Overview: Are Short-Term Rentals Allowed in Chester, CA?

Yes, short-term rentals are explicitly allowed in Chester, Nova Scotia, subject to municipal licensing and provincial registration requirements. The Municipality of Chester requires all accommodations operating within its boundaries to obtain a licence to advertise, promote, or carry on business. There is no fee to obtain the STR licence from the Municipality of Chester, making it an accessible opportunity for investors.

The municipality defines short-term rentals as accommodations providing lodging for periods of 28 days or less, encompassing various property types including apartments, houses, condominiums, duplexes, townhouses, secondary suites, vacation homes, and even unconventional lodgings like yurts and stationary RVs.

How to Start a Short-Term Rental Business in Chester

Starting an STR business in Chester requires a systematic approach involving both municipal licensing and provincial registration:

Step 1: Municipal Licensing Process

1. Verify Property Compliance

   • Ensure you have a valid occupancy permit
   • Confirm no open work orders exist with the Municipality of Chester that are relevant to STR operation
   • Verify your property complies with applicable municipal land-use by-laws

2. Complete Municipal Application

   • Submit online application through the municipal portal
   • Application review takes approximately 30 days
   • Each property requires a separate licence

3. Prepare Required Documentation

   • Proof of insurance for the property
   • Simple site sketch (templates available)
   • Condo board authorization letter (if applicable)
   • Property owner authorization if applying on behalf of owner
   • Property Identification Number (PID)

Step 2: Provincial Registration

Under Nova Scotia's Short-term Rentals Registration Regulations (effective September 30, 2024), you must register with the Province of Nova Scotia and pay annual registration taxes. The registration class determines your tax obligations:

• Whole Home Primary Residence STR: $50 annual tax
• Commercial STR: $500-$2,000 annual tax (Chester falls in Tier 2 at $500 per dwelling unit)
• Traditional Tourist Accommodation: $50-$150 annual tax (depending on bedroom count)
• Platform Operators: $500 annual tax

Step 3: Marketing Levy Compliance

Beginning January 1, 2026, a 3% marketing levy will be collected from guests by booking platforms and remitted directly to the Municipality of Chester.

Required Documents, Permits, Licenses, and Guidelines

Municipal Requirements

Documents for Chester STR Licence:

1. Proof of Insurance - Coverage for property operations
2. Site Sketch - Simple diagram showing property layout (sample templates available)
3. Authorization Letter - Condo board confirmation if applicable
4. Property Authorization - If submitting on behalf of property owner
5. Property Identification Number (PID) - Must list all PID numbers if multiple exist
6. Valid Occupancy Permit - Required before licence issuance
7. No Open Work Orders - Municipality must have no relevant unresolved violations

Provincial Requirements

Nova Scotia Registration Documents:

1. Full Legal Name and any business names
2. Property Address where STR operates
3. Bedroom Count available for rent
4. Municipal Compliance Confirmation - Must demonstrate land-use by-law compliance
5. Primary Residence Proof (if applicable) - Driver's licence, tax return, property tax bill, lease agreement, or other qualifying documents
6. Property Owner Consent - Written authorization if not the owner
7. Condo Board Authorization - If property is a condominium unit

Special Considerations

For Commercial STRs:

• Annual registration tax of $500 per dwelling unit (Chester is Tier 2)
• Must maintain compliance with municipal by-laws
• Additional documentation may be required based on property type

For Traditional Tourist Accommodations:

• Annual tax: $50 (1-4 bedrooms) or $150 (5+ bedrooms)
• Includes bed & breakfasts, hotels, motels, personal vacation homes, rented rooms, resort establishments, and unusual lodgings

Specific Regulations for Short-Term Rentals

Municipal Level (Chester)

Licensing Requirements:

• Licence required for each property operating as STR
• No municipal fee for STR licence
• Occupancy permit mandatory
• No open work orders related to STR operations permitted
• Compliance with municipal, provincial, and federal law required
• Liability insurance covering STR operations mandatory

Operational Guidelines:

• Maximum rental duration: 28 days or less
• Registration number must appear in all online advertisements
• Must maintain compliance with applicable municipal by-laws at all times
• Changes to registration information must be reported within 10 days

Marketing Levy (Effective January 1, 2026):

• 3% levy collected by booking platforms from guests
• Revenue split between local tourism marketing and regional destination marketing
• Platforms remit directly to Municipality of Chester

Provincial Level (Nova Scotia)

Registration Classification:

1. Whole Home Primary Residence STR

   • Entire primary residence rented as STR
   • $50 annual registration tax
   • Must be ordinary resident's primary dwelling

2. Commercial STR

   • Non-primary residence properties
   • $500 annual tax per dwelling unit (Chester Tier 2)
   • Includes secondary suites and backyard suites (unless primary residence)

3. Traditional Tourist Accommodation

   • Bed & breakfasts, hotels, motels, hostels
   • Personal vacation homes (limited to 150 days per year)
   • Unusual lodgings (yurts, domes, stationary RVs, bunkies)
   • $50-$150 annual tax based on bedroom count

Operational Requirements:

• All STRs limited to 28 consecutive days or less
• Registration renewals required annually
• Platform operators must collect and remit marketing levy
• Municipal compliance must be maintained throughout registration period

Compliance Enforcement:

• Fines from $1,000 to $100,000 for violations
• Separate violations for each day of continued non-compliance
• Registration can be denied, cancelled, revoked, or suspended for violations

Contact Information for Local Authority

Municipality of Chester STR Licensing

Ashley Marlin
Community Economic Development Officer
Phone: 902-277-1571
Email: tourism@chester.ca
Website: chester.ca/short-term-rental-license

Economic Development Department
Phone: 902-275-4147
Email: ecodev@chester.ca

Brian Webb
Senior Economic Development Officer
Phone: 902-275-4147
Email: bwebb@chester.ca

Mailing Address:
Municipality of The District of Chester
P.O. Box 369
Chester, NS B0J 1J0

Provincial Registration

Nova Scotia Department of Municipal Affairs and Housing
Registration Portal: beta.novascotia.ca/register-your-tourist-accommodation
Phone: Contact local Access Nova Scotia office
Website: novascotia.ca/just/regulations/regs/strentals.htm

Links to Source Pages

Municipal Sources

• Chester STR Licence Application
• Chester STR Licensing By-Law Development
• Provincial Registration News
• Chester STR Licence Application Form
• Compliance Letter Application
• Municipal Business Directory

Provincial Sources

• Nova Scotia STR Registration Regulations
• Provincial Registration Portal
• Provincial Short-Term Registry

Supporting Documents

• STR Licence Application FAQs
• Owner Permission Templates
• Sample Site Sketch
• Draft STR Licensing By-Law
• Draft Marketing Levy By-Law
• STR Licensing By-Law Document Library

Tourism Resources

• Tourism Chester
• Invest in Chester

This comprehensive regulatory framework positions Chester as a supportive jurisdiction for STR investments, with clear pathways to compliance and reasonable tax structures. The combination of no municipal licensing fees and tiered provincial registration taxes creates opportunities for both small-scale and commercial STR operations while ensuring proper oversight and community benefit through the marketing levy.