Renting Out Property in Nanaimo, BC: A Landlord's Guide to Local Rules

Overview

Renting out property in Nanaimo is mostly governed by provincial law: a residential tenancy follows BC's Residential Tenancy Act. The City of Nanaimo's own licensing focuses on short-term rentals, which are allowed only inside the operator's primary residence, secondary suite or carriage house, and only with a city business licence and a parking plan.

Key Points

What is a short-term rental in Nanaimo?

The city's short-term rentals page defines it as renting accommodation within the operator's primary residence, secondary suite or carriage house for less than 30 consecutive days. Limits:

• no more than four adult guests;
• no more than two guest bedrooms;
• a business licence of $165 a year, pro-rated quarterly in the first year and renewed by December 31;
• a parking plan: one off-street space per guest booking on top of the home's own requirement, with no guest parking on the street.

The city's own example: a house with a secondary suite that rents one room in the main home short-term needs four off-street spaces.

Working out your parking requirement

The figures come from the Off-Street Parking Regulations Bylaw, as the city's page sets them out:

So a house with a secondary suite renting a room in the main home needs 2 + 1 + 1 = 4 spaces, while using a one-bedroom suite as the short-term rental needs 3. The operator's guidebook adds that the city looks at the property's whole parking capacity, so a suite rented to a long-term tenant or a home business with visiting clients raises the count.

What about stratas and refusals?

Short-term rentals are allowed in a strata only where its bylaws permit them, and the application needs a Strata Authorization Form signed by the strata president or council. If the city refuses a licence, section 12 of the Business Licence Bylaw lets you ask Council to reconsider. Provincially, Nanaimo is on the list of communities where the principal residence requirement applies; see how that rule works and the host registry.

What the city's operator guidebook adds

Nanaimo's Short-Term Rental Operator's Guidebook (updated May 2025) answers most of the questions hosts ask:

• Primary residence means where you live more than anywhere else, and for at least eight months a calendar year. Proof is a valid BC driver's licence or BC Services Card plus one document such as a property tax notice, BC Assessment notice, utility bill or bank statement, all at the rental's address; an interim driver's licence is not accepted.
• One short-term rental per property, either in the main dwelling or in the suite, never a room in each.
• The four-guest cap counts adults aged 19 or older; children are not included.
• Whole-home rentals of your primary residence are allowed while you are away, up to a cumulative four months a calendar year.
• Tenants can operate one with the owner's written consent; where that is not possible, consent from a property manager or a tenancy agreement that permits it will be considered.
• A separate licence is needed even if you already hold a home-based business licence.
• Not allowed: renting out a recreational vehicle on a residential lot, or the other side of a duplex you own but do not live in.
• Legal suites only: no inspection is required, but the space must have been built or upgraded under a building permit; a suite installed without one is illegal and not suitable.
• Tax: the province collects the 3% municipal and regional district tax on online short-term accommodation, and Nanaimo uses its share to support affordable housing.

Bylaws your guests must follow

The guidebook says operators are responsible for making guests aware of city bylaws. Under the Noise Control Bylaw, noise clearly audible at a residential point of reception between 11:00 pm and 9:00 am is an offence. On-street parking rules bar parking in front of or within 2 m of a driveway, within 5 m of a fire hydrant, or for more than 24 hours. Dogs must be leashed and under control outside a fenced yard or off-leash park. The city also recommends posting a fire exit plan on every floor, testing smoke and carbon monoxide alarms and extinguishers annually, keeping two unobstructed exits, and posting a 24-hour emergency contact.

What does BC law require for a long-term tenant?

Inspect the unit with the tenant at move-in and record it on a condition inspection report; skipping it can cost a landlord the right to claim against the deposit for damage. The deposit itself is limited to half of one month's rent (see BC deposits). Annual increases are limited to 2.2% for 2027, and a tenancy ends only on a ground the Act allows (see every way a tenancy can end).

Two more dates to diarize: the tenant must receive a copy of the signed tenancy agreement within 21 days (RTA s.13(3)), and when the tenancy ends you have 15 days from the later of the end date and receiving the forwarding address in writing to repay the deposit or apply to keep some of it (s.38).

Action Steps

1. Decide whether you are offering stays under 30 days or a long-term tenancy.
2. For short stays, apply for the city licence with your parking plan, and register with the province.
3. For long-term tenants, do and record the move-in inspection.
4. Questions on licensing go to the city's Business Licensing team at 250-755-4482.

Frequently asked questions

Do I need a city licence to rent for 30 days or more?

Not a short-term rental licence. The guidebook notes that other rules may still apply: vacation rentals are generally exempt from the Residential Tenancy Act, but tenancy law can apply in some situations, and an ordinary residential tenancy is covered by it.

I run a licensed home daycare. Can I also host short-term guests?

Only under strict conditions: the guidebook says rental hours must be well outside the daycare's operating hours and a criminal record check is needed for every guest.

Why does Nanaimo license short-term rentals at all?

The city links it to its 2018 Affordable Housing Strategy, which made limiting the effect of short-term rentals on long-term rental supply a top priority.