How to get started making extra income with your home

If you are interested in setting up your own Airbnb for extra income, there are a few things you need to consider before you start. I've broken these down into main categories: Licensing and initial investment.

Now in the Province of BC, property owners are mandated to have applicable local city business license & permit as well as a Province of BC Short-Term Rental license. If, for e.g. your home is in the District of North Van, you must first apply for a short-term rental business license with the District before applying for the Provincial license. Without it, your Airbnb listing won't go too far. I've compiled links for a few cities below to get you started as well as the provincial link. In general, you can expect to need a few hours to get all your paperwork submitted (or less if you are very organized). Between licenses you can expect to wait a few weeks to a month to have everything sorted. But not to worry, while your license is being processed, you can start getting your Airbnb room(s) and listing ready! That's the exciting part.

Now, back to the "boring stuff"...Before you begin your application you need to be aware that all cities basically stipulate one thing: One license per owner/per home. And that's because they're trying to ensure there are enough rental properties out there for local Vancouverites to rent long-term. As you begin your registration process, you'll see it's referred to everywhere as STR, abbreviated from "Short-Term Rental" license, which is what you'll need for Airbnb. See examples below on rules for each STR, depending on the city:

• City of North Vancouver: You can only operate a short-term rental in your own residence plus one additional authorized unit (like a secondary suite) on the same property.

• District of North Vancouver: Only one license is permitted per single-family property, and it must be tied to your primary residence.

• City of Vancouver: You are allowed only one license per person, and the property must be your actual home where you live most of the year. Operating at multiple addresses is prohibited.

If you're ready to start or learn more, check out these quick links for a few municipal city pages as well as links to the actual application.

City of North Vancouver STR business page, application download

District of North Vancouver STR business page, online application

City of Vancouver STR business page, online application

Even before you have your local city business license, you can start your provincial BC registration process. However, in order to complete the application you will need that business license number. In order to start your short-term rental you must provide documentation that proves the short-term rental is:

• the host's(owner's) prinicipal residence, or

• a secondary suite or accessory dwelling unit on the same property

Once you've met that criteria, here's some paperwork you'll need on hand to begin the process:

Note, importantly, the documents must be current and the name and address on the documents must match the name of the property owner and the address of the short-term rental.

Owners must submit the following documents for proof of principal residence:

• One proof of identity (choose one):

  • British Columbia Driver’s Licence

  • British Columbia Services Card

  • Combined BC Driver's Licence and Services Card

  • British Columbia Identification Card

• At least two supporting documents selected from the following:

  • A land title certificate or copy of a land title search

  • Property Assessment Notice from BC Assessment Authority (current year) — Please upload the official mailed assessment notice. Screenshots or online look-ups from the BC Assessment website will not be accepted.

  • ICBC Certificate of Insurance and Vehicle Licence (Include all pages of the entire document)

  • Summary of Home Insurance/Certificate of Insurance (Entire document)

  • Property Tax Notice

  • Speculation and Vacancy Tax Confirmation (Letter not confirmation email)

  • Home Owner Grant Confirmation (Letter or confirmation email including Confirmation number)

  • Affidavit stating legal name and principal residence

  • Banking statement or void cheque

  • Official notice from government agency or Crown corporation (e.g., CRA letter, jury duty, voting card, criminal record check)

  • Other documentation (as assessed by the Registrar)

All applications carry a yearly licensing fee.

Next is listing investment ($$$). Everyone thinks setting up a room or multiple rooms in a property is easy. And it is, kind of.... you need to be aware that competition is fierce and with rates fluctuating as they are you need to ensure your listing stands out. A new coat of paint, new decoration, room door locks, secure keyless remote home entry, new toilet(?), new and comfortable mattresses and high-end linens etc. can be pricey. But they go a long way to ensuring your guests are happy and leave you a good review so you can attract more guests. So if you want your rental to succeed, don't half-ass the room. You need to commit to setting it up properly and then continuing to replace/replenish, upgrade as needed. Depending on the shape of your property expect to spend at least a couple thousand per room.

Last but not least, don't forget about the time commitment, that's also an investment. Time is money. You need to manage your listing and guest experience so that you can get to Superhost status. That includes everything from continual pricing research, updating your listing to remain relevant and being available to answer current and future booking requests. Another very important part of the guest experience, beyond the set-up and any automations you've set up to save you time, is the ACTUAL guest experience. Don't forget, until now, they've seen your photos, read your listing and imagined themselves having a great time at your place. Now you must deliver! Execution is everything, friends. Think about how will guest be welcomed (do you have pets?), is there a place for them to put their shoes? Is everything they need easy to find so they don't have to ask you? Is everything they'd need for a comfortable stay available in their room? What happens if they need extra blankets, towels, or a fridge to place their left over dessert etc. And beyond that, how do you ensure everything is cleaned up and spotless in a few hours time to welcome the next guest?!

It can be a lot of work and at times overwhelming. Believe me. That's where me and my team come in. If you've decided you want to make extra income with an unused/low utility-use room but don't have the time commitment for set-up, management, and guest experience, give us a call. We make it easy. We invest in the intial room set-up by supplying all the necessary assets/tools to get your listing up and ready. For items that go beyond the room, including keyless entry and locking doors, new paint etc. (think Items that you can keep)--they are invested by you. In return, for set-up, continual management, and guest check-in/check-out we take a percentage of your nightly rate. If this is something you think could interest you, shoot us an email or fill out the contact form.

Until the next time, happy Airbnb'ing friends.

-Nirvana PM