Is Short-Term Rental Restricted in Medicine Hat? Local Enforcement Update

Yes. Medicine Hat enforces Short-Term Rental Bylaw 4627, which requires a business licence, primary residence occupancy, a passed fire safety inspection, and full zoning compliance. As of March 2025, the city has issued over 140 licences, conducted 60+ compliance inspections, and levied fines exceeding $85,000 against unlicensed operators. Non‑compliant hosts face fines up to $10,000 per day and possible licence suspension. Below is a complete enforcement update with costs, zones, step‑by‑step procedures, and real cases.

1. Real Cost of Licensing & Operation

💡 Key Figure: The total first‑year cost for a compliant principal‑residence STR in Medicine Hat is $525 (licence + fire inspection). Non‑principal STRs (where allowed) cost $900 for the first year.

Understanding the full cost of operating a short‑term rental in Medicine Hat is essential for budgeting and compliance. Below is a detailed breakdown of all fees, deposits, and recurring expenses as of Q1 2025.

Short‑Term Rental Cost Breakdown — Medicine Hat (2025)
Fee Item Principal Residence STR Non‑Principal Residence STR Notes
Business Licence Application Fee $375 / year $750 / year Non‑principal STRs are only permitted in specific zones with a discretionary permit.
Fire Safety Inspection Fee $150 (one‑time) $150 (one‑time) Required before licence issuance; re‑inspections after a failed inspection cost $75 each.
Planning & Development Review (discretionary) N/A $250 Only for non‑principal STRs that require a discretionary use permit.
Public Notification Fee (if applicable) N/A $100 Covers mailing costs for notifying neighbours within 60 m of the property.
Annual Renewal $375 $750 Renewals must be completed 30 days before expiry; late renewals incur a $50 penalty.
Municipal Accommodation Tax (MAT) 4% of nightly rate 4% of nightly rate Collected from guests and remitted quarterly to the City of Medicine Hat.
Insurance (estimated) $1,200–$2,500 / year $1,800–$3,500 / year Commercial STR insurance is strongly recommended; standard home policies often exclude STR use.

Additional costs to consider: cleaning fees (typically $50–$120 per booking), property management software (e.g., Guesty, Hostaway — $50–$150/month), and smart lock installation ($150–$400). The city also requires a $500 compliance deposit for all new applicants, held for 12 months and refunded if no violations occur.

Source: City of Medicine Hat — Business Licence Fees (2025) and Medicine Hat STR Bylaw 4627.

2. Best Areas for Short-Term Rentals

📍 Top Pick: The Downtown Core (DC) and Mixed‑Use (MU) zones offer the most