Short-term rentals, such as those offered through Airbnb and VRBO, have become a popular option for property owners and travelers in Greater Victoria. For investors and homeowners alike, navigating the rules and regulations across various municipalities is key to success. This guide explores the short-term rental landscape in Victoria real estate, helping you understand compliance, zoning, and investment opportunities.
British Columbia’s Rules for Airbnb and Short-Term Rentals
In May 2024, British Columbia implemented the Short-Term Rental Accommodations Act, which provides a framework for operating short-term rentals across the province. Key rules include:
Principal Residence Requirement: Short-term rentals are permitted only in the operator’s principal residence and one additional unit on the same property.
Business Licence Requirement: Hosts must obtain and display a valid business licence on their Airbnb or other short-term rental listings, where required by the municipality.
While these provincial rules apply across BC, each municipality has its own specific zoning and licensing requirements that can significantly impact your ability to operate a short-term rental.
Victoria Airbnb: The Heart of the Market
In Victoria, short-term rentals are allowed in principal residences with a valid Short-Term Rental Business Licence.
Transient-Zoned Buildings in Victoria
These transient-zoned buildings in Victoria are specifically designated to permit short-term rentals (must be in accordance with the Short-Term Rental Accommodations Act):
The Janion – 1610 Store St. & 456 Pandora Ave. (2016)
Era – 728 Yates St. (2014)
The Falls – 707 Courtney St. & 708 Burdett Ave. (2009)
Astoria – 751 Fairfield Rd. (2006)
Mermaid Wharf – 409 Swift St. (2000)
Leiser Building – 524 Yates St. (2011)
Juliet – 760 Johnson St. (2008)
595 Pandora – 595 Pandora Ave. (2016)
Union – 528 Pandora Ave. (2014)
Oriental – 562 Yates St. (2011)
Corazon – 732 Cormorant St. (2005)
Vogue – 599 Pandora Ave. (2006)
Cityzen – 613 Herald St. (2018)
Legato – 960 Yates St. (2018)
Palladian – 1602 Quadra St. (2008)
Monaco – 610 Johnson St. (2007)
The SoHo – 848 Mason St. (2006)
601 Herald – 601 Herald St. (2011)
While these properties offer excellent opportunities for short-term rental operations, always confirm strata bylaws, as some buildings may prohibit Airbnb despite transient zoning.
Short-Term Rentals in Saanich: A Conservative Approach
In Saanich, short-term rentals are prohibited in all residential zones under Zoning Bylaw 8200. However:
Residents may consider operating a Bed and Breakfast under specific conditions.
Licensing requirements are stringent, making Saanich less flexible for Airbnb hosts compared to Victoria.
Saanich places a strong emphasis on long-term housing stability, limiting opportunities for short-term rental operations.
Short-Term Rentals in Esquimalt: Limited Opportunities
Esquimalt permits short-term rentals, but there are no transient-zoned properties in the municipality. Key points include:
Hosts must obtain a business licence for their rental property.
Compliance with local zoning rules is essential, as some areas may restrict short-term rental operations.
Esquimalt is a quieter market for Airbnb compared to Victoria, offering fewer opportunities for investors.
Short-Term Rentals in Oak Bay: Residential Focus
Oak Bay prohibits short-term rentals in all residential zones, prioritizing the preservation of its quiet, family-oriented neighborhoods. However:
Bed and Breakfast operations may be permitted under specific conditions.
The municipality enforces strict zoning and licensing regulations, making short-term rentals nearly impossible to operate legally.
For those looking to invest in Victoria Airbnb operations, Oak Bay may not be the ideal location.
Short-Term Rentals in View Royal: Balancing Rentals and Housing
In View Royal, short-term rentals are allowed with a valid business licence, though there are no transient-zoned buildings in the area. Additional considerations include:
Zoning laws may restrict where short-term rentals can operate.
Properties must comply with the principal residence requirement.
This municipality offers some flexibility for homeowners but is less appealing to investors looking for dedicated short-term rental properties.
Short-Term Rentals in Colwood: Flexible for Homeowners
Colwood allows short-term rentals in principal residences with a valid business licence. While transient-zoned properties are not available, the municipality remains a solid option for homeowners who want to rent out part of their principal residence.
Short-Term Rentals in Sooke: A Vacation Rental Hotspot
Sooke is one of the most Airbnb-friendly areas in Greater Victoria, driven by its strong tourism economy. Key highlights include:
Short-term rentals are permitted with a valid business licence.
While transient-zoned properties are not present, rural and vacation homes are highly sought after by travelers.
Sooke is a great option for those looking to invest in the Victoria real estate market for short-term vacation rentals.
Short-Term Rentals in Sidney: Coastal Living with Restrictions
Sidney heavily regulates short-term rentals, focusing on maintaining housing stability. Points to consider include:
Operators must obtain a business licence and comply with local zoning laws.
There are no transient-zoned buildings, limiting opportunities for Airbnb investors.
Sidney’s coastal charm makes it attractive to travelers, but it remains a more challenging market for Airbnb hosts.
Short-Term Rentals on Salt Spring Island: A Unique Market
Salt Spring Island allows short-term rentals under specific zoning and licensing requirements. Key considerations include:
Transient-zoned properties are rare, so most short-term rentals must operate within the principal residence requirement.
The island’s strong tourism appeal makes it a popular destination for vacation rentals.
Salt Spring Island remains a top choice for Airbnb operators willing to navigate its unique set of rules.
Conclusion: Is a Victoria Airbnb the Right Choice for You?
The short-term rental market in Victoria real estate offers excellent opportunities, especially in transient-zoned buildings that allow flexibility for Airbnb operations. Other areas, such as Sooke and Salt Spring Island, cater to vacation rentals with fewer restrictions, while municipalities like Saanich and Oak Bay prioritize long-term housing stability and are less accommodating to Airbnb.
Investing in a short-term rental in Greater Victoria requires careful research into local zoning, licensing, and strata rules. Whether you’re exploring opportunities in transient-zoned properties in Victoria or considering tourist-friendly regions like Sooke, working with an experienced Victoria Realtor can help you navigate the complexities of the market and make informed decisions.
For expert advice on short-term rentals and investment opportunities in Greater Victoria, contact The Webbers. We’re here to help you succeed in this dynamic real estate market.