Short Term Rentals (STRs) like AirBNBs and Vrbo Homes have become equally popular accommodation options as traditional hotels when planning vacations. Not only do they make great options for tourists due to added space, rooms and sometimes amenities (pet-friendly, pools, themed rentals etc), but they are great investment options too! Short-Term Rentals, when managed properly, can generate thousands of dollars a month in revenue.
While short-term rentals are a great option for tourists and investors alike, our city is in a housing shortage. We currently have a vacancy rate of less than 1% for long-term rentals and only 602 properties for sale. In response to this shortage, our municipality has recently placed new restrictions on short-term renting, in hopes to free up some properties to house residents. If you currently own a short-term rental property, are looking to invest in one, or have one booked for a future vacation, this blog post is for you. Read below to learn how these new restrictions impact short-term renting.
As of February 21, 2023, Halifax Regional Council established regulations for short-term rentals. You should note, these amendments still require ministerial review before being considered official. If they do pass review, these new regulations will take effect on September 1, 2023.
What is defined as a short-term rental?
Short-term rentals are temporary overnight accommodations rented out for a few nights or weeks at a time. The province officially defines short-term rentals in their Tourism Accommodation Registration Act as “the provision of roofed accommodations to a single party or group, for payment or compensation, for a period of 28 days or less.”
What are the new rules?
STRs will only be allowed at the host’s primary residence. This may include backyard suites. Any secondary or subsequent properties will be prohibited from Short-Term Renting.
STRs will still be allowed in commercial or mixed-use zones where tourist accommodations are already permitted.
Short-term renting of an individual bedroom within a primary residence will be permitted.
Existing provisions related to parking, bedroom limits and maximum signage requirements for bed and breakfasts will be extended to short-term bedroom rentals.
All STRs will be required to be registered by April 1, 2023.
Where are we currently in these new regulations?
Council has recently approved the first reading of these new regulations. Next, staff will return to the council in the upcoming months to present a report regarding the implications of allowing STRs in backyard suites, and will provide additional details on how these new regulations will be enforced. Staff are also working to explore approaching tourist accommodations in rural parts of the municipality, as many of these properties may be exempt.
Whom should I contact if I have questions?
You can read the full report on these new regulations here.
If you still have questions on how this will impact your property or future travel/real estate goals, you can contact any of the following:
Jill MacLellan at maclelj@halifax.ca;
Jamy-Ellen Klenavic at klenavj@halifax.ca
Brandon Umpherville at umpheb@halifax.ca
Or, if you have a lawyer you typically work with concerning your properties, they can also assist you with current or new regulations.
Or, you can always reach out to us!
Stay tuned for more updates concerning Short Term Renting in Halifax!
Jordan Gunn
Licensed Real Estate Assistant
The Andrew Perkins Real Team
Keller Williams Select Realty