Canmore Airbnb Rules in 2025: What Hosts Need to Know

If you're considering listing your property on Airbnb or VRBO in Canmore, Alberta, it's essential to understand the Town’s updated short-term rental rules, designed to balance tourism growth with housing availability. These regulations are part of Canmore’s 2025 policy framework.

Is Airbnb Illegal in Banff?

Yes, Banff enforces strict zoning that broadly prohibits short-term rentals, except for approved, owner-occupied bed and breakfasts (Banff regulations). Canmore, by contrast, allows STRs, but only in certain specified zones.

Are Short-Term Rentals Allowed in Canmore?

Yes, but only in properties with approved zoning, specifically those designated as Tourist Home or Hotel Condominium.

In all other zones, including most residential neighbourhoods, short-term stays under 30 days are prohibited. This zoning restriction is strictly enforced by the Town of Canmore, with no new STR zones being approved as of 2025. (Canmore zoning rules).

Before purchasing or converting a property for short-term rental use, we recommend confirming its zoning with the Town's Planning & Development office or speaking with a local real estate advisor.

What Are the Canmore Airbnb Rules?

Operating an STR legally in Canmore requires both a valid development permit and a business license for each unit. These must be secured before listing the property on any booking platform. (Town licensing guide)

In 2025, all Airbnb and VRBO listings must also clearly display the property's business license number, both online and on-site.

Properties without these credentials — even if zoned correctly — risk being fined or delisted. If you're unsure whether your existing property qualifies, we cover these requirements in more detail in our Canmore STR startup guide.

What Areas of Canmore Are Zoned for Short-Term Rentals?

Two main zones permit short-term rentals:

• Tourist Home zoning: Offers the flexibility to live in or rent out the property. However, these homes are taxed at about three times the residential rate, and in 2025, the personal-use subclass (which reduced the tax burden for primary residences) was eliminated.

• Visitor Accommodation (Hotel Condominium) zoning: Tailored exclusively for short-term occupancy. These units are treated as commercial lodging and cannot be used as primary residences.

  
  

For help finding properties within these zones, consult with a Canmore vacation rental property management company

2025 Zoning and Tax Changes You Should Know

Several key changes took effect this year:

• The Tourist Home subclass tax exemption was removed. All tourist homes now pay the full commercial tax rate, regardless of whether the property is your primary residence.

• No new Tourist Home zoning is being approved. Existing ones are grandfathered, and owners have the option to convert them back to residential use, but this decision is permanent and only available until the end of 2026.

• The Town has increased enforcement efforts, supported by federal funding. This includes hiring new staff and issuing penalties for unlicensed listings.

If you're planning to buy or convert a property, these updates could impact your financial outlook.

Licensing Requirements for Short-Term Rentals in Canmore

Each unit that you plan to rent short-term must have its business license. That applies even if you're renting multiple units in the same building.

Property managers also need a license that covers all units they oversee.

Additionally, hosts must post the license number both in the listing description and on the property itself.

Failing to meet these conditions can result in penalties and removal from rental platforms.

How to Start a Legal Short-Term Rental Business in Canmore

To go live legally:

1. Confirm your property's zoning qualifies (Tourist Home or Visitor Accommodation).

2. Apply for a development permit.

3. Obtain a business license for each unit (plus a management license if applicable).

4. Display your license number in all marketing and on the site.

5. Ensure compliance with safety standards, insurance, and tax obligations (like the Alberta Tourism Levy and GST).

Working with a local short-term rental specialist, such as Kyan Properties, makes this process smooth, compliant, and performance-driven.

What Happens If You Break the Rules?

Violating Canmore's short-term rental rules can have serious consequences.

• First-time offenders may face a $2,500 fine.

• Repeat violations can increase penalties to $5,000 or more.

• Illegal rentals may also face license revocation, potential issues with the CRA (such as disallowed expense deductions), and insurance claims being denied.

To avoid costly mistakes, consider working with a local STR property expert who understands Canmore's legal framework.

Final Thoughts: What Every Airbnb Host in Canmore Needs to Know

Whether you already own a property or are thinking about investing in one, your ability to host short-term guests in Canmore depends on zoning and compliance.

If your property is zoned as a Tourist Home, you're allowed to live there and operate short-term rentals, but you'll face a higher commercial tax rate. These properties require both a development permit and an individual business license for short-term rental use. In 2025, the Town removed the primary residence tax discount, so all Tourist Homes are now taxed equally.

For Hotel Condominium or Visitor Accommodation zones, the property must be used exclusively as a short-term rental — full-time living isn't allowed. These also require permits and business licenses, and are typically taxed at commercial rates.

Residentially zoned homes, on the other hand, cannot legally be used for short-term rentals. Any stays must be 30 days or longer, and no business license will be granted for STR use in these zones.

Understanding the details — from zoning to taxation — is critical before buying or listing a Canmore property. Compliance isn't just a formality; it's what keeps your business legal, insurable, and profitable.