New rules for short-term rentals in Calgary take effect

Changes for short-term rental properties and operators in Calgary are in effect as of Tuesday, the city says.

Council unanimously approved amendments to the Business Licence Bylaw regarding short-term rental properties in December of 2024.

Among the changes is an expanded definition; short-term property rentals are now considered to last up to 180 consecutive days and require a business licence to operate in Calgary. Prior to the change, it was 30 days.

The city says licences will be issued depending on what type of residence the short-term rental is run out of — primary or non-primary.

This allows the city to understand how many commercialized short-term rentals there are in Calgary.

New licences for primary residences now cost $172 and $131 to renew, and non-primary residence licenses cost $510 and $260 to renew. Fire inspection fees are an extra $114 for both new and renewal licences.

Property owners who already have a short-term rental licence will need to verify if their property is primary or non-primary when they renew their licence.

Officials say business license applicants must comply with the bylaws of their condo. They say the city is no longer requiring consent from condo boards to deal with non-compliance, but condo boards will have their own internal mechanisms to address non-compliance.

Additionally, the city says it will not issue short-term rental business licences to homes designated as affordable housing to protect and maintain affordable housing options in collaboration with Calgary’s housing solution.

“We recognize the popularity of short-term rentals for visitors and temporary residents. These amendments balance tourism and business needs while addressing housing concerns,” said acting manager of business experience, Melanie Bishoff.

“By refining licensing requirements, clarifying regulations and enhancing oversight, we are creating a more transparent and responsible short-term rental market that prioritizes community well-being, guest safety and housing availability,” she said.

The city says its administration is working on the implementation of short-term rental company business licences and data sharing agreements.

Temporary pauses on new non-primary residence rentals will not take effect this year, though it was approved by city council.

The city says it will only temporarily pause issuing new non-primary licences if the purpose-built rental vacancy rate falls below 2.5 per cent. The vacancy rate now is 4.8 per cent, according to the Canada Mortgage and Housing Corporation.

This would not apply to new primary residence applications or existing licences.

The city says these changes to the bylaw will help streamline business processes, address regulatory gaps and enhance guest safety.