Starting September 1, 2023, Halifax introduced strict rules for short-term rentals (STRs) to balance tourism with housing needs. Here's a quick overview:
Key Requirements:
- Registration: Operators must register with both the Provincial Tourist Accommodations Registry (renew annually) and the Municipal Residential Rental Registry (one-time registration).
-
Zoning Rules:
- Residential STRs: Only allowed in the host's primary residence. Requires a $200 Zoning Confirmation Letter.
- Commercial STRs: Allowed in tourist/commercial zones. Needs a $250 Development Only Permit.
-
Fees:
- Primary Residences: $10 (municipal), $50 (provincial).
- Non-Principal Residences: Up to $3,600 annually, depending on location.
Fines for Non-Compliance:
- Provincial fines: Up to $100,000/year.
- Municipal fines: Up to $10,000/day.
Upcoming Deadlines:
- April 1, 2024: All STR operators must complete municipal registration.
- September 30, 2024: Renew provincial registration.
These rules aim to address Nova Scotia's housing shortage while ensuring STR compliance. Follow the steps to register and operate legally to avoid hefty fines.
New Regulations for Short Term Rentals in the Halifax Regional Municipality
Nova Scotia Provincial STR Rules
Nova Scotia's provincial regulations oversee short-term rentals (STRs) in the Halifax Regional Municipality (HRM). These rules work alongside HRM's local guidelines.
Tourist Accommodations Registration Rules
If you're offering accommodations for 28 days or less, you must register with the province [3]. This system supports a tourism market that welcomed 2.2 million visitors in 2023 [2].
Here’s what operators need to do:
- Get a registration number before listing on platforms like Airbnb, Booking.com, or Vrbo [3].
- Provide proof of municipal compliance [1].
- Renew your registration annually by April 1st [3].
Some properties are exempt from registration, including:
- Rentals for more than 28 consecutive days
- Campgrounds without roofed structures
- Housing exclusively for temporary workers, such as healthcare or construction staff [3].
Registration Costs and Documents
The province charges different fees based on the type and location of your STR:
| Accommodation Type | Location/Details | Annual Fee |
|---|---|---|
| Primary Residence STR | All Areas | $50.00 |
| Commercial STR - Tier 1 | Bedford, Beechville, Cole Harbour, Dartmouth, Halifax, Lakeside, Lower Sackville | $2,000.00 |
| Commercial STR - Tier 2 | Communities not in Tier 1 or 3 | $500.00 |
| Commercial STR - Tier 3 | Clark's Harbour, Digby, Lockeport, Mulgrave, Shelburne | $240.00 |
| Traditional Tourist (1-4 rooms) | All Areas | $50.00 |
| Traditional Tourist (5+ rooms) | All Areas | $150.00 |
You’ll need to submit the following documents [4]:
- Property details (address, number of bedrooms)
- Host information (name, contact details)
- Previous registration number (if renewing)
- Municipal compliance proof
- Primary residence verification (two supporting documents)
- Property Owner Consent Form (if you’re a tenant operator)
- Condo Board Consent Form (if applicable)
"Operating without a valid registration number can result in fines up to $100,000 per year", warns the Nova Scotia Short-term Rentals Registry [3].
Halifax Municipal STR Rules
Halifax introduced updated short-term rental (STR) regulations on February 21, 2023, aligning with provincial standards. These changes became effective on September 1, 2023, creating consistent rules across the municipality [1].
Where STRs Are Allowed
The by-law separates STRs into distinct categories:
- Residential STRs: Entire-home rentals in residential zones are allowed, but the property must be the host's main residence. A Zoning Confirmation Letter is required.
- Commercial STRs: These are only permitted in areas zoned for tourist or commercial accommodations and require a Development Only Permit.
- Short-term bedroom rentals: Residential bedroom rentals are allowed in all residential zones, typically limited to three bedrooms (up to six in certain areas). Commercial zones have no bedroom limits. Both require a Development Only Permit.
To check if your property qualifies, use the ExploreHRM interactive mapping tool to confirm your zoning designation [1]. Below, you'll find more details on the rules for primary residences and bedroom rentals.
Main Residence Rules
As of September 1, 2023, STRs in residential zones must follow these guidelines [5]:
- Rentals must be within the host's main residence.
- Secondary suites and backyard units are not eligible.
- Renting out the entire home is allowed when the host is away.
- Commercial STRs are limited to commercially zoned areas [1].
Bedroom Rental Rules
For residential bedroom rentals, hosts must be on-site, and the number of rentable bedrooms is capped at three (or six in some areas). A Development Only Permit is required. In commercial zones, there are no limits on the number of bedrooms, and on-site host presence is not necessary, but the appropriate permits are still required.
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Getting Licensed in Halifax
To operate a short-term rental (STR) in Halifax, you must follow both municipal and provincial regulations. Starting September 30, 2024, all STR operators are required to complete two registrations: one with the Municipal Residential Rental Registry (one-time registration) and another with the Provincial Tourist Accommodations Registry (renewed annually). This dual registration ensures compliance and legal operation.
License Application Steps
-
Check Property Eligibility
Use the ExploreHRM mapping tool to verify your property's zoning. If applicable, confirm it qualifies as a primary residence [1]. - Apply for the Appropriate Municipal Permit
-
Complete Required Registrations
- Register with the Municipal Residential Rental Registry (one-time registration).
- Register annually with the Provincial Tourist Accommodations Registry.
These steps align with the municipal and provincial rules outlined above.
Required Documents and Permits
Make sure you have the following documents ready [6]:
| Document Type | Details Needed |
|---|---|
| Property Details | Civic address, number of bedrooms, and previous registration number (if any). |
| Personal Details | Host/operator name, mailing address, email, and phone number. |
| Safety Compliance | Proof of smoke detectors, carbon monoxide detectors, and fire extinguishers. |
Annual Renewals and Updates
Once you’ve secured your license, maintaining compliance is essential.
Provincial Registration Renewal
Renew your provincial registration every year by April 1. Fees depend on the type of property [4].
Ongoing Maintenance Requirements
Keep your safety equipment certified, property details accurate, and contact information updated to stay within municipal bylaws.
While the Development Only Permit does not expire, your provincial registration must be renewed annually to continue operating legally [1]. Regularly check the Halifax municipal website for any updates to the regulations.
STR Investment Guide
Effective management of short-term rentals (STRs) not only increases revenue but also ensures compliance with regulations.
Legal Income Strategies
Operating a compliant STR in Halifax can be very lucrative. In 2023, STR hosts in the city earned $30.9 million [7]. Here are some ways to maximize legal income:
- For residential zones: Focus on renting out your primary residence. This aligns with regulations and helps reduce fees. Partnering with developers to optimize property layouts at $168 per square foot can boost rental potential while staying within the rules.
- For commercial zones: Concentrate on high-demand Tier 1 locations. Although registration fees in these areas can reach $2,000, the market opportunities are robust.
These approaches allow you to compare STR profitability with long-term rental options effectively.
STR vs. Long-Term Rental: Key Differences
| Aspect | Short-Term Rental | Long-Term Rental |
|---|---|---|
| Initial Costs | Can range from $50 for primary residences to $2,000 for commercial properties | Lower (basic rental permit) |
| Revenue Potential | 74% of listings are entire homes, generating 90% of total revenue [7] | Consistent monthly income |
| Operational Control | Flexible pricing during peak seasons | Fixed long-term rates |
| Management Effort | Higher (frequent guest turnover) | Lower (stable tenants) |
| Regulatory Burden | Annual registrations and strict compliance rules | Basic tenant laws |
While STRs can offer higher revenue potential, they also come with more operational demands and stricter regulations.
Fines and Penalties for Non-Compliance
Failing to comply with STR regulations can lead to steep fines:
-
Provincial Fines
- Up to $1,000 per day of non-compliance, with a maximum of $7,500 per violation [5].
-
Municipal Fines
- Daily penalties range from $150 to $10,000, with a maximum of $10,000 for ongoing violations [5].
To avoid these penalties, STR operators should:
- Keep registrations up to date.
- Adhere to primary residence rules in residential zones.
- Implement property maintenance plans.
- Ensure parking requirements are met [5].
For commercial operators, it's worth noting that 41% of active listings in Halifax are commercial multi-listings, contributing to 50% of total host revenue [7]. While this segment offers higher rewards, it also demands close attention to compliance to mitigate risks.
Upcoming STR Changes
New Rules in Development
Halifax's short-term rental (STR) policies are undergoing major updates. Since September 1, 2023, new land-use by-laws have restricted STR operations in residential zones, allowing only primary residences to be rented out as entire units or individual bedrooms [1][9].
Here’s what’s coming in 2024-2025:
- Mandatory Municipal Registration: All STR operators must register with Halifax's Residential Rental Registry by April 1, 2024 [5].
- Provincial Registry Access: Halifax will gain direct access to provincial STR registry data for improved enforcement [9].
- Limits on Secondary Units: Rentals like basement apartments and backyard suites must now be leased for terms longer than 28 days [9].
As of September 2023, Halifax Regional Municipality had 2,418 active STR listings, with 1,937 being entire-home rentals [9]. Many of these are now shifting to long-term rentals.
"It's going to cause a lot of churn in the market. It's going to cause a lot of pain for people", said Councillor Shawn Cleary, emphasizing the challenges these changes will bring [9].
To navigate these shifts, updated compliance strategies are essential.
Keeping Up with Changes
These new rules build on earlier registration and permit requirements. To stay compliant, here’s what you’ll need to do:
| Action Item | Timeline | Cost |
|---|---|---|
| Provincial Registration | Renew annually by Sept. 30 | $50 - $2,000 |
| Municipal Registration | Complete by April 1, 2024 | Included in permits |
| Zoning Confirmation Letter | Obtain before operation | $200 |
| Development Only Permit | Obtain before operation | $250 |
For assistance, use these resources:
- ExploreHRM Mapping Tool: Check your property’s zoning and allowed uses [1].
- Municipal Planning Support: Call 311 to speak with city planners about requirements [1].
- Legal Advice: Consult firms like Patterson Law for complex compliance issues [5].
Failing to comply could be costly - provincial fines can reach $7,500, while municipal penalties may go up to $10,000 per day [5].
"I think Halifax has taken a very balanced approach, I truly, truly do. It's going to appease both ends of the spectrum", said Avery Birch [9].
These regulations aim to address Nova Scotia’s housing shortage, projected to hit 41,200 units by 2027/28 [8]. As of July 2024, 7,193 STRs were registered across the province [8], showing strong market activity despite the tighter rules.
Conclusion
Main Points Summary
Halifax has introduced clear rules for short-term rentals (STRs), covering both residential and commercial zones. Here's a quick breakdown of the key requirements:
| Requirement Type | Residential Zones | Commercial Zones |
|---|---|---|
| Primary Residence | Required | Not required |
| Provincial Registration | $50 (up to 4 bedrooms) | $240–$2,000 (tiered fees) |
| Municipal Registration | Required | Required |
| Zoning Letter/Permit | $200–$250 | $200–$250 |
| Safety Standards | Mandatory | Mandatory |
These rules aim to balance the needs of tourism with housing availability. For example, Casa Scotia's lakehouse property earned $127,400 in net STR income, significantly outperforming the $60,000 it could have made as a long-term rental [10]. This highlights how compliant STR operations can still yield impressive returns.
Tips for Success
Running a profitable STR in Halifax requires staying on top of regulations and providing a great experience for your guests. Here’s how you can ensure compliance and maximize your earnings:
Immediate Actions:
- Check your property’s zoning using municipal tools.
- Complete all required registrations before starting operations.
- Install essential safety equipment, such as smoke detectors and fire extinguishers.
Ongoing Management:
- Provide guests with a guide that includes local rules and property details.
- Keep detailed rental records to meet tax requirements.
- Stay updated on regulations by regularly visiting the Halifax government website.
If you encounter complex compliance issues, reach out to Halifax's Planning & Development Department via 311. Ignoring the rules can lead to hefty fines, so it’s worth getting everything right from the start.
