---
title: Terrace short-term rental rules (Airbnb, Vrbo)
question: "Can I rent out my home or a room on Airbnb?"
place: Terrace, British Columbia, Canada
place_path: ca/bc/terrace
category: Housing and renting
owner: shared
sources_read: 2026-11-05
review: machine_checked
canonical: "https://govhandbook.com/ca/bc/terrace/short-term-rental/"
json: "https://govhandbook.com/ca/bc/terrace/short-term-rental.json"
---

# Terrace short-term rental rules (Airbnb, Vrbo)

**Question:** Can I rent out my home or a room on Airbnb?

**Short answer:** Mostly not in Terrace. The Zoning Bylaw lists short-term rental as a use in no zone, and unlisted uses are prohibited. Only a resident-run bed and breakfast (a Level 2 home occupation) and, in AR1, vacation accommodation are listed. The Province's principal residence rule also applies. Confirm with Development Services.

**Who handles it:** More than one level of government  
**Cost:** A bed and breakfast needs a City business licence; the home-based business fee is $68 a year, but the schedule does not name bed and breakfasts, so confirm. Provincial registration fees apply; see the Province's page.  
**Where:**
- Online: BC short-term rental registry, https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/registry
- Phone: ServiceBC short-term rental line, 1-833-828-2240
- Phone: City Business Licences, 250-615-4000
- Phone: Development Services and Planning, 250-615-4022 (5003 Graham Avenue, Terrace)

## Key facts

- **Allowed:** Mostly not allowed. The Zoning Bylaw defines short term rental but lists it as a use in no zone, and unlisted uses are prohibited. Only a resident-run bed and breakfast (Level 2 home occupation) and, in AR1, vacation accommodation are listed. The Province's principal residence rule also applies to Terrace.
  - Source: [Principal residence requirement, Province of BC, List of communities where the principal residence requirement applies](https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/principal-residence-requirement)
  - Official wording: "List of communities where the principal residence requirement applies" … "Surrey Terrace Vancouver" … "Plus one secondary suite or accessory dwelling unit on the same property"
  - Source: [Zoning Consolidated Bylaw No. 2069-2014, Definitions; s. 3.1.3](https://www.terrace.ca/media/4249)
  - Official wording: "SHORT TERM RENTAL means commercial accommodations in a residential dwelling unit provided" … "to members of the public for a period of less than 30 consecutive days." … "BED AND BREAKFAST means a Level 2 home occupation conducted as a short-term rental within" … "the principal dwelling and operated by the occupying resident of the principal dwelling," … "A use not specifically permitted in a Zone is prohibited from that Zone." … "VACATION ACCOMMODATION means a use that provides up to six sleeping units of guest"
  - Check: wording matched the official text retrieved 2026-11-06
- **Business licence:** A bed and breakfast is a Level 2 home occupation, and all home occupations need a City business licence. The home-based business fee is $68 a year (Table 5); Schedule A does not name bed and breakfasts or short-term rentals.
  - Source: [Zoning Consolidated Bylaw No. 2069-2014, s. 7.1.5](https://www.terrace.ca/media/4249)
  - Official wording: "All home occupations require a City of Terrace Business License." … "v. Bed and breakfast."
  - Source: [Business Licence Consolidated Bylaw No. 2112-2016, Schedule A, Table 5](https://www.terrace.ca/media/3962)
  - Official wording: "A fee of $68.00 for each classification of business that is classified as a home"
  - Source: [Business Licences, Additional Business Requirements](https://www.terrace.ca/business-development/business-licences)
  - Official wording: "Short-term rental hosts, platforms and strata hotel platforms in BC must register"
  - Check: wording matched the official text retrieved 2026-11-06
- **Provincial registration:** Yes. Hosts, platforms and strata hotel platforms must register with the Province and pay annual registration fees, and must renew each year to keep operating.
  - Source: [Short-term rental registration, Province of BC, Registration overview](https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/registry)
  - Official wording: "Short-term rental hosts, platforms and strata hotel platforms in B.C. must register and pay annual registration fees." … "If you have a short-term rental registration, you must renew it each year to continue operating."
  - Source: [Business Licences, Additional Business Requirements](https://www.terrace.ca/business-development/business-licences)
  - Official wording: "Short-term rental hosts, platforms and strata hotel platforms in BC must register"
  - Check: wording matched the official text retrieved 2026-11-06
- **Operating rules:** For a bed and breakfast: operate only within the principal dwelling, no more than 4 sleeping units with a maximum of 2 guests each, 1 parking space per guest room, parcel at least 550 m² (Level 2), and no secondary suite with a B&B.
  - Source: [Zoning Consolidated Bylaw No. 2069-2014, s. 7.1.9, 7.3.2, Table 3](https://www.terrace.ca/media/4249)
  - Official wording: "1. A bed and breakfast shall operate only within the principal dwelling." … "2. A bed and breakfast shall not exceed 4 sleeping units accommodating" … "a maximum of 2 guests per sleeping unit." … "Bed and Breakfast 1 per guest room" … "A Level 2 home occupation is permitted on parcels with a minimum size of 550" … "the operation of a bed and breakfast."
  - Check: wording matched the official text retrieved 2026-11-06
- **Fine:** No ticket is specific to short-term rentals. Municipal tickets include use of land or buildings in contravention of the Zoning Bylaw ($500) and operating without a business licence ($500).
  - Source: [Ticket Information Utilization Bylaw No. 1827-2005, Schedule 23 (Zoning) and Schedule 5 (Business Licence)](https://www.terrace.ca/media/4139)
  - Official wording: "Use of land, buildings/structures in contravention of bylaw ...........................................................................1.2.1 $500.00" … "Operating without a business licence ............................2.1 $500.00"
  - Check: wording matched the official text retrieved 2026-11-06
- **Bylaw:** Zoning Bylaw No. 2069-2014 (definitions; s. 7.1 home occupations), Business Licence Bylaw No. 2112-2016, and the provincial Short-Term Rental Accommodations Act
  - Source: [Zoning Consolidated Bylaw No. 2069-2014, Title page](https://www.terrace.ca/media/4249)
  - Official wording: "City of Terrace Zoning Bylaw No. 2069 - 2014"
  - Source: [Business Licence Consolidated Bylaw No. 2112-2016, Title page](https://www.terrace.ca/media/3962)
  - Official wording: "BYLAW NO. 2112-2016/ 2129-2017/ 2135-2017/"
  - Source: [Short-term rental registration, Province of BC, Subscribe](https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/registry)
  - Official wording: "Short-Term Rental Accommodations Act, regulations and related information."
  - Check: wording matched the official text retrieved 2026-11-06

## How it works

[Zoning Bylaw 2069](https://www.terrace.ca/media/4249) defines short term rental but lists it as a use in no zone, and a use that is not listed is prohibited. The only listed options are a resident-run bed and breakfast (a Level 2 home occupation) and, in the AR1 zone only, vacation accommodation.

Terrace is also on the Province's list of communities where the [principal residence requirement](https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/principal-residence-requirement) applies. Hosts, platforms and strata hotel platforms must register with the Province and renew each year to keep operating. Each unit needs its own registration number.

## Steps

1. Ask Development Services (250-615-4022) whether your plan is allowed.
2. If it is a bed and breakfast, get a City business licence (250-615-4000). All home occupations need one.
3. Register with the Province's short-term rental registry.

## Good to know

- Bed and breakfast rules: only within the principal dwelling, no more than 4 sleeping units with a maximum of 2 guests each, 1 parking space per guest room, parcel at least 550 m², and no secondary suite with a B&B.
- Vacation accommodation (AR1 only): up to six sleeping units with meals provided in the principal dwelling.
- Licence fee: the home-based business fee is $68 a year, but [Business Licence Bylaw 2112](https://www.terrace.ca/media/3962) Schedule A does not name bed and breakfasts or short-term rentals. Confirm the fee with the City.
- No ticket is specific to short-term rentals. Municipal tickets include $500 for use of land or buildings against the Zoning Bylaw and $500 for operating without a business licence.

## Official forms and pages

- [Province of BC short-term rentals](https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals)
- [Principal residence requirement](https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/principal-residence-requirement)
- [Zoning Bylaw 2069 (PDF)](https://www.terrace.ca/media/4249)
- [Business Licence Bylaw 2112 (PDF)](https://www.terrace.ca/media/3962)

## Related questions

- [Terrace business licences: who needs one, fees and how to apply](https://govhandbook.com/ca/bc/terrace/business-licence.md)

## The same question elsewhere

- [Short-term rental rules in British Columbia, by municipality](https://govhandbook.com/ca/bc/short-term-rental.md)
- [Kitimat](https://govhandbook.com/ca/bc/kitimat/short-term-rental.md)
- [New Hazelton](https://govhandbook.com/ca/bc/new-hazelton/short-term-rental.md)
- [Smithers](https://govhandbook.com/ca/bc/smithers/short-term-rental.md)
- [Telkwa](https://govhandbook.com/ca/bc/telkwa/short-term-rental.md)
- [Hazelton](https://govhandbook.com/ca/bc/hazelton/short-term-rental.md)
- [Port Edward](https://govhandbook.com/ca/bc/port-edward/short-term-rental.md)

## Sources

- [Principal residence requirement, Province of BC](https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/principal-residence-requirement) (read 2026-11-05)
- [Short-term rental registration, Province of BC](https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/registry) (read 2026-11-05)
- [Zoning Consolidated Bylaw No. 2069-2014 (PDF), City of Terrace](https://www.terrace.ca/media/4249) (read 2026-11-05)
- [Business Licence Consolidated Bylaw No. 2112-2016 (PDF), City of Terrace](https://www.terrace.ca/media/3962) (read 2026-11-05)
- [Business Licences, City of Terrace](https://www.terrace.ca/business-development/business-licences) (read 2026-11-05)
- [Ticket Information Utilization Bylaw No. 1827-2005 (PDF), City of Terrace](https://www.terrace.ca/media/4139) (read 2026-11-05)
- [TerraMap, City of Terrace](https://www.terrace.ca/business-development/maps-zoning/terramap) (read 2026-11-05)

_Checked by script, not yet by a person: the official wording behind 6 of 6 facts was matched to the official text. Gov Handbook is an independent guide, not affiliated with any government. How answers are checked: https://govhandbook.com/methods/ · Canonical page: https://govhandbook.com/ca/bc/terrace/short-term-rental/_