If you’re operating a short-term rental in Truro or Colchester County, Nova Scotia, here’s what you need to know:
- Registration is mandatory: All short-term rentals (28 days or less) must register annually with the Short-term Rentals Registry. Fees range from $50 to $2,000 depending on property type and location.
- Display your registration number: It must appear on all online booking platforms.
- Follow local by-laws: Municipal permits and zoning compliance are required. Truro and Colchester County have specific rules for development and safety.
- Pay taxes: Short-term rental income is subject to HST. A 3% Marketing Levy applies in Truro and Colchester County starting April 2024.
- Fines for non-compliance: Penalties range from $1,000 to $100,000 for violations like operating without registration or failing to meet safety standards.
Key Deadlines:
- Renew your registration by April 1 annually.
- Marketing Levy reports are due quarterly.
Understanding these rules will help you stay compliant and avoid hefty fines. Keep detailed records, meet tax obligations, and ensure your property adheres to safety and zoning laws.
Halifax Approves New Short-Term Rental Regulations
Nova Scotia Provincial Rules
Nova Scotia's short-term rental rules, outlined in the Short-term Rental Registration Act [2], set clear guidelines for vacation rental properties throughout the province.
Property Registration Requirements
If you're offering short-term rentals in Nova Scotia (for 28 consecutive days or less), you must register with the Short-term Rentals Registry [3]. Here's a breakdown of the registration fees and categories:
| Registration Type | Annual Fee (USD) | Details |
|---|---|---|
| Primary Residence | $50.00 | For owners renting out their main home |
| Commercial Tier 1 | $2,000.00 | Properties in key areas like Halifax, Bedford |
| Commercial Tier 2 | $500.00 | Properties in standard communities |
| Commercial Tier 3 | $240.00 | Properties in towns like Clark's Harbour, Digby |
| Traditional (1–4 rooms) | $50.00 | Small B&Bs and inns |
| Traditional (5+ rooms) | $150.00 | Larger accommodations |
To register, property owners need to follow these steps:
- Prepare documents: Collect proof of municipal land-use compliance, primary residence verification (if applicable), and any required consent forms.
- Register online: Submit your application through the Short-term Rentals Registry.
- Display your registration number: Include it on all online booking platforms.
- Renew annually: Ensure renewal is completed by April 1 each year [3].
Once registered, property owners must comply with enforcement measures outlined below.
Fines and Violations
Non-compliance can lead to severe penalties, with fines ranging from $1,000 to $100,000 [4]. Here's what you need to know:
- Each day of non-compliance counts as a separate offense, which can result in rapidly increasing fines [4].
- Violations include operating without proper registration or failing to display the registration number.
- Properties with different civic addresses must have separate registrations [3].
Additionally, all rentals must align with municipal land-use bylaws [5]. Staying informed and compliant is essential to avoid costly penalties.
Truro & Colchester County Rules
Truro Permits and Zones
If you're operating a short-term rental in Truro, you'll need to navigate specific permits and follow local rules. The Town of Truro's Planning and Development Services handles construction approvals and enforces both the National Building Code of Canada and the Nova Scotia Building Code [6]. A Building & Development Permit is required for any new construction, modifications, changes in occupancy, or accessory structures larger than 215 ft² [6]. If your property needs a new sanitary connection, you'll need to coordinate with the Truro Engineering and Public Works Department [6]. Colchester County has its own set of rules and zoning regulations to follow.
Colchester County Area Rules
In Colchester County, the Development Control section ensures compliance with the Central Colchester Land Use By-law, the Subdivision By-law, and the Land Lease Development By-law [7]. The county now provides an online system for applying for development permits. Before applying for building permits, property owners must first secure a Development Permit as required by the Land Use By-law for central Colchester [7]. For questions about zoning, land subdivision, or development permits, reach out to the Development Officer's office [7]. These local requirements align with provincial regulations to ensure everything is in order.
Safety and Guest Limits
Safety standards and guest limits are strictly enforced in both Truro and Colchester County. Properties must display a valid registration number, demonstrate land-use compliance, and meet safety guidelines. Non-compliance can result in fines of up to $100,000 [8]. Since processing times for permits can vary, it's a good idea to contact your municipality as early as possible to gather the necessary documentation [1].
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Tax Requirements
HST Rules
If you're earning short-term rental income, it's subject to HST. Operators are required to register their properties on the Short-term Rentals Registry. Fees for registration depend on the property's location and type. On top of this, local rules may add extra taxes specific to short-term rentals.
Local Accommodation Tax
For rentals in Truro and Colchester County, a 3% Marketing Levy will take effect starting April 1, 2024. This applies to accommodations rented for 30 days or less and is also subject to HST. Registration and reporting are managed through the CheckIn Analytics platform.
| Reporting Period | Due Date |
|---|---|
| April 1 – June 30, 2024 | July 30, 2024 |
| July 1 – Sept 30, 2024 | October 30, 2024 |
| Oct 1 – Dec 31, 2024 | January 30, 2025 |
| Jan 1 – March 31, 2025 | April 30, 2025 |
Fines for first-time violations range from $500 to $1,000. If violations happen again, penalties increase to between $1,500 and $5,000 [9]. Late payments are also subject to 15% annual interest [10].
Income Tax Guidelines
In addition to consumption taxes, it's essential to report your rental income. Use Form T776 to declare this income. For the 2024 tax year, self-employed individuals have until June 15 to file, while others must file by April 30 [11]. The CRA advises using the accrual method to calculate rental income.
To stay compliant, follow these key tips:
- Keep records: Maintain detailed records of rental income and expenses for at least five years.
- Know your deductions: Property taxes and maintenance costs may be deductible.
- Follow provincial rules: Ensure your deductions align with provincial regulations to avoid rejected claims.
- Report everything: Even if you rent out your property for only part of the year, all income must be declared.
Staying organized and informed will help you avoid penalties and maximize your deductions.
Operating Your Rental
Running a rental property involves more than just following the rules. You’ll need to stay organized with records, set clear guest policies, secure proper insurance, and decide how to handle property management.
Keeping Records
Make sure you hold onto these key documents:
- Registration papers and proof of annual renewal
- Any marketing materials that include your registration number
Setting Guest Policies
Good documentation helps you manage guests smoothly. Establish clear rules and guidelines to maintain control.
Some essentials include:
- Verifying guest IDs and payment details
- Collecting a security deposit
- Having guests sign a rental agreement
- Setting limits on occupancy, quiet hours, parking, and rules for smoking or pets
Getting the Right Insurance
Standard homeowner’s insurance usually doesn’t cover short-term rentals. You’ll need specialized insurance to protect against property damage and liability related to guests.
Managing the Property
You can choose between hiring a property management service or handling things yourself.
For professional help: Casa Scotia offers full-service management in Truro and Colchester County. Their services include cleaning, maintenance, pricing adjustments, guest screening, regulatory compliance, and access to an owner portal with real-time updates and monthly reports.
For self-management: Build a reliable network of professionals, such as:
- Cleaners
- Maintenance contractors
- Emergency repair services
- Snow removal teams
- Lawn care providers
Both approaches have their benefits, so pick the one that fits your needs best.
What's Next for Local Rentals
Upcoming Rule Changes
Starting September 30, 2024, new provincial regulations under the STRRA will come into play [1]. These rules aim to address Nova Scotia's housing shortage, with the province needing 41,200 additional housing units by 2027–28 [8].
Here’s a breakdown of the key registration fees:
| Property Type | Annual Fee |
|---|---|
| Primary Residence (up to 4 bedrooms) | $50 |
| Primary Residence (5+ bedrooms) | $150 |
| Commercial STR in Colchester (Tier 2) | $500 |
These fees and regulations are expected to shape the rental market and influence housing availability in the region.
Local Impact
The rental market in Truro and Colchester County is already feeling the effects. Between 2023 and 2024, property values rose by 7.2%, while sales and listings increased by 9.8% and 19.8%, respectively. Looking ahead to 2025, forecasts suggest further growth of 8% in property values, 10% in sales, and 25% in listings [12].
"Nova Scotians need housing. We know many houses and apartments that could potentially be long-term homes are being rented short term. We're working to get more homes built. In the meantime, these changes will help address the urgent need for housing now." – John Lohr, Minister of Municipal Affairs and Housing [8]
Updates and Resources
Property owners should take proactive steps to adapt to these changes. Key actions include:
- Check the provincial government website regularly for updates on regulations.
- Register your property before the September 30 deadline.
- Prepare required documentation, such as:
- Proof of compliance with municipal by-laws
- Consent from the property owner
- Verification of primary residence
- Registration number for online listings
Additionally, the town of Truro is working with Colchester County on an affordable housing strategy, which could further impact short-term rental operations [13].
Conclusion
Understanding short-term rental regulations in Truro and Colchester County is crucial for staying compliant. Here's what you need to know to keep your rental business running smoothly.
Quick Reference Guide
Stay on top of these local rental requirements:
| Requirement | Deadline/Amount | Notes |
|---|---|---|
| STRRA Registration | At time of operation | Annual fee ranges from $50 to $500 based on property type |
| Tourism Marketing Levy | Monthly | 3% of the accommodation price |
| Municipal Compliance | Ongoing | Obtain the required rental letter |
| Registration Renewal | April 1st annually | Report any changes within 10 days |
This table highlights the essentials for meeting deadlines and compliance. For extra help, professional services are available.
Getting Help
Property management companies can make compliance easier. Casa Scotia offers services such as:
- Handling registration and local requirements
- Setting competitive pricing
- Screening guests
- Coordinating maintenance
- Providing financial reports
"Managing my Airbnb used to be a full-time headache. Casa Scotia took over, and now it feels effortless. My bookings have never been higher!" – Alex J., Dartmouth Host [15]
For direct support, property owners can visit the Community Development Department at 1 Church Street, Truro [14]. They offer in-person consultations, electronic services, and phone support to help navigate by-laws and planning rules.
Related Blog Posts
- Short-Term Rental Regulations in Nova Scotia: Cape Breton Island (Sydney, Baddeck, Inverness)
- Short-Term Rental Regulations in Nova Scotia: Eastern Shore (Sheet Harbour, Guysborough, Sherbrooke)
- Short-Term Rental Regulations in Nova Scotia: Yarmouth & Acadian Shores (Yarmouth, Clare, Digby)
- Short-Term Rental Regulations in Nova Scotia: Northumberland Shore (Tatamagouche, Pugwash)
