Short Term Rental Business Licensing Requirement Update
Sidney Council has provided direction to amend the Business Licence Bylaw to require licensing for short-term rentals. This proposed bylaw amendment will be reviewed by Council on November 12.
If adopted, business licences for short term rentals would be required in 2025.
Currently a business licence is not required to operate a short-term rental in the Town of Sidney, although operators must meet the bylaw requirements outlined below.
Operating a Short Term Rental in Sidney
The Zoning Bylaw allows Short Term Rentals (STR) on most residential properties in Sidney, provided the following requirements are met:
- Only one (1) STR is permitted per property.
- The property (i.e. single-family dwelling, condo, etc.) must be continuously occupied by a permanent resident, whether it be the owner or a tenant.
- An STR must be located in a legal dwelling unit (e.g. a secondary suite that has received an occupancy permit).
- STR is not permitted on properties that have a secondary suite or other secondary dwelling unit occupied by a long-term tenant (however, the secondary dwelling unit may be used for STR if not occupied by a long-term tenant).
- STR is not permitted on properties that have an active residential boarding or bed and breakfast use.
- No more than two bedrooms in a dwelling unit may be used for a STR.
- A bedroom in a STR may not have separate or additional cooking facilities.
Frequently Asked Questions
For more information on how STRs are regulated in Sidney, a list of commonly asked questions and answers is provided below.
STR refers to the commercial rental of a dwelling unit (i.e. single-family home, condo, townhouse, etc.) which provides accommodation for a period of less than 31 days to the travelling public.
Typically bookings are made through the internet, on websites such as Airbnb, Homeaway and Vacation Rental By Owner (VRBO).
Due to the extremely low rental vacancy rate in Greater Victoria and Sidney in particular, it is likely that the use of dwelling units for STRs are affecting the availability and affordability of long-term rental units.
However, homeowners who may have extra empty bedrooms in their home, or wish to rent out their home while they themselves are on vacation would have less impact on the availability of long-term rental units.
The bylaw allows STRs within the areas designated as Neighbourhood Residential (RES-1), Intensive Single-Family Residential (RES-2), Multi-Family Residential (RES-3) and Downtown Commercial (COM-1) in Schedule C of the Town of Sidney Official Community Plan.
- View Town of Sidney Official Community Plan Map
This makes up most residential areas in Sidney. In addition, STRs are permitted in the Galaran residential neighbourhood adjacent to the Sidney Industrial Park.
While Sidney’s bylaw regulations allow STRs to operate within a condo, apartment or townhouse, the owner or Strata Council for the building have the final say on whether to allow this.
Condo owners should consult their building’s strata bylaws, while long-term tenants who wish to operate a STR should contact their unit’s owner or consult their tenancy agreement to confirm that they are permitted to operate a STR. It is your responsibility to ensure that a STR complies with all strata bylaws, in addition to Town of Sidney bylaws.
In addition to the permitted locations for operating a STR mentioned above, the following regulations apply:
- No more than one (1) STR is permitted per lot or strata lot
- The lot or strata lot in which the STR use is located is continuously occupied by a permanent resident, whether it be the owner or a tenant who has a valid and subsisting tenancy agreement
- The dwelling unit must be legal (for example, a secondary suite must have been issued an occupancy permit)
- A STR is not permitted on a lot or strata lot where any of the following are located on the same lot: a secondary suite or detached secondary dwelling occupied by a long-term tenant, or an active boarding or bed and breakfast use
- No more than two bedrooms in a dwelling unit shall be used for the purposes of a STR
- No separate or additional cooking facilities or other such facilities for the keeping or preparation of food are provided within any bedroom intended for STR use
A renter may stay in an STR for a period of up to 31 days.
No. Existing STRs located outside of a permitted area were never considered legal and as such are not permitted to continue operation under the bylaw.
At this time, a business licence is not required to operate a short-term rental in the Town of Sidney, although operators must meet the bylaw requirements outlined on this page.
However, Sidney Council has provided direction to amend the Business Licence Bylaw to require licensing for short-term rentals. This bylaw amendment is anticipated to happen in summer 2024, and business licences for short term rentals will be required as of January 2025. Short term rental operators in Sidney will be contacted in the fall in advance of the licensing requirement with directions on how to apply for a business licence.
The Town of Sidney does not currently charge any fees to open or operate a STR. It should be noted that operators of a STR may be subject to provincial or federal taxes based upon income earned from their STR operation.
Property owners are not required to provide any additional parking for STR guests. However, STRs located in buildings with strata bylaws should consult their strata council.