BC Short-Term Rental Rules — Principal Residence Requirement by City

BC's Short-Term Rental Accommodations Act (STRAA) came into full effect in 2024 and represents the most significant restriction on short-term rental supply in any Canadian province. The headline rule is straightforward — short-term rentals are limited to the host's principal residence plus optionally one secondary suite or accessory dwelling unit on the same property — but the implementation involves provincial registration, municipal business licensing, categorical exemptions, and city-by-city local variation that materially affects what is and is not legal in practice. This guide walks through the framework and how it is being applied across BC's major short-term-rental markets in 2026.

The principal residence requirement

Under the STRAA, short-term rental accommodation services must not be provided except in a host's principal residence or in not more than one secondary suite or other accessory dwelling unit in a prescribed location in relation to the property host's principal residence.

"Principal residence" means the residence where the host lives for a longer period in a calendar year than any other place. A host can have only one principal residence at a time. A vacation home, second home, investment property, or unit owned by a corporation is not a principal residence and cannot be operated as a short-term rental in regulated areas.

The "one secondary suite or ADU" allowance recognizes that many BC homes have legal basement suites, laneway houses, or accessory dwelling units. A host can operate one such unit as a short-term rental in addition to the principal dwelling — but not multiple such units, and not units on a separate property.

Categorical exemptions from the principal residence requirement

The STRAA exempts several categories of land from the principal residence requirement:

• Small municipalities: municipalities with populations under 10,000 and not within 15 kilometres of a larger municipality. Examples include Tofino (population approximately 2,500), Ucluelet, Fernie, Revelstoke (over the threshold but with mountain-resort exemption), and many smaller communities throughout the province.
• Mountain resorts: regional and destination resorts, BC Parks resorts, private ski resort areas, and community ski resorts. Whistler, Sun Peaks, Big White, Silver Star, Panorama, Fernie Alpine Resort, and others are exempt from the principal residence requirement at the provincial level — though municipal rules still apply.
• Seasonal accommodation not suitable for year-round residence: cabins, cottages, and similar accommodations that are not equipped for year-round occupancy.
• Specific land categories: certain First Nations lands, hotels and motels, Bed and Breakfast operations meeting specific criteria, lodges and resorts.

The exemptions list is from STRAA itself plus the Short-Term Rental Accommodations Regulation. Provincial exemption does not override municipal regulation — many exempt jurisdictions impose their own short-term rental rules through bylaws and business licensing.

Provincial registration

Beyond local rules, every short-term rental host operating in BC must register with the BC Short-Term Rental Registry, which launched in 2024. Registration requires:

• Host identification
• Property address and proof of principal residence (where applicable)
• Local government business licence number (where required)
• Annual registration fee

The Provincial Registration Number must be displayed on every listing across every booking platform (Airbnb, Vrbo, Booking.com, direct websites). Platforms have a statutory obligation to remove listings that lack a valid registration number — and have begun enforcing this consistently. Operating an unregistered short-term rental is a violation of the STRAA and can carry administrative penalties.

City-by-city interpretation

Vancouver

The City of Vancouver applies the provincial principal residence requirement in full. In addition, Vancouver has had its own short-term rental licensing regime since 2018 that operates alongside the STRAA. To legally operate a short-term rental in Vancouver, hosts need: principal residence in the unit, a valid Vancouver short-term rental business licence, and a valid provincial registration number. Hosts cannot operate a short-term rental in a unit that is not their principal residence even if all other rules are met. Investment properties, second homes, and rented-out units are all prohibited.

Victoria

Victoria applies the principal residence requirement and additionally requires a city business licence. The combination effectively limits Victoria short-term rental supply to owner-occupied principal residences plus authorized secondary suites or accessory dwelling units. Strata buildings can further restrict short-term rental through bylaws.

Whistler

Whistler is exempt from the provincial principal residence requirement under the mountain resort category, but the city operates its own substantial short-term rental regime through Tourist Accommodation Regulations Bylaws. Within Whistler's designated tourist-zone areas (Blackcomb, Whistler Village, surrounding areas), short-term rental is permitted in specifically zoned properties. Outside the tourist zone, short-term rental is severely restricted and generally requires a city business licence. Hosts must collect and remit Provincial Sales Tax (PST) and Municipal and Regional District Tax (MRDT) on all rentals.

Kelowna

Kelowna operated under the provincial principal residence requirement through 2024 and 2025, then exercised an opt-out effective June 1, 2026. Hosts in Kelowna no longer need to satisfy the provincial principal residence requirement when applying for provincial short-term rental registration — though local Kelowna rules still apply, and the city has its own zoning, licensing, and density controls. The opt-out makes Kelowna a notable exception to the broader BC trend.

Surrey, Burnaby, Richmond, and other Metro Vancouver municipalities

Apply the provincial principal residence rule. Most also have municipal short-term rental bylaws of varying restrictiveness, with several effectively prohibiting short-term rental in single-family zones.

Squamish, Pemberton

Subject to provincial rule (population over 10,000 and proximity to larger municipalities). Both have local short-term rental bylaws.

Tofino, Ucluelet

Exempt from provincial principal residence requirement under the small-municipality exemption. Both communities operate substantial municipal short-term rental regimes through business licensing and zoning.

Fernie, Revelstoke, Golden, Kimberley

Variable. Mountain-resort exemption applies in some cases. Each operates its own municipal regime.

Strata bylaws as a separate restriction

Independent of provincial and municipal rules, strata corporations can restrict or prohibit short-term rental of strata lots through bylaws passed under the Strata Property Act. Most BC stratas — particularly those in residential buildings — have either banned short-term rental outright or limited it to minimum stay periods (typically 30 or 60 days minimum) that effectively eliminate Airbnb-style operation. A short-term rental that is permitted under provincial and municipal law can still be prohibited by strata bylaw, and the strata can impose fines for breach.

Enforcement and penalties

STRAA enforcement is divided between the Province (administering the registry, working with platforms to remove non-compliant listings, imposing administrative penalties up to $5,000 per offence per day for individuals and up to $10,000 for corporations) and municipalities (enforcing local business licensing and zoning, with their own penalty schedules). Booking platforms have become a primary enforcement chokepoint — Airbnb, Vrbo, and Booking.com all now require valid provincial registration numbers and municipal licence numbers (where applicable) at listing creation, and all have processes for removing non-compliant listings on platform-side detection or regulator notice.

What hosts and prospective investors should do

1. Determine whether your property qualifies under the principal residence test. If it does not, the property cannot be operated as a short-term rental in regulated areas (most of BC).
2. Check municipal rules. Even in exempt provincial categories, municipal bylaws can be more restrictive than provincial law and frequently are.
3. Check strata bylaws. If the property is in a strata, the strata bylaws are often the binding constraint.
4. Register with the provincial registry and display the registration number on all listings.
5. Register for required tax collection (PST, MRDT, GST where applicable).
6. Maintain insurance appropriate to short-term rental use — most homeowner policies do not cover commercial short-term rental and require a rider or specialized policy.

Bottom line

BC's short-term rental regime is restrictive by design — the policy intent is to redirect housing supply from short-term to long-term rental. For owner-occupied principal residences with a legal secondary suite, short-term rental remains viable in most of BC, subject to municipal licensing and tax collection. For investment properties not occupied by the owner, short-term rental is largely prohibited outside specific exempt jurisdictions. The exemption structure is intricate and changes — the Kelowna opt-out is the most recent significant shift — so any host or investor should confirm current rules before listing.