BC’s Crackdown on Short-Term Rentals and Airbnb’s Transitional Challenges

Airbnb hosts in British Columbia are facing a turbulent transition period as the province’s new short-term rental rules come into effect. As of June 2025, thousands of Airbnb reservations across BC are at risk of being cancelled due to issues integrating the provincial short-term rental registry with Airbnb’s platform. The company has warned that many listings are being flagged, even if hosts believe they are compliant, because of discrepancies between registry information and listing data such as unit number, postal code, or property type.

Airbnb has begun proactively cancelling bookings that may be non-compliant, citing “technical issues” and overly strict enforcement protocols as key concerns. According to Alex Howell, Airbnb’s Canadian policy lead, the rollout is ‘rushed’ and creating a serious risk of income loss for short-term rental operators and potential disruption to BC’s domestic travel economy. The B.C. government, however, has pushed back on these claims, noting that other short-term rental platforms have successfully implemented the new rules without similar disruptions.

With the enforcement deadlines fast approaching, real estate investors operating short-term rentals in BC need to act to avoid penalties, booking cancellations, and delistings. 

New Short-Term Rental Registry and Fee Structure

The centrepiece of BC’s new short-term rental legislation is a provincial registry, mandated under the Short-Term Rental Accommodations Act (Bill 35). Since May 1, 2025, all short-term rental listings across platforms like Airbnb, VRBO, and others must display a valid provincial registration number. The goal of the registry is to improve enforcement of local housing rules and curb the use of investment properties as year-round short-term rentals—an issue that the BC government says has contributed to the province’s housing shortage.

In order to be issued a registration number, hosts must demonstrate compliance with municipal bylaws and meet new provincial standards, including restrictions limiting rentals to the host’s principal residence in many communities. Registered listings are subject to annual fees: $100 for a room or unit in a principal residence, $450 for secondary properties such as vacation homes or laneway houses, and $600 for full strata hotel units. A small processing fee also applies. Early registration discounts were offered through March 2025 but are no longer available.

Enforcement Deadlines and Penalties

The phased enforcement schedule gives hosts a limited time to become compliant. Starting June 2, 2025, listings without a valid registration number are to be removed from short-term rental platforms. By June 23, any remaining reservations associated with unregistered listings must be cancelled. Airbnb has already begun flagging and removing some listings ahead of these deadlines, citing the need to avoid last-minute guest disruptions.

This has created widespread uncertainty, even among hosts who believe they’ve followed all the steps. Airbnb claims its systems are rejecting valid listings due to minor inconsistencies between platform and registry information. Hosts who entered the wrong unit number or a slightly different postal code, or who selected the wrong property type (e.g., “suite” instead of “basement apartment”), are being penalized. Airbnb has called on the province to delay enforcement and provide more flexibility, but the government has indicated it will stick to the current timeline.

Implications

For investors with short-term rental holdings in BC, these new rules present both operational challenges and broader market implications.

The first priority is compliance. Any investor relying on short-term rental income must ensure that their properties are registered, that listings include the correct registry number, and that all associated details match what was submitted to the province. Mismatches, even unintentional, could result in automatic delisting or cancelled reservations. Airbnb’s support channels are overwhelmed, so hosts are advised to review their own listings carefully and make manual corrections where possible.

The new fee structure also introduces additional carrying costs, particularly for investors managing multiple units or operating full-time short-term rentals outside their principal residence. Three secondary suites, for example, would incur $1,350 in annual registry fees before factoring in local licensing and tax obligations. These costs should be included in income projections and cash flow models moving forward.

Shifting Market Dynamics

The government’s goal is to reduce the number of non-principal-residence listings and return those units to the long-term rental market. Early indicators suggest this may already be happening, as the number of active short-term rentals has dropped by 15.8% since the restrictions came into effect.

If this trend continues, it could lead to tighter supply in the short-term rental market, boosting occupancy rates and average daily rates (ADR) for remaining legal listings. In high-demand tourist areas where supply contracts, compliant investors may benefit from stronger pricing power and reduced competition, especially during peak travel seasons.

However, the transition period may lead to concerns for some, with revenue losses from cancellations, costs of legal restructuring, and the practicalities of bringing properties into compliance.

British Columbia’s new short-term rental rules introduce a more regulated environment that will require investors to take a more active and detail-oriented approach. While short-term rentals are still a viable income stream, the landscape is shifting. Regulatory compliance, accurate listing information, and close monitoring of platform requirements are now essential.

These changes may reduce some of the more speculative activity in the sector and could prompt a shift toward more structured, professionally managed operations. For investors who are able to adapt, maintain compliant listings, and manage the additional administrative demands, there may still be opportunities, especially if overall rental supply declines in the short term.