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On June 6, 2023, the City of Calgary enacted an amendment to the “Business License Bylaw” specifically addressing the operation of short-term rental businesses, including those on platforms such as Airbnb or VRBO. Effective January 1, 2024, the updated regulations will impose more stringent criteria for obtaining business licenses for short-term rentals within condominiums. These changes will also grant condominium boards increased authority in the evaluation and approval of these license requests and require advance disclosure on the part of owners.
This change does not affect current Magnum York clients as we do not offer short-term rentals.
The City has additionally introduced a requirement stipulating that, for any short-term rental businesses operating within a condominium corporation, applicants seeking a business license must provide evidence of consent from the condominium board to use the unit or a portion of it for short-term rental purposes.
“All current and prospective short-term rental hosts are required to have a business license to provide temporary accommodation for compensation.“The City of Calgary Newsroom
Key changes to the business licence application include:
- Proof of the property owner’s consent (in addition to proof of the condominium board’s consent, if relevant) for the short-term rental to be offered to guests for compensation.
- A fire safety plan, which includes the floor plan required to be posted inside the short-term rental.
- A fire inspection to ensure safety standards are met and to validate the allowable number of guests, not including minors under the age of 12.
- Proof of liability insurance coverage for the short-term rental.
- A review of the property for prior concerns.
Calgary currently has over 4,000 licensed short-term rental accommodations. It is antiicipated that this number will only climb as the ever-evolving hospitality industry forges ahead. According to the City of Calgary, this surge in business licenses is crucial in driving economic growth, contributing to heightened tourism revenue, job opportunities, and economic diversification.
The good host guide was developed to provide hosts with an overview of regulations and processes, including tips and a checklist. The good guest guide was developed to provide knowledge on expectations, accommodation practices and support through booking to stay.City of Calgary
It remains to be seen how enforcement of this bylaw will impact day to day condominium management and condominium corporation governance but we will continue to monitor developments on behalf of our clients.
- City of Calgary – Short-term rental business licence changes
- City of Calgary Newsroom – Calgary City Council approves bylaw changes to short-term rental business licences
- SVR Lawyers – Calgary AirBnBs Will Require Written Condo Board Approval to Operate
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