Short-term rentals: What your Alberta corporation should know

Short-term rentals are a growing topic of discussion for condominium corporations across Alberta. With platforms like Airbnb making it easier than ever for owners to rent out their units for a few nights or weeks at a time, questions around resident safety, community standards, and legal responsibilities have become increasingly common. In cities like Edmonton and Calgary, short-term rentals are not only influencing how buildings operate but also how condo board members approach governance and risk management. In this article, we’ll break down what short-term rentals are, the pros and cons for condo communities, and how Alberta laws and municipal regulations apply to this evolving issue.

This article is provided for general informational purposes only and does not constitute legal, financial, or real estate advice. Laws change frequently and vary by province. Readers should consult with a qualified professional for advice specific to their individual circumstances.
 

What are short-term rentals?

In Alberta, short-term rentals are temporary accommodations, generally offered for 180 days or less. These rentals are often booked through online platforms and can include anything from a spare bedroom to an entire condominium unit. Each city may have its own definition of “short-term.” For example, Calgary and Chestermere define a short-term rental as being up to 180 consecutive days, while Edmonton defines short-term as 30 days or less.
 

Potential pros and cons of short-term rentals

Short-term rentals can offer financial and lifestyle benefits, but they also carry risks for condo corporations.
 

Potential pros

• More flexibility for condo owners: Allowing rentals gives owners options when life plans change. Whether they’re traveling, on a temporary work assignment, or caring for a loved one, rental flexibility can help owners stay connected to the community. This can be especially valuable in high-cost markets or during periods of transition. With the right policies in place, boards can offer that flexibility while still protecting the long-term stability of the condo.
   
• Increased income for property owners: Short-term rentals can provide owners with a new source of revenue, especially in large cities.
   
• Higher occupancy rates: When units sit empty, the whole community can feel the impact. Allowing rentals can help keep units lived in and cared for, which can support operations, safety, and overall curb appeal. This is especially important in seasonal or commuter communities, where owners may not always be on site.
   
• Opportunities to convert renters into buyers: Many renters are simply waiting for the right time to buy, and a positive experience in your community can help guide them toward that decision. Clear communication, helpful orientation, and positive everyday interactions with staff can turn short-term renters into long-term residents. When renters feel welcome and informed, they’re more likely to see the value of ownership. For boards, that’s an opportunity to support community stability and build a pipeline of future unit owners.

Potential cons

• Emergency safety: Temporary guests may not be familiar with the community’s emergency procedures, which could lead to confusion or slower response times during an unexpected event. This highlights the importance of clear communication around safety protocols for all occupants.
   
• Personal safety: Short-term renters are also not subject to background checks the way long-term renters are. As a result, residents face potential safety risks when these unscreened guests are given access to the building and any shared amenities.
   
• Property damage: Since the building is not “home” to short-term renters, they have less stake in maintaining its condition. A vacation mentality can lead some guests to disregard proper use of equipment or to recklessly cause damage to common areas. Residents are left with the effects, which directly impact their quality of life.
   
• Nuisance behaviour: Short-term renters are less likely to consider how cigarette smoke, odours, noise, etc. affect residents in neighboring units. When this becomes an ongoing problem, it can hurt the condo’s reputation and property values.

Short-term rental laws and regulations in Alberta

Short-term rentals in Alberta are regulated at both the municipal and condo corporation levels.
 

Tourism levy

Since July 2023, Alberta requires hosts to collect a 4% tourism levy on bookings shorter than 28 days. Whether you're in Calgary, Chestermere, or a rural town, that levy applies. Platforms like Airbnb and Vrbo often collect it automatically.
 

Fire and building safety

Short-term rentals in Alberta must meet provincial safety codes, including working smoke alarms, carbon monoxide detectors, and safe exits. Local licensing processes often require proof of compliance, but even without city-specific rules, these codes still apply.
 

Health standards

Alberta Health Services (AHS) sets minimum public health expectations, including cleanliness, sanitation, and pest control. If the host offers breakfast or snacks, they may also need additional food handling permits.
 

Income reporting

Rental income must be reported for tax purposes, whether the rental is full-time or just a few weekends a year. That includes GST/HST obligations, if applicable. While cities like Calgary and Edmonton may layer on business licence requirements, safety inspections, or zoning rules, these provincial standards are the minimum baseline.
 

Abiding by your condo’s governing documents

Even if condo owners follow local laws and regulations, they must also comply with the policies and bylaws in their condo corporation’s governing documents. Many condo corporations do not allow short-term rentals, and they impose fines on homeowners who defy the policy.

However, as with local laws, the governing documents developed by many condo corporations preceded the advent of the sharing economy, leaving your condo with no set policy. Should your board attempt to amend your governing documents? If so, is it better to allow short-term rentals as long as homeowners abide by certain regulations, or is it better to ban them entirely?
 

Addressing potential risks

Condo corporations have legitimate reasons to be concerned about home sharing. Even when policies are in place, short-term rentals can potentially increase condo insurance in Alberta and security risks, as well as decrease property values.

What can your condo corporation do? Whether your board is currently dealing with short-term rentals in your building or you want to find ways to address them before they become an issue, an experienced condominium management company can help guide you. Contact FirstService Residential, the leading condominium management company in Alberta.