NEW BC-WIDE REGULATIONS

On May 1st, 2024, the Province of British Columbia introduced a number of new regulations, including a principal residence requirement, for all short-term rentals. The Provincial regulations apply to you if you rent your property for a period of less than 90 consecutive days. More information can be obtained on the Provincial government website.

Short-Term Rental Regulations

Commonly referred to as “Airbnb”, “home sharing”, or “vacation rental”, short-term rental (STR) refers, for the purposes of Nelson municipal regulations, to the commercial accommodation of guests in a private residence – a room, apartment, secondary suite, or house – on a temporary basis (31 days or less). The type of business licence required depends on the zoning of the property in question. You can confirm the zoning your property is subject to using the City of Nelson’s Interactive Zoning Map.

Prior to operating a short-term vacation rental within a residential zone (R1, R2, R2A, R3, R4, R6, MU2, MU3, MU4, CD3, CD6, CD9) you must have a "short-term rental" business licence. This licence must be renewed annually and can be obtained from City Hall at Development Services (2nd floor). Please use this application form. 

• Information on the short-term regulations can be found on the application form.
• In residential zones, no more than three short-term rentals are permitted per block. To see how many short-term rentals are already on your block, visit the interactive map on the right-hand column of this page.
• If you already have a licence and would like to renew for the coming year, the renewal form will be emailed to you mid-November. You may also pick up a renewal form from Development Services.

Buying or selling a home with a short-term rental? Short-term rental licences are not transferable when a home is sold. The new owner must apply for their own licence and it will be treated as a new application. However, as of October 2024, the quota has been met and the City of Nelson is not able to accept any new applications. This means that if you buy a home with a short-term rental, you will not be able to immediately obtain a licence and continue operating, even if the previous owner had a licence. You will need to add your name to the wait list.

Commercially-Zoned Properties

For a short-term vacation rental within a commercial zone (C1, C1A, C2, C4, CD5, MU1, parts of MU3, MU7) the municipal regulations described in the paragraph above (for residential and some mixed-use zones) do not apply. Rather, you must hold a business licence as a "tourist accommodation" - the same as a hotel. This licence is automatically renewed annually and can be obtained from City Hall customer service representatives (first floor). For a short-term rental in a commercial zone, please use the City's standard business licence application form.

Non-compliance with zoning or the lack of a business licence can result in a fine of $500 per day.

PST and Tourism Tax

Short-term rental hosts and most providers of paid accommodation must remit PST (Provincial Sales Tax) and the local tourism tax for all guest stays of 26 days or less. This is a requirement of the Province of British Columbia. More information can be obtained on the Provincial government website. Some online platforms, such as Airbnb, may do this on your behalf, but regardless of how you advertise, it is your responsibility to comply with taxation laws. Please direct any questions directly to the Province. The City of Nelson is not involved in sales taxation and cannot answer questions.