In April 2025, the City of Calgary implemented major updates to its short-term rental (STR) regulations. The goal was to provide clearer oversight of home-sharing while protecting the long-term housing supply and neighbourhood livability. Below, we highlight what changed — and what the impact has been so far.
WHAT WERE THE KEY RULE CHANGES?
1. Broader Definition of STRs
Short-term rentals are now defined as stays of up to 180 consecutive days (previously 30). As a result, more mid-term furnished rentals now fall under STR licensing requirements.
2. Mandatory Business Licence for All Hosts
Anyone offering a property for short-term stays must hold a valid City business licence, reinforcing that STRs are a regulated commercial activity.
3. Two Licence Categories Introduced
- Primary Residence: The host resides in the home.
- Non-Primary Residence: Investment or secondary properties operated as full-time STRs.
This distinction helps the City better track investor-driven rental activity.
4. Vacancy-Rate Control Mechanism
If Calgary’s rental vacancy rate drops below 2.5%, the City can pause issuing new licences for non-primary-residence STRs to help protect the long-term rental supply.
5. Platform & Safety Requirements
Booking platforms must be licensed, and operators must meet updated safety, insurance, and documentation standards to ensure guest protection and accountability.
WHAT HAS BEEN THE OVERALL EFFECT?
Greater Transparency & Compliance
The licensing framework has improved the City’s ability to track STR activity and enforce rules, reducing unlicensed or informal operations.
Shift Toward Professionalized Hosting
Higher compliance, insurance, and safety requirements have encouraged more structured, professionally managed short-term rentals rather than casual listings.
Moderated Investor Expansion
The distinction between primary and non-primary residences—along with the vacancy-rate safeguard—has set limits on large-scale investor conversions of housing into STRs.
Balanced Market Approach
Early observations suggest the rules are helping balance tourism demand with housing availability. Short-term rentals remain viable, but within a more controlled and accountable framework.
THE BIG PICTURE
Since April 2025, Calgary’s updated STR regulations have created a more transparent, regulated market. While still supporting tourism and flexible accommodations, the changes aim to preserve the long-term housing supply and maintain neighbourhood stability—setting a clearer, more sustainable path for short-term rentals.
Are you thinking of buying or selling a short-term rental property? Contact us anytime, and one of our experienced agents will be ready to help you!
Sources
CityNews Calgary: New rules for short-term rentals in Calgary take effect
