What are Short-Term Rentals?
If you’re an Airbnb host in Halifax, you might be wondering about the legality of short-term rentals (STRs) in Nova Scotia. A short-term rental, as defined by Tourism Nova Scotia, is an accommodation type that is rented for less than 28 days at a time. It can be the entire home or a room in a home.
New Regulations for Short-Term Rentals in Halifax
Recently, the Halifax Regional Council proposed amendments to the Regional Municipal Planning Strategy, Secondary Municipal Planning Strategies, and all Land Use By-laws to establish consistent region-wide policies and regulations for STRs. These new regulations are set to come into effect on September 1, 2023. You can find the full document detailing these changes here.
This article aims to break down these changes and help you understand how they will affect your Airbnb hosting, with a particular focus on zoning regulations. We will be using information discussed by staff at the Public Hearing on February 21, 2023, as well as the details outlined in the proposed amendments.
Key Points of the New Regulations
The new regulations are designed to balance the needs of the tourism sector with the protection of long-term housing supply and affordability. Here are the key points:
- Primary Residence Requirement in Residential Zones: In residential zones, STRs are limited to a host’s primary residence. This could be interpreted as a home where the STR operator lives most of the time. However, the document does not provide a specific definition, and it would be a good idea to consult with local authorities or a legal expert to understand exactly how “primary residence” is defined in this context. Importantly, the new regulations allow homeowners to offer their homes as STRs when they are away. There is no specified limit on how often a home can be offered as an STR, as long as it is the host’s primary residence.
- Short-term Bedroom Rentals: Short-term Bedroom Rentals, where individual bedrooms are rented out separately, are permitted in all zones. However, these rentals must be wholly contained within the dwelling unit which is the primary residence of the operator of the rental. Furthermore, not more than three bedrooms, or the maximum number of bedrooms specified in the zone, may be rented as a short-term bedroom rental at the same time.
- STRs in Commercial and Mixed-Use Zones: In commercial and mixed-use zones, STRs are allowed where tourist accommodations are already permitted. This means that in these zones, you may be able to operate an STR even if it’s not your primary residence. You can call 311 to gain further information and inquire about the zoning for various locations.
- Development Permit Exemptions: A short-term rental of an entire dwelling unit in an operator’s primary residence is exempt from the requirement to obtain a development permit.
- Registration Requirement: STRs will be required to register with the province. This is in line with recent amendments to the Tourism Accommodation Registration Act, which included a provincial definition for STRs and requirements for all STR operators to register their properties. Airbnb will also enforce this and require proof of registration in order to operate your listing on their platform. You can register your tourist accommodation here.
- Compliance with Other Municipal By-laws: The regulations also consider the enforcement of other municipal by-laws such as noise/nuisance/garbage collection. As an Airbnb host, you are expected to ensure that your guests comply with these by-laws.
Insights from the Halifax Regional Council Meeting
During the Halifax Regional Council meeting in February, several key topics were discussed, reflecting various stakeholders’ concerns and interests:
- The Impact on Property Managers: Staff acknowledged the value of property management services, highlighting their contribution to creating well-managed Airbnbs that fit seamlessly into neighbourhoods. They expressed confidence that these services will continue to be important, even with the new regulations.
- Concerns About Housing Affordability: The meeting also addressed concerns about the impact of STRs on housing affordability. The new regulations aim to prevent entire homes from being converted into STRs, thereby preserving the long-term housing supply.
- Support for Tourism: The council recognized the importance of STRs in supporting the local tourism industry, especially during the pandemic. The new rules are designed to allow STRs to continue to operate while ensuring they do not negatively impact the community. However, a study presented by Discover Halifax at the council meeting estimated that the changes could cut the inventory of short-term rentals in half, with 75,000 fewer rooms available annually. This could potentially result in an estimated $49 million in lost economic activity. Despite these potential losses, the council believes that the new regulations are necessary to balance the needs of the tourism sector with those of long-term residents.
- Enforcement Challenges: The meeting acknowledged the challenges of enforcing the new regulations, with the city planning to hire additional staff to ensure compliance.
- The Role of STRs in Transitional Housing: Some Airbnb owners and property managers highlighted the role of STRs as transitional homes for people moving to Nova Scotia from other provinces, refugees, or tradespeople and paramedics in town for short visits.
- The Impact on Small Businesses: Some small business owners expressed concerns about the impact of the new regulations on their livelihoods. For instance, property managers who run small management companies handling multiple units expressed concerns about the potential shutdown of their businesses due to the new rules.
Is Airbnb Legal in Nova Scotia?
Yes, Airbnb and other short-term rentals are legal in Nova Scotia. However, as of now, HRM is the only municipality in Nova Scotia that has introduced specific regulations for short-term rentals. In other municipalities, Airbnb is not yet regulated, but the province is requiring registration of all short-term rentals.
In conclusion, while Airbnb and other short-term rentals remain legal in Nova Scotia, the new regulations in Halifax aim to balance the needs of the tourism sector with the protection of long-term housing supply and affordability. As a host, understanding and adhering to these regulations is crucial for your continued operation and contribution to the local tourism industry.
If you have any questions or need further clarification on these new regulations, don’t hesitate to contact us. We’re here to help!