Short-term rental business licence - rules and regulations
Changes to short-term rental regulations
April 2025
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
- 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.
January 2024
Business licence requirement changes that took effect in January 2024 include:
- 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.
- Submit proof of ownership or owner consent, validated through a title search conducted by The City or provided Land Title at application.
- For condos, written approval from the condo board for Short Term Rental, sealed by the Condo Board.
Applicants must comply with their condominium's bylaws, but this is no longer a requirement of The City as of April 1, 2025.
- 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.
June 2023
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.
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Short-Term Rental Study: What We Heard Reports
Thank you for sharing your feedback to support Calgary's Short-Term Rental Study. The Phase 1 and Phase 2 What We Heard Reports are available now.
Short-term rental regulations
Short-term rental hosts need to be aware of the following regulations under the Business Licence Bylaw:
Regulation type | Description | Purpose |
---|---|---|
Egress |
A host cannot rent a room that does not have one or more egress windows. (Multi-storied apartment/condo buildings have existing fire safety standards and do not need egress windows.) Other regulations: Egress in a multi-storied building, such as an apartment building or apartment style condominium, is regulated under the Fire codes and standards.
|
Ensure the safety of guests in the event of a fire or other incident where a guest would have to evacuate. |
Maximum number of guests |
A host cannot allow more than two individuals per room. Other regulations: Fire codes and standards |
Ensuring the safety of guests and neighbors by addressing overcrowding issues. |
Overlapping bookings |
A host cannot allow overlapping bookings of two or more bookings for the dwelling at the same time. This means a host cannot rent out separate rooms to separate guests under separate reservations but can rent out multiple rooms as part of one guest reservation. |
Ensure consumer protection of guests and transparency between host and guest while reducing community impacts. |
Advertising |
A host must include the business licence number in any advertising for the short-term rental. |
Discouraged unlicensed hosts and advise guests that properties require a business licence in Calgary. |
Emergency contact |
A host must post the name, phone number and email address (in a conspicuous location) of an emergency contact person who can be reached 24 hours a day. An emergency contact template is available here |
Ensure guests and enforcement authorities can address issues if they arise. |
Guest record |
A host must keep a record in English and in an electronic form that is satisfactory to the Chief Licence Inspector. Hosts must keep permanent records for each transaction and provide it to the Inspector upon demand. The record must include:
|
Ensure transparency of hosts for guests and the Chief Licence Inspector. |
Fines for non-compliance
The City’s approach is to achieve voluntary compliance for bylaws whenever possible. This means we will work with hosts when possible to ensure they are complying with the bylaw. Failing to abide by the regulations can result in a $1,000 fine for each of the following offenses upon conviction:
Offense | Section of the bylaw |
---|---|
Offer a room without a window | 58.1(4)(a) |
Permit guests to sleep in a room without a window | 58.1(4)(b) |
Allow more than 2 adults per room | 58.1(5) |
Overlapping bookings | 58.1(6) |
Fail to include licence number on advertisement | 58.1(7) |
Fail to post emergency contact information | 58.1(8) |
Fail to keep record | 58.1(9) |
Fail to provide records on demand | 58.1(10) |
Comments, complaints and more information
For compliments or complaints regarding short term rentals, call 311, use the app or go to Calgary.ca/311.
For more information about business licensing, visit: Calgary.ca/myBusiness and Bylaws related to businesses.
For more on long-term rentals of secondary suites, visit calgary.ca/suites. Or learn more about other housing options, such as lodging housing.