Short-Term Rental Regulations in Nova Scotia: Annapolis Valley (Wolfville, Kentville, Annapolis Royal)

published on 09 March 2025

New short-term rental rules came into effect in September 2024 for Wolfville, Kentville, and Annapolis Royal. Here's a quick breakdown:

  • Wolfville: Rentals must be your primary residence, are capped at 150 days/year for entire homes, and are banned in R1 zones.
  • Kentville: No local bylaws, but provincial registration and a Planning Department letter are required.
  • Annapolis Royal: Owners must live on-site, and properties cannot be modified for tourist accommodations.

Key Provincial Requirements:

  • All rentals (28 days or less) must register under the Short-Term Rentals Registration Act (STRRA).
  • Fees range from $50 to $2,000 based on property type and location.
  • Non-compliance can result in fines up to $100,000.

Quick Comparison

Town Local Rules Provincial Registration Fees
Wolfville Primary residence only, 150-day limit, no R1 zones $50–$500
Kentville No local rules; Planning Dept. letter needed $50–$500
Annapolis Royal On-site residency required, no property changes $50–$500

Stay compliant by registering your property, verifying zoning, and meeting tax requirements. Missing these steps could mean hefty fines or losing tax benefits.

Nova Scotia Provincial Rental Laws

The Short-Term Rentals Registration Act (STRRA) lays out specific rules for rental operators in Nova Scotia. This law, designed to address a forecasted housing shortage of 41,200 units by 2027/28 [3], applies to any property rented for 28 days or less at a time [4].

STRRA Requirements

Registration fees vary based on the type of property and its location:

Property Type Registration Fee Requirements
Primary Residence (up to 4 bedrooms) $50 Proof of primary residence, municipal compliance letter
Traditional Tourist (5+ bedrooms) $150 Municipal compliance documentation
Commercial Tier 1* $2,000 Property documentation, municipal approval
Commercial Tier 2** $500 Property documentation, municipal approval
Commercial Tier 3*** $240 Property documentation, municipal approval

*Tier 1: Bedford, Beechville, Cole Harbour, Dartmouth, Halifax, Lakeside, Lower Sackville [3]
**Tier 2: All communities not in Tier 1 or 3 [3]
***Tier 3: Towns of Clark's Harbour, Digby, Lockeport, Mulgrave, Shelburne [3]

To complete registration, operators must provide:

  • A government-issued photo ID
  • A recent property tax bill or lease agreement
  • A municipal compliance letter
  • A property owner consent form (if applicable)
  • Condo board approval (if applicable)

Once registered, operators must follow strict tax rules to remain compliant.

Host Tax Requirements

Tax compliance is a must. The Canada Revenue Agency (CRA) has enforced strict requirements for reporting short-term rental income. Starting in 2024, operators who fail to meet provincial or municipal rules may lose the ability to claim income tax deductions [6]. Operating without a valid registration number could result in fines of up to $100,000 per year [3][4].

Key tax responsibilities include:

  • Renewing your registration by April 1st each year [4]
  • Keeping accurate records of income and expenses [6]
  • Displaying your valid registration number on all rental listings [4]
  • Following all municipal and provincial rules to maintain tax deduction eligibility [6]

For 2024, the CRA is offering a transitional grace period. Operators who fully comply by December 31, 2024, can avoid penalties and keep their tax benefits [6]. This gives new operators time to adjust their practices while meeting the latest standards.

Wolfville Rental Rules

Wolfville enforces a dual registration process and strict zoning and occupancy requirements for short-term rental operations.

Permits and Registration

To operate a short-term rental in Wolfville, you must complete two registration steps:

  1. Town Registration
    Start by contacting Marcia Elliott at 902-542-3718 or melliott@wolfville.ca. The Development Officer will review your application to ensure it complies with Section 4.30 of the Land Use Bylaw. Once approved, you'll receive a confirmation letter needed for the next step.
  2. Provincial Registration
    Submit the municipal confirmation letter along with proof of primary residence and the required STRRA documents to complete your provincial registration.

After completing both steps, confirm your property is located in an approved rental zone.

Allowed Rental Zones

Wolfville's zoning rules determine where short-term rentals are allowed:

Zone Type Short-Term Rental Status
Low Density Restricted Residential (R1) Not Allowed
All Other Residential Zones Allowed

"26.7% of all short-term rentals in Wolfville are in the R1 zone and are therefore non-compliant" [1]

Guest Limits and Property Rules

In addition to registration and zoning, you must follow occupancy guidelines:

  • The property must be your primary residence; rentals of investment properties or secondary homes are not allowed.
  • Entire-home rentals are capped at 150 days per year.
  • All rentals must adhere to the Land Use Bylaw.

These requirements ensure that municipal and provincial regulations are met for short-term rental operations.

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Kentville Rental Regulations

Kentville does not have specific rental bylaws. Unlike Wolfville, which has dual registration and zoning restrictions, Kentville relies entirely on provincial requirements.

Zoning and Permits

While there are no local rental restrictions in Kentville, property owners must follow these key steps to meet provincial standards:

Requirement Details Contact Information
Town Letter Request a compliance letter from the Planning Department 902-679-2328 or msheffield@kentville.ca
Provincial Registration Register with Nova Scotia STRRA Based on property classification
Registration Fee Tier 2 classification: $500 Varies by number of rooms

For primary residences, registration fees are $50 for up to four bedrooms or $150 for five or more rooms [3]. These steps ensure compliance with provincial rules, even as new regulations are introduced.

Upcoming Rule Changes

Provincial standards for rental operators include the following:

  • Rentals must display a valid provincial registration number in all online listings. Non-compliance can result in fines ranging from $1,000 to $100,000 [3].
  • New registration requirements were introduced by the Province of Nova Scotia in August 2024 [2].

To complete provincial registration, contact the Planning Department to obtain a general letter signed by the Director of Planning and Development. This letter confirms your property complies with Land Use Bylaw regulations.

While Kentville does not enforce local rental regulations, failing to register with the province can lead to hefty fines. Make sure to include your registration number in all advertising materials.

Annapolis Royal Rules

Annapolis Royal enforces additional local rules alongside the Nova Scotia provincial framework. These extra measures are designed to ensure compliance with municipal standards.

Owner Residence Rules

Short-term rentals in Annapolis Royal are divided into three categories, each with specific registration fees and requirements:

Rental Type Annual Fee Requirements
Primary Residence (Whole Home) $50 Proof of primary residence and a municipal compliance confirmation letter
Commercial Short-Term Rental $500 Documentation for Tier 2 classification and zoning compliance
Traditional Tourist Accommodation $50–$150 $50 for 1–4 bedrooms; $150 for 5 or more bedrooms

Hosts must renew their registration every year and ensure their properties comply with local land-use bylaws. Proper property management and clear marketing are also critical for meeting these standards.

Property Changes and Marketing

Operating a short-term rental in Annapolis Royal requires careful attention to property management and marketing practices.

  • Documentation Requirements
    Before registration, all rental properties must obtain a municipal compliance confirmation letter. This document confirms the property adheres to local land-use and zoning regulations.
  • Marketing Guidelines
    Operators are required to include valid provincial registration numbers in all online listings and promotional materials.
  • Compliance Enforcement
    The municipality imposes strict penalties for violations, with fines ranging from $1,000 to $100,000. Common infractions include:
    • Operating without proper registration
    • Using incorrect registration numbers

For detailed information about documentation and registration, hosts should contact the municipal office. The Registrar oversees the Short-term Rentals Registry to ensure all properties meet both municipal and provincial guidelines.

Management and Compliance Tips

Required Documentation

Keep detailed and up-to-date records to stay compliant with short-term rental regulations in the Annapolis Valley. Essential documents include registration proof, insurance certificates, and safety inspection reports. These records not only simplify audits but also make renewal processes smoother. Additionally, ensuring your property meets safety standards and has proper insurance coverage is crucial for protecting your investment.

Safety and Insurance

Safety measures and adequate insurance are non-negotiable for operating legally and reducing risks. Here’s what you should focus on:

  • Install and maintain fire safety equipment like smoke detectors, carbon monoxide detectors, and fire extinguishers.
  • Provide clear emergency plans, including evacuation routes and contact information.
  • Obtain short-term rental insurance that complies with local regulations.

"Casa Scotia turned my anxiety into reassurance - my home stays immaculate, and my worries vanished." - Emily G. [7]

If managing these responsibilities feels overwhelming, professional services can take the load off your shoulders.

Professional Management Options

Navigating strict compliance requirements can be challenging, but professional property managers can simplify the process. These services often handle tasks like registration renewals, safety inspections, and guest screening, making your operations much easier.

Take Casa Scotia, for example - a well-known property management company in Nova Scotia. They’ve helped property owners maximize revenue with tools like dynamic pricing and market analysis. One success story showed an annual revenue boost to $165,930, with a 53.41% occupancy rate and an average daily rate of $744 [7].

"I never imagined making this much from my property without lifting a finger. Casa Scotia made everything simple - my income doubled, and stress vanished completely." - Laura M., Halifax Property Owner [7]

Professional managers also offer services like regular maintenance, compliance tracking, guest screening, and detailed financial reporting, ensuring hassle-free property management.

Summary

Rules by Region

Understanding local regulations is crucial. Here's an overview of the current requirements for short-term rentals in different towns:

Town Key Requirements Registration Fees
Wolfville - Must be a primary residence
- Rentals not allowed in R1 Zones
- 150-day annual limit for entire homes [1]
Primary: $50
Commercial: $500 [3]
Kentville - Requires provincial registration
- Letter from the Planning Department [2]
Primary: $50
Commercial: $500 [3]
Annapolis Royal - Provincial registration required
- Must comply with municipal bylaws [3]
Primary: $50
Commercial: $500 [3]

The short-term rental market in this region is growing. For example, Wolfville currently has 51 short-term rentals in residential areas, with 47 of them being entire homes [1]. The market has seen an average increase of 8.5 new listings annually between October 2022 and October 2024 [1]. These numbers show why staying compliant with local rules is so important.

Next Steps

  1. Register properties under STRRA: Penalties for non-compliance can reach up to $100,000 [8].
  2. Verify zoning compliance: In Wolfville, 26.7% of rentals are in non-compliant R1 zones [1].
  3. Prepare necessary documents:
    • Proof of primary residence
    • Confirmation of municipal compliance
    • Property owner’s consent, if required
    • Insurance certificates [5]

Important: Registration numbers from 2023/24 are no longer valid. Make sure to apply for a new number under the updated regulations.

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