Canmore-based lawyer Austin Ward sat down with Erin Berney and John Gilbert, two lawyers with Field Law, to discuss the legal complexity of short-term rentals in the Bow Valley.
What should property owners know before offering their home as a short-term rental?
Erin: Short-term rentals, especially in places like Canmore, are subject to very specific municipal bylaws. Before listing your property on Airbnb or VRBO, you need to confirm whether it’s zoned for that use. In Canmore, for example, only certain areas allow tourist home use, and even then, a business license is required. Failing to comply with zoning or licensing rules can lead to fines and enforcement orders.
Are there risks for people who rent out their homes casually during the summer?
John: Definitely. Even a few days of rental can expose an owner to liability. If a guest causes damage, injures themselves (or others), or disturbs neighbours, the property owner may be held responsible. Standard homeowner insurance often doesn’t cover commercial use of the property - so operating a short-term rental without proper insurance could leave you personally exposed. Even with proper insurance, there could be issues with insurance coverage or delays in having repair or other work completed.
What about condo or strata properties?
Erin: This is another layer of complexity. Even if a unit is zoned for short-term use, the condo board may restrict such use through the bylaws. Some developments explicitly, or even implicitly, prohibit short-term rentals, while others may require specific approval or impose conditions. We always recommend reviewing your condo bylaws carefully and making inquiries with the Board. Just because someone else has gotten away with operating a short-term rental, doesn’t mean that it is permitted.
Do these issues apply if someone just rents out a basement suite or room occasionally?
John: Yes. Renting out part of your home, even for a weekend, can still trigger zoning and licensing requirements. It's not just about full-time short-term rentals. The moment money changes hands and a guest occupies space, local regulations and insurance implications come into play.
What’s your advice to people considering renting out their property this summer?
Erin: Do your homework first. Review your zoning, bylaws, and insurance coverage. If you're unsure, speak to a lawyer. It’s always easier - and less expensive - to address compliance and liability issues before problems arise.
For more insights on managing short-term rentals, visit https://field.law/rentals to check out Erin and John’s complimentary webinar recording, “People, Pets + Parking: Navigating Rental + Airbnb Requirements.”
