BC Short-Term Rental Rules for Vacation Property Owners (2026)

If you own, or plan to buy, a cottage, cabin or condo in British Columbia and want to rent it out on Airbnb or Vrbo, three principal layers of rules apply: the province’s Short-Term Rental Accommodations Act, your local government’s zoning and business licence rules, and federal tax rules. This guide explains each, with what they mean for vacation property owners.

The short version

• In most BC communities of 10,000+ people, you can only rent short-term (under 90 days) in your own principal residence, plus one secondary suite or laneway home on the same property. A separate vacation property generally can’t be an Airbnb there.
• Resort areas and small communities are exempt from that rule. These include Whistler, Revelstoke and Sun Peaks, communities under 10,000 people that aren’t near a larger city, most regional district electoral areas and most Gulf Islands. Local zoning still applies.
• Almost every host must register with the province: $100 a year for a unit in your principal residence, $450 for most other units. The registration number must appear on your listing.
• Kelowna opted out of the province’s principal residence requirement from June 1, 2026. The city’s own rules still apply: you can rent a home you don’t live in only at a listed eligible property rezoned to the short-term rental subzone.
• Breaking the rules costs you twice: municipal tickets of up to $3,000 a day, and the CRA can deny your rental expense deductions.

1. The principal residence requirement

Since 2024, short-term rentals in communities covered by the rule are limited to the host’s principal residence, plus one secondary suite or accessory dwelling unit on the same property. “Short-term” means less than 90 consecutive days.

Where it applies: municipalities with 10,000 or more people, and smaller communities within 15 km of them. That’s more than 60 communities as of 2026, including Vancouver, Victoria, Surrey and Nanaimo. Local governments elsewhere can opt in.

Where it doesn’t apply:

• Resort Municipality Initiative communities, and mountain, BC Parks and ski resort areas. Whistler, Revelstoke and Sun Peaks are on the province’s exempt list.
• Municipalities under 10,000 people that aren’t within 15 km of a larger one
• Most regional district electoral areas
• Most Islands Trust areas, except Salt Spring and Gabriola

Some property types are also exempt from the requirement but must still register, including certain strata hotels, fractional ownership properties and farm land (Class 9).

What this means for buyers: location decides everything. A cottage on Shuswap Lake in a regional district electoral area, or a condo in Tofino or Whistler, isn’t caught by the provincial rule, but local rules decide whether it can rent nightly. Some Shuswap areas require a temporary use permit, and Tofino’s licence conditions call for a permanent resident on site. A second condo in Vancouver or Victoria generally can’t. Nor can a place in popular lake and mountain towns such as Salmon Arm, Penticton, Vernon, Squamish and Nelson, which are all on the province’s list. Tofino, Ucluelet, Whistler and Sun Peaks are exempt. Check the province’s list of affected communities, which can change each year (opt-outs take effect June 1, opt-ins November 1), before you buy for rental income.

2. How to register with BC’s short-term rental registry

Since May 1, 2025, hosts and booking platforms must register with the province. Platforms validate listings against the registry, and listings without a valid number are removed.

Plus a $1.50 service fee. Each unit needs its own registration, renewed every year; the renewal window opens 40 days before expiry. You’ll need the property’s PID, ownership details, your SIN and, where it applies, proof of principal residence or an exemption, and a local business licence. Your listing must show the provincial number, the local licence number (if one is required) and the registered address.

To register, follow the province’s host registration page and host guide:

1. Log in to the registry with a BC Services Card account. If you don’t have Canadian-issued ID, you’ll need a BC Registries account with a BCeID, which takes about 8–10 days and a notarized affidavit.
2. Enter the rental’s address, which decides what documents you need, and mark any exemption that applies.
3. Add the property host and anyone else involved, such as a co-host or property manager.
4. Upload the required documents (PDF or JPG), and enter your business licence number and expiry date if you have one.
5. Review your application, submit it and pay.
6. Once it’s approved, add your registration number, any local licence number and the exact registered address to every listing.

3. Local rules: zoning and business licences

Provincial registration doesn’t override local rules. Many BC municipalities require a business licence, and many limit short-term rentals by zone. Fines rose under the new law: municipal tickets can now reach $3,000 per infraction per day, and regional districts can seek fines of up to $50,000 for bylaw offences.

Whistler: exempt from the principal residence requirement, but only properties zoned for tourist or temporary accommodation can rent nightly. Residential-zoned homes and employee housing can’t be rented to tourists at all, and covenants on title can add limits. Every rental needs a Whistler tourist accommodation business licence: a $25 application fee plus $250 per guest unit per year. Unlicensed rentals face fines, and the province allows up to $3,000 a day. Confirm the current amount with the RMOW. Check zoning on the RMOW’s online map before you buy. Our guide to Whistler real estate prices covers what homes cost there and Phase 1 ownership.

Kelowna: after its rental vacancy rate stayed at 3% or more for two years, Kelowna was the only local government to request an opt-out in 2026, effective June 1, 2026. That doesn’t open the whole city to Airbnb. Under the city’s rules, you can rent a home you don’t live in only at a listed eligible property rezoned to the short-term rental subzone. Everywhere else, you must live in the home at least 240 days a year, about eight months. Up to three bedrooms per dwelling unit can be rented. A licence costs $345 a year plus a $50 application fee, so confirm the fee for a home you don’t live in with the city. Fines run up to $500 a day per offence. See our guide to Kelowna real estate prices for what homes cost there.

Other resort and cottage areas: small communities and electoral areas may have no short-term rental bylaw at all, or a strict one. Call the planning department and ask two questions: is short-term rental a permitted use in this zone, and do I need a licence?

4. Taxes

• Expense deductions: since January 1, 2024, if your short-term rental breaks provincial or municipal rules, the CRA denies rental expenses for the non-compliant days, but you still pay tax on the income.
• GST/HST: short-term accommodation (stays under one month, over $20 a night) is taxable. If your taxable revenue from all sources passes $30,000 in a single quarter or over four consecutive quarters, you must register and collect GST/HST. If you aren’t registered, the booking platform generally collects GST/HST for you.
• PST and the Municipal and Regional District Tax: BC charges 8% PST and, in participating communities, up to 3% MRDT on short-term accommodation. Stays of 27 days or more are exempt. Listing on an online platform removes the small-operator exemption. If you sell only through a platform that collects PST and MRDT, you don’t need to register, but you remain liable if it doesn’t remit. In Vancouver, an additional 2.5% Major Events MRDT applies until January 31, 2030.
• Speculation and Vacancy Tax: BC’s speculation and vacancy tax applies in designated areas, including Kelowna and West Kelowna, but not Whistler. Nightly rentals generally won’t earn the rental exemption. To qualify, the home must be rented in stays of at least one month for at least six months of the year. Other tenancy conditions also apply, including a tenancy under the Residential Tenancy Act for arm’s-length tenants. Every owner of residential property in a taxable area must file a declaration each year.
• Capital gains: a property you own mainly to earn rent generally won’t qualify for the principal residence exemption, but a cottage you use yourself and rent occasionally may. This is a different test from BC’s short-term rental rule, so get tax advice. Half of any gain is taxable; the proposed increase to two-thirds was cancelled in 2025.

5. Opt-outs and opt-ins: the new Feb 28 / June 1 timeline

From the 2027 cycle, eligible municipalities (rental vacancy of at least 3% for two years) that want to opt out of the principal residence requirement must apply by February 28, and approved opt-outs take effect June 1 (previously November 1). Opt-in requests are also due February 28 and still take effect November 1. Watch for communities with rising vacancy rates. The next opt-outs could come in June 2027.

Before you buy a BC vacation property to rent out

• Is the property in a community covered by the principal residence requirement? Check the province’s list.
• Does local zoning allow short-term or tourist accommodation on this parcel?
• Do title covenants, strata bylaws or rental pool agreements limit rentals?
• What does the local business licence cost, and is there a waitlist or cap?
• Have you budgeted the $450 provincial registration, licence fees and GST/PST/MRDT?
• Have you run the numbers with realistic occupancy in our Airbnb ROI Calculator?
• Do you have a short-term rental agreement ready for your guests?

Frequently asked questions

Can I Airbnb my cottage in BC?

Yes, with exceptions. Under BC Airbnb rules, you can rent it out if it’s in an exempt area (such as resort areas, most small communities and most electoral areas), local zoning allows it, and you register with the province. In covered cities, at most your principal residence and one suite qualify, and some cities allow less.

Is Whistler exempt from BC’s short-term rental rules?

It’s exempt from the principal residence requirement, but not from the provincial registry, and only properties zoned for tourist or temporary accommodation can rent nightly.

What happens if I don’t register?

Platforms remove listings without a valid number. The province can issue compliance orders and penalties, local governments can fine you, and the CRA can deny your expenses.

What is the 90-day rule for short-term rentals in BC?

BC’s rules apply to stays of less than 90 consecutive days, so a 30-day rental still needs to be registered. Rentals of 90 days or more don’t need provincial registration. The Residential Tenancy Act has no day-count test. It depends on whether there’s a tenancy agreement rather than vacation accommodation, so longer stays may fall under it.

What does CRA consider a short-term rental?

For the expense-denial rule, a residential property rented for less than 90 consecutive days. If it operates where it isn’t allowed, or without a required registration or licence, the CRA denies expenses for those days.

Can I rent out my basement suite on Airbnb in BC?

Provincially, yes, if it’s on the same property as your principal residence, but local rules can be stricter. In Vancouver, for example, you can rent a suite only if you live in it. The rule allows your home plus one secondary suite or accessory dwelling. Each unit registers separately, and a suite you don’t live in pays the $450 fee.

General information only, not legal or tax advice. Rules change, so check the provincial and local sources linked above before you buy.

Peter Davis has a background in business and finance and bought, ran and sold multiple Whistler vacation rentals over nearly ten years. Read our editorial standards.