Short-term rental licence

A short-term rental licence is the registration or licence a province or city requires before a home, suite or cottage is rented for short stays. A buyer of a vacation rental business meets it because, in British Columbia for example, the registration is made by the host responsible for a particular rental offer.

British Columbia and Toronto

British Columbia’s Short-Term Rental Accommodations Act says a short-term rental offer must be registered by the supplier host responsible for it, subject to the regulations. The Act also sets a principal residence requirement, subject to the regulations and to exempt land. The province notes that short-term rentals are limited to principal residences in many B.C. communities. The City of Toronto says all short-term rental companies, meaning booking platforms such as Airbnb and Booking.com, are required to obtain a licence to operate there. It publishes separate registration information for operators who rent out their homes, and says its regulations aim to let residents rent only their principal residence. This entry covers British Columbia and Toronto only; check the rules in the province and municipality where each property is.

What to check or ask

• Whether the registration or licence is held by the seller personally or by the company being sold.
• Whether each property qualifies under the local principal-residence rule.
• Whether the buyer must register in its own name before taking bookings.

The sale side of this business is covered in can I sell my Airbnb business. Where a buyer must start again, see licence re-application.