Are you looking to increase your income? Operating a short-term rental in Canmore can be a great way to take advantage of the town’s steady stream of tourists and boost your earnings. However, you must comply with all local laws and licensing requirements to ensure you can avoid any costly fines.
Here at Canmore Co-Host, we know how complex the whole process can seem when you’re just starting. That is why we have put together this short guide to outline everything you need to know when it comes to running a short-term rental in Canmore.
Understanding short-term rentals in Canmore
A short-term rental in Canmore refers to renting out a property or a portion of it for a period typically shorter than 30 days. Given Canmore’s popularity as a year-round travel destination, many property owners capitalize on the demand for vacation accommodations. However, strict regulations govern these rentals, and compliance is necessary to avoid fines or operational restrictions.
Licensing requirements for a short-term rental in Canmore
If you are considering turning your property into a short-term rental, then there are several things you need to be aware of, including:
1. Business license
Anyone operating a short-term rental in Canmore must obtain a business license from the Town of Canmore, which needs to be posted on all listings and in the property. This license ensures compliance with local laws and regulations. The application process includes submitting property details, proof of ownership or landlord approval, and paying the required licensing fee.
2. Zoning restrictions
Not all areas in Canmore permit short-term rentals. Before listing a property, owners must verify that their short-term rental in Canmore is located within an approved zoning area. Running one in a prohibited zone can lead to fines and operational shutdowns.
The two primary types of classification for properties in zones:
- Tourist Homes are residential properties that require a business license for each rental unit and are designated as short-term or long-term rentals.
- Visitor Accommodation, which is a building not designated for residential use.
3. Safety compliance
The Town of Canmore mandates safety measures for short-term rentals. Every short-term rental in Canmore must be equipped with functional smoke detectors, carbon monoxide detectors, fire extinguishers, and clear emergency exits to protect guests.
4. Insurance requirements
A standard homeowner’s insurance policy may not provide adequate coverage for a short-term rental in Canmore. That is why it is advisable to obtain insurance designed explicitly for rentals to mitigate potential risks and liabilities.
Other key considerations
In addition to the licenses and requirements listed above, property owners will also need to keep several other considerations. The first is to enforce the number of guests, ensuring they do not exceed the maximum allowed for safety and compliance.
Property owners will also need to think about things such as parking requirements for additional vehicles, noise, and behaviour management. All of which are vital to maintaining community harmony.
Operating a short-term rental in Canmore will come with tax obligations, and hosts must collect and remit the Alberta Tourism Levy. To ensure you do not fall foul of any fines, you should make sure that you are keeping accurate financial records and be sure to consult with an accountant or tax professional on any areas you are not sure about.
Looking to start a short-term rental in Canmore?
No matter whether you want to learn more about starting a short-term rental in Canmore or you are looking for support for your current Airbnb business, our team is here to help you! As established Airbnb Superhosts and Prohosts, we know what it takes to ensure you not only remain compliant with the law but also deliver exceptional experiences for your guests.
Want to find out how we can help you? Get in touch today!
