Airbnbs are legal in Calgary, but licensing requirements and regulations govern them. If you are thinking about renting out a spare bedroom for some extra cash, turning your cottage into an Airbnb, or exploring short-term rental opportunities as an investor, understanding Calgary’s licensing requirements and regulations will give you a clearer picture of your rights, responsibilities, and what you need to do to operate a short-term rental legally.

Is Airbnb Legal in Calgary Right Now?

Yes, Airbnb is legal in Calgary if you have a short-term rental license and comply with the City’s short-term rental licensing and safety rules. Failure to do so can lead to fines, refusal of a licence in the future, and enforcement actions by city officials.

In practical terms, a “legal Airbnb” means three things:

1. You hold a valid City of Calgary short-term rental business licence and comply with its conditions.
2. Your condo corporation, landlord, or lease allows short-term use (where applicable).
3. You carry proper insurance and meet tax obligations, including property tax implications for commercial-style use.

Calgary defines short-term rentals as stays of up to 180 days. Anything exceeding that is generally governed by Alberta’s Residential Tenancies Act, not the short-term rental license rules.

These Airbnb regulations apply regardless of platform and also include Vrbo, Booking.com, or direct bookings. As long as the stay is advertised as temporary accommodation and lasts 180 days or fewer, then you need to comply.

Primary vs. Non-Primary Residence Licences

Calgary allows both primary residences and investment properties as short-term rentals. In December 2024, Calgary city council approved a two-tier short-term licensing system replacing the older room-based categories. The new license categories distinguish between a host’s primary residence and a non-primary residence.

For your property to be considered a primary residence, it must be where you normally live, receive bills and file taxes. The new license fee, as of the date of this article, is $172.

A secondary residence is any property that is a second home, a vacant unit used mainly for rental income, or an investment property. The new licence fee, as of the date of this article, is $510.

A fire inspection is required for both categories within the short-term licensing system. Annual inspections are especially common for non-primary residence listings or in response to complaints. Failure to meet fire safety standards can result in fines, licence suspension, and civil liability if an incident occurs.

Misclassifying a property such as claiming a non-primary residence as your primary residence, can constitute a false declaration and lead to licence revocation. The City may require proof of address through bills, a title search, or tax filings for primary residence applications.

For people who are thinking about applying with a secondary residence, it’s also important to keep in mind the moratorium mechanism. It works like this: if Calgary’s purpose-built rental vacancy rate (as measured by CMHC) falls below approximately 2.5%, the City may pause issuing new non-primary residence licenses, helping to protect housing availability during tight markets. This will not affect current licence holders.

Licence Requirements for Calgary Airbnbs

Before listing or hosting, all short-term rental hosts must obtain a short-term rental business license. Here is what the application requires:

• Online application: submit it through the City portal, including a declaration of primary vs. non-primary residence status.
• Proof of ownership or owner consent: if you are not the registered owner, you need written authorization. Property ownership documentation, such as a land title, is typically required.
• Fire safety plan: a floor plan showing all rental rooms, sleeping areas, accessible rooms, living rooms, exits, smoke alarms, carbon monoxide detectors, fire extinguishers, and egress windows.
• Liability insurance: at least $2 million from a registered insurer, specifically covering short-term rental or home-sharing activity. Standard homeowner policies often exclude commercial guest stays.
• Affordable housing check: properties designated as affordable housing units under City programs are ineligible for a short-term rental license.

Before submitting your application, condo owners should review their condominium bylaws carefully. Hosts are responsible for ensuring their rental unit adheres to condo or HOA rules. Some Calgary condo boards allow Airbnbs with conditions; others prohibit short-term rentals outright. As of April 1, 2025, the City no longer requires proof of condo board consent to issue a licence, but owners must still comply with condo corporation bylaws or face private enforcement.

Secondary and backyard suites must also be registered with the City as legal secondary suites before they can be licensed as short-term rental properties. They must meet the same safety standards as long-term suites, such as separate entrances, egress windows, smoke alarms, and adequate ventilation.

Operating Rules

Getting a short-term rental licence is only the first step. Once you’re licensed, there are ongoing rules you must follow to remain compliant. If you hire a property management company to handle bookings or manage the property, these requirements still apply and must be followed.

• No overlapping bookings: A short-term rental can only host one booking party at a time. You cannot rent separate bedrooms to different groups of guests under separate reservations at the same time. In other words, a licensed short-term rental cannot operate like a hostel or rooming house.
• Multiple rooms for one group: You may rent multiple bedrooms within the same property to a single booking party under one reservation. However, guests from different bookings cannot occupy the property simultaneously.
• Emergency contact information: You must provide guests with emergency contact information and post it in a visible location inside the rental. The contact information must be available 24 hours a day, 7 days a week while guests are staying at the property.
• Guest records: Short-term rental operators must maintain guest records in English and in electronic format. These records should include the paying guest’s full name, email address, and the dates of their stay. The City may request these records during an inspection or investigation.
• Maximum occupancy limits: Short-term rentals must comply with Calgary’s occupancy requirements. Occupancy is limited to two adults per room, excluding children under 12.
• Be a good neighbor: Property owners are responsible for ensuring their rental does not create ongoing issues for neighbors. Excessive noise, parking problems, garbage complaints, or other disturbances can lead to enforcement action by the City. Repeated complaints may affect your ability to renew your licence and, in serious cases, could result in a licence suspension or revocation.
• Business licence number on listings: Once your short-term rental licence has been approved, your City of Calgary licence number must be displayed on all advertisements and online listings, including Airbnb, Vrbo, Booking.com, and any personal or business websites used to market the property. Advertising a short-term rental without a valid licence number is itself a bylaw violation, even if the property is otherwise licensed.
• Tax filings: Income earned from Airbnb must be reported on Canadian tax returns.

Calgary enforces its short-term rental rules through inspections, complaints, and data from platforms, and fines can reach up to $1,000 per offence upon conviction. Repeat or serious non-compliance may result in licence suspension, non-renewal, or permanent revocation.

How Calgary City Council Has Been Changing Airbnb Rules

Calgary first introduced short-term rental licensing in January 2020. Since then, city council has steadily tightened the framework. The December 17, 2024 amendments, which came into effect April 1, 2026, represent the most significant overhaul to date.

Key updates include:

• Introduction of primary vs. non-primary residence licence categories with revised fees
• Expansion of the short-term rental definition to 180 consecutive days
• A moratorium tool tied to the vacancy rate to protect housing affordability
• A ban on licences for affordable housing units
• Requiring platforms themselves to hold a business licence, increasing system-wide accountability and supporting economic growth in Calgary’s hospitality sector

These changes aim to ensure compliance across the short-term rental market while balancing the interests of hosts, neighbors, and the broader housing supply.

Calgary Business Support

As a Calgary law firm, we regularly assist property owners, investors, and business owners with a wide range of legal matters, including real estate transactions, business formation and operations, regulatory compliance, business contract review, and licensing requirements. If you’re considering operating a short-term rental or have questions about Calgary’s evolving regulations, our team can provide practical advice tailored to your situation. Contact us today to discuss your goals and learn how we can help.

The content of this article is intended to provide a general guide to the subject matter and should not be considered legal or other professional advice. To get detailed information regarding your specific circumstances, please discuss your situation with a lawyer or other professional. Refer to our Legal Notice  for more details.