On December 17, 2024, City Council unanimously approved several policy amendments to the Business Licence Bylaw for short-term rentals (STR) operators and platforms in Calgary.

The amendments aim to balance housing affordability, safety, community impact and enforcement while continuing to support property owners and the economic benefits STRs bring to the city. Changes will come into effect on April 1, 2025.

Approved bylaw amendments

1. 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.

2. Moratorium on new non-primary residence licences: The City will impose a temporary pause on issuing new short-term rental licences for non-primary residences until vacancy rates reach 2.5%. The moratorium is based on the ‘Purpose-Built Rental Market’ vacancy rate data for Calgary from the annual Canada Mortgage and Housing Corporation Rental Market Report. The moratorium does not apply to existing STR business licences or new primary residence licences.
3. 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.
4. 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.
5. 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.  
6. 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.

Business licence requirement changes that took effect in January 2024 include:

1. Provide a fire safety plan of the rental unit or portion including:

• All accessible rooms and floors for renters, including bedrooms and sleeping areas (living rooms with a fold out couch).
• Location of smoke alarms and fire extinguishers, and carbon monoxide detectors.
• Fire exit locations.

2. Submit proof of ownership or owner consent, validated through a title search conducted by The City or provided Land Title at application.
3. For condos, written approval from the condo board for Short Term Rental, sealed by the Condo Board.
4. Proof of insurance indicating coverage for home sharing or Short-Term Rentals:

• Indicating that the property is insured for home sharing.
• The Short-Term Rental Licence owner (applicant) must be the insurance policy holder.
• If the applicant is a property management company, they must provide their liability insurance.
• Insurance must be issued by a registered insurer in Alberta with a minimum liability of $2 million.
  • Browse a list of approved companies.
• Review insurance documents to ensure compliance and satisfies the specified requirements. This information might be outlined separately by your insurance company or within your insurance coverage documentation.

Additionally:

• Licence Inspector review
• Annual fire inspections done by Calgary Fire Department may be required to ensure compliance with all life safety requirements.

The bylaw changes reflect The City's commitment to creating a fair and sustainable environment for all residents, visitors and businesses. These amendments aim to strike a balance between enabling the economic benefits for short-term rentals and minimize the negative impacts on the community.

On June 6, 2023, Calgary City Council approved bylaw changes to the requirements for short-term rental business licences. Changes will come into effect on January 1, 2024 and will apply to new and renewing short-term rental licences.

The changes to the business licence requirements strengthens the accountability of short-term rental hosts and property owners, reduces negative impacts on the community and enhances the safety of guests. The bylaw changes reflect The City’s commitment to creating a fair and sustainable environment for all residents, visitors and businesses.

Download the Short-Term Rental Business Licence Application Requirement List.