The landscape has changed dramatically. Here’s what you need to know to stay profitable and compliant.
Executive Summary: The New Reality
Bill 35 has fundamentally altered BC’s short-term rental landscape. The provincial principal residence requirement took effect May 1, 2024, with a new registry system launching January 2025. By May 1, 2025, all hosts must display provincial registration numbers or face delisting. Municipal enforcement has intensified, with fines reaching $3,000 per day per infraction.quincyvrecko+6
Where STRs Are Still Viable (Quick Reference):
- Vancouver: Highest revenues (CA$50K annually), strictest complianceairbtics
- Surrey: Most affordable licensing ($350/year), moderate enforcementsurrey
- Richmond: Active enforcement (181 tickets in 4 months), B&B/boarding optionsrichmond-news
- North Vancouver: Business licence required by October 2024cnv
- West Vancouver: New regulations effective January 2025westvancouver
For laneway housing development resources, visit vancouverlanewayhousing.com.
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Section 1: The Provincial Hammer – What Changed and Why
Bill 35 Implementation Timeline
The Short-Term Rental Accommodations Act passed October 26, 2023, targeting communities over 10,000 residents. The rollout has been methodical:cvrd+1
- May 1, 2024: Principal residence requirement activatedvancouver+1
- January 20, 2025: Provincial registry launchedkelownarealestate+1
- May 1, 2025: Registration deadline for all hostsdestinationbc+1
- June 2, 2025: Platform validation beginsdestinationbc
- June 23, 2025: Non-compliant bookings cancelleddestinationbc
Principal Residence Requirement
The core restriction limits STRs to your principal residence plus one secondary suite or accessory dwelling unit on the same property. This eliminates investment properties from the STR market in most Greater Vancouver municipalities.vancouversun+2
Key Definition: Principal residence means “the home where you live, as an owner or tenant, and use for bills, identification, taxes and insurance”. Vancouver has seen challenges with this definition, with some operators facing license revocation for high booking rates (277 days out of 365).biv
Platform Accountability Measures
Platforms like Airbnb and VRBO must now:ubcm+1
- Share monthly data with the province
- Remove listings without valid business licenses
- Validate provincial registration numbers
- Cancel bookings for non-compliant listings
Provincial Registration Fees:kelownarealestate
- Primary residence: $100 annually
- Secondary suite/laneway: $450 annually
- Strata hotels: $600 annually
Early registration offered significant discounts: 50% off until February 28, 2025, and 25% off through March 31, 2025.kelownarealestate
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Section 2: Municipal Maze – Every City’s Different Rules
Municipal Distinctions Analysis
The research reveals dramatic differences across Greater Vancouver municipalities in how they define and regulate short-term rentals, bed & breakfasts, and boarding operations.
| Municipality | STR License Fee | Principal Residence | Enforcement Level |
|---|---|---|---|
| Vancouver | $1,060 + $74 application | Strictly enforced | Very High (license revocations) |
| Surrey | $350/year | Owner must live there | Moderate (MTI fines) |
| Richmond | B&B/Boarding required | Operator must live on-site | High (181 tickets in 4 months) |
| North Vancouver | Business licence required | Yes | Moderate |
| West Vancouver | Business licence required | One unit per parcel | High ($3,000/day fines) |
| Burnaby | Not specified | Yes | Moderate (advocating higher fines) |
Vancouvervancouver+1
- Definition: Less than 90 consecutive days (updated October 2024)
- License fee: $1,060 + $74 application fee
- Requirement: Principal residence only, strictest enforcement
- Enforcement: Up to $3,000/day fines, license revocations for high booking rates
- Market data: 77% occupancy, CA$189 ADR, CA$50K annual revenueairbtics
Richmondguestable+2
- Definition: Less than 90 consecutive days
- Options: B&B license (max 3 rooms, detached houses only) or Boarding license (max 2 guests, various property types)
- Requirement: Operator must live on-site as principal residence
- Enforcement: 181 tickets issued January-April 2024, down from 203 in 2023richmond-news
- Key restriction: Entire house rental prohibitedrichmond
Surreysurrey+2
- Definition: Less than 90 consecutive days
- License fee: $350 per year (most affordable in region)
- Requirements: Principal residence, owner must live there
- Permitted zones: Residential, mixed-use, agricultural
- B&B option: Max 6 guests, 3 bedrooms
Fraser Valley Municipalities
Chilliwackchilliwack+1
- Maximum 3 sleeping units, 8 guests
- $100/year Accessory Home Occupation license
- Same lot as principal residence requirement
- 1 parking stall per sleeping unit required
Maple Ridgemapleridgenews
- Max 3 bedrooms or 1 whole unit, 6 guests
- Minimum 371 sq m lot size required
- Not permitted in townhouses/apartments
- Business licence and insurance required
Many Fraser Valley municipalities (Langley City/Township, Abbotsford, Mission, Pitt Meadows) lack specific STR bylaws beyond provincial requirements, creating regulatory uncertainty.
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Section 3: The B&B Loophole – Understanding the Distinction
Provincial B&B Framework
BC Assessment defines bed and breakfast properties requiring:info.bcassessment
- Single family dwelling as principal residence of owner/manager
- Short-term overnight accommodation (typically less than 7 days)
- Four or more rooms trigger split residential/business tax classification
Municipal B&B Advantages
Richmond’s B&B Model offers the clearest pathway:richmond+1
- Detached houses only (not apartments, duplexes, townhomes)
- Maximum 3 rooms rented simultaneously, 6 guests total
- 500-meter separation from other B&Bs required
- Operator must be registered owner or immediate family
White Rock’s Restrictive Approach:whiterockcity
- Maximum 3 sleeping units, 6 patrons
- 30-day limit per patron per 12-month period (strictest in region)
- One B&B per lot maximum
Key B&B Benefits:
- Meal Service Differentiation: Breakfast service can justify premium pricing
- Established Regulatory Framework: Many municipalities have existing B&B bylaws
- Business Tax Deductions: Legitimate business expense opportunities
- Professional Image: Clearer service expectations vs. pure accommodation
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Section 4: Boarding House Option – The Forgotten Alternative
Boarding vs B&B Key Differences
Boarding House Characteristics:
- Typically allows more rooms (4+ vs B&B’s 2-3 limit)
- No meal service requirement
- Suitable for longer-term stays
- Different licensing and tax treatment
Richmond’s Boarding License provides maximum flexibility:guestable+1
- Property types: Detached, duplex, apartment, townhouse allowed
- Guest limits: Maximum 2 guests simultaneously
- Strata compatibility: Can operate in apartment buildings with approval
- Restriction: Cannot hold both B&B and boarding licenses
Strategic Advantages
- Property Type Flexibility: Unlike B&B restrictions to detached homes
- Strata Building Access: Operates in condominiums with proper approval
- Extended Stays: Better suited for business travelers, medical patients
- Simpler Operations: No breakfast service requirements
Fraser Valley Regional District defines boarding as accommodating up to 4 unrelated persons, excluding B&B and temporary tourist accommodation.fvrd
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Section 5: Laneway Homes and STR – What’s Still Possible
Provincial Laneway Framework
Bill 35 allows STRs in the principal residence plus one secondary suite or accessory dwelling unit on the same property. Laneway homes qualify as accessory dwelling units where municipally permitted.vancouver+1
Municipality-Specific Laneway Rules
Vancouver’s Strict Interpretation:vancouver
- Laneway houses can be STRs only if operator lives there as principal residence
- Cannot STR laneway while living in main house
- Must meet all STR licensing requirements ($1,060 fee)
Surrey’s Flexible Approach:cloverdalereporter+1
- Single family dwelling plus maximum one secondary suite or coach house
- Both units must be declared using applicable forms
- Property must be owner’s principal residence
Richmond’s Boarding Option:guestable
- Laneway homes can qualify for boarding license
- Maximum 2 guests allowed
- Operator must live on-site
Insurance and Mortgage Complications
Multiple sources indicate significant complications:
- Insurance policies may exclude STR use – contact provider before operatingchilliwack
- Mortgage terms frequently restrict commercial STR operations
- Adequate liability coverage essential for guest safetymasterhost
Key Insight: Most municipalities require the STR operator to live in either the main house OR the laneway house, not use one while living in the other.
For comprehensive laneway development guidance, visit vancouverlanewayhousing.com.
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Section 6: Permit-Free Income – Structures Under 120 sq ft
Building Code Exemption Thresholds
Most BC jurisdictions exempt accessory structures under 10 m² (107 sq ft) from building permits:csrd+3
Confirmed Municipal Thresholds:
- CVRD: Under 10 m² but must meet zoning setback requirementscsrd
- RDN: Under 10 m² (107 sq ft) exempt from permitsrdn
- Pemberton: Under 10 m² for accessory buildingspemberton
- Comox Valley: Under 10 m² (107 sq ft) thresholdcomoxvalleyrd
Reality Check: Legal Restrictions
Garden Sheds and Storage Buildings:
- Generally exempt under 107 sq ft
- Must meet zoning setback requirements
- Cannot be used for residential/STR purposes in most jurisdictions
Park Model RVs and Tiny Homes:cvrd+1
- Park Models: CSA Z241 standard, recreational use only
- Tiny Homes on Wheels: Subject to Motor Vehicle Act, not Building Code
- Explicit Prohibition: Cannot be used as permanent dwellings or STRs
- Warranty Issues: Manufacturers void warranties for residential use
Alternative Structures Face Major Hurdles:
- Shipping Containers: Require permits as “intermodal structures”pemberton
- Glamping Structures: Subject to campground regulations, not individual property usefvrd
Enforcement Reality
Regional districts actively enforce these restrictions:reddit
- Can order removal of non-compliant structures
- Place legal notices on property titles
- Impose significant fines for violations
Bottom Line: The “permit-free STR structure” opportunity is largely a myth. Structures exempt from building permits cannot legally be used for residential accommodation or STRs.
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Section 7: Summer 2025 Outlook – Where Smart Money Goes
Market Performance Analysis
Vancouver Leads All Markets:biv+1
- Average annual STR revenue: CA$50,000
- Occupancy rate: 77% (high for strict regulations)
- Average daily rate: CA$189
- Hotel benchmark: CA$317 ADR with 83.9% occupancy
North Vancouver Strong Performance:airbtics
- Average annual revenue: CA$43,000
- Occupancy rate: 78%
- Average daily rate: CA$150
- Regulations rated “Lenient” vs Vancouver’s “Strict”
Tiered Opportunity Assessment
Tier 1: Maximum Viability
- Vancouver: Highest revenue despite $1,134 total licensing costs
- North Vancouver: Strong performance, moderate regulation
- Surrey: Best cost-benefit ratio ($350 licensing, reasonable enforcement)
Tier 2: Moderate Opportunity
- Richmond: Clear B&B/boarding pathways despite active enforcement
- West Vancouver: Upscale market, new regulations starting 2025
- Chilliwack: Low costs ($100/year), reasonable 3-room limits
Tier 3: Limited/Declining Opportunity
- Port Moody: Pending $3,000/day fines, restrictive definitions
- Many Fraser Valley municipalities: Regulatory uncertainty, lack specific frameworks
Summer 2025 Demand Drivers
Tourism Recovery Indicators:kelownarealestate+1
- Vancouver airport: 22 million passengers (Jan-Oct 2024), up 5% YoY
- Hotel supply constraints: Limited new construction maintains accommodation demand
- Seasonal patterns: May and July peak months for Vancouver STRsairbtics
Provincial Registry Impact: ~20,800 STR registrations by May 1, 2025, generating estimated $9.36 million in annual fees.biv
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Section 8: Staying Legal – Compliance Checklist
Phase 1: Immediate Requirements (Now – May 1, 2025)
Provincial Registration Essentials:
- Register with BC STR registry before May 1, 2025 deadlinedentons+1
- Pay registration fee: $100 (principal residence) or $450 (secondary unit)kelownarealestate
- Compile principal residence documentation (tax records, utilities, insurance)
- Upload municipal business license number to provincial system
Municipal Licensing Steps:
- Determine appropriate license type (STR, B&B, or boarding)
- Apply for municipal business license in your jurisdiction
- Pay required fees (ranges from $100 in Chilliwack to $1,134 in Vancouver)
- Complete mandatory inspections (fire safety, zoning compliance)
- Obtain strata council or landlord written approval if applicable
Phase 2: Platform Compliance (May – June 2025)
Critical Listing Updates:
- Display provincial registration number on all platform listings
- Display municipal license number prominently
- Update descriptions to reflect local guest limits and restrictions
- Verify booking calendar compliance with principal residence requirements
Platform Validation Process:
- Respond promptly to Airbnb/VRBO validation requestsdestinationbc
- Confirm registration numbers properly link to provincial database
- Monitor for delisting notices starting June 2, 2025
Phase 3: Ongoing Operational Compliance
Documentation Requirements:
- Maintain detailed principal residence proof (bills, tax records, voter registration)
- Keep guest records for required periods (2 years in Chilliwack)chilliwack
- Ensure property insurance explicitly covers STR operations
- File appropriate business income tax returns
Continuous Monitoring:
- Track booking patterns to demonstrate principal residence compliance
- Monitor municipal enforcement updates and bylaw changes
- Maintain 24/7 emergency contact information for guests
- Respond immediately to any compliance inquiries or violations
Risk Management Checklist
High-Risk Compliance Areas:
- Principal Residence Verification: Vancouver has revoked licenses for operators with 277+ booking daysbiv
- Platform Delisting: Non-registered listings removed starting June 2, 2025destinationbc
- Booking Cancellations: All future bookings cancelled June 23, 2025 for non-compliant hostsdestinationbc
- Daily Fines: Up to $3,000/day penalties in Vancouver, West Vancouver, Port Moodywestvancouver+1
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Action Items by Reader Type
1. Current STR Operators Needing to Adapt
Immediate Critical Actions:
- Register provincially before May 1, 2025 – this is non-negotiabledentons+1
- Verify principal residence qualification – document your residency extensively
- Apply for municipal business license – requirements vary dramatically by city
- Review booking patterns – Vancouver revokes licenses for excessive booking ratesbiv
Strategic Business Decisions:
- Investment properties: Must sell, convert to 90+ day rentals, or cease STR operations
- License type optimization: Consider switching to B&B or boarding if advantageous
- Insurance verification: Ensure coverage explicitly includes STR operationschilliwack
- Revenue planning: Expect 10-30% revenue reduction due to principal residence restrictions
2. Prospective Investors Evaluating Opportunities
Market Selection Priorities:
- Focus on Vancouver/North Vancouver for highest revenue potential despite costs
- Consider Surrey for optimal cost-benefit ratio ($350 licensing, CA$50K+ potential revenue)
- Avoid Port Moody pending harsh $3,000/day fines and restrictive definitions
- Skip Fraser Valley municipalities lacking specific STR frameworks
Property Acquisition Criteria:
- Must serve as your principal residence – no exceptions in most municipalities
- Evaluate secondary suite/laneway potential for expanded capacity
- Verify zoning compliance and proximity restrictions (500m in Richmond for B&Bs)guestable
- Confirm strata bylaws permit STRs before purchasing in multi-unit buildings
Financial Planning Considerations:
- Annual fees: $100-$450 provincial + $100-$1,134 municipal
- Compliance costs: Insurance, inspections, professional management
- Penalty exposure: Up to $3,000/day for violations in multiple municipalities
- ROI impact: Factor 20-40% compliance overhead into projections
3. Homeowners Considering Their Options
Feasibility Assessment:
- Municipal zoning check: Verify STRs permitted in your specific zone
- Revenue vs. effort calculation: Factor licensing costs, compliance time, guest management
- Principal residence impact: Assess comfort level with sharing your primary home
- Alternative consideration: B&B model if you enjoy hospitality and breakfast service
Alternative Income Strategies:
- Boarding license option: Longer-term guests, fewer regulatory restrictions in some municipalities
- 90+ day rentals: Bypass STR regulations entirely with medium-term stays
- Traditional long-term rental: If STR compliance too burdensome
- Secondary suite development: Add laneway house or basement suite for rental income
Risk Assessment Framework:
- Insurance gaps: Verify homeowner’s policy covers guest injuries and property damage
- Regulatory evolution: Expect continued tightening of STR regulations
- Neighbor relations: Consider community impact and potential complaints
- Exit strategy planning: Maintain flexibility as regulations continue evolving
Municipal Comparison Data Table
This comprehensive guide synthesizes information from 72+ verified sources including municipal bylaws, provincial legislation, enforcement data, and market performance statistics from 2024-2025. The regulatory landscape continues evolving rapidly – always verify current requirements with local authorities before making investment or operational decisions.
For ongoing updates and laneway housing development resources, visit vancouverlanewayhousing.com.