If you're a short-term rental (STR) host in Nova Scotia's South Shore, staying compliant with changing regulations is critical. Here's what you need to know:
- Provincial Rules: Since September 30, 2024, all STRs must register annually under the Short-Term Rentals Registration Act. Fees range from $50 to $2,000, depending on the property type and location.
- Municipal Requirements: Each town has specific rules. For example:
- Lunenburg: Requires a $250 Development Permit and $200 Zoning Confirmation Letter.
- Mahone Bay: Mandates land-use compliance checks.
- Bridgewater: Enforces a minimum 30-day stay rule and a 3% marketing levy starting April 1, 2025.
- Penalties: Non-compliance can result in fines up to $100,000 annually.
Key Deadlines:
- April 1: Provincial registration renewal deadline.
- Monthly (Bridgewater): Marketing levy remittance.
To avoid fines, ensure you gather the right documents (e.g., proof of ownership, permits, insurance) and follow both provincial and local guidelines.
Nova Scotia's New STR Regulations: What Hosts Need to Know by September 30th!
Provincial and Municipal STR Regulations
In Nova Scotia, short-term rental (STR) regulations operate on two levels: provincial and municipal. To avoid penalties, hosts must comply with both sets of rules. This dual system ensures alignment with broader housing policies while respecting the unique needs of local communities.
Provincial STR Requirements
Starting September 2024, the Short-Term Rental Registration Act (STRRA) requires annual registration through the Tourist Accommodations Registry. Fees depend on the type of property being rented:
| Host Category | Description | Annual Fee |
|---|---|---|
| Primary Residence | The owner’s main living space | $50 (1-4 bedrooms), $150 (5+ bedrooms) |
| Commercial | Properties not used as the host’s primary residence | $500 |
| Traditional Tourist Accommodation | Hotels, B&Bs, and unique lodging options | $50 (1-4 bedrooms), $150 (5+ bedrooms) |
Commercial STR fees also vary by tier. For example, Tier 1 properties in Halifax face a $2,000 annual fee, while Tier 2 properties in most other communities pay $500, and Tier 3 properties in smaller towns are charged $240 [2].
Hosts must display their registration number on all booking platform listings. This rule applies to any rental offering accommodation for 28 days or less. Compliance is closely monitored. By July 2024, over 7,193 short-term rentals had already registered, showing strong adherence to the new system.
Additionally, provincial registration requires proof of compliance with municipal bylaws. Without meeting the local requirements in your municipality, you won’t be able to finalise your provincial registration.
Municipal Requirements for STR Hosts
Municipalities in Nova Scotia’s South Shore have introduced their own regulations to complement provincial rules. These local measures focus on zoning, land use, and community standards, ensuring tourism activities align with the priorities of each area.
- Lunenburg requires hosts to obtain a free Development Permit and a $60.90 Zoning Confirmation Letter before completing provincial registration.
- Mahone Bay enforces a land-use compliance check to ensure STRs align with local zoning rules and community goals.
- Bridgewater has stricter rules, requiring a minimum 30-day stay, which excludes most properties from qualifying as STRs under the provincial 28-day definition. Local zoning and construction officers actively monitor compliance.
Municipal regulations also set standards for parking, noise, and occupancy to preserve neighbourhood character while managing the effects of tourism.
The distinction between provincial and municipal responsibilities lies in their focus. Provincial rules address registration, taxation, and housing policies, while municipal regulations concentrate on zoning, land use, and maintaining local community standards. Together, these frameworks aim to balance the interests of hosts, guests, and residents, ensuring STRs operate responsibly and within the law.
Municipal Notices and Updates
These updates shed light on the changing municipal rules that STR hosts need to navigate.
Lunenburg: Zoning and Permits
As of September 2023, Lunenburg introduced updates to its land-use by-laws. STR hosts are now required to obtain a $250 Development Permit and a $200 Zoning Confirmation Letter through the municipal planning department.
"All short-term rentals must comply with local land-use by-laws and register with the province to ensure they meet the necessary regulations." - Lunenburg Municipal Planning Department
The changes also define specific zones where STRs are permitted. Before applying, hosts must ensure their property aligns with these zoning requirements.
Meanwhile, Mahone Bay has taken a slightly different route to address tourism and housing concerns.
Mahone Bay: Minimum Stay and Enforcement
Mahone Bay has established a minimum stay rule for STRs as part of its effort to balance tourism with the availability of local housing. The municipality also conducts pre-registration checks to confirm that STRs comply with local zoning laws.
Bridgewater has also rolled out distinct measures to manage STR activities effectively.
Bridgewater: Marketing Levy and Occupancy Limits
Starting 1 April 2025, Bridgewater will enforce a 3% marketing levy on accommodation fees. For example, a $150 nightly fee will include a $4.50 levy. Hosts must remit this levy monthly, with a $500 penalty for late payments.
"The Marketing Levy will be reinvested in our community, specifically supporting tourism development, special events, marketing, and promotions in Bridgewater." - Town of Bridgewater [3]
Certain exemptions apply, such as stays longer than 28 consecutive nights or nightly fees under $20. Hosts should confirm levy collection procedures with their booking platforms to ensure compliance.
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Compliance Deadlines and Documentation
Keeping track of deadlines and maintaining proper documentation is essential for short-term rental (STR) hosts in Nova Scotia. This not only helps avoid penalties but also ensures smooth business operations, as emphasized in recent municipal updates.
Annual Deadlines and Key Dates
For all Nova Scotia STR hosts, the most important date to remember is April 1 - the deadline for provincial registration renewals. Registration for the 2024/25 season opened on 30 September 2024, with the government urging early submissions by 16 September 2024.
If you're in a municipality that applies marketing levies, a 3% fee will be charged on nightly bookings. It's also crucial to note that municipal permit requirements differ depending on the location and must be secured before completing provincial registration.
To stay ahead, make sure all required documents are ready well before these deadlines.
Required Documentation for STR Hosts
Provincial registration involves gathering and maintaining specific documents. Here's what you'll need:
- Proof of ownership: This can include deeds, mortgage documents, or tenant consent forms.
- Primary residence verification: If you're using your main home as an STR, additional documents proving it’s your primary residence are required.
- Insurance and occupancy permits: Hosts must provide valid insurance and occupancy permits. According to the Municipality of the District of Lunenburg, “a valid occupancy permit is required prior to using the space” [5].
- Written consent: If you don’t own the property outright, you’ll need written approval from property owners or condominium boards.
"All short-term rentals (28 days or less) need to register with the Tourist Accommodations Registry to operate in Nova Scotia." – Airbnb [4]
Proper documentation is non-negotiable, as these requirements are strictly enforced.
Enforcement and Penalties
Failing to comply with regulations can lead to severe financial consequences. Unregistered operators face fines ranging from CAD 1,000 per violation to a maximum of CAD 100,000 annually for ongoing infractions.
"Operating without a valid registration number is against the law. Starting on September 30, 2024, fines will range from CAD 1,000 per violation, to a maximum of CAD 100,000." – Government of Nova Scotia [1]
These penalties can be applied daily as long as the violation continues. Hosts must keep updated copies of permits, insurance, and municipal confirmations for inspections. Additionally, the registration number must be included in all online listings to help enforcement officers identify compliant properties.
Municipal authorities monitor compliance through methods like online listing checks, complaint investigations, and periodic audits.
| Compliance Area | Penalty Range | Enforcement Method |
|---|---|---|
| Unregistered Operation | CAD 1,000 – CAD 100,000 annually | Daily violation fines |
| Missing Registration Number | CAD 1,000 per violation | Online listing monitoring |
Practical Strategies for STR Hosts
Navigating South Shore municipal regulations can feel overwhelming, but with over 7,193 short-term rentals already registered across Nova Scotia as of July 2024, there’s a clear path to success. Hosts who thrive in this space follow proven strategies to stay compliant while maximising their rental income. Here’s a practical guide on registration, levy management, and staying on top of compliance.
Step-by-Step Registration Guide
To get started, you’ll need to tackle both municipal and provincial requirements in the right order. Begin with municipal compliance, as provincial registration requires proof of local approval.
- Lunenburg hosts: Start by applying for a Development Permit (free of charge). This step usually takes about 14 days. Once approved, you’ll need a Zoning Confirmation Letter, which costs $60.90. Both documents are mandatory for provincial registration.
- Mahone Bay hosts: First, confirm that your property meets land-use requirements. Reach out to the municipal office to ensure compliance and obtain the necessary paperwork.
- Bridgewater hosts: Be aware of the town’s strict 30-day minimum stay policy. This requirement is closely monitored, so it’s essential to align your rental strategy accordingly to avoid penalties.
Once you’ve secured municipal approval, you’re ready to register provincially through the Tourist Accommodations Registry. Make sure you’ve gathered all required documents, such as proof of ownership, residency verification, and municipal permits, before starting. After your application is approved, display your registration number prominently on all online listings. This step not only ensures compliance but also reassures potential guests.
Managing the South Shore Marketing Levy
If you’re hosting in Bridgewater, you’ll need to account for the 3% marketing levy in your financial planning. Here’s how to handle it:
- Calculate the levy: Multiply your total rental income by 3%. For example, if you charge $200 per night for five nights, your total income is $1,000, and the levy would be $30.
- Transparent pricing: Include the levy in your listed price to avoid surprising guests. For instance, instead of $200 per night, list your rate as $206. This approach builds trust and reduces the risk of cancellations.
- Keep accurate records: Track every booking with a simple spreadsheet that logs the base rate, levy amount, and collection date. These records are crucial for audits or compliance checks.
- Set aside funds: Open a separate account for levy collections to ensure you’re prepared for quarterly or annual remittance deadlines.
- Stay competitive: Transparent pricing can work in your favour. If nearby properties charge $250 per night without including the levy upfront, your honest pricing could attract more bookings.
By managing the levy effectively, you’ll not only stay compliant but also maintain a competitive edge.
How Casa Scotia Can Help
Dealing with regulations doesn’t have to be a headache. Casa Scotia offers hands-free Airbnb and short-term rental management across Nova Scotia, including comprehensive compliance support for South Shore properties.
Their services simplify every step of the process, from municipal registration to maintaining compliance with changing regulations. Whether you’re in Lunenburg, Mahone Bay, or Bridgewater, Casa Scotia’s local expertise ensures you’re covered. They handle everything from securing permits to navigating the intricacies of marketing levies.
Casa Scotia also offers dynamic pricing strategies that factor in levies and municipal fees without sacrificing competitiveness. Their owner portal provides real-time updates on regulatory changes and deadlines, keeping you ahead of the game.
Choose from their Year-Round Management plan for consistent income or their Peak-Season Management plan to maximise summer earnings (May through September). Both options include compliance management, guest screening, professional cleaning, and marketing on platforms like Airbnb and Vrbo.
Their detailed monthly financial reports break down marketing levy collections and remittances, making tax preparation and municipal reporting a breeze. With Casa Scotia handling the logistics, you can focus on improving your property and delivering an exceptional guest experience.
| Municipality | Key Requirements | Processing Time | Casa Scotia Support |
|---|---|---|---|
| Lunenburg | Development Permit + Zoning Letter ($60.90) | 14 days | Full documentation assistance |
| Mahone Bay | Land-use compliance confirmation | Varies | Municipal liaison support |
| Bridgewater | 30-day minimum stay enforcement | Immediate | Strategy adjustment guidance |
Conclusion: Staying Compliant and Competitive
Success in Nova Scotia's short-term rental (STR) market depends heavily on staying ahead of compliance requirements and maintaining thorough records. These practices form the backbone of the strategies discussed earlier.
Fines for non-compliance can range from $1,000 to $100,000 CAD, a stark reminder of the stakes involved. As Minister of Housing John White stated, "Short-term rentals have been seriously draining the long-term residences across the province" [6]. This highlights the growing scrutiny STR hosts face as housing pressures mount.
Make sure the April 1st annual registration deadline is a priority, and stay informed about any local regulations that may apply to your property. Keeping your registration numbers, permits, and certificates accessible is crucial for addressing potential enforcement actions swiftly.
This guide will continue to monitor municipal announcements and regulatory updates across the South Shore region. Policies can change quickly in response to community needs, so it’s important to stay informed. Viewing compliance not as a hurdle but as a cornerstone of sustainable and profitable operations can set you up for long-term success.
With over 1,400 short-term rentals already exiting the market due to stricter rules [6], it’s clear that compliance is about more than avoiding fines - it’s about securing your foothold in Nova Scotia's shifting STR landscape. By adopting these strategies - whether on your own or with professional guidance - you can position yourself for success in this evolving market.
FAQs
How can I make sure my short-term rental in Nova Scotia meets all provincial and municipal regulations?
To follow Nova Scotia’s short-term rental rules, begin by registering your property each year with the provincial Short-term Rentals Registry. Make sure to provide all necessary paperwork, including proof that your property complies with local bylaws.
It’s also important to review your municipal regulations for zoning, permits, or other specific requirements. If your rental is in a condo or owned by someone else, you might need written approval from the property owner or condo board. In some cases, proof of primary residence may also be required. Staying up-to-date on local policy changes is key to ensuring your rental remains compliant.
How will the marketing levy in Bridgewater impact my short-term rental pricing, and what steps can I take to manage it effectively?
The marketing levy in Bridgewater is a fee added to short-term rental (STR) bookings, calculated as a percentage of the total rental income. This fee can impact your overall costs, so it’s important to factor it into your pricing strategy.
To handle this effectively, consider adjusting your nightly rates to include the levy while staying competitive in the market. Be transparent with guests about any price changes by emphasizing the value and amenities your property provides. Keeping detailed records of your expenses will also help you stay compliant with local regulations and make financial planning easier.
What happens if I don’t comply with the Short-Term Rentals Registration Act or municipal regulations in Nova Scotia?
Failing to follow the Short-Term Rentals Registration Act or local municipal rules in Nova Scotia can result in steep penalties, including fines as high as $100,000. These penalties are meant to enforce zoning laws, licensing rules, and other compliance standards.
Beyond fines, ignoring these regulations could bring even more challenges, like restrictions on your ability to operate, potential legal battles, or damage to your reputation within the community. Staying on top of local requirements and meeting deadlines is crucial to avoid these pitfalls and ensure your short-term rental business runs smoothly.
Related Blog Posts
- Short term rental regulation in HRM ( Halifax, Bedford, Dartmouth )
- 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)
- Nova Scotia STR Regulation Updates (Live Hub Page)
