On September 30, 2024, significant updates to Short-Term Rental (STR) regulations came into effect in Nova Scotia. These changes, aimed at balancing the needs of homeowners, renters, and municipalities, introduce new requirements and penalties for individuals and businesses operating STRs in the province. Whether you’re a homeowner looking to rent out your property on platforms like Airbnb or a prospective renter, it’s crucial to understand the new rules and how they might affect you.
What Are Short-Term Rentals?
Short-Term Rentals refer to accommodations rented out for a short duration. Specifically, the Short-term Rentals Registration Regulations define a STR as having a rental period of 28 consecutive days or less. They can include apartments, houses, suites or even single rooms in your home (but not unroofed accommodations like tents or yurts).
Popularized by platforms like Airbnb and Vrbo, STRs have become a significant part of the tourism industry, offering visitors flexible lodging options. However, the rapid growth of STRs has raised concerns about housing availability and affordability, particularly in areas with housing shortages.
Why Were the Regulations Updated?
According to the provincial government, these new regulations aim to address two primary concerns:
Housing Shortages: In areas where housing demand exceeds supply, STRs can limit the availability and affordability of long-term rental properties—more and more, property owners are opting to operate a STRs, for the benefit tourists/travelers, rather than long term rentals, for the benefit of residents.
Standardization and Compliance: The updated rules seek to ensure that STR operators comply with municipal land-use bylaws, maintain safety standards, and operate transparently.
By introducing these regulations, the Province of Nova Scotia hopes to create a fair playing field for all stakeholders—property owners, renters, municipalities, and tourists.
Key Changes in the 2024 Regulations
1. Documentation Requirements
STR operators must now provide specific documentation when applying for registration:
Municipal Land-Use Compliance: Applicants must demonstrate that their property complies with local land-use bylaws. For example, if a municipality restricts STRs in certain residential zones, operators must provide evidence that their property is eligible.
Proof of Ownership or Authorization: If you’re the property owner, you’ll need to provide proof of ownership. If you’re a tenant or co-owner, written authorization from all stakeholders is required.
Primary Residency Evidence (if applicable): For STRs operating under primary residency exemptions, operators must prove the property is their principal residence. This can include documents like utility bills, driver’s licenses, or tax returns.
2. Annual Registration Fees
The new fee structure varies based on location and the number of units being registered:
Range: Fees range from $50 to $2,000 per unit annually.
Higher Fees in Housing Shortage Areas: In regions identified as facing significant housing shortages, higher registration fees will apply. This measure aims to discourage STR operations in areas where long-term housing is scarce.
3. Penalties for Non-Compliance
Operating without registration or failing to adhere to the updated regulations can result in severe penalties:
Fines: Violators can face fines ranging from $1,000 to $100,000 per violation. The exact amount depends on the severity and frequency of the infraction.
Additional Consequences: In some cases, non-compliance may result in the suspension or revocation of an STR license.
How to Register Your Short-Term Rental
If you’re operating or planning to operate an STR in Nova Scotia, here are the steps to ensure compliance:
Review Municipal Land-Use Bylaws: Check with your local municipality to confirm that STRs are permitted in your area and understand any specific local requirements.
Gather Necessary Documentation: Prepare proof of ownership or authorization, evidence of compliance with municipal bylaws, and residency documentation if required.
Submit Your Application: Applications can typically be submitted online through the provincial STR registration portal.
Pay the Applicable Fee: Ensure you pay the correct registration fee based on your location and the number of units.
Implications for Homeowners
If you’re considering using your property as an STR, be prepared for additional administrative steps and costs.
Carefully review the regulations, especially if your property is in an area with a housing shortage.
Non-compliance can lead to substantial fines, so it’s essential to stay informed and up-to-date with any changes in the regulations.
Implications for Renters
Prospective renters may find improved housing availability in regions where STR operations are now more restricted as it is likely easier for owners to rent out their space on a monthly or yearly basis than it is to operate a STR.
Tourists using STRs should expect a more standardized experience as operators comply with the updated regulations.
Areas with Housing Shortages
The designation of areas with significant housing shortages plays a critical role in the updated regulations. While the province has not specified an exhaustive list in this overview, operators should consult local municipal offices or provincial announcements to determine if their property falls within these zones.
The updated short-term rental regulations in Nova Scotia represent a step toward balancing the interests of tourists, property owners, and local communities. While the new rules may introduce additional costs and responsibilities for operators, they aim to create a more equitable and transparent framework for STR operations.
If you’re Short-Term Rental operator, or are considering becoming one, now is the time to review your operations and ensure compliance with these changes. For more detailed information, consult the official resources provided by the Province of Nova Scotia (here) or seek professional advice—as always, we provide this general information for your benefit, but encourage you to seek tailored advice from a professional.
For any questions or further insights into how these changes affect your rights or obligations as a tenant or landlord, feel free to reach out to our office for legal advice. We’re here to help you navigate Nova Scotia’s evolving rental market.
Author: Brennan LeJean, JD, Associate Lawyer
