Short-term Rentals

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Consultation has concluded

Short-term rentals (STRs), also known as vacation rentals or Airbnb's, are residential dwelling units (or portions thereof) that are rented for periods less than 30 days.

STRs impact communities in a variety of ways. Some of the opportunities and challenges of STRs to consider include:


STR OpportunitiesSTR Challenges

Flexible accommodation for tourists.

Neighborhood disruption.

Supplemental income for home owners.

Decreasing housing affordability.

Flexible tenancy options for landlords.

Removal of long-term rental housing.


Other considerations:

  • The growth of STRs has been significant in small and rural communities, with annual growth rates between 42%-44%.
  • In BC, STRs had taken over 16,000 housing units off the long-term market up to the end of 2022.
  • Renting out entire homes, particularly where there are no permanent residents, can have negative impacts on housing availability and affordability.

As a response to the increasing popularity of STRs in our community, and while considering the benefits and challenges of STRs, the Town of Creston has developed STR regulations.

Here’s what to consider when planning to operate a STR:

  1. Short term rentals are now permitted in an operator’s principle dwelling where they live for at least 8 months per year OR in a maximum of one attached accessory dwelling unit (secondary suite) where the operator lives in the principle dwelling in the same building.

  2. STRs are permitted in Zones R1-R6, CDNW, CN, CHS, CG, CDC, AG, but not as the primary use.

  3. A STR business licence fee is $650 annually.

  4. STRs will be required to have an up-to-date fire inspection (within three years).

  5. MRDT must be collected.

  6. A welcome booklet, including emergency contacts and other information, will be provided by the Town that must be made available to all guests.

  7. Every STR operator must maintain a daily register of guests and provide a copy to the Town upon request.

  8. Advertising a Short term rental without a business licence has a $250 penalty per day. Using land contrary to the Zoning Bylaw also has a separate $250 penalty per day.

  9. A grace period of six months from the adoption date, starting March 12th, 2024, has been granted. During this time, STR operators are encouraged to familiarize themselves with the new regulations and bring their operations into alignment.

For those seeking further information or assistance navigating the new bylaws, the Community Planning and Development Office is available to provide support. Contact details are as follows:

Short-term rentals (STRs), also known as vacation rentals or Airbnb's, are residential dwelling units (or portions thereof) that are rented for periods less than 30 days.

STRs impact communities in a variety of ways. Some of the opportunities and challenges of STRs to consider include:


STR OpportunitiesSTR Challenges

Flexible accommodation for tourists.

Neighborhood disruption.

Supplemental income for home owners.

Decreasing housing affordability.

Flexible tenancy options for landlords.

Removal of long-term rental housing.


Other considerations:

  • The growth of STRs has been significant in small and rural communities, with annual growth rates between 42%-44%.
  • In BC, STRs had taken over 16,000 housing units off the long-term market up to the end of 2022.
  • Renting out entire homes, particularly where there are no permanent residents, can have negative impacts on housing availability and affordability.

As a response to the increasing popularity of STRs in our community, and while considering the benefits and challenges of STRs, the Town of Creston has developed STR regulations.

Here’s what to consider when planning to operate a STR:

  1. Short term rentals are now permitted in an operator’s principle dwelling where they live for at least 8 months per year OR in a maximum of one attached accessory dwelling unit (secondary suite) where the operator lives in the principle dwelling in the same building.

  2. STRs are permitted in Zones R1-R6, CDNW, CN, CHS, CG, CDC, AG, but not as the primary use.

  3. A STR business licence fee is $650 annually.

  4. STRs will be required to have an up-to-date fire inspection (within three years).

  5. MRDT must be collected.

  6. A welcome booklet, including emergency contacts and other information, will be provided by the Town that must be made available to all guests.

  7. Every STR operator must maintain a daily register of guests and provide a copy to the Town upon request.

  8. Advertising a Short term rental without a business licence has a $250 penalty per day. Using land contrary to the Zoning Bylaw also has a separate $250 penalty per day.

  9. A grace period of six months from the adoption date, starting March 12th, 2024, has been granted. During this time, STR operators are encouraged to familiarize themselves with the new regulations and bring their operations into alignment.

For those seeking further information or assistance navigating the new bylaws, the Community Planning and Development Office is available to provide support. Contact details are as follows:

Consultation has concluded

  • Short term rental Flow Chart

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  • Provincial measures for Short term rentals

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    A recent article released by the Province speaks to a number of measures the Province will be implementing to assist municipalities in addressing short term rentals.

    These measures include:

    Increasing Fines and Tools for Local Governments:

    • Raise fines for operators who breach local rules.
    • Mandate short-term rental platforms to share data with the Province who will in turn share that information with municipalities to aid with enforcement
    • Require online short-term rental listings to display business license numbers.
    • Empower regional districts to issue business licenses for rural areas.

    Transitioning Short-term Rentals to Long-term Homes:

    • Limit short-term rentals in municipalities with populations over 10,000 to the host's primary residence (with an exception for one secondary suite or laneway home on the property).
    • Define regions and municipalities exempt from the primary residence requirement.
    • Abolish legal protections that investors use to bypass local regulations on short-term rentals.

    Establishing Provincial Rules and Enforcement:

    • Initiate a provincial host and platform registry.
    • Launch a provincial short-term rental compliance and enforcement unit.

    Exemptions and Clarifications:

    • Small communities and tourist-heavy areas can choose to adopt the primary residence requirements based on local housing pressures.
    • Communities on First Nations reserve land and Modern Treaty Nations are exempt but can opt into the legislation.
    • The legislation doesn't apply to hotels, motels, timeshares, and fishing lodges.

    Timeline

    • Phased approach over two years.
    • Immediate changes include increased fines and new business licensing authority.
    • Principal residence requirement and changes to legal protections start May 1, 2024.
    • Data sharing begins Summer 2024.
    • Provincial registry launches in Late 2024.

    In addition to the Provincial measures, beginning on January 1, 2024, the Federal Government intends to:

    • Deny income tax deductions for expenses incurred to earn Short term rental income, including interest expenses, in provinces and municipalities that have prohibited Short term rentals.
    • Deny income tax deductions when Short term rental operators are not compliant with the applicable provincial or municipal licensing, permitting, or registration requirements.
    • Support municipalities that are cracking down on non-compliant short-term rentals. The 2023 Fall Economic Statement proposes $50 million over three years, starting in 2024-25, to support municipal enforcement of restrictions on Short term rentals. This will support municipalities with strict regulatory regimes that are having a significant and measurable impact in returning Short term rentals back to the long-term housing market.