Understanding Bill 35 and Vancouver’s New Short‑Term Rental Rules

Starting May 1, 2024, British Columbia is tightening rules on short‑term rentals. As a Vancouver Realtor, I already see how these changes affect Vancouver real estate, Greater Vancouver investors, and owners of Vancouver condos and stratified properties.

If you own a home, condo, or investment property in West Vancouver, North Vancouver, or any of the core Vancouver neighbourhoods, Bill 35 matters to you.

What Bill 35 Does in Simple Terms

Under Bill 35, most short‑term rentals in B.C. are limited to:

• Your principal residence, and
• One secondary suite or accessory dwelling unit on the same property

Short‑term rental means stays under 90 days. That covers listings on platforms like Airbnb, VRBO, Expedia, and FlipKey.

In many cases, you can no longer run multiple furnished short‑term rental units as pure investment properties. The focus is on operators with several units, not homeowners who share a primary residence with an extra suite.

The principal residence requirement began on May 1, 2024 in designated areas of the province, which include much of Greater Vancouver.

How This Affects Vancouver Owners and Investors

Principal residence rules in Vancouver and the North Shore

If I own a home in Vancouver, West Vancouver, or North Vancouver, the core idea is simple:

• I can offer short‑term rentals in my principal residence, plus
• One legally permitted secondary suite or laneway home on the same property

If I hold a separate condo or house strictly as an Airbnb investment, Bill 35 will likely restrict me from renting that property for less than 90 days at a time. That pushes many owners toward:

• Long‑term tenancies, or
• Selling and repositioning capital into other Vancouver homes for sale or different markets

For many condo investors, this is a major shift.

Impact on Vancouver Condos and Strata Properties

Strata corporations already have strong powers to regulate or ban short‑term rentals. Bill 35 sits on top of those bylaws rather than replacing them.

If I own a Vancouver condo, I now have to consider:

• Provincial rules under Bill 35
• Municipal rules for my city, such as Vancouver, Burnaby, or Richmond
• My building’s own strata bylaws

Many strata councils in Greater Vancouver already prohibit short‑term rentals or restrict them to principal residences. Recent tribunal decisions have shown that owners who ignore these bylaws can face significant fines and legal costs.

For condo buyers, this means I need to be clear on my plans. If I want flexibility for rental or future resale, I have to review:

• Strata bylaws and rules
• Current short‑term rental policies
• Any ongoing disputes in the building related to rentals

When I review Vancouver homes for sale, especially condos and townhomes, I always look at how rental rules might affect value, liquidity, and long‑term strategy.

Zoning Changes Coming in 2025

Starting January 2025, the Province will require many municipalities to update zoning to allow more small‑scale multi‑unit housing. The goal is to support forms like:

• Townhomes
• Multiplex homes
• Laneway houses and coach houses

For Vancouver neighbourhoods, this shift could:

• Add more gentle density on single‑family lots
• Change what is possible on existing properties over time
• Create new choices for buyers who feel priced out of detached luxury real estate

If I am a homeowner in areas like Kerrisdale, Dunbar, Kitsilano, or parts of East Vancouver, future zoning may open up different build or redevelopment options on my lot. That has a direct impact on long‑term value and the best time to sell.

What This Means for Vancouver Real Estate Strategy

For investors

If I relied on short‑term rental income from several units, Bill 35 can change my entire business model. I may need to:

• Shift to long‑term rentals with 1‑year leases
• Reposition some properties as furnished mid‑term rentals of over 90 days
• Rebalance my portfolio and consider selling units that no longer fit my plan

Vancouver real estate is already supply‑constrained, and these rules may push more units into the long‑term rental pool or back onto the resale market. That can influence prices, rental rates, and bidding wars in certain Vancouver neighbourhoods.

For end‑users and move‑up buyers

For buyers who want to live in the home, Bill 35 can actually help. Fewer pure Airbnb buildings and more true residential stock often mean:

• More stable strata communities
• Less hotel‑style turnover in condo hallways
• Stronger appeal for families and long‑term residents

If I am shopping for Vancouver condos or townhomes, this environment can support better quality of life and more predictable neighbours.

How This Ties Into Offers, Bidding Wars, and Taxes

In a competitive market like Greater Vancouver, regulation changes can trigger quick shifts in pricing and demand. As zoning and short‑term rental rules tighten, some owners may rush to list, which affects timing and strategy for:

• Subject clauses and the rescission period
• How aggressively to price a listing
• Whether to expect multiple offers or softer activity

I also have to keep other B.C. rules in mind, such as:

• The rescission period on residential purchases, which gives buyers a short window to change their mind,
• Property transfer tax (BC), which still applies on most residential deals and can be significant on luxury real estate in areas like West Vancouver and Shaughnessy

The right approach to pricing, subjects, and deposit structure can reduce risk and still keep me competitive in bidding wars.

(Always confirm tax and legal questions with a qualified accountant, lawyer, or the appropriate government authority.)

Why Staying Informed Matters

Short‑term rental restrictions, zoning changes, and shifting strata rules all feed into real‑time values in Vancouver homes for sale. A policy change can:

• Alter the cash‑flow profile of an investment condo
• Change the future redevelopment upside of a detached lot
• Impact resale demand in certain Vancouver neighbourhoods

I treat every client’s situation as unique. A Kitsilano laneway home owner, a Coal Harbour condo investor, and a family moving up to a luxury West Vancouver property all face different choices, even under the same Bill 35 rules.

Regular, local market update reviews help me stay on top of:

• Which areas are seeing new supply
• Where bidding wars are still common
• How policy changes are affecting actual sold prices, not just list prices

Next Steps If You Own or Plan To Buy in Vancouver

If you already own:

• Review how Bill 35 affects your current or planned short‑term rentals
• Confirm your strata bylaws if you own a condo or townhome
• Reassess whether to hold, rent long‑term, or sell
• Consider timing around upcoming zoning changes

If you are planning to buy:

• Decide if you need rental flexibility or purely end‑user use
• Focus on buildings and neighbourhoods that match that goal
• Look closely at strata minutes, bylaws, and rental history
• Factor in property transfer tax (BC), closing costs, and your risk comfort with the rescission period

Talk Through Your Options

If you own or are considering property in Vancouver, North Vancouver, or West Vancouver and want clear guidance on how Bill 35 and these new rental rules fit into your plan, I am here to help.

You can reach out to request a detailed market evaluation of your home, or book a call to review your goals in the current Vancouver real estate market. Together, we can build a strategy that protects your interests and positions you well in Greater Vancouver’s changing conditions.