Choosing to buy vacation rentals around the world can be a very wise business move and can lead to a lot of success, if you know how to maneuver your way around the responsibilities and risks. However, what you should be considering and thinking about before you purchase global rentals, is if they comply with the regulations of the region they are located in. Airbnb regulation rules are very important to follow so you don’t run into any issues with the law enforcement of that country, which can be very costly. In this article we will be exploring the details of British Columbia’s laws for regulating vacation rentals, so if you plan to purchase or list a property in British Columbia, you’ll want to read on.
The Necessity of Airbnb Regulation
The essence of Airbnb property management in British Columbia lies in acquiring a permit or licence to allow you to run a business. Whether you are in Vancouver, Victoria or Whistler…it does not matter. All these cities require you to get a business licence because you are running a business that is providing you with “profit.” Since your rental welcomes guests and they stay at your property for a period shorter than 30 days and you benefit from the revenue, thus you have to follow the laws regulating Airbnb and acquire a permit. This has to be done before you start housing guests to avoid any issues and maintain professionalism. Nothing would be worse or more embarrassing than being shut down whilst a guest is on premises.
How to Acquire a Business Permit/License?
This entirely varies with the city where your vacation rental is based. For example in Vancouver, there is a simple process of acquiring short-term rental licence and the current annual fee is $99 plus $60 application fee. On the other hand, in places like Victoria and Whistler, you must pay a certain fee to register your business and receive an official permit. The fee differs according to which kind of business you are running but in a place like Whistler, the minimum fee is set at $165.
Taxing For Your Airbnb Property Management
There are some places where taxes and accounting rules apply and some where they don’t, as much… It is not specified but you can always get the details from an accountant or tax advisor. If you want to speed up the process and do it yourself, search Google forums and find what information you can on country, state and local taxations for short term rentals. Be aware some forums can be outdated so be sure to check when the article was published.
In addition to understanding Airbnb taxes and regulations, you need to make sure you’re Airbnb is insured and safe, you should not entirely depend on Airbnb’s protection insurance plan.
A very important aspect of Airbnb regulation is knowing exactly where your rental is located and what local jurisdiction laws apply to that area specifically. You can usually find most of this information online, however, if you’re still feeling unsure, you can ask for advice from your tax accountant, or make a quick call to your local council. A final recommendation is to join multiple Facebook groups for Airbnb hosts. These groups usually offer tons of great tips and other hosts will be quick to help you with taxation questions, just make sure you return the favour in the future.