Know Your City Bylaws
Investing in a property as an STR (short-term rental) that may not be used as an STR is a huge mistake. Smart investors are well-versed in all the information available that could pose a threat to the success of their business.
Bylaws change regularly. Simply pick up your phone and call your bylaws department.
Great questions to ask your city bylaws department:
What are the zoning restrictions/allowances applicable to the address(es) you have in mind?
What is the maximum number of people you may house overnight?
How many bedrooms may you rent out at one given time?
How may you rent out your bedrooms? Do they need to be rented out individually? May you rent the house as a whole?
What time of space are you renting out and is the bylaw approved?
• Single-family home
• Basement suite
• Carriage home
• Cottage
Know the implications and bylaws of the specific property type you’re listing!
Does the home need to be your principal residence?
Do you need to live on the property?
May you rent the space out year-round on a short-term basis?
What is the minimum length of stay that you are required to rent the space for?
• Nightly • Monthly
• Weekly • Annually
• 30 days or fewer
What are the parking regulations for this zone?
As far as they can see without visiting the property, does the current parking situation suffice for licensing?
What agreements must be made with neighbors, strata etc.?
What is required for fire and safety protocols to be met?
As a tenant, may you rent this space out as a short-term rental with the permission of the owner? This is called Airbnb arbitrage and we will touch on this later.
Are blueprints accessible for purchase?
Request a set of floor plans for the property. These will be useful when you’re asked to provide a parking and fire safety plan for your rental. Both these plans will also need to be posted in the required locations within your house. If you reside in a stratified building, the strata management company may already have these on hand. So, reach out to them.
Get everything in writing. Confirm the answers to all of your questions in an email to avoid future confusion and errors and omissions.
Lastly, please avoid the temptation to defy your city’s bylaws by sliding under the radar. You’ll be left having to rent your space monthly. This will result in a loss as your investment won’t offer you half of the return on investment (ROI) you’d anticipated.
The City of Kelowna has a great “How To Get Started” and apply for your short term rental license
click here for the pamphlet