Updates to the Business Licence Bylaw for Short-Term Rentals
If you own a short-term rental (STR) or are thinking about starting one—whether it’s a room, a suite, or an entire home—updates to the Business Licence Bylaw come into effect on April 1, 2025.
In December of 2024, Calgary City Council unanimously approved amendments to the Business Licence Bylaw for short-term rentals (STR), signally the next phase of regulations for the short-term rental market.
The amendments support housing affordability, enhance guest and community safety and improve enforcement of regulations, while continuing to permit tourism and economic benefits of short-term rentals. The updated regulatory processes for the Business Licence Bylaw will not only help effective management of STRs but will also leverage the market in innovative ways to create value for the community.
Approved Bylaw Amendments
Primary and Non-Primary residence licences: The licence type will be issued based on whether the short-term rental is operated from a Primary or Non-Primary residence and no longer on the number of rooms. This approach will allow The City to understand the volume of commercialized short-term rentals.
Moratorium on new Non-Primary residence licences: Although approved by City Council, the moratorium on new Non-Primary residence rentals will not go into effect in 2025, based on the latest Canada Mortgage and Housing Corporation Purpose-Build Rental Vacancy Rate of 4.8%. Moving forward, if the vacancy rate falls below 2.5%, The City will only impose a temporary pause on issuing new Non-Primary licences. This would not apply to new Primary residence applications or existing licences.
Revised short-term rental definition: The definition of ‘short-term rental’ will be revised to include up to 180 consecutive days to address regulatory gaps in the emerging medium-term rental market. This allows for improved regulatory oversight of STRs, ensuring that these rentals meet safety standards.
Licence short-term rental digital platforms: A new short-term rental company licence category will be added to the Business Licence Bylaw and will include an annual $3,000 licence fee. STR companies will be required to work collaboratively with The City to enhance enforcement efforts and for more informed policy decisions.
Removal of condominium board consent: Business licence applicants must comply with their condominium’s bylaws, and condo boards have internal mechanisms to address compliance with their bylaws. Therefore, consent from the condo board will no longer be required.
Business licences will not be issued to homes designated as affordable housing: To ensure affordable housing is available for Calgarians and not commercialized, The City will restrict STRs in homes designated for affordable housing.
Enhancing regulatory processes will improve STR management and foster market innovation to benefit the community. Visit calgary.ca/str for more information.
FAQs on Bylaw Updates to Short-Term Rentals
What is the new ‘short-term rental’ definition?
A short-term rental means the business of providing temporary accommodation for compensation, in a dwelling unit or portion of a dwelling unit for periods of up to 180 consecutive days.
Why has the duration increased from 30 to 180 days?
Currently, the medium-term rental market is unregulated. While this is currently a small market, it is a growing one. By extending the number of days, it closes a gap in the existing regulations which ultimately allows the City to have improved oversight that ensures guest safety and operator compliance.
How are the business licences changing?
Previously, STR business licences are issued based on the number of rooms (and occupants):
Tier 1: 1-4 rooms (up to 8 occupants, not including minors under the age of 12)
Tier 2: 5 of more rooms (more than 8 occupants, not including minors under the age of 12)
As of 2025, April 1 STR business licences will be issued as follows:
Primary Residence
Non-Primary Residence
How is a ‘Primary Residence’ defined?
Under the bylaw, a Primary Residence is defined as ‘the usual dwelling unit, including suite thereof, where an individual lives, makes their home and conduct their daily affairs.’ Simply put, this is where an individual would call home.
How is a ‘Non-Primary Residence’ defined?
Under the bylaw, a Non-Primary Residence is defined as ‘any dwelling unit that is not a Primary Residence’.
How will The City verify Primary Residences?
We will require applicants to submit proof of ownership and residency. Applicants will be required to provide the property’s address, a government-issued ID and a signed declaration verifying that the home is their Primary Residence.
This is a common practice across municipalities who introduced restrictions on STRs where they are only permitted in an individual’s Primary Residence.
What are the updated licence fees?
We have updated the business licensing fees for short-term rentals to align with our other business licence fees and ensure we maintain a cost-recovery approach with our fees. These fees will come into effect on 2025, April 1.
What is a moratorium?
A moratorium is a temporary restriction or limitation of a certain activity.
What does a moratorium mean for STR business licences in Calgary?
The amendments to the business licence bylaw include the introduction of a moratorium on Non-Primary Residences business licences. This gives The City the ability to pause the issuance of new Non-Primary Residence STR business licences.
When does the moratorium take effect?
A moratorium on new Non-Primary Residence STR business licence would only take effect when Calgary’s Purpose-Built Rental Market vacancy rate is below 2.5%. The Canada Mortgage and Housing Company (CMHC) releases an annual Rental Market report which outlines the Purpose-Built Rental Market vacancy rates across Canadian cities, including Calgary.
Currently, the vacancy rate in Calgary is 4.8% so the moratorium will not go into effect in 2025.
Which licences types would be paused should a moratorium be in effect?
The moratorium, if put in place, only applies to net new Non-Primary Residence business licences. It does not apply to existing short-term rental business licences or new Primary Residence licences.
What will happen if I have an existing business licence that is now defined as a Non-Primary Residence?
A business licence for a Non-Primary Residence that is obtained before a moratorium is put in place would not be impacted by the moratorium. A moratorium would only impact business licence applications for Non-Primary Residences once a moratorium is in effect.
Why is The City removing condo board consent from the Business Licence requirement list?
Effective 2025, April 1 The City will no longer request confirmation of condominium board approval. Operators will be required to comply with their condominium’s bylaws and their compliance will be overseen by individual condo boards.
We are working with Law to determine if an affidavit will be required for applicants to acknowledge they’ve reviewed their condo’s bylaws and that operating an STR is permitted.
Why are short-term rentals not allowed in affordable housing units?
To ensure affordable housing is available for Calgarians and not commercialized, The City will restrict STRs in dwelling units designated for affordable housing.
How will The City verify if a short-term rental is located in an affordable housing unit?
Data will be shared between internal business units to ensure housing units designated as affordable units are not licensed for short-term rentals.