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Town of Drumheller Passes Business Licence Bylaw 06.23 with Impacts to Short-Term Rentals

Posted on Jan. 22 2024

At the Regular Council Meeting on January 22, 2024, Council passed Business Licence Bylaw 06.23, with the new Bylaw coming into effect February 1, 2024.

Business Licence Bylaw 06.23 contains a number of changes to how business licences are administered. The following provisions are highlighted within these changes:

  • Mobile Vendors will no longer require approval by the Municipal Planning Commission (MPC) prior to being issued a business licence. Instead, the Development Officer will provide a list of designated locations that any Mobile Vendor will be allowed to operate in, upon approval of their business licence application;
  • Increased clarity of regulations in regard to charitable organizations, buskers, markets, special events, contractors and other businesses in the Town of Drumheller; and,
  • Changes to the provisions of short-term rentals, including a cap on the number of business licences that will be issued each year. For 2024, the cap will be set at 120, and this number will be reviewed on an annual basis.

Throughout 2023, the Town of Drumheller sought feedback regarding short-term rentals during multiple public engagement sessions. The Town received significant concerns from residents about housing supply and the deterioration of neighbourhood quality caused by the proliferation of short-term rentals. In order to address these concerns, the Town has passed regulations in Bylaw 06.23 that will increase safety, promote fair competition in the hospitality industry, and protect residential neighbourhoods.

A short-term rental is defined as any dwelling, such as a house, room, or secondary suite that is rented out for a period of 28 days or less. This includes any short-term rental advertised on sites such as Airbnb, VRBO, or similar websites. Currently, there are approximately 130 short-term rentals in the Drumheller Valley. This number has increased exponentially over the last three (3) years, increasing by an average of 67% annually.

Some of the changes regarding short-term rentals in Bylaw 06.23 require STR hosts to:

  • Obtain a valid short-term rental business licence by completing a business licence application;
  • Include the business licence number and a link to the Town of Drumheller SeeClickFix in all advertisements (for complaints related to short-term rentals);
  • Obtain and maintain adequate Home-Sharing Insurance or Short-Term Rental Insurance and provide proof of this insurance during your application process; and,
  • Read the Good Host Guide and agree that you have reviewed and will adhere to the provisions within.

The fees for short-term rental business licences in 2024 will be as follows:

Type of Short-Term Rental





Someone is operating a short-term rental in the same home or on the same property where they live for the majority of the calendar year.



Someone lives in the Town of Drumheller but does not live in the short-term rental or on the property of the short-term rental they are operating for the majority of the calendar year.



Someone does not live in the Town of Drumheller but is operating a short-term rental within the jurisdiction.

Short-Term Rental Business Licence Applications will open to Principal Residence Short Term Rentals on February 1, 2024. Applications will open to Non-Principal and Non-Resident Short Term Rentals on March 1, 2024.

More information regarding the provisions for short-term rentals can be found in the Good Host Guide and online at We encourage all short-term rental hosts to read the Good Host Guide thoroughly prior to their application. Please ensure you have all supporting documents listed in the Good Host Guide Application Checklist before beginning the application process.

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