Many Sun Peaks property owners want to rent their homes short-term for visitors to the picturesque village in summer and winter, so SPIN spoke with Sun Peaks Mountain Resort Municipality (SPMRM) to learn about the process from start to finish.
The process
Short-term rentals (STRs) are regulated through SPMRM’s business license bylaw. Nicky Jonsson is the director of corporate services, and she said the first step in the process to securing a STR business license for a temporary use permit (TUP) is providing a site plan which includes details about parking availability, landscaping and snow storage.
Once the paperwork hits Jonsson’s desk, she said it usually takes two to three weeks before it goes to council for an initial review. If there aren’t any concerns over the application, council’s review includes a staff recommendation to send out a notice of intent to properties 50 metres away from the applicant, and often to the whole street.
Residents have the right to submit comments for or against the application, which goes to a public hearing about a month later, right before a regular council meeting.
The notice of intent is part of the process because SPMRM wants to hear feedback from residents about whether neighbours are comfortable having a STR on their street.
Since TUPs expire, they can come up for renewal and the notice provides an opportunity to hear from neighbours who might have had issues or positive reviews of the STR in their neighbourhood.
“Sometimes people are against nightly rentals in general. It may not be anything to do with this specific property, but they’re against them. Then there’s people that have said ‘there’s so many parties at this property, it’s loud, there’s been parking issues’ and they don’t want to have to contact bylaw services everytime.”
At the public hearing, any input from the public, whether in written or verbal form, is heard on the council floor.
After that, the item is brought up again during the subsequent regular council meeting.
“At that time, council will review it and approve it, deny it or defer it if they have any further questions. Generally speaking, it takes about two and a half to three months to get an okay from start to finish,” Jonsson said.
The fine print of TUPs
Applying for approval is just one part of the process. There are also associated fees for having a business license, density limits for approving the STR, an on-mountain contact requirement, a garbage disposal plan and software that monitors compliance with business licenses.
“As part of the business licensing fee or business license application, they will have to provide proof that they have registered with Tourism Sun Peaks,” she said.
The municipal and regional district tax (MRDT) is a tax of up to three per cent applied to sales of short-term accommodations. This tax funds local tourism marketing, and there’s also a provincial sales tax that applies to the STR.
The density limit guidelines for SPMRM are set at 25 per cent of the built homes on a street, and Jonsson said when an application comes up for a street that’s at capacity, the application goes into a queue and there’s no payment required until the application can move forward.
She also recommends ensuring adequate room for snow storage and parking is within property lines.
“Before the TUP is finally approved, they will also be required to get a site inspection done by the fire department,” she said.
The inspection reviews whether the building is up to code and conforms to the information submitted in the application.
There are also important requirements for an on-mountain contact, a person who is available should the bylaw respond to any issues with the rental.
A garbage disposal plan is a new feature of the business license, which became necessary after numerous incidents of vacationers disposing of garbage that became attractants for bears and other wildlife.
Finally, there’s Granicus, a program that scans advertisements and business licenses to ensure they match. It will help inform the municipality on infractions–like advertising beyond the number of guests allowed through the license.
Jonsson noted that new provincial legislation starting May 1 will require STR advertisers to include their business license when advertising, which will help SPMRM police them.
TUP or tourist-zoned property
While council often approves TUP applications, the business license application is not guaranteed to get approval.
When purchasing property in Sun Peaks, some neighbourhoods under construction like Alder Estates are already zoned for tourist accommodations. The zoning means property owners won’t need to go through a TUP process.
Council has faced disagreements in the community over short-term rentals within residential neighbourhoods, and approval is entirely up to council’s discretion.
Council is reviewing TUP regulations in April 2025, and the bylaw could change then.
One solution for people hoping to secure short-term rentals, according to Jonsson, is purchasing in a neighbourhood zoned for tourism.
“Going forward, the hope is that new developments here will be either residential or [tourist zoned]. Eventually, we can get out of having to do these TUPs… But it’s going to be a long process before we get to that point.”
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