Terrace short-term rental rules (Airbnb, Vrbo)

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

Terrace, British ColumbiaChecked against official textSources read 2026-11-05

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.

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.Principal residence requirement, Province of BC, List of communities where the principal residence requirement applies; Zoning Consolidated Bylaw No. 2069-2014, Definitions; s. 3.1.3 · Wording matched the official text retrieved 2026-11-06 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 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
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.Zoning Consolidated Bylaw No. 2069-2014, s. 7.1.5; Business Licence Consolidated Bylaw No. 2112-2016, Schedule A, Table 5; Business Licences, Additional Business Requirements · Wording matched the official text retrieved 2026-11-06 Official wording All home occupations require a City of Terrace Business License. v. Bed and breakfast. A fee of $68.00 for each classification of business that is classified as a home Short-term rental hosts, platforms and strata hotel platforms in BC must register
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.Short-term rental registration, Province of BC, Registration overview; Business Licences, Additional Business Requirements · Wording matched the official text retrieved 2026-11-06 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. Short-term rental hosts, platforms and strata hotel platforms in BC must register
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.Zoning Consolidated Bylaw No. 2069-2014, s. 7.1.9, 7.3.2, Table 3 · Wording matched the official text retrieved 2026-11-06 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.
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).Ticket Information Utilization Bylaw No. 1827-2005, Schedule 23 (Zoning) and Schedule 5 (Business Licence) · Wording matched the official text retrieved 2026-11-06 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
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 ActZoning Consolidated Bylaw No. 2069-2014, Title page; Business Licence Consolidated Bylaw No. 2112-2016, Title page; Short-term rental registration, Province of BC, Subscribe · Wording matched the official text retrieved 2026-11-06 Official wording City of Terrace Zoning Bylaw No. 2069 - 2014 BYLAW NO. 2112-2016/ 2129-2017/ 2135-2017/ Short-Term Rental Accommodations Act, regulations and related information.

How it works

Zoning Bylaw 2069 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 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

Ask Development Services (250-615-4022) whether your plan is allowed.
If it is a bed and breakfast, get a City business licence (250-615-4000). All home occupations need one.
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 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

The same question in other places

Kitimat · New Hazelton · Smithers · Telkwa · Hazelton · Port Edward

Short-term rental rules in British Columbia, by municipality →

Sources

Principal residence requirement, Province of BC (read 2026-11-05)
Short-term rental registration, Province of BC (read 2026-11-05)
Zoning Consolidated Bylaw No. 2069-2014 (PDF), City of Terrace (read 2026-11-05)
Business Licence Consolidated Bylaw No. 2112-2016 (PDF), City of Terrace (read 2026-11-05)
Business Licences, City of Terrace (read 2026-11-05)
Ticket Information Utilization Bylaw No. 1827-2005 (PDF), City of Terrace (read 2026-11-05)
TerraMap, City of Terrace (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. How answers are checked.