Regulations and Considerations for Short-Term Rentals in Hallō Nelson
- The idea for the guest suite is that it could also be used for short or long-term rental.
—Graham Kwan
Hallō Visionary
Big plans for luxury golf resort unveiled in Nelson
Vancouver Sun
Oct 16, 2024
Some real estate materials have suggested that Hallō Nelson’s zoning allows for short-term rentals.
However, this is an oversimplified claim, as strict regulations govern this type of housing use in Nelson.
Understanding Nelson’s Short-Term Rental Rules
If you are considering purchasing a Hallō duplex for rental purposes, here are key factors to keep in mind:
- License Requirement – All short-term rentals require a valid business license from the City of Nelson.
- Residency Requirement – The property must be your primary residence in order to qualify for a short-term rental license.
- License Availability – The city places a cap on short-term rental licenses, allowing only three licenses per city block. If a block has already met this limit, no further licenses will be granted.
- Non-Transferable Licenses – If you obtain a short-term rental license but later sell your property, the license does not transfer to the new owner.
What This Means for Buyers
If your intention is to purchase a Hallō duplex for investment purposes without living in it, you may not qualify for a short-term rental license due to Nelson’s zoning rules.
Buyers should be cautious of any marketing materials that suggest unrestricted rental opportunities.
Additionally, compliance with licensing regulations is critical. Operating without a valid license or violating the residency rule could lead to fines or legal action.
Clarifying Misinformation
There has been ongoing confusion about these regulations, largely fueled by misleading promotional language from realtors and developers.
For instance, Ace Marketing Group—one of Hallō’s "partners"—has prominently displayed the following claim on their website for months:
“Zoned for short-term rental (STR), the First Homes will be highly sought-after accommodations, and standalone suites are intended to provide an additional rental option, allowing you to maximize the value of your investment in this all-season destination.”
However, statements like this fail to present the full picture of Nelson’s short-term rental restrictions.
Buyers should verify all claims directly with the City of Nelson’s Planning Department to ensure they fully understand their rights and limitations before making a purchase.
Realtor Conflict of Interest
While realtors present themselves as advisors, it’s important for buyers to remember that they are ultimately salespeople with a financial stake in transactions.
Some realtors pushing misleading investment claims about Hallō’s short-term rental potential may not be acting in bad faith—but they are acting in their own interest.
Buyers should be wary of any claims that sound too good to be true. Realtors who emphasize short-term rental income potential without mentioning local restrictions may be prioritizing sales over accuracy.
It is always in the buyer’s best interest to independently verify zoning rules and rental policies with the City of Nelson.
The Wall of Shame
Perhaps it is understandable that Farhad and Graham—with no housing development experience, and enthusiastic to promote their first project—would advertise this misleading half-truth.
But the realtors below should be aware of Nelson’s short-term rental bylaws.
After all, realtors pride themselves on guiding buyers through complex regulations, ensuring informed decisions, and protecting them from costly missteps.
But if they’re reluctant to correct Hallō on this, one wonders: what other flawed premises they might be indulging him on?
We’re not real estate experts, but (unlike the professionals below) we’re committed to providing you with as much honest, accurate information as we can.
- Can the units be rented? Yes, Hallō Nelson is zoned for short-term rental.
— Vancouver Realtor Mike Stewart
- Starting at $1.95 million, these luxury units represent a significant investment opportunity. The property’s zoning allows for short-term rentals, providing potential owners with a flexible and lucrative income stream.
— Oakwyn Realty Downtown Ltd
- Zoned for short-term rental (STR), the First Homes will be highly sought-after accommodations, and standalone suites are intended to provide an additional rental option, allowing you to maximize the value of your investment in this all-season destination.
— Ace Marketing
- The units feature a separate King Suite, which includes a built-in white birch king platform bed, ample storage, and an adjoining ensuite bathroom. It is zoned for nightly rental, providing flexibility for homeowners.
——RE/MAX Four Seasons Realty
Axnyrealtor Video
This video, created by a Nelson resident and shared on Facebook, quickly went viral in the local community. She made it in response to the exaggerated marketing surrounding Hallō. While some may find its tone a bit harsh, it's easy to understand her frustration—considering the misleading claims presented on this page.
Final Thoughts
While short-term rentals are possible in some cases, the opportunities are highly restricted.
Hallō buyers must be aware of the strict licensing process, occupancy requirements, and cap limitations before committing to a purchase with rental expectations.
For the most up-to-date information on short-term rental policies, contact the City of Nelson Planning Department at +1 (250) 352-8260 or visit the city’s official website.