Short-Term Rental Regulations in Nova Scotia | South Shore (Lunenburg, Mahone Bay, Bridgewater)

Short-Term Rental Regulations in Nova Scotia:
South Shore (Lunenburg, Mahone Bay, Bridgewater)

Published: March 9, 2025 Updated: February 15, 2025 Reading time: 12 minutes

Quick Overview

Nova Scotia's South Shore has introduced stricter short-term rental rules to address the housing crisis and ensure compliance for property owners. This guide covers everything you need to know about provincial requirements, municipal regulations, and staying compliant in Lunenburg, Mahone Bay, and Bridgewater.

Key Requirements:

  • Provincial Registration: Annual registration under the Short-term Rentals Registration Act is mandatory, with fees based on property type.
  • Municipal Requirements:
    • Lunenburg: Development Permit (free) and Zoning Confirmation Letter ($60.90) required.
    • Mahone Bay: Land-use compliance check needed.
    • Bridgewater: Rentals must be at least 30 days; strict enforcement in place.
  • Fees:
    • Primary Residences: $50 (1-4 bedrooms), $150 (5+ bedrooms)
    • Commercial Properties: $500 annually
    • Traditional Tourist Accommodations: $50-$150 based on size
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Fines for Non-Compliance:

Non-compliance can lead to fines ranging from $1,000 to $100,000 per violation. Ensure your property meets all requirements to avoid penalties.

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Important Deadlines:

  • April 1st, 2025 Annual: Deadline for provincial registration renewal
  • September 30, 2024: Latest regulation enforcement deadline

Halifax Approves New Short-Term Rental Regulations

Nova Scotia's Main Rental Rules

Nova Scotia's provincial framework builds on municipal regulations to define how short-term rentals operate across the South Shore region.

Short-term Rentals Registration Act

The Short-term Rentals Registration Act (STRRA), effective September 30, 2024, outlines rules for property owners in the South Shore offering accommodations for 28 days or less.

Here's what's required:

  • Annual registration renewals due by April 1st
  • Unique registration numbers for each property
  • Display registration numbers on all online listings
  • Adherence to municipal land-use bylaws

Minister John Lohr has emphasized the importance of these measures in tackling the housing shortage.

"Nova Scotians need housing. We know many houses and apartments that could potentially be long-term homes are being rented short term. We're working to get more homes built. In the meantime, these changes will help address the urgent need for housing now."

The Act also categorizes hosts and sets registration fees based on property type.

Types of Hosts and Registration

The STRRA divides short-term rentals into three categories, each with specific fees:

Host Category Description Annual Fee
Primary Residence Owner's main living space $50 (1–4 bedrooms), $150 (5+ bedrooms)
Commercial Properties in Lunenburg, Mahone Bay, and Bridgewater $500
Traditional Tourist Hotels, B&Bs, and unique lodging $50 (1–4 bedrooms), $150 (5+ bedrooms)

Additional requirements include:

  • Proof of primary residence (if applicable)
  • Consent from property owners (for tenants)
  • Approval from condo boards (if needed)
  • Proof of compliance with municipal land-use regulations
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Registration Progress

As of July 23, 2024, 7,193 short-term rentals have been registered in Nova Scotia, showing widespread adherence to the regulations. Note that registration fees are non-refundable unless the Minister determines a payment error occurred.

Taxes and Rule Enforcement

Failing to follow these rules can result in fines ranging from $1,000 to $100,000 per violation.

Tax-related measures include:

  • A 3% municipal marketing levy in the District of Lunenburg
  • Oversight by the Canada Revenue Agency for expense deductions

Local Rules by Town

Each South Shore town has its own set of rules for short-term rentals. These local requirements go beyond provincial guidelines, adding specific permits, fees, and enforcement measures.

Lunenburg Rules and Permits

In Lunenburg, property owners must obtain two key documents:

  • Development Permit (no fee)
  • Zoning Confirmation Letter ($60.90)

For properties in heritage areas, owners need to submit:

  • Heritage Development Encroachment Application Form
  • Floor plan
  • Written request

If you already have a Development Permit, simply provide a copy. The processing time for these documents is about 14 days.

Mahone Bay Rules and Licenses

Mahone Bay relies on its Municipal Planning Strategy (MPS) and Land Use By-law (LUB) to regulate short-term rentals. These documents specify approved zones, development conditions, and operational limits.

Before registering with the province, property owners must confirm land-use compliance with the municipality. This system reflects efforts to balance rentals with community priorities.

Bridgewater Rules and Enforcement

Bridgewater takes a strict approach to managing short-term rentals. Here's an overview of their key regulations:

Aspect Details
Minimum Stay Rentals must be for at least 30 days
Enforcement Zoning and construction officers actively monitor compliance
Penalties Fines for non-compliance can reach up to $100,000
Coverage Enforcement started in the R-50 zone but will expand township-wide

In summer 2023, officials cracked down on violations after receiving complaints from Gateshead Drive residents. Bridgewater's rules are designed to preserve neighborhood quality while keeping short-term rental operations in check.

How to Follow the Rules

Managing Different Town Rules

It's important to comply with both provincial and municipal rules for short-term rentals. Start by registering each property with the local municipal office before proceeding with provincial registration.

Here's a quick overview of key municipal requirements:

Town Requirements Processing Time Contact Method
Lunenburg Development Permit (no fee) and Zoning Confirmation Letter ($60.90) About 14 days Email: permits@townoflunenburg.ca or visit Town Hall
Mahone Bay Land-use compliance confirmation Varies Contact the municipal office
Bridgewater Check local zoning or occupancy guidelines Varies Contact the township office
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Once you've met these municipal requirements, gather the necessary documents and insurance to finalize your registration with the province.

Documentation and Insurance

You'll need the following documents to complete your registration:

  • Proof of ownership or authorization
  • Residency documents, if required
  • Valid building permit
  • Occupancy permit
  • Zoning confirmation letter
  • Development permit (if applicable)
  • Updated insurance policy that covers rental activities

Guest Rules and Screening

To stay compliant, follow these guest management practices:

  • Include your registration number on all listing platforms
  • Verify that guest IDs match the booking information
  • Keep accurate records of all guests
  • Follow local occupancy limits
  • Collect and document applicable fees and taxes

Failure to comply can lead to steep fines. The province uses external services to monitor compliance, so ensure your documentation and guest management practices are always up to date.

Rules and Property Investment

Understanding local regulations and revenue potential is key to making informed property investments in Nova Scotia's South Shore.

Town Rules Comparison

Different municipalities have unique rules and market conditions that investors need to consider. For example, Tier 2 registration for commercial short-term rentals involves an annual fee of $500 CAD.

Town Key Requirements Market Data
Lunenburg Development Permit and Zoning Confirmation Letter ($60.90 fee) 68% occupancy, CA$201 average daily rate
Mahone Bay Land-use compliance check Growing tourism market
Bridgewater Zoning verification Limited data available

These regulations are essential for shaping your rental strategy.

Short vs. Long-term Rentals

In Lunenburg, short-term rentals average 248 booked nights per year, earning hosts approximately $48,000 CAD in 2023. Here's a quick comparison:

Short-term rentals

  • Higher monthly income potential
  • More flexibility
  • Stricter regulations
  • Higher operational costs

Long-term rentals

  • Steady income
  • Lighter regulations
  • Contribute to housing supply
  • Lower maintenance costs

Regulatory changes could impact both strategies, so it's wise to keep future trends in mind.

Future Rule Changes

The market is influenced by two major factors:

  • A projected housing shortage of 41,200 units by 2027/28.
  • A 14% increase in tourism, with 2.2 million visitors in 2023 boosting rental demand.

Helio Urban Development is addressing rental needs with new construction priced at $168 per square foot, designed for income-generating properties.

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Investors should weigh these market conditions and regulations carefully when deciding between short- and long-term rental options. As regulations evolve, compliance requirements may become more stringent.

Summary

This section outlines the key rules and steps needed for successful short-term rental investments on Nova Scotia's South Shore.

Main Rules to Remember

To operate legally, you must comply with both provincial and municipal regulations. Here's an overview:

Requirement Type Details Due Date
Provincial Registration Fee Primary residence: $50 (up to 4 bedrooms)
Commercial Tier 2: $500 annually
April 1st (annual)
Municipal Compliance Development Permit or Zoning Letter
Land-use bylaw verification
Before registration
Marketing Levy 3% fee collected from guests Ongoing

Make sure your registration number is included in all listings. Failing to comply can result in fines ranging from $1,000 to $100,000 per violation.

Next Steps for Investors

Action Plan

  1. Start with Municipal Requirements
    Reach out to your local municipal office to obtain necessary documents, such as proof of ownership, land-use compliance, and, if applicable, residency verification.

  2. Complete Provincial Registration
    Use the official provincial portal to submit your application. Include all required documentation, such as municipal compliance confirmation and insurance certificates.

  3. Keep an Eye on Regulations
    Stay informed about potential changes to housing policies or updates to the Short-Term Rental Registration Act (STRRA).

Regularly check official resources to ensure your property remains compliant and operates smoothly.