Can You Airbnb Your Primary Residence in Alberta? 9 Pros and Cons to Know

Understanding Airbnb and Your Primary Residence in Alberta

Primary residence refers to the main home where you typically spend most of your time. It’s where you live, sleep, and carry out your daily activities and is the permanent address for legal and financial purposes.

An Airbnb principal residence is the primary residence a homeowner lists on the Airbnb platform for short-term rentals to guests. This term distinguishes the primary residence used for occasional or temporary rental through Airbnb from other homeowner-owned properties.

Can You Airbnb Your Primary Residence in Alberta?

In Alberta, policies on short-term rentals for primary residences vary depending on the municipality. Generally, municipalities regulate short-term rentals through zoning bylaws and licensing requirements. Some municipalities allow homeowners to rent their primary residences, while others have restrictions or bans.

For example, in Calgary, short-term rentals are permitted in primary residences, but hosts must obtain a business license and comply with zoning regulations. They may also need to collect and remit tourism taxes. Some smaller municipalities may have stricter regulations or bans on short-term rentals to preserve the character of residential neighbourhoods.

It's essential for homeowners considering Airbnb rentals in Alberta to familiarize themselves with local regulations and obtain licenses or permits to avoid potential legal issues.

A Calgary short-term rental license is available online or at city hall. It typically requires a fire inspection, and depending on the rental size, hosts can apply for one of two licenses: Tier 1 for one to four bedrooms or Tier 2 for larger rentals. 

How Many Days Can You Airbnb Your Primary Residence?

You can Airbnb your primary residence all year as long as you abide by the short-term rental laws in Calgary, which restricts the number of consecutive days to 30 or less for one booking. This strategy allows homeowners to enjoy extra income and the Principal Residence Tax Exemption (PRE).

Pros of Airbnbing Your Primary Residence in Alberta

Airbnbing can offer many benefits for homeowners looking to make money off of their primary residence, including:

• Additional income: Can help homeowners offset property taxes, mortgage payments, and other homeownership expenses.
• Flexibility: Short-term rentals allow homeowners to rent out their space when they're away or have extra rooms available.
• Meet new people: You can meet people from around the world and make friendships along the way.
• Boost the local economy: Short-term rentals contribute to the local economy by attracting tourists and supporting small businesses. Cons of Airbnbing Your Primary Residence in Alberta

While Airbnbing your primary residence in Alberta has its benefits, there are also some drawbacks to consider:

• Privacy concerns: Hosting guests in your primary residence can raise worries about their behaviour and lifestyle, like noise and cleanliness, making you feel uncomfortable or vulnerable.
• Wear and tear: Increased foot traffic and usage can lead to wear on furnishings and fixtures, raising the risk of accidental damage and additional repair costs.
• Regulatory risks: Possible fines for violating Calgary short-term rental bylaws include occupancy breaches, such as exceeding room capacity or lacking proper egress.
• Tax implications: Renting out a part of your home means you’ve “sold” a bit of it, which might affect your taxes. But if you meet certain rules, you might not have to pay taxes on the money you make.
• Neighbourhood impact: Frequent guest turnover can cause noise, traffic, and safety concerns, leading to conflicts and unease among neighbours

Is Renting Your House on Airbnb Worth It?

While renting out your primary residence can offer a generous source of income, it also comes with challenges. From privacy concerns to potential wear and tear on the property, hosts should carefully weigh the benefits against the possible disadvantages, as each user case is different. 

Aisling Baile — Calgary’s Expert Short-Term Rental Property Manager

Partnering with Aisling Baile, Calgary's go-to expert in short-term rental property management, you can expect expert insights, streamlined operations, and maximized returns on your investment in Alberta’s competitive market. 

With Aisling Baile at the forefront of your short-term rental, you can sit back, relax, and watch your vacancy fill. 

Need more information on Airbnbing your primary residence or navigating the legal and regulatory landscape?

Contact us