Many buyers are looking for homes in which they can Airbnb a self contained unit or a room or two in a house. This is a great way to earn extra income for your early house taxes, perhaps new furniture or maybe a trip. However, as a home buyer thinking about short term rental (STR) there are some things you need to know. Rules in Victoria have changed surrounding STR.
A short term rental is anything you rent out for less than 30 days on sites like Airbnb.
You may be eligible if;
Your short term rental is your principal residence – the whole home on occasion (for example, when you are on vacation), or up to two bedrooms in your home with shared kitchen and living spaces. This does not include a self contained suite, except for when a renter (with owner’s permission) rents out a suite (their principal residence) on occasion. This is important to know. Basically what it means is that you are allowed to rent two bedrooms within your home and it must have a shared kitchen and living spaces. You cannot necessarily rent out a separate contained unit in your home as STR.
If you are looking for this type of situation, then we would want to look for real-estate in Victoria that offers the right floor layout to accommodate this. Remember you are sharing your home so you may want some separation, perhaps a home with 1 bed and bath on main floor and the rest of the bedrooms upstairs for your use.
You may also STR if you own a legally non-conforming unit where transient accommodation was a permitted use, otherwise known as a “grandfathered” property. Changes to the Zoning Bylaw now prohibit short-term rentals in residential units where “transient accommodation” was a permitted use in zoning. However, properties may be considered legally non-conforming under this use if they have been operating a short-term rental in a transient accommodation zone prior to the zoning changes, and comply with strata regulations and operating requirements. However, please note that for properties in transient zones, legal non-confirming status cannot be confirmed until a Business Licence application is processed.
Please remember also that there are licensing fees to operate an Airbnb business in Victoria and I suggest you go to the City of Victoria website to ensure you have the current fees.
I have a lot of experience in the STR arena as I rent out a room in my own house. Looking for real estate that is suitable for this then lets talk and see what we can find you.