Thinking about turning your Comox Valley acreage into a short-term rental so it can help pay for itself? You are not alone. Rural STRs are popular, but the rules are not one-size-fits-all and the details can make or break your plan. In this guide, you will learn how jurisdiction, zoning, licensing, servicing, safety, taxes and insurance affect STR feasibility on CVRD rural properties. Let’s dive in.
Start with location and jurisdiction
Where your acreage sits on the map is the first and most important factor. Inside municipal boundaries, the City of Courtenay, Town of Comox and Village of Cumberland set their own zoning, licensing and STR rules. Outside those boundaries, properties fall under the Comox Valley Regional District’s rural electoral areas, which are governed by CVRD bylaws rather than a municipal council.
Even a parcel that is 100 meters inside or outside a boundary can face very different requirements. Confirm the exact jurisdiction using the legal description and PID, tax roll, or an official parcel viewer. If a parcel straddles a boundary or has an unclear address, take extra care to confirm which rules apply before you list.
Understand how zoning affects STRs
Zoning is your next checkpoint. You need to verify what uses are permitted on the property today, not just what has been done in the past. Look for terms like short-term rental, tourist accommodation, guest cottage, bed and breakfast or home occupation in the applicable zoning bylaw and official community plan.
- Some zones allow limited tourist accommodation in the principal home or an accessory suite.
- Some zones treat STRs as a conditional use that needs a permit or variance.
- Other zones prohibit STRs but may allow long-term rental or a bed and breakfast with conditions.
Also check details like maximum guests, number of sleeping rooms, parking requirements and any rules for signage. Each jurisdiction defines these differently.
Licensing and registration requirements
Many local governments require a business licence to operate an STR. Some use a general business licence. Others have a specific STR licence, an annual renewal, or a permit tied to owner-occupancy. If you are in the rural electoral areas, confirm whether CVRD business licensing applies to your parcel and use. If you are inside a municipality, you will apply to that municipality.
Not having the correct licence or permit can lead to enforcement. Confirm the application steps, inspection triggers and renewal timelines before you take bookings.
Building, fire and health safety
Safety rules apply whether you host one suite or multiple units. If you have a separate guest cottage, converted barn, or detached suite, building and fire codes may require inspections, upgrades or a change-of-use permit.
Plan for basics such as smoke alarms, carbon monoxide detectors, emergency egress, posted occupancy limits and fire extinguishers. Work with your local fire protection service and building officials to confirm what is required for your structure and layout. If you plan to serve breakfast or add amenities that involve food handling, Island Health may have additional rules.
Septic and water can be your limiters
On rural acreages, the septic system and water supply often set your capacity. Most septic systems are designed to handle a specific number of bedrooms. High guest turnover or adding more sleeping spaces can push a system beyond its design limits.
Confirm your septic permit, design capacity and current condition. If upgrades are needed, they can be expensive and may require permits and professional design. Do the same diligence for your water source, especially if you are on a private well. Safe drinking water, storage and yield matter when you host transient guests.
Access, parking and guest logistics
Rural access is part of the guest experience and a frequent source of complaints. Narrow driveways, shared access, gates and limited parking can create issues and may even conflict with licence conditions. Make sure emergency vehicles can reach the home and that your civic address is easy to find. Create a clear parking and quiet-hours plan to reduce noise, traffic and garbage concerns.
Insurance and liability
Standard homeowner insurance usually excludes commercial STR use. You will need an STR or commercial endorsement, or a separate policy. Confirm liability limits that match your risk profile, especially if your property has features like wood stoves, hot tubs, pools or rustic terrain.
Do this before you list. If a claim arises and your insurer did not agree to STR use, coverage can be denied.
Taxes and remittances
STR income is taxable. Plan to report it for federal income tax and understand when GST or HST rules may apply based on your revenue and activities. In British Columbia, provincial sales tax can apply to short-term accommodation. Some areas also participate in a Municipal and Regional District Tax, often called a tourism or hotel tax. Whether it applies depends on your location and designation.
Confirm current obligations with tax authorities before you accept reservations so you can register and set up collection if needed.
Title, covenants and strata rules
Most large acreages are not part of a strata, but some rural subdivisions are. Strata bylaws may prohibit STRs. Title restrictions such as covenants or easements can also limit use, including tourist accommodation. In certain cases, Crown or forest tenure can affect what is allowed.
Order and review title documents early and resolve any questions with the local planning office.
Accessory buildings and guest cottages
Many hosts look to a carriage house, guest cottage or studio as STR space. This can be feasible, but it often triggers extra checks. You may need to prove septic and water capacity for the accessory building, meet building code for habitation and secure a licence or permit specific to accessory use.
Treat accessory buildings as separate compliance projects. Do not assume that because the main house is compliant, the cottage is compliant too.
Enforcement and neighbor relations
Municipal enforcement units and regional district staff respond to bylaw complaints that often involve noise, parking, garbage and over-occupancy. A good neighbor plan lowers your risk. Post quiet hours, manage parking, and set clear house rules for guests. If complaints stack up, you can face fines or licensing action.
A simple feasibility checklist
Use this step-by-step list to test your acreage before you commit to an STR plan:
- Confirm jurisdiction precisely using PID, tax roll and an official parcel viewer to see if you are inside a municipality or a CVRD electoral area.
- Review the applicable zoning bylaw and official community plan to see if short-term rental or tourist accommodation is permitted, conditional or prohibited.
- Identify if a business licence, STR registration or permit is required and where to apply.
- Check building and fire code implications for separate units and higher occupancy, and whether inspections or upgrades are needed.
- Verify septic design capacity and well capacity. Consult Island Health or a qualified engineer if you expect frequent turnover or added bedrooms.
- Speak with local fire protection and building officials about safety requirements such as smoke and CO detectors, egress and signage.
- Confirm tax obligations for income tax, GST or HST, provincial sales tax and any local tourism tax.
- Pull title and review for covenants, easements, Crown tenure or strata rules that restrict STR use.
- Work with an insurance broker to secure STR or commercial coverage and adequate liability limits.
- Document road access, parking and neighbor considerations, and set a guest management plan to reduce complaints.
- If anything is unclear, request written confirmation from the local planning or bylaw office before listing.
What this means for buyers and owners
If you already own a rural parcel, start with jurisdiction and zoning, then work through licensing, servicing, safety and insurance. Expect to spend time on septic and water, as they are common bottlenecks. If you are buying with STR income in mind, build these checks into your subject removal timeline and budget.
A realistic plan can save you from costly surprises. In many cases, a property that is not viable for STR might still be excellent for long-term rental or a family compound. The key is to match your goals to the site and the rules that apply.
How our team supports your due diligence
You do not have to figure this out alone. As a family-led team with decades in the Comox Valley, we help you identify the correct jurisdiction, review zoning and licensing pathways, and coordinate your due diligence with the right local contacts. If an acreage has STR potential, we can advise on market positioning and what guests expect in our region. If STR is not feasible, we help you pivot to a plan that fits your goals.
Ready to explore an acreage with STR potential in the Comox Valley or value your current property? Start with a free home valuation from the Jane Denham Real Estate Group. We are here to guide you with local insight and care.
FAQs
Can I run a short-term rental on a CVRD rural acreage?
- It depends on exact jurisdiction, zoning and site conditions. Confirm whether you are in a municipality or a CVRD electoral area, then check permitted uses, licensing, servicing and safety requirements before you list.
How do Comox Valley municipal boundaries affect STR rules?
- Municipalities such as Courtenay, Comox and Cumberland set their own zoning and licensing. Rural parcels in the electoral areas follow CVRD bylaws. Requirements can differ even across short distances.
What septic and water checks are needed for a rural STR?
- Verify your septic design capacity, current condition and permitted bedroom count, and confirm your well yield and water safety. Upgrades may require permits and professional design.
Do I need a business licence for a rural STR near Courtenay or Comox?
- Many jurisdictions require a business licence or an STR-specific permit. Confirm whether licensing applies through the municipality if you are inside city limits or through the CVRD if you are in an electoral area.
Can I short-term rent a guest cottage or carriage house on my acreage?
- Possibly, but accessory buildings often trigger additional rules. Expect to show servicing capacity, meet building code for habitation and secure any required licence or permit for the accessory use.
What taxes apply to short-term rental income in the Comox Valley?
- You must report STR income for federal taxes. Depending on your revenue and location, GST or HST, provincial sales tax and a local tourism tax may also apply. Confirm obligations before you accept bookings.
