What to know about short-term rentals: Pros and cons, costs, and more

What are short-term rentals?

Short-term rentals in British Columbia are properties that are rented for less than 90 consecutive days, often through platforms like Airbnb or VRBO. They can include everything from a single room in a condo to an entire detached home. For strata corporations, short-term rentals mean residents or owners are using their units as temporary lodging for visitors instead of long-term housing.

Because short-term rentals blur the line between residential and commercial use, they often create unique challenges for stratas. A unit that functions like a hotel can affect security, wear and tear on common areas, parking availability, and overall community dynamics. Understanding how short-term rentals impact day-to-day operations is the first step for any strata council considering whether to allow or restrict them.

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.
 

BC short-term rental regulations

Short-term rentals in British Columbia are subject to both provincial rules and local bylaws. In 2023, the province passed the Short-Term Rental Accommodations Act, with key provisions taking effect May 1, 2024. The Act introduced a principal residence rule in many communities, limiting most short-term rentals (under 90 days) to the host’s primary home plus one secondary suite or accessory dwelling unit on the same property. Some areas are exempt, but for most communities, this new rule narrows where short-term rentals can operate. A provincial short-term rental registry is now in place as well. Hosts must register, display a provincial registration number on their listings, and platforms are required to validate those numbers.

Strata corporations in BC may have authority under the Strata Property Act to pass bylaws regulating or prohibiting short-term rentals. However, Section 141 of the Act now prohibits strata corporations from regulating long‑term rentals. Council members should always stay mindful of compliance with fire codes, building occupancy rules, and tax requirements. The BC government requires platforms to collect and remit provincial sales tax and the Municipal and Regional District Tax (MRDT) in most cases, but owners are ultimately responsible for meeting all obligations.
 

What your strata corporation can do about short-term rentals

Strata councils need to engage the ownership they represent to better understand their community’s wants and needs. Open discussions at general meetings of the ownership, along with surveys and information sessions held within the building, are a great way to gather feedback. If those that have opposing views can better understand the other’s position, there typically will not be any surprises at the general meeting when it comes to voting on a new rental bylaw. Information sessions also allow any objections to be addressed or potential revisions to be accommodated in the proposed bylaw changes.

The council then needs to design new strata bylaws that reflect the community’s needs. In most cases, this will be adopting bylaws that prohibit or limit “short-term accommodation” (e.g., stays under 30 days). The ownership will then need to approve the proposed bylaw changes at a general meeting and have them filed with the Land Title Office to be enforceable.

Finally, the strata council and the management company can begin working on informing owners of the changes and supporting compliance with the new bylaws.
 

Potential pros and cons of allowing short-term rentals in stratas

Short-term rentals in British Columbia can bring both opportunities and risks for strata corporations. Council members weighing whether to allow or restrict them should consider the following points:
 

Potential pros of short-term rentals in stratas

• Income for owners: Allowing short-term rentals can provide unit owners with another source of revenue.
   
• Market appeal: Some buyers may be drawn to buildings that allow flexible rental options, which can increase demand.
   
• Showcasing the community experience: Short-term rentals can give prospective buyers or long-term renters a first-hand look at what it’s like to live in the building or neighbourhood. A positive stay may encourage future sales or leases, adding to the community’s visibility and appeal.

Cons of short-term rentals in stratas

• Wear and tear: More frequent guest turnover can increase use of lobbies, elevators, and other shared amenities, leading to higher maintenance costs.
   
• Security concerns: A steady stream of new visitors can make it harder for staff and residents to track who belongs in the building.
   
• Noise and disruptions: Complaints about late-night activity or parties are common in communities with high short-term rental activity.
   
• Insurance impacts: Allowing short-term rentals may increase premiums or create exclusions in existing strata insurance policies.

A solid action plan

Below is a common plan of action for strata councils in addressing short-term rentals:

1. Have an open discussion at your next annual general meeting to gather input from the owners in attendance. Stay open-minded and record concerns and objections.
    
2. Create a summary page that identifies why the council feels there needs to be a change, what the impact would be, any proposed bylaw changes, how short-term rentals will be tracked, and when the changes to short-term rentals would take place.
    
3. Share the summary page with the ownership. One way to accomplish this is by including it with the distribution of meeting minutes. Consider including contact information so owners may provide additional feedback.
    
4. Hold a meeting in the lobby or amenity room with council members present to answer any questions about the proposed changes. This is the time to engage the ownership and confirm the council’s plan is clearly articulated.
    
5. If a change in bylaws is needed, ask your strata manager for assistance. Your management company can also assist in calling a general meeting and holding a vote for approval of the bylaws.
    
6. Educate the ownership by broadcasting the changes through email, notices, and letters to the owners.
    
7. Site staff, such as building managers and concierge personnel, should be trained on the changes so that they can educate the ownership and be part of a successful implementation.
    
8. Identify those owners who are not complying with the changes. Send them correspondence that outlines the new changes that have been implemented.
    
9. Reinforce the changes in strata council meeting minutes and other correspondence.
    
10. Send bylaw violation warning letters to those owners who are in contravention. If no response is received, contacting the owner’s agent directly or calling the owner may be required.
     
11. Continue following up and be consistent with all owners.
     
12. Review short-term rentals on an annual basis and be prepared to make minor changes or updates, as needed, to best reflect your community’s needs.

Contact us today to learn more about how FirstService Residential can make a difference in your strata community.