Treating your rental as a legitimate business allows you to take advantage of tax deductions.ĭon't neglect the concerns of long-term occupants (neighbors) within the condo building. There may still be attempts made by future councils to restrict short term rentals by trying to classify short term rentals as business use with local governments now requiring a business license, but traditionally attempting to restrict short term rentals fits within the scope of imposing rental restrictions.Įnsure that eligible expenses related to furnishing, upgrading, and maintaining your vacation property are claimed against your net income. Check the Form B for the applicable developer declaration on future rental restriction powers of the strata council. Changes made to the strata property act in 2010 have enabled developers to prohibit future strata councils from enacting rental restriction bylaws, wherefore short term rental buildings constructed post 2010 are generally more desirable for this reason. Even where permissible pursuant to zoning you must still peruse the applicalbe strata corporation bylaws to confirm the actual policy. In fact, there are only about two dozen or so condo buildings in Victoria that permit this type of use. Consult with an accountant to explore any potential tax implications affecting your capital gains.
Understand that income earned from your vacation rental must be reported to the Canada Revenue Agency (CRA) as part of your personal income. They can also help access the strata regulations on your behalf. Not all buildings permit short-term vacation rentals, so it's important to carefully read and understand the regulations. Review the strata guidelines of condo buildings you are interested in. Many areas in the Capital Region prohibit short-term rentals for secondary suites.Īn experienced Realtor knowledgeable with this property type can assist you in researching zoning information for your desired area. Check the zoning regulations of your property with the municipality. Some insurers may decline coverage or charge higher rates due to the perceived risks associated with short-term rentals. Verify with your insurance provider whether coverage is available for a vacation property. The proposed regulations by the Victoria City Council prioritize these requirements.
NOOTKA ISLAND AIRBNB LICENSE
For this, anticipate the need for a business license and payment of property tax as a business. These guidelines will help you navigate potential regulations, insurance coverage, zoning restrictions, tax implications, and the expectations of both short-term visitors and long-term tenants.Ī short term rental stay is defined as any tenancy of a duration of less than 30 days. In this article, we will outline important dos and don'ts that you should consider before buying such an income-producing property in Victoria.
The net result has been a reduction in the construction and development of condos overall, further reducing the available housing stock in Victoria. They lost a major legal battle surroudning this as well when they also tried to downzone sites that were already under construction, at a significant cost to the local taxpayers for legal expenses. Local governments are continually applying pressure to force short term vacation rental condos into the long term rental pool, for example, to alleviate some of the rental housing shortage pressures that they have caused and created in the first place, though obstructive anti development policies implemented out of imaginary environmental concerns, or to cater to local NIMBY opposition pathology.īack in 2017, in an extremely short sighted move, spearheaded by the notorious Ben Isitt, who thankfully failed in his 2023 re-election bid, the City of Victoria downzoned dozens of development sites with short term rental development potential, to prohibit the development of short term rental condo buildings. However, with the current challenges in the rental market and the increasing pressure for affordable housing, it is crucial to be well-informed before making such a purchase. Owning a short term vacation rental investment property in Victoria, also known as an STVR, VROB or AirBnB investment property, can be an attractive revenue generating opportunity. Short Term Vacation Rental Condos for Sale in Victoria BC
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