New short-term rental (STR) rules in Nova Scotia, effective April 1, 2023, impact operators in Yarmouth, Clare, and Digby. These regulations aim to balance tourism with housing needs and require compliance with provincial and local laws. Non-compliance can lead to fines up to $100,000. Here's what you need to know:
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Provincial Requirements:
- Annual registration with fees ranging from $50 to $500, depending on the property type.
- Mandatory tax collection (15% Hotel Sales Tax) and income reporting.
- Specific documentation like zoning compliance and proof of residence required.
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Municipality-Specific Rules:
- Yarmouth: STRs allowed in residential zones; compliance letters required.
- Clare: Adheres to provincial rules with additional zoning verifications.
- Digby: Tier 3 pricing ($240 fee) with stricter zoning and compliance checks.
Key Deadlines: Register annually by April 1. Submit applications early to avoid delays.
Quick Tip: Ensure your property meets zoning rules and obtain all necessary approvals before advertising. For help, consult municipal offices or professional services like Casa Scotia for registration, tax, and compliance support.
Nova Scotia Province-Wide Rules
If you're planning to operate a short-term rental in Nova Scotia, you must register your property before getting started. Here's a breakdown of the registration process and key requirements.
Registration Requirements
| Type of Accommodation | Annual Fee | Requirements |
|---|---|---|
| Primary Residence | $50.00 | Proof of primary residence |
| Commercial (Tier 2) | $500.00 | Proof of non-primary residence |
| Commercial (Tier 3 - Digby) | $240.00 | Municipal compliance documentation |
| Traditional Tourist (1–4 rooms) | $50.00 | Land use compliance proof |
| Traditional Tourist (5+ rooms) | $150.00 | Land use compliance proof |
Each rental property must have its own unique registration number if it has a different civic address. This number is mandatory for advertising on platforms like Airbnb and VRBO. Registrations must be renewed annually by April 1 to stay compliant.
The required documents include property owner consent (if a tenant is operating the rental), condo board approval for condominium units, municipal land-use compliance verification, and proof of primary residence when needed.
Once registered, operators must also meet specific tax obligations.
Tax Requirements
Operators are required to collect a 15% Hotel Sales Tax on all bookings. Rental income must be reported using Form T776, with deadlines depending on the type of income: April 30 for standard income tax and June 15 for self-employed income [4].
While platforms like Airbnb often manage tax collection in many Canadian provinces [4], operators are still responsible for ensuring all reporting and compliance are accurate.
To avoid delays, submit your registration application by September 16 [3].
Local Rules by Municipality
Each municipality in the Yarmouth & Acadian Shores region has specific rules for short-term rental operations. Here's a breakdown of the key requirements for each area.
Yarmouth Rules
In Yarmouth, short-term rentals must adhere to the provincial registration process, along with additional local requirements outlined in the Municipal Planning Strategy and Land Use By-Laws:
- Primary Residence Rentals: Allowed in residential zones as home occupations.
- Non-Primary Rentals: Require rezoning if located in non-commercial zones.
- Compliance Letter: A letter confirming zoning compliance is mandatory [2].
As of late October, the development department had received 39 requests for compliance letters [2].
Clare Rules
Clare aligns with the provincial framework but includes additional local guidelines for short-term rentals. Commercial rentals here are classified as Tier 2, with these requirements:
| Requirement Type | Details |
|---|---|
| Zoning Verification | Confirmation of compliance with land-use by-laws. |
| Additional Documents | Municipal compliance letter required. |
Property owners should contact the Clare municipal office to confirm land-use compliance before completing provincial registration [1].
Digby Rules
In Digby, commercial short-term rentals fall under Tier 3 and have stricter requirements:
- Annual Registration Fee: $240 for commercial properties [3].
- Municipal Compliance: Written confirmation from town officials is necessary.
- Land Use Requirements: Rentals must meet local zoning regulations.
- Compliance Letter: A valid compliance letter is required [2].
These rules enforce higher fees and stricter oversight [2].
Operating without proper registration can lead to fines ranging from $1,000 to $100,000 per violation [3]. It's crucial to contact your municipal office early in the process to ensure you meet all local requirements.
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Operating Your Rental Legally
Once you've tackled registration and compliance, it's time to focus on the day-to-day practices that keep your rental running smoothly and within the law. Here’s how to manage your rental responsibly.
Guest Rules and Screening
Set clear rules for your guests to avoid misunderstandings and stay on the right side of local regulations. Include details like:
- Occupancy limits based on local codes
- Quiet hours (e.g., 10:00 PM–7:00 AM)
- Parking guidelines
- Check-in and check-out times
- Emergency contact information
When accepting bookings, verify guest identities through your platform and keep a record of all stays. This helps ensure accountability and provides a safety net if issues arise.
Required Insurance
Most standard homeowner’s insurance policies don’t cover short-term rentals. Look for specialized short-term rental insurance that offers coverage for:
- Theft and vandalism
- Tenant belongings (up to $1,500)
- Loss of rental income
- Equipment breakdowns
Make sure your policy also includes personal liability coverage to protect yourself from potential lawsuits.
Working with Neighbors
Good relationships with your neighbors can go a long way in avoiding conflicts. Here are some tips to maintain harmony:
- Share your contact details so neighbors can reach you directly with any concerns.
- Use noise monitoring devices to quickly address any disturbances.
- Provide a neighborhood guide that outlines local customs and expectations.
Following these steps helps you manage your rental legally while maintaining a positive relationship with your community. Plus, it protects your investment in the long run.
Next Steps and Help
Main Points to Remember
Here are the critical steps you need to focus on:
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Provincial Requirements
- Register with Nova Scotia's Tourist Accommodation Registry.
- Collect and remit taxes on time.
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Local Compliance
- Familiarize yourself with zoning and licensing rules specific to your area.
Check out the resources below for more details on completing these steps.
Where to Get Help
If you still have questions, these resources can provide clarity:
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Government Resources
- Nova Scotia Tourism Registry Office: Assistance with registration and compliance.
- Municipal offices (Yarmouth, Clare, Digby): Information on zoning and permits.
- Service Nova Scotia: Help with tax-related concerns.
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Professional Support
Casa Scotia offers property management services to simplify regulatory tasks and improve rental performance. Their offerings include:
| Service Category | Features |
|---|---|
| Compliance | Help with registration, tax collection, and staying updated on regulations. |
| Property Protection | Guest screening, insurance coordination, and property maintenance. |
| Revenue Management | Dynamic pricing strategies, booking optimization, and financial reporting. |
For property owners feeling overwhelmed, Casa Scotia can handle everything from guest communication to property upkeep. This ensures your rental stays compliant and continues to generate income effectively.
