Airbnb Rules in Vancouver: Complete Guide to Legal Short-Term Rental Operations in 2025

Vancouver short-term rental operators must obtain a business licence from the City of Vancouver and use only their principal residence for short-term rental accommodations. These Vancouver short-term rental regulations have been in effect for years and require all short-term rental hosts to comply with strict licensing, safety and operational standards.

This guide addresses the search intent for property owners and short-term rental property managers seeking complete legal compliance information for running an Airbnb or other short-term rental business in Vancouver.

What this guide covers:

This comprehensive resource covers Vancouver’s licensing requirements, annual fees, eligibility criteria, step-by-step application process and enforcement mechanisms. We do NOT provide tax advice, legal counsel or guidance on provincial registry requirements - this focuses specifically on Vancouver municipal regulations.

Who this is for:

This guide is designed for property owners, prospective short-term rental hosts and current Airbnb operators needing compliance updates. Whether you’re considering launching a short-term rental business or ensuring your existing Vancouver short-term rental permit remains valid, you’ll find specific, actionable compliance information.

Why this matters:

Legal short-term rental operations protect you from fines of $3,000 per day while supporting Vancouver’s efforts to balance homeowner rental income opportunities with long-term rental housing preservation. Non-compliance can result in forced listing removal, legal action and significant financial penalties.

What you’ll learn:

• Municipal licensing requirements and annual fees

• Principal residence rule

• Step-by-step business licence application process

• Safety standards, operational limits and enforcement consequences

Understanding Vancouver’s Short-Term Rental Framework

Vancouver defines short-term rentals as rental accommodations for less than 90 consecutive days, requiring business licence compliance. Only one licence is permitted per person.

The city’s regulatory framework balances legitimate homeowner opportunities to earn additional income from their primary residence while protecting Vancouver’s long-term rental market from conversion to commercial short-term rental operations. This approach addresses the housing crisis by preventing investment properties from being removed from long-term rental housing stock.

The Vancouver City Council established these new rules to ensure short-term rental units serve as supplementary income for residents rather than full-time commercial enterprises that reduce housing availability.

Principal residence requirement

The principal residence rule requires short-term rental operators to live in the short-term rental listing - as an owner or tenant. Their primary residence must be the residence that they also use to receive mail, bills, identification, taxation and insurance purposes.

If the rental property has a secondary suite or laneway house, hosts living in another part of the house can't rent the secondary unit(s) as a short-term rental. Hosts can only rent the unit that is their principal residence. You can't rent both your main house and secondary suite as short-term rentals. This prevents property owners from converting entire properties to commercial short-term rental accommodations.

This connects to Vancouver’s broader framework because the principal residence requirement ensures short-term rental business operations remain residential rather than commercial, supporting the city’s goal to preserve long term rental market availability.

Permitted property types

Building on the principal residence rule, Vancouver permits short-term rentals only in primary residences .

The eligible property is the operator's principal residence, whether that is the main house, basement suite, secondary suite, laneway house or other accessory dwelling unit. Short-term rental operators can't host in any dwelling that they are not living in as their principal residence.

The city prohibits investment properties, commercial short term rental operations and multiple short term rental units per property owner.

Unlike investment-focused approaches, this system allows only one active booking per dwelling unit and requires that property owners physically reside at the rental property to maintain eligibility.

These foundational eligibility requirements lead directly to specific licensing and compliance obligations that all qualifying operators must fulfill.

Licensing and Legal Requirements

Building on the framework requirements, Vancouver mandates specific business licence compliance, safety standards and operational procedures for all legal short-term rental operations.

Short-term rental business license specifics

Current fees require a $1,108 annual license fee plus $77 application fee for new license applications.

The Vancouver business license expires December 31 annually. Renewals cost $1,108 each year with a $111 late fee penalty.

Display requirements mandate that the license number appear on all marketing material including online listings on short-term rental platforms like Airbnb and Vrbo as well as direct booking websites, ensuring transparency for guests and enforcement officials. Make sure to also post a paper copy of your licence in your short-term rental accommodation. Operators must update their listings with the new number after successful renewal.

Safety and operational standards

Fire safety requirements include having interconnected smoke alarms on every floor and in every bedroom, a working and accessible fire extinguisher on every floor, carbon monoxide detectors on every floor if there are gas appliances, and making sure they are in working order. Annual testing and inspections are expected and records must be maintained. Short-term rental operators must also post a fire plan at all entrances and exits, have a fire alarm in the building if it has more than three dwelling units or 10 occupants and provide 24/7 contact information in case of an emergency.

Guest limitations restrict occupancy to one booking at each property at a time with overlapping bookings not allowed. That is, you can rent multiple rooms to the same guest group but not separate rooms to different guests. Properties considered separate units cannot host multiple simultaneous bookings even with adequate bedrooms.

Strata bylaws must permit short-term rentals, and tenants need landlord approval before operating short-term rental accommodations in rental properties, ensuring compliance with existing property agreements.

Penalties and enforcement

Municipal fines can now reach $3,000 per infraction per day. Provincial-level prosecutions may carry penalties up to $50,000. Strata corporations may also impose fines (up to $1,000/day) if their short-term-rental bylaws are violated.

Active enforcement includes complaint-based investigations, license suspensions for unsafe or nuisance property operations and legal action against persistent violators who continue operating without proper permits.

Key points:

• $1,108 annual license fee plus $77 application cost

• December 31 renewal deadline with $111 late penalty

• Up to $50,000 fines for compliance violations

Understanding these requirements prepares you for the specific application process and ongoing compliance management.

Application Process and Compliance Management

Successful licensing requires systematic completion of Vancouver’s business licence application process and ongoing compliance with operational standards and renewal deadlines.

Step-by-step: Obtaining your short-term rental licence

When to use this: First-time applicants and property owners seeking legal Airbnb operation authorization in Vancouver.

1. Verify principal residence eligibility: Confirm you live in the property and can provide utility bills, tax records or official mail as residency documentation.

2. Complete online application: Access the City of Vancouver website, create a business licence account, and submit the short term rental permit application with accurate property and operator information.

3. Submit required documentation: Provide additional documentation including property ownership proof, strata bylaw compliance verification and any landlord approval letters for rental properties.

4. Pay application fee: Submit the $77 application fee through the online portal and await city review and approval notification.

5. Pay licence fee: Upon approval notification, pay the $1,108 annual license fee to receive your permit number and begin legal short-term rental business operations.

Comparison: Compliant vs. Non-compliant operations

Licensed operations provide legal protection, platform stability and insurance security, while unlicensed operations face escalating fines, forced listing removal and potential insurance complications that far exceed the ~$1,200 annual compliance cost.

Even with proper licensing, hosts commonly encounter specific challenges that require strategic solutions.

Common Challenges and Solutions

Licensed short-term rental operators frequently encounter residency documentation, fee management and approval challenges that can impact their ability to maintain legal compliance status.

Challenge 1: Meeting principal residence requirements

Solution:

Document residency using utility bills, property tax records, driver’s license address and official government mail spanning the required timeframe.

Maintain organized records including monthly utility statements, voter registration and health insurance documentation that collectively demonstrate continuous primary residence status for city verification purposes.

Challenge 2: Managing $1,200 annual licence costs

Solution:

Budget approximately $100 monthly for license renewal costs and track the expense as a legitimate business deduction for tax purposes to reduce net compliance costs.

Many hosts offset this investment through increased booking rates and guest confidence from displaying official city permit numbers, often recovering licensing costs within 2-3 monthly bookings.

Challenge 3: Strata or landlord approval requirements

Solution:

Review existing strata bylaws and lease agreements first, then present formal proposals highlighting noise mitigation measures, damage prevention protocols and guest screening procedures.

Building positive relationships with property managers and strata councils through transparent communication and demonstrated responsibility often facilitates approval for short-term rental accommodations in managed properties.

With these practical solutions in place, you can confidently move forward with legal short term rental operations in Vancouver.

Conclusion and Next Steps

Vancouver’s short-term rental regulations protect both hosts and the city’s long-term rental housing market by ensuring that short-term rental operations remain residential rather than commercial enterprises while providing legitimate income opportunities for qualifying property owners.

To get started:

1. Check your principal residence eligibility using the City of Vancouver’s online qualification questionnaire

2. Gather required residency documentation, property ownership proof and any necessary strata or landlord approvals

3. Submit your business licence application through the official City of Vancouver online portal with appropriate fees

Consider exploring provincial British Columbia short-term rental rules, tax obligations for rental income and short-term rental liability insurance considerations for comprehensive compliance coverage.

Additional Resources

For the most current and authoritative information, short-term rental operators should regularly consult official government resources. The City of Vancouver’s Short-Term Rental program page provides updates on licensing rules, eligibility requirements, enforcement actions and application procedures. Provincial guidance from the Government of British Columbia offers clarity on accommodation taxes, marketplace facilitator rules and short-term rental legislation, while the Canada Revenue Agency publishes detailed guidance on reporting rental income and GST obligations. Reviewing these sources periodically helps ensure ongoing compliance as regulations and fees are updated.

FAQs

What is the principal residence rule for short-term rentals in Vancouver?

You can only operate a short-term rental in the home you live in for the majority of the year, which is the address you use for bills, mail and government identification. You cannot rent out a secondary suite, laneway house or investment property as a short-term rental unless you live in that specific unit as your primary home.

How much does a short-term rental business licence cost in Vancouver?

For new applicants, there is a non-refundable $77 application fee plus an annual licence fee of $1,108. The total initial cost is $1,185. The licence must be renewed annually for $1,108 before the December 31st deadline to avoid a $111 late fee.

Can I rent out my basement suite or laneway house as an Airbnb?

You can only rent out a basement suite or laneway house if it is your principal residence. If you live in the main house, you cannot operate a short-term rental in a separate unit on the same property.

What are the penalties for operating an illegal short-term rental in Vancouver?

Operating without a valid licence can result in municipal fines of up to $3,000 per infraction, per day. Provincial penalties can be as high as $50,000, and strata corporations can also issue their own fines.

Do I need my landlord's or strata's permission to run an Airbnb?

Yes. If you are a tenant, you must have written permission from your landlord. If your property is part of a strata corporation, you must ensure the strata bylaws permit short-term rentals before you apply for a licence.

Where do I need to display my short-term rental licence number?

Your valid business licence number must be included on all online listings and any advertisements, including platforms like Airbnb, Booking.com and any direct booking websites. You must also post a paper copy of your licence in a visible place inside the rental unit.

Can I rent multiple rooms in my house to different guests at the same time?

No. You are only permitted to have one booking at a time. You can rent multiple rooms to a single group of guests under one booking, but you cannot have separate, overlapping bookings for different rooms with different guests.