Advocating for Short-Term Rentals Regulations in Calgary

The AHLA, on behalf of our membership, submitted a letter to Councillor Jennifer Wyness calling on the City of Calgary to impose stricter regulations on short-term rentals (STRs) and the platforms that host them. This submission reflects similar recommendations made to Edmonton City Council in October.

Regulating the STR Market

We believe that everyone who operates a commercial scale accommodation business in Alberta — whether it is a hotel, motel, inn, apartment, or short-term rental — should be subject to the same taxes and regulations. By regulating commercial short-term rentals and the platforms that support them, the City of Calgary can:

1. Address the critical shortage and high cost of housing in Calgary.
2. Ensure the security and safety of residents.
3. Create a level playing field for all players in the city’s accommodation sector.

The Rise of STR Investment

Hotels are not afraid of competition, and do not wish to regulate homeowners who occasionally rent a room in their own home. But true home-sharing occurs in the owner's principal residence. Short-term rentals are now a new class of investment that has commoditized housing, converting residential units into ghost hotels, evaded the normal costs of doing business, and created additional demands on municipal resources like police, waste removal and bylaw enforcement. Taxpaying Calgarians are in fact subsidizing these businesses, which pay residential property taxes on their commercial enterprises. In 2017, the Hotel Association of Canada (HAC), with the support of the AHLA, commissioned a study by CBRE on Airbnb and the hotel sector in Canada, highlighting the issues short-term rentals present to our industry and our communities. A 2023 study by McGill University found similar issues in the British Columbia market. Major cities across Canada have enacted legislation that protects the rights of citizens and creates a level playing field for providers of short-term accommodation—it's time for us to do the same in Alberta.

Creating a Level Playing Field

Although the City of Calgary requires operators of short-term rentals to secure a business licence, the absence of effective regulation creates an unfair advantage for short-term rental operators over hotels, which:

• Pay commercial property tax to the City of Calgary,
• Pay federal and provincial corporate tax, and
• Comply with legislation and regulations to assure the safety and security of their guests.

The AHLA recommends that the City of Calgary implement the following requirements for short term rentals:

• Principal Residence Requirement: Limit short-term rentals to home property owners who reside on the property.
• Platform Accountability: Hold platforms like AirBnB and VRBO accountable for ensuring that all listings comply with municipal regulations.
• Data Sharing: Establish a data-sharing framework that allows relevant entities, including City Council, to access data from these platforms.

Read the Full Letter Here