THE CORPORATION OF THE CITY OF NELSON

REQUEST FOR DECISON

DATE:
TOPIC:
PROPOSAL:
PROPOSED BY:

August 8, 2016 Regular

Short-Term Rentals: Bylaw Amendments and Policy
To amend regulations to regulate short-term rentals
Staff

_________________________________________________________________________
ANALYSIS SUMMARY:
The current bylaws do not allow for short-term rentals (STRs) in residential areas other than
Bed & Breakfasts, yet there has been a proliferation of STRs in Nelson. Following the direction
provided to staff at the Special Council meeting on July 18, 2016, the proposed amendments
establish a regulatory and licencing framework for the purpose of regulatory fairness and the
mitigation of potential negative outcomes for neighbours and the city. They help to achieve
Councils directions on preserving long-term rentals and restricting residential commercial use to
principal residents, which is currently the case for Home Occupations and Bed & Breakfasts. An
additional set of recommendations, including the recommendation to adopt a policy on STR
enforcement, are proposed to round off issues around preserving long-term rental housing and
achieving compliance.
If adopted, these changes will result in the following:
1. Legalisation of entire-home STRs under flexible, yet enforceable regulations;
2. Limitations and caps on STR;
3. Consolidation of STR and Bed & Breakfast regulations by bringing both under the
umbrella of short-term rentals;
4. A balance between residential neighbourhood integrity and resident-operated
commercial in light of the currently illegal STR operations in Nelsons neighbourhoods;
5. A business licence fee structure that reflects the multiplicity of STR uses;
6. Clear expectations and commitments from STR operators to neighbourhood integrity;
7. Reduced parking requirements for residential tourist accommodations and increased
flexibility in providing parking.
The proposed changes balance clarity and fairness with reducing the administrative burden on
staff as well as providing the ability to apply discretion in cases where neighbourhood impact is
uncertain. The complex nature and variety of STR operations creates a unique challenge for
policy-makers.
Draft Official Community Plan, Zoning and Off-Street Parking and Landscape Amendment
bylaws and recommendations for amendments to the Business Licence are presented for
Councils review. With Councils approval, the draft bylaws will be forwarded to legal counsel for
final review before the bylaws are presented to Council for first readings.
BACKGROUND:
The attached bylaw amendments follow up on Councils direction from the July 18, 2016 Special
Meeting to draft STR regulations based on the directions Council provided. Staffs
recommendations were based on two-and-a-half months of policy research and consultation,
the results of which were submitted to Council and are available at str.nelson.ca.
A number of changes to recommendation have been made since staff last reported to Council,
including:

Collecting the contribution to tourism marketing directly as a Tourism Fee;

Spreading the cost of triannual building inspections over each year instead of charging a
fee once every three years;
Allowing the Licence Inspector to grant conditional approval to an STR prior to
inspection, which will let complying STRs begin operating legally sooner and spread out
the workload of the Inspector;
The proof of insurance requirement has been removed as a licence requirement based
on legal advice that the City does not face a liability risk, however the City will
recommend that STR applicants obtain the appropriate insurance and the City will work
with insurance brokers to ensure that insurance information is readily available;
Reduced STR parking requirements; and
Allowing those who held a Bed and Breakfast business licence in 2016 to continue to
pay the same licence fee, with an additional $30 fee for the new requirement for
triannual inspections.

If adopted, the new regulations will allow for the issuance of STR licences beginning in 2017.
A number of additional actions are proposed to holistically address concerns around the longterm housing market as well as to assist in improving voluntary compliance with STR
regulations; see Staff Recommendations No. 3 through 7.

Recommendation No. 3 proposes a transit strategy, borrowed from Konstanz, Germany,

to simultaneously create an incentive for compliance, make compliant accommodators
more attractive to guests, promote transit use, and take pressure off of downtown
parking demand. The Official Community Plan seeks to encourage increased transit use.

Recommendations No.4 and 7 aim to incentivize the creation of long-term rental

housing, particularly infill. Other cities have been waiving development fees, for
example, in order to make it easier to build purpose-built rental, often with a covenant in
ensure that the new unit remains a long-term rental. The relevancy to STR is to balance
out the attractiveness of STR with the communitys need and the OCPs direction for
rental housing. Recommendation No. 7 will also assist illegal suites to achieve legal
secondary suite status, which will bring clarity to matters of STR licencing and
inspection.

Recommendations No. 5 and 6 are steps in ensuring that the City has the resources to
maintain compliance and satisfactorily follow up on Bylaw complaints, whether they stem
from STRs or not. The Citys business licence fees have not been increased since 2005.
The Bank of Canada reports that inflation over the past 11 years is 20.77%.

Recommendation No. 5 envisions a streamlining of staff duties by creating a dual-role

position of both Bylaw Enforcement Officer and Business Licence Officer (Development
Services) to act as a single point-of contact for all business licence matters in addition to
adding Bylaw Enforcement capacity.

BENEFITS, DISADVANTAGES AND NEGATIVE IMPACTS:

Benefits of regulating STRs include ensuring a fair, level playing field and retaining the ability to
protect the integrity of residential neighbourhoods by imposing certain restrictions. One local
host claims that operators who pay for a business licence will be more serious about hosting
than those who casually give it a try. Staff believe that Nelson is in a position to achieve a higher
compliance rate than other cities have achieved by introducing dynamic regulations and a
realistic enforcement strategy. The proposed regulations establish a robust and transparent
licencing mechanism to all residential areas, while still retaining discretion for exceptional
circumstances.
A restructuring of staff work on business licencing will greatly increase processing efficiency.
This will also improve efficiency of Development Services staff on matters of development.

Actively prohibiting STRs has not been advocated for by the community or tourism industry.
Enforced prohibition would be resource-intensive with limited revenue generated through
licencing. Other cities have not succeeded. A negative impact on tourism, particularly in the
summer, would be a possible consequence. Anecdotal evidence from STR operators and
visitors suggests that the local STR market is composed primarily of visitors of friends or family
in residential areas who thus do not wish to be downtown.
LEGISLATIVE IMPACTS, PRECEDENTS, POLICIES:
Because the current Official Community Plan explicitly denies the provision of short-term
accommodations in residential areas except for Bed & Breakfasts, an amendment of the Official
Community Plan is necessary to eliminate policy contradictions.
With regards to Staff Recommendations No. 4 and 7 on infill housing and secondary suite
parking requirements; section 4.3 of the Official Community Plan, policy 6 states: The City will
consider measures to support development of purpose-built rental housing. These measures
can include consideration of variances to reduce the off-street parking requirements, and fee
and/or tax reductions.
Municipalities carry a statutory obligation to ensure the fire safety of hotels, lodging houses,
and any other building, except a private dwelling, where lodging is provided by means of
regular inspection (Fire Services Act, s. 26).
A legal paper on short-term rentals issued by Young Anderson Barristers & Solicitors indicates
that the Hotel Keepers Act strengthens the commercial expectation that a hotel is expected to
have management on site at all times to ensure that guest behaviour does not disturb
neighbouring guests and property owners. This strengthens the argument for on-site owneroperators of STRs.
The British Columbia Court of Appeal has confirmed the authority of Council to revoke a
business licence in response to poor management of a motel (377050 BC Ltd. Dba the InterCity Motel v. Burnaby (City of), 2007). A process to revoke the licence of a problematic STR is
widely considered an essential best practice.
COSTS AND BUDGET IMPACT - REVENUE GENERATION:
The City receives revenue through Business Licences and building inspections and the
proposed amendments are expected to enable a significant number of currently illegal
operations to apply for a Licence. A significant number of short-term rental operators have
indicated their desire to be regulated and licenced. Licence fees are collected on a costrecovery basis and will be required to sufficiently fund enforcement.
IMPACT ON SUSTAINABILITY OBJECTIVES AND STAFF RESOURCES:
The processing and inspection of short-term rental business licence applications will add to the
workload of counter staff, Development Services, and the Building Inspector. Two hours of staff
time are anticipated per application. To spread out the inspection workload, staff recommend
that the City follow Pentictons practice of offering applicants conditional approval to let them
begin operating right away with the agreement that an inspection will take place within the
following weeks. It is estimated that there are 120 short-term rentals in the City of Nelson,
although many are seasonal or occasional.
Increased Bylaw Enforcement capacity is required to enforce compliance.
COMMUNICATION:
Extensive consultation has taken place so far, both within the city and beyond.

OPTIONS AND ALTERNATIVES:

1. Approve the presented recommendations and forward the bylaws for legal review.
2. Amend some of the recommendations and then forward the bylaws for legal review.
3. Refer to staff for further review.
ATTACHMENTS:
1. Draft Zoning Amendment Bylaw
2. Draft Off-Street Parking and Landscaping Amendment Bylaw
3. Draft Official Community Plan Amendment Bylaw
4. Business Licence Bylaw amendment recommendations
5. Proposed Licence Fee Calculation
6. Bylaw Enforcement Guiding Policy (draft)

STAFF RECOMMENDATION:
That Council passes the following resolutions:
1. THAT Council approves the recommended amendments to the Business Licence Bylaw
AND FURTHER
THAT Council approves the draft Official Community Plan, Zoning and Off-Street
Parking Landscape bylaws AND FURTHER
THAT the amending bylaws be presented to Council for first readings following a full
legal review.
2. THAT Council approves the draft Bylaw Enforcement Guiding Policy and
THAT the policy be presented for adoption at the regular meeting when the amending
Zoning, Official Community Plan, Off-Street Parking and Landscape and Business
Licence bylaws are presented for adoption
3. THAT Council direct staff to investigate the provision of free transit service to guests of
municipally-licenced accommodators or as an opt-in program for municipally-licenced
accommodators.
4. That Council direct staff to investigate waiving fees levied on rental housing providers
and the developers of purpose-built rental housing and secondary suites with the goal of
incentivizing long-term rental housing.
5. That Council direct staff to review staffing for Bylaw Enforcement and Business
Licencing and consider increasing staffing levels in time for the preparation of the 2017
budget.
6. That Council direct staff to review Business Licence fees in time for the preparation of
the 2017 budget.
7. That Council direct staff to review parking requirements for all secondary suites and
detached Accessory Dwelling Units and report back to Council by March 31, 2017.
8. That Council direct staff to provide a report on Short-Term Rental regulations by June
30, 2018.

AUTHOR:

REVIEWED BY:

____________________________
STUDENT RESEARCHER DEVELOPMENT SERVICES

____________________________
CITY MANAGER

____________________________
MANAGER OF DEVELOPMENT
SERVICES

THE CORPORATION OF THE CITY OF NELSON

BYLAW NO. 3344
A BYLAW TO AMEND "THE CORPORATION OF THE CITY OF NELSON
ZONING BYLAW NO. 3199, 2013"
_________________________________________________________________________
The Council of the Corporation of the City of Nelson considers it desirable and expedient to
amend The Corporation of the City of Nelson Zoning Bylaw No. 3199, 2013 (hereinafter
called the said Bylaw);
The Council of the Corporation of the City of Nelson, in open meeting assembled enacts as
follows:
1. That the said Bylaw be amended by deleting the definition of Bed and Breakfast in its
entirety from Part 1 Interpretation.
2. That the said Bylaw be amended by adding a definition to Part 1 Interpretation as
follows:
Short-Term Rental means a Guest Home, Guest Suite, Guest Rooms, or part thereof
in a residential zone wherein accommodation is offered for rent, or rented, to the
travelling public on a temporary basis (30 days or less), and is subject to section 1.1.10
of Schedule A of this bylaw.
3. That the said Bylaw be amended by deleting the definitions in Part 1 Interpretation for
Home Occupation, Guest Home, Guest Suite Guest Room in their entirety and
replacing them as following:
Home Occupation means a commercial use that is not a Tourist Accommodation or
Short-Term Rental, carried out by an occupant of a dwelling unit for remuneration which
is accessory to the residential use of the dwelling and subject to section 1.1.6 of
Schedule A of this bylaw.
Guest Home means a Single-Detached Residential dwelling, a single unit in a Duplex
Residential dwelling or a single unit in a Multi-Unit Residential dwelling used for ShortTerm Rental where the entirety of the dwelling unit is rented as one unit.
Guest Room means a habitable room in which there are no cooking facilities used for
Short-Term.
Guest Suite means a Detached Secondary Dwelling Unit or Secondary Suite used for
Short-Term Rental.
4. That the said Bylaw be amended by deleting the wording in section 1.1.10 of Schedule

A in its entirety and replacing it as follows:

10.

Short-Term Rental
In any zone in which a Short-Term Rental is permitted, the following conditions
shall be satisfied:
a.

In accordance with the Citys Business Licence Bylaw No. 3328, 2016,
including all amendments and replacements thereto; the ability to lawfully
operate, advertise the willingness to operate, or advertise the availability of a
Short-Term Rental is contingent on holding a valid Short-Term Rental
Business Licence and compliance with the following conditions:
i.

b.

In the case of Guest Rooms for rent, not more than 2 guest rooms in the
licensed Dwelling Unit shall be used for guest accommodation, except as
provided for in the R6, Guest Room and Suite Zone.

The principal use of the property, which may contain Guest Rooms or a Guest
Suite, or be used as a Guest Home, shall remain a residential use, where the
permanent residents and operators of the Short-Term Rental reside and shall
alone be engaged in the management of the Short-Term Rental,
notwithstanding the following:
i.

The operator may hire one employee to work on the premises; and

ii.

A person authorised to offer Short-Term accommodation exclusively

between May 1st and August 31st shall be exempt from section 1.1.10(b)
of this bylaw upon the approval of the Manager of Development Services.

c.

The total display area of any outdoor advertising sign shall not exceed 0.14
sq. m. in area on the premises.

d.

Not more than two (2) adult guests shall be accommodated per Guest Room,
not more than four (4) adult guests shall be accommodated per Guest Suite,
and not more than six (6) adult guests shall be accommodated per Guest
Home.

5. That the said Bylaw be amended by replacing the Zone Name in Table 3.1 of Section 3.1
of Schedule A from:
R6, Bed and Breakfast Zone to R6, Guest Room and Suite Zone.
6. That the said Bylaw be amended by renaming Section 4.7 of Schedule A
from R6, BED AND BREAKFAST ZONE to R6, GUEST ROOM AND SUITE ZONE.
7. That the said Bylaw be amended by deleting the wording in Section 4.7.1 of Schedule A
in its entirety and replacing it as follows:

1.

Purpose

The purpose is to provide a zone to accommodate Short-Term Rentals with up

to six guest rooms.
8. That the said Bylaw be amended by removing the Permitted Use of
Bed and Breakfast (subject to section 1.1.10 of Schedule A)
from the following Zones:
R1, Low Density Residential Zone
R3, Downtown Residential Zone
R6, Guest Room and Suite Zone
CD 6

Section 4.1.2(1) of Schedule A

Section 4.3.2 of Schedule A
Section 4.7.2 of Schedule A
Section 9.6.2 of Schedule A

9. That the said Bylaw be amended by adding the Permitted Use of

Short-Term Rental (subject to section 1.1.10 of Schedule A and section 1 of Schedule
C)
to the following Zones:
R1, Low Density Residential
R2, Medium Density Residential
R3, Downtown Residential
R4, High Density Residential
R6, Guest Room and Suite
MU2, Waterfront Mixed-Use
MU3, Railtown Mixed-Use
CD1
CD5
CD6 zones

Section 4.1.2(1) of Schedule A

Section 4.2.2 of Schedule A
Section 4.3.2 of Schedule A
Section 4.4.2 of Schedule A
Section 4.7.2 of Schedule A
Section 5.2.2 of Schedule A
Section 5.3.2 of Schedule A
Section 9.1(3) of Schedule A
Sections 9.5.2(2.1) and 9.5.2(2.2):of Schedule A
Section 9.6.2 of Schedule A

10. This Bylaw may be cited as "Zoning Amendment (Short Term Rental) Bylaw No. 3344
2016."

READ A FIRST TIME the

READ A SECOND TIME the

day of
day of

, 2016
, 2016

PUBLIC HEARING held this

day of

, 2016

READ A THIRD TIME the

day of
FINALLY PASSED AND ADOPTED the

, 2016
day of

, 2016.

_______________________
Mayor

_______________________

Corporate Officer

THE CORPORATION OF THE CITY OF NELSON

BYLAW NO. 3345
BEING A BYLAW TO AMEND THE CORPORATION OF THE CITY OF NELSON
OFF-STREET PARKING AND LANDSCAPE BYLAW NO. 3274, 2013

The Council of the Corporation of the City of Nelson considers it desirable and
expedient to amend The Corporation of the City of Nelson Off-Street Parking and
Landscape Bylaw No. 3274, 2013 (hereinafter called the said Bylaw);
The Council of the Corporation of the City of Nelson, in open meeting assembled enacts
as follows:
1. That the said Bylaw be amended by deleting the wording in section 7.1(1) in its
entirety and replacing it as follows:
(1) In all residential zones, off-street vehicle parking spaces shall be provided and
maintained on the same lot as the use, building or structure they serve, except:
(a) If sufficient off-street parking spaces for a Short-Term Rental use cannot
be provided on the same lot, up to one (1) required parking space may be
located on another lot adjacent to or across the lane, or within 100 metres
from the subject property, upon approval of the Manager of Development
Services.
i. Off-site parking shall be secured by an Agreement deemed
satisfactory by the City between the owner of the off-site parking
area and the owner of the building, structure, or use requiring an
off-site parking space.
ii. The Agreement must include a site plan of the location of the
parking space to be provided off-site.
iii. The Agreement shall be valid for the duration of the Business
Licence. A new Agreement shall be provided at the time of each
Licence renewal.
iv. If the Agreement is invalidated before its expiration date, the
property owner must immediately cease operation of the ShortTerm Rental use until its off-street parking requirements are fulfilled
to the Citys satisfaction.
v. The property on which the off-site parking space is located must
meet the minimum parking requirements as specified in section 7.3
of this bylaw. The space provided for a Short-Term Rental shall be
in addition to the minimum parking required.
vi. A property owner providing off-site parking shall only enter into one
(1) Agreement to provide one (1) parking space.
2. That the said Bylaw be amended by deleting the wording in the Residential portion
of the table in section 7.3(1), Off-Street Vehicle Parking Requirements in its entirety
and replacing it as follows:
1

Residential
Single Detached Residential
Duplex Residential
Secondary Suite
Detached Secondary Dwelling Unit
Multi-Unit Residential (Studio, 1 Bedroom)
Multi-Unit Residential (2+ Bedrooms)
Live/Work Unit
Dwelling Units located in the Downtown
Residential Zone (R3) and Core
Commercial Zone (C1)
Existing Dwelling Unit with 1 Short-Term
Rental Guest Room
Existing Dwelling Unit with 2 Short-Term
Rental Guest Rooms
Existing Dwelling Unit with 3 Short-Term
Rental Guest Rooms or more
Secondary Suite used as a Short-Term
Rental Guest Suite
Detached Secondary Dwelling Unit used
as a Short-Term Rental Guest Suite
Existing Dwelling Unit used as a ShortTerm Rental Guest Home

Existing Dwelling Unit used as a ShortTerm Rental Guest Home or Guest Suite
located in the Downtown
Residential Zone (R3) and Core
Commercial Zone (C1)

2 spaces/Dwelling Unit (DU)

1 space/DU
1 space/DU, plus 0.2 visitor spaces per DU
1.5 spaces/DU, plus 0.2 visitor spaces per DU
1 space/DU
1 space/DU
1 space/DU
2 spaces/DU
2 spaces/DU + 1 space/guest room
1 space/DU

a) To satisfy the requirement for a year-round

Short-Term Rental Business Licence: 2
spaces/DU
b) To satisfy the requirement for Short-Term
Rental Business Licence valid for fewer than
six (6) months: 1 space/DU
1 space/DU

3. This Bylaw may be cited as "Off-Street Parking and Landscaping Amendment

(Short Term Rental) Bylaw No. 3345, 2016".
READ A FIRST TIME the
READ A SECOND TIME the
READ A THIRD TIME the

day of
day of
day of

, 2016
, 2016
, 2016

FINALLY PASSED AND ADOPTED the

day of

, 2016.

_______________________
Mayor

_______________________
Corporate Officer

CERTIFIED A TRUE AND CORRECT COPY OF

THE Corporation of the City of Nelson Fees and
Charges Amendment Bylaw No. 3267, 2013
Frances Long
Manager of Legislative and Administrative Services

THE CORPORATION OF THE CITY OF NELSON

BYLAW NO. 3346
A BYLAW TO AMEND "THE CORPORATION OF THE CITY OF NELSON
OFFICIAL COMMUNITY PLAN BYLAW NO. 3247, 2013"
_________________________________________________________________________
The Council of the Corporation of the City of Nelson considers it desirable and expedient to
amend The Corporation of the City of Nelson Official Community Plan Bylaw No. 3247,
2013 (hereinafter called the said Bylaw);
The Council of the Corporation of the City of Nelson, in open meeting assembled enacts as
follows:
1. That the said Bylaw be amended by deleting subsection 19 of Nelson as a Whole
Policies in section 4.2 of Schedule A Goals, Objectives & Policies in its entirety and
replacing it as follows:
Residential neighbourhoods will conditionally accommodate resident-occupied and operated short-term rental accommodations, and all other tourist accommodation types
will be located in the Downtown and Waterfront neighbourhoods.
2. That the said Bylaw be amended by modifying the table Land Use Designations on
pages 24 and 25 of section 4.2 of Schedule A Goals, Objectives & Policies as follows:
Low Density Residential, delete the following from the column Land Use
Description:
Bed & Breakfasts, where permitted by zoning
and replace with:
Short-Term Rentals, as permitted by zoning
Multi Unit Residential, delete the following from the column Land Use
Description
Bed & Breakfasts, where permitted by zoning
and replace with:
Short-Term Rentals, as permitted by zoning.

3. This Bylaw may be cited as "Official Community Plan Amendment (Short Term
Rental) Bylaw No. 3346, 2016."
READ A FIRST TIME the
READ A SECOND TIME the

day of
day of

, 2016
, 2016

PUBLIC HEARING held this

day of

, 2016

READ A THIRD TIME the

day of
FINALLY PASSED AND ADOPTED the

, 2016
day of

, 2016

_______________________

Mayor

_______________________

Corporate Officer

Development Services
MEMORANDUM

DATE:
TO:
FROM:

August 2, 2016
Manager of Development Services
Alex Thumm, Student Researcher, Development Services

SUBJECT:

Business Licence Bylaw: Amendment Recommendations

Short Term Rentals

General:
1. Before the Licence Inspector may issue a Short-Term Rental Business Licence, the
conditions of this Schedule must be met and documentation provided thereof, to the
satisfaction of the Licence Inspector and the Manager of Development Services.
2. Any Short-Term Rental Business Licence is subject to section 1.1.10 of Schedule A
of the Corporation of the City of Nelson Zoning Bylaw No. 3199, 2013 and the Short
Term Rental Allocation.
3. The License Inspector and Manager of Development Services retain discretion to take
into consideration site-specific conditions, the existence of other commercial uses on
the lot, and input from adjacent residents or property owners in the decision to issue a
Short-Term Rental Business Licence.
Limiting the Number of STRs per Property Owner:
4. A Short-Term Rental Business Licence is valid for one residential dwelling unit.
5. A property owner may not hold more than one Short-Term Rental Business Licence at
any one time.
6. Notwithstanding section 5, a second Short-Term Rental Business Licence of a validity
of fewer than six (6) months may be issued at the discretion of the Manager of
Development Services.
7. No more than one (1) 31 Day Short-Term Rental Business Licence shall be issued to a
single property owner per year.
Application Requirements:
8. The following documentation, bearing the name of the Applicant, must be presented
with any application or renewal application for a Short-Term Rental Business Licence,
except where indicated:
a. Proof of ownership of the subject property;
b. Proof of principal residence of the Applicant;

Page 1 of 6

i. The Applicant must be a principal resident of the property, unless the

Licence is to be exclusively a Summer Licence.
c. The name, physical address, and phone number(s) for one (1) or two (2) Local
Contact person(s), subject to the following:
i. The Applicant may assign themselves or someone else as the propertys
24/7 contact, understood as someone who shall be available to answer
phone calls at any time, within 15 minutes, during a guest stay;
ii. One person may not be the contact person for more than two properties
within the City boundaries;
iii. A local contact person must reside within 30 kilometres of the property;
and
iv. The name and phone number(s) of the Local Contact(s) shall be made
publicly available, including online, and shall be provided to all guests of
the property.
d. In the case of a Multi-Unit Residential building, a letter from an agent authorized
to act on behalf of the multifamily building corporation must be included with the
application.
i. In the case of a strata building, the letter must be signed by the president
of the strata council.
9. The Applicant may provide a project narrative on the application for a licence
describing the intent and purpose of the present application, such narrative may be
made available to the general public.
Contribution to Tourism Marketing:
10. All Short-Term Rentals that hold an Annual Licence must pay the Tourism Fee. The
Tourism Fee shall be waived for those applicants that can provide proof of valid
membership in the Nelson Kootenay Lake Tourism Society.
Inspections:
11. The Licence Inspector shall ensure that any property used as a Short-Term Rental
Business be inspected once every three years.
a. The Licence Inspector may grant conditional approval on a Short-Term Rental
Business Licence prior to inspection taking place. If the premises fall inspection,
the conditional approval shall be revoked immediately.
Deposit:
12. A $500 security deposit (the Deposit) must be included with all Short-Term Rental
Business Licence applications.
13. Notwithstanding section 12, a Deposit is not required for any holder of a valid 2016
Bed and Breakfast Business Licence.

Page 2 of 6

14. The Deposit must be in the form of cash, certified cheque or irrevocable letter of credit,
shall be made and such security be held under the provisions of Section 19 of the
Community Charter, such deposit to be returned to the Licensee after holding a valid
Business Licence for one (1) year or if the Licence is revoked or cancelled.
15. The Deposit shall be held as security against any costs incurred by the City as a result
of investigations, hearings, appeals, or other enforcement actions undertaken by the
Licence Inspector or the City of Nelson, whether initiated by the City or resulting from
third-party complaints. If any deductions are made from the Deposit, the holder of the
business licence will forthwith replenish the Deposit to the original amount.
Grandfathering:
16. Any person or business that held either a Home Occupation Business Licence
designated for up to two (2) Guest Rooms or a Bed and Breakfast Business Licence
valid in the 2016 calendar year shall be exempt from:
a. The $500 deposit;
b. A change of property ownership leading to the cancelation of the Licence
(section 18.d); and
c. The requirement to list the Business Licence number, parking spaces, and
maximum guest occupancy on all booking platforms.
Annual renewals:
17. Short-Term Rental Business Licence Renewal applications must be received by
December 15 in each calendar year. Applications received after December 15 in each
calendar year shall be considered new applications and shall be subject to the ShortTerm Rental allocation.
Obligations of STR Operators:
18. The applicant and Licensee assumes the following responsibilities:
a. Offering or advertising space for rent for fewer than 30 days outside of the
duration of the Licence shall be considered a violation of this bylaw;
b. Vehicle parking for short-term rental tenants or guests of said tenants shall be
restricted to the property and, where on-street parking is permitted, the portion
of the road immediately adjacent to the property;
c. A commitment to proactively cooperating with neighbours and the City in
ensuring minimal impact on the neighbourhood as a result of Short-Term Rental
operations; and
d. In the case of change of ownership of the property or change of location of the
business, the business licence becomes invalid effective immediately.
19. The Licensee shall maintain a daily guest registry with the names, contact information,
and any licence plate numbers associated with the overnight stay. If a complaint is
received, the property owner, upon request from the City, shall provide the guest

Page 3 of 6

registry for inspection. The City may request this at any time between the hours of 8:00
a.m. and 8:00 p.m.
20. The Licensee can be held responsible by the City for any neighbourhood disturbances,
including, but not limited to, those of the City of Nelson Noise Control Bylaw No. 3201,
2011.
Process to Revoke a Licence:
21. The Licence Inspector may immediately revoke a Licence if one or more of the
following conditions are met:
a. A listing of the property on a booking website omits the Business Licence
number, the number of off-street parking spaces available to guests explicitly
specifying that this number equals the maximum number of vehicles that paying
guests of the property are permitted to bring, or the maximum guest-occupancy
as per the Zoning Bylaw, No. 3199, 2013;
b. Three Bylaw violations have been issued to the property owner within the
previous three (3) years; and/or
c. Numerous or severe complaints have been received.
22. In the case of a revoked Short-Term Rental Business Licence, the property owner shall
be barred from holding a Licence for a minimum of two years.
23. The Licensee may appeal the decision for revoking the licence to Council.

Page 4 of 6

Short-Term Rental Allocation:

1. The allocation of licences to permit a Short-Term Rental on a property located in a
Residential or Mixed-Use zone shall be made subject to section 1.1.10 of Schedule
A of the Zoning Bylaw and the following:
a) Not more than 110 year-round Short-Term Rental Business Licences, each valid
for a period of six (6) months or greater, may be issued per annum;
notwithstanding that:
i.
an additional 40 Short-Term Rental Business Licences may be issued
per annum for Summer Licences;
ii.
if, after having issued the maximum allotted Licences, a Licence is
canceled or revoked, the City may approve an application to reallocate
that Licence; and
iii.
the Manager of Development Services may approve the issuance of
Short-Term Rental Business Licences for 31 Day Licences.
b) Not more than three (3) Short-Term Rental Business Licences valid for greater
than 31 days may be allocated within the geographic unit of one block, which is
understood to be the two sides of a single street that face one another and are
bordered on either end by the nearest street or cul-de-sac.
i.
In the case of a property on a lane, it shall be considered to be part of the
nearest parallel street, typically the street that it backs on to.
Grandfathering in existing B&Bs and Continuity in Annual Renewals
2. The restrictions of section 1(a) and 1(b) are subject to the following:
a. Any holder of a Home Occupation or Bed & Breakfast Business Licence
valid in the 2016 calendar year will not have their application for a renewal of
an equivalent Licence denied due to the allocations listed in section 1 of this
Schedule.
b. Priority for renewals will be given to those Licensees who held a valid ShortTerm Rental Business Licence for at least three months in the previous fiscal
year.
c. The City has the right to deny an application for renewal which may be
based on but not limited to complaints and noncompliance.

Page 5 of 6

Short-Term Rental Licensing Fees

Annual Licences
$200 from any person or business for any residential dwelling that contains one (1) Guest
Room in a residential dwelling;
$350 from any person or business for any residential dwelling that contains two (2) Guest
Rooms in a residential dwelling;
$450 from any person or business operating a residential dwelling or building that contains
three (3) or more Guest Rooms and is not a Hotel, Motel, or Hostel;
$800 from any person or business operating a Guest Home or Guest Suite;
$80 from any person or business operating up to two (2) Guest Rooms in a residential
dwelling that held a Home Occupation Business Licence in the 2016 calendar year; and
$160 from any person or business operating three (3) or more Guest Rooms in a
residential dwelling that held a Bed and Breakfast Business Licence in the 2016 calendar
year.
$160 from any person or business operating a Hostel.
Summer Licences May 1st to August 31st
$110 from any person or business for any residential dwelling that contains one (1) Guest
Room in a residential dwelling;
$150 from any person or business for any residential dwelling that contains two (2) Guest
Rooms in a residential dwelling; and
$400 from any person or business operating a Guest Home or Guest Suite.
31-Day Licences
$160 from any person or business operating a Guest Home or Guest Suite.
Other Short-Term Rental Fees
$30 Annual Building and Fire Safety Inspection Fee
$150 Tourism Fee

Page 6 of 6

Summary of Proposed Business Licence Fees Short-Term Rentals

Type of Rental

Licence
Validity

Basic
Cost

Building
Inspection
($30)

1 Guest Room

Year-round

$200

$110

2 Guest Rooms

Summer
only (May August)
Year-round

$350

Summer
only (May August)
Year-round

$150

$80

$260

$110

Year-round

$160

$340

$190

Year-round

$450

$630

$480

Year-round

$800

$980

$830

Summer
only (May August)
One month
(one per
year)

$400

$430

$160

$190

1 or 2 Guest Rooms
(held a Home
Occupation licence
in 2016)
3+ Guest Rooms
(held a Bed and
Breakfast licence in
2016)
3 rooms and over
(C1, MU1, C2, CD5,
or R6 zoning only)
Guest House or
Suite

Tourism
Membership
($150)
*unless
exempt
X

Total Cost

Total Cost
w/o
Tourism
Fee

$380

$230

$140

$530

$380

$180

Bylaw Enforcement Guiding Policy 4000.00.006

Page 1 of 3

THE CORPORATION OF THE CITY OF NELSON

POLICY TITLE:

Bylaw Enforcement POLICY NO:

Guiding Policy Short Term Rentals

4000.00.006

Council

1 of 3

EFFECTIVE DATE:
APPROVAL:

PAGE:

POLICY:
To provide guiding principles and procedures to the Citys Bylaw Enforcement Department
on enforcement of the City regulatory and zoning bylaws pertaining to Short-Term Rentals
(STR).
PURPOSE:
In following with the Bylaw Enforcement Complaints Policy (No. 4000.00.010) which
provides for proactive enforcement of the Citys bylaws where the lack of compliance is not
in the publics best interests, Council hereby directs the Citys Bylaw Enforcement
Department to proactively enforce the Citys Short-Term Rental (STR) regulations as a
matter of public interest.
GUIDELINES:
a.
Bylaw Enforcement on STRs shall be phased in as follows:
i.
During the 60 days prior to STR Business Licences taking effect, a letter
stating the new regulations and procedures shall be issued to each STR in
the City of Nelson. A third-party may be available to facilitate this task. When
possible, the letter shall be sent by letter mail, but if this is not possible,
electronic communication shall suffice.
ii.
After the first 30 days of STR Business Licences being available for
application, proactive enforcement shall begin as per this Policy.
a)
If, within the first six months of STR Business Licences taking
effect, it can be demonstrated that an advertising STR has submitted
an application and remains unlicensed due to a backlog on the part of
the City, that STR shall not be issued a fine.
b.

The Bylaw Enforcement Department shall educate the public and STR operators on
the Citys STR policies.

c.

It is understood that the presence of an STR listing or profile is not in itself a bylaw
infraction. An STR is noncompliant when it advertises availability for rental or request
for rental on days for which it does not hold a valid Business Licence, and when:
i.
ii.

the requirements outlined in paragraph (j) are not upheld; and/or

noncompliance with other City bylaws can be demonstrated, including
violations with the Zoning Bylaw, Business Licence Bylaw, and the Off-Street
Parking and Landscape Bylaw.

Bylaw Enforcement Guiding Policy 4000.00.006

d.

Council mandates the Bylaw Enforcement Department to focus on proactive STR

enforcement, as per paragraph (e), for any property identified as noncompliant.
Council anticipates that STR enforcement efforts will be greatly assisted with
third-party resources in determining noncompliant properties and issuing warning
letters. Notwithstanding, the Bylaw Enforcement Department shall conduct
occasional manual online verifications to ensure compliance with advertising
requirements which must include:
i.
ii.
iii.

e.

Page 2 of 3

the STRs Business Licence number;

the STRs parking capacity; and
the STRs maximum number of guests accepted as per bylaw.

As per Bylaw Enforcement Guiding Policy No. 4000.00.005, the Bylaw Enforcement
Department shall work to achieve voluntary compliance by providing a grace period
of up to 15 days to come into compliance. When an STR advertising space for rent
outside of the parameters of a Licence is found, a warning letter shall be issued. If,
after 15 days, the STR continues to illegally advertise for rent, Bylaw Enforcement
shall issue a fine and shall continue to issue fines to the property owner until the
property comes into compliance with Zoning and Business Licence bylaws.
i.

If a property owner has received an STR-related warning letter from Bylaw

Enforcement within the previous two years, no further warning letter shall be
sent in the case of a further violation of STR regulations. In this instance,
Bylaw Enforcement shall immediately issue a fine.

f.

In the event that a property is found to be operating as an active STR without a valid
Business Licence but whose address is unknown, the Bylaw Enforcement
Department shall seek to identify the address.

g.

The Citys Bylaw Enforcement Department shall alert the Chief Financial Officer and
the Manager of Development Services in any of the following cases:
i.
ii.
iii.

an online listing of the property on a booking website omits its maximum

number of off-street parking spaces, its Business Licence number, and/or the
maximum guest-occupancy;
a fine has gone unpaid for two months; and/or
three fines have been issued to the property owner within the previous three
years.

h.

The Bylaw Enforcement Department shall submit a record of any penalties issued to
STR operators to the Manager of Development Services at the end of each calendar
year.

i.

In the event of a complaint from a member of the public concerning an STR, Bylaw
Enforcement shall:
a. verify the location, property owner, and existence of an STR listing;

Bylaw Enforcement Guiding Policy 4000.00.006

Page 3 of 3

b. refer complaints to the STRs 24/7 Local Contact(s), if applicable, in an effort

to resolve problems voluntarily; and
c. proceed with enforcement on the basis of the evidence available if the
complaint has not been satisfactorily resolved.