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Can I Airbnb My Primary Home? The Riskiest Scenarios in 2025

Just because you live there doesn't mean you're safe. Here is why your basement suite or laneway house might put you in the "danger zone" for BC's new short-term rental laws.

7 min read

The "Wild West" of Airbnb in BC has been replaced by a digital fence. In 2025, the Provincial Government isn't just asking you to play fair; they are using data-sharing agreements with platforms and a mandatory registry to track every single night you rent out. While the law generally allows you to short-rent your "principal residence," there are hidden tripwires that could land you with a $50,000 fine or a massive tax bill. If you think living on the property makes you bulletproof, you need to look at these high-risk scenarios.

The "90-Day" Trap

Don't be fooled by old rules. In 2025, "short-term" is officially defined as any rental for less than 90 consecutive days. If you are renting out your home for two months while you travel, you are a short-term host. You must register with the Provincial Short-Term Rental Registry and display that number on your listing. Operating without a registration number after the May 2025 deadline is the fastest way to get your listing deleted and a knock on your door from the enforcement unit.

Secondary Suites: The "Only One" Rule

BC law generally allows you to short-rent your principal residence plus one secondary suite or accessory dwelling unit (like a laneway house) on the same property. However, the risk is in the "either/or." In cities like Vancouver, you cannot legally rent out both the main house and the basement suite as short-term rentals at the same time. If you live upstairs and Airbnb the basement, that’s usually fine. But if you try to rent out three different bedrooms as separate listings plus a garden suite, you are begging for a bylaw audit.

The Tax Deduction Nightmare (CRA's New Power)

This is the most dangerous scenario for 2025. The Federal Government has changed the Income Tax Act to deny all expense deductions for non-compliant short-term rentals. If your Airbnb isn't 100% legal according to your city and the province, you cannot deduct mortgage interest, property taxes, or utilities against that income. You will be taxed on the gross revenue, which could effectively wipe out your entire profit and leave you owing the CRA more than you actually made.

The "Guest Suite" and Strata Risks

Even if you meet the province’s "principal residence" test, your Strata corporation has the final say. Many Stratas in BC have moved to a total ban on short-term rentals. If you are caught, the Strata can fine you up to $1,000 per day. Furthermore, if your building has a "guest suite" that you don't own but try to manage as an Airbnb, you are in immediate violation of both provincial law and Strata bylaws. This is a high-visibility trap that is easily reported by neighbours.

When "Primary" Isn't Primary Enough

A principal residence is where you live for the majority of the year (usually at least 240 days). If you have a "cottage" in the Okanagan and a "condo" in Vancouver, you can only Airbnb the one you claim as your primary home for tax and ID purposes. Using a fake address or a friend's utility bill to get a license for a second property is considered fraud. With the new provincial registry, the government can cross-reference your driver’s license and homeowner grant status in seconds.

Summary: Living on the property is your shield, but the 90-day rule and the CRA's deduction ban are the new swords. If your paperwork isn't perfect, your "side hustle" could become a financial disaster.

Reference Links (Official BC Government)