 2024 was denied by the B.C. Supreme Court on February 24, 2025. The Westcoast Association for Property Rights argued that the law infringed on their use of their properties, would economically damage small businesses and could depress the value of their property. The court ruled against the petition largely on procedural grounds, one of several being that the challenge did not specify a particular property owner and was essentially hypothetical. However, while noting that the province “faces a housing crisis” and that the growth in STRs conceivably makes that worse, the court left the door open to future challenges, saying that the issue could be raised again “in appropriate circumstances.” ⁸

 

Sources

1 Government of BC

2 Statistica

3 Statistics Canada

4 CBC

5 Government of BC

6 Summerland Review

7 Bowen Island Municipality

8 Vancouver Island Fee Daily