Calgary stands out among major Canadian cities for one key reason: investment properties are allowed. Unlike Toronto, Mississauga, and most GTA cities that restrict Airbnb to your principal residence, Calgary permits both primary and non-primary residence short-term rentals.
In December 2024, Calgary City Council approved significant amendments to the Business Licence Bylaw. These changes took effect April 1, 2025, expanding the STR definition to 180 days and adding new license categories. Here's the complete guide.
What Counts as a Short-Term Rental?
Calgary's April 2025 amendments expanded the definition significantly:
"Short Term Rental means the business of providing temporary accommodation for compensation, in a dwelling unit or portion of a dwelling unit, for periods of up to 180 consecutive days, by advertising or otherwise listing with a Short Term Rental Company." Calgary Business Licence Bylaw 32M98 § 58.1(1)
Key points to understand:
- 180 consecutive days maximum: Any single stay can be up to 180 days
- Listed through platforms: Must be advertised via Airbnb, VRBO, or similar platforms
- Compensation required: Free stays to friends aren't regulated
Primary vs Non-Primary Residence
This is where Calgary differs dramatically from Ontario cities. Calgary has two distinct license categories:
"'Primary Residence' means the usual dwelling unit, including any suite thereof, where an individual lives, makes their home and conducts their daily affairs." Calgary Business Licence Bylaw 32M98 § 58.1(3.1)(a)
Why This Matters for Investors
In Toronto, Mississauga, Brampton, and most GTA cities, you can only STR your principal residence. Investment properties are not allowed.
Calgary allows investment property STRs, making it one of the more flexible major Canadian markets for Airbnb investors.
License Application Requirements
Calgary requires a business license for all short-term rentals. Here's what you need:
Documentation Checklist
- Fire Safety Plan including:
- Evacuation plan
- Floor plan showing egress from rental rooms
- All rooms offered for sleeping (bedrooms, living rooms with sofa beds)
- Location of smoke alarms, CO detectors, fire extinguishers
- Fire exit locations
- Room and floor dimensions
- Proof of ownership or owner consent (validated through title search)
- $2M liability insurance from a registered Alberta insurer
- Primary Residence proof (if applying for Primary Residence license)
The Vacancy Rate Moratorium
Calgary introduced a mechanism to protect housing supply:
"No Non-Primary Residence Short Term Rental licence shall be issued if the Purpose-Built Rental Market vacancy rate in Calgary, as shown in the annual Canada Mortgage and Housing Corporation Rental Market Report, is less than 2.5%." Calgary Business Licence Bylaw 32M98 § 58.1(3.2)
Current Status: No Moratorium in Effect
As of the latest CMHC report, Calgary's Purpose-Built Rental vacancy rate is 4.8%, well above the 2.5% threshold. New Non-Primary Residence applications are currently being accepted. However, if the vacancy rate drops below 2.5% in future reports, the City will pause new non-primary license applications.
Important exceptions to the moratorium:
- Existing licensees can renew: If you already hold a license for a property, you can continue renewing even during a moratorium
- Primary Residence unaffected: The moratorium only applies to new Non-Primary Residence applications
Fire Safety Requirements
Calgary takes fire safety seriously. Key requirements:
Egress Windows
"A Short Term Rental licensee must not: (a) offer to provide temporary accommodation; or (b) permit a guest to sleep; in a room that does not have one or more windows which provide egress to the exterior of the dwelling unit." Calgary Business Licence Bylaw 32M98 § 58.1(4)
Exception: Multi-storied buildings like apartment buildings and apartment-style condos have existing fire safety standards and don't require egress windows in the same way. They're regulated under Fire Codes and Standards.
Annual Fire Inspections
The Calgary Fire Department may conduct annual fire inspections to ensure compliance with life safety requirements. This isn't guaranteed for every property, but you should be prepared.
Insurance Requirements
Calgary mandates substantial coverage:
- $2,000,000 minimum liability coverage
- Must indicate STR use: Policy must explicitly state coverage for home sharing or short-term rentals
- Alberta-registered insurer: Must be issued by a registered insurer in Alberta
- License holder = policy holder: If you're a property management company, you need your own liability insurance
Standard homeowner's insurance typically excludes STR activity. You'll need specialized coverage or an endorsement.
Operating Rules
Once licensed, Calgary hosts must follow these operational requirements:
Maximum Occupancy
"A Short Term Rental licensee must not allow more than two guests, not including minors under the age of 12, per room." Calgary Business Licence Bylaw 32M98 § 58.1(5)
No Overlapping Bookings
"A Short Term Rental licensee must not allow overlapping bookings, whereby 2 or more unrelated or unassociated persons are accommodated in the dwelling unit at the same time." Calgary Business Licence Bylaw 32M98 § 58.1(6)
This means you can rent multiple rooms to one booking party, but you cannot rent separate rooms to separate guest groups under different reservations simultaneously.
Advertising Requirements
Your business license number must appear in all advertisements for your STR. This applies to Airbnb listings, VRBO listings, your own website, and any other marketing.
Emergency Contact
You must post in a conspicuous location inside the rental:
- Name of emergency contact
- Phone number (available 24/7 during rental periods)
- Email address
- The floor plan submitted with your application
Guest Records
You must maintain records in English (electronic form is acceptable) including:
- Full name of each paid guest
- Email address
- Duration of stay
These records must be provided to a License Inspector upon demand.
Fines and Penalties
Calgary can impose $1,000 fines for each of the following offenses upon conviction:
| Offense | Bylaw Section |
|---|---|
| Offer a room without an egress window | 58.1(4)(a) |
| Permit guests to sleep in a room without egress window | 58.1(4)(b) |
| Allow more than 2 adults per room | 58.1(5) |
| Overlapping bookings | 58.1(6) |
| Fail to include license number on advertisement | 58.1(7) |
| Fail to post emergency contact information | 58.1(8) |
| Fail to keep guest records | 58.1(9) |
| Fail to provide records on demand | 58.1(10) |
License Denial or Revocation
"The Director may refuse to issue a Short Term Rental licence, or may revoke or refuse to renew such a licence, where the applicant or licensee has operated the property... in a manner that causes or permits a nuisance or is reasonably likely to disturb the peace of any other individual." Calgary Business Licence Bylaw 32M98 § 58.1(11)
A "nuisance" is defined as any action or behaviour contrary to Calgary's Community Standards Bylaw 5M2004.
Condo Considerations
Important change as of April 1, 2025:
Condo Board Consent No Longer Required by City
The City of Calgary no longer requires you to submit condo board consent with your license application. However, you must still comply with your condo's bylaws.
If your condo corporation prohibits short-term rentals, you cannot operate one. The City's license doesn't override private condo rules. Check your condo documents before applying.
Staying Compliant in Calgary
Here's how to maintain your license and avoid fines:
- Create a professional floor plan. The Director can reject unclear or poorly labeled plans. Include all required elements: egress routes, smoke alarms, CO detectors, fire extinguishers, exits, and room dimensions.
- Get proper insurance upfront. Don't assume your homeowner's policy covers STR activity. Get explicit STR coverage from an Alberta-registered insurer with $2M liability.
- Display your license number everywhere. Every listing, every platform, every ad. Missing this is an easy $1,000 fine.
- Post emergency contact info visibly. Include your floor plan on display in the unit. Guests and inspectors should be able to find it easily.
- Keep meticulous guest records. Name, email, dates. Store electronically. Have them ready for inspector requests.
- Never overbook. One booking party at a time. No renting separate rooms to separate guests under different reservations.
- Check condo rules first. Even without City-required consent, your condo can still ban STRs.
- Monitor the vacancy rate. If CMHC reports Calgary's vacancy rate drops below 2.5%, new Non-Primary Residence licenses will be paused.
Official City of Calgary Resources
Always verify current rules with official sources:
Official Links
Common Questions From Calgary Hosts
Can I Airbnb an investment property in Calgary?
Yes. Unlike most GTA cities, Calgary allows both primary and non-primary residence short-term rentals. You can operate an Airbnb on an investment property as long as you get the appropriate Non-Primary Residence STR license. However, if Calgary's rental vacancy rate drops below 2.5%, the City may pause new non-primary license applications.
What is the maximum stay length in Calgary?
Calgary defines short-term rentals as stays up to 180 consecutive days. This was expanded in April 2025 to capture the medium-term rental market. If a guest stays longer than 180 days, it's considered a long-term rental with different rules.
How much does a Calgary STR license cost?
License fees vary. Contact the City of Calgary Licensing department for current rates. Platform companies like Airbnb and VRBO must pay $3,000/year for their own license. Individual host license fees are separate and lower.
Do I need condo board approval?
As of April 1, 2025, the City no longer requires you to submit condo board consent with your license application. However, you must still comply with your condo's bylaws. If your condo prohibits STRs, you cannot operate one regardless of having a City license.
What insurance do I need?
You need $2 million liability insurance from a registered Alberta insurer. The policy must explicitly indicate coverage for home sharing or short-term rentals. Standard homeowner's insurance won't suffice. The license holder must be the policy holder.
What's the maximum occupancy?
Calgary limits occupancy to 2 guests per room, not counting children under 12. You also cannot have overlapping bookings where different guests stay in separate rooms at the same time under separate reservations.
Do I need to display my license number?
Yes. Your business license number must appear in all advertising for your short-term rental. Failing to include it can result in a $1,000 fine.
What are the fire safety requirements?
You must submit a fire safety plan with your application including an evacuation plan, floor plan showing egress, bedroom locations, smoke alarms, CO detectors, fire extinguishers, and exits. Rooms without egress windows cannot be rented. The Calgary Fire Department may conduct annual inspections.
What records do I need to keep?
You must keep guest records in English (electronic form acceptable) including each guest's full name, email address, and duration of stay. These records must be provided to a License Inspector upon demand.
What happens if the vacancy rate drops?
If Calgary's Purpose-Built Rental vacancy rate (per CMHC) falls below 2.5%, the City will pause new Non-Primary Residence license applications. Existing licenses can still renew, and Primary Residence applications remain unaffected. Currently, the vacancy rate is 4.8%, so no moratorium is in effect.
This article is for informational purposes only and does not constitute legal advice. Bylaw and regulation details change frequently. Always verify current rules directly with your local municipality before making hosting decisions.
Need Help With Your Calgary Airbnb?
Whether you're setting up a primary residence STR or managing an investment property, getting licensed and staying compliant is key to long-term success. Have questions about Calgary's regulations? We're happy to help point you in the right direction.
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