Owners of short-term rentals in Halifax's residential areas face new restrictions

Halifax's new rules for short-term rentals are now in full force, restricting how they can operate in residential neighbourhoods in the hopes of freeing up housing stock.

But the city's tactic of making different rules for various types of zoning is getting mixed reactions.

The vast majority of short-term rentals like Airbnbs in Halifax are entire homes, such as houses or apartments. 

According to the data analysis platform AirDNA, 1,937 listings out of the municipality's 2,418 active rentals as of Friday were for entire homes. The remaining 481 were private rooms.

As of Sept. 1, both entire-unit rentals and bedroom rentals are only allowed in residential zones if they're within the owner's primary residence. Renting out the whole home is allowed when the owner is away. Basement apartments or backyard suites must now be rented out for more than 28 days.

Short-term rentals are still allowed in commercial or mixed-use zones where most hotels are located.

Brendan Smith of Dartmouth lives in a residentially zoned triplex where he's the only long-term tenant between two Airbnbs. Those units will have to change under the new rules, "and that's going to be awesome," he said.

"Every unit we can get, we need right now," he said.

Although Smith and other members of the advocacy group Neighbours Speak Up hope to see the owner-occupied rule applied everywhere in Halifax, Smith said this is a good first step.

To owners concerned about losing money over the regulations, Smith said rules to limit Airbnbs and other vacation rentals have been steadily introduced in cities around the world. Owners knew changes were coming when Halifax council directed staff in 2020 to look at making specific bylaw changes.

Since Halifax real estate prices have gone up dramatically in the last few years, Smith said owners who feel they have to sell will likely make a profit. 

"I find it hard to believe that anybody will be put out by these regulations, and if they are, it's just because they didn't do their homework and that's kind of on them," Smith said.

Coun. Shawn Cleary voted against the rules, and said he's heard a lot of confusion from residents because of Halifax's patchwork of zoning. 

"You could have the same neighbourhood: one side of the street would allow it, the other side your neighbour could, you wouldn't," Cleary said.