Buying Visitor Accommodation Properties in Canmore:

What You Need To Know

Canmore’s breathtaking scenery and thriving tourism economy have made it one of Alberta’s most attractive destinations for real estate investment. For those looking to capitalize on the town’s steady flow of visitors, Visitor Accommodation (VA)–zoned properties present a unique opportunity.
These properties are specifically designed for short-term, hotel-style rentals, offering buyers a way to own real estate in the Rockies while generating consistent income. But the purchasing process for these properties is different from buying a traditional home — and understanding those differences is key to making a smart investment.

1. Understanding What Visitor Accommodation Zoning Means

In Canmore, zoning determines how a property can be used. Visitor Accommodation zoning is designated for commercial hospitality use — meaning these properties are intended for short-term stays, much like a hotel or lodge.

Key features of VA zoning include:

• Properties cannot be used as full-time residences.
• They are operated for nightly or weekly rentals.
• Many are part of a managed rental pool or condo-hotel structure.
• Owners often have limited personal-use days per year, depending on the management agreement.

Essentially, a VA property is an investment property first — and a personal-use property second.

2. Step One: Identify Your Investment Goals

Before you start shopping, it’s important to clarify what you want out of your purchase:

• Are you seeking hands-off income through a managed rental program?
• Do you want occasional personal use while earning revenue the rest of the year?
• Are you focused on long-term appreciation rather than cash flow?

Your goals will determine what type of VA property is best — whether that’s a unit in a popular resort-style complex or a standalone vacation condo with higher personal flexibility.

3. Step Two: Work with a REALTOR® Who Knows Canmore’s Zoning Rules

VA-zoned properties can be complex, so working with a local Canmore REALTOR® experienced in commercial and resort real estate is essential.

Your agent will:

• Confirm zoning designations and restrictions with the Town of Canmore.
• Review the rental pool or management agreements.
• Help you understand the condo bylaws and fees.
• Ensure your purchase aligns with your financial and lifestyle goals.

This step is critical because zoning or usage misunderstandings can lead to costly mistakes — for example, purchasing a property that looks like a vacation rental but is actually zoned residential.

4. Step Three: Review the Management Agreement

Most VA properties are part of condo-hotel developments operated by a professional management company. This arrangement is convenient but comes with specific conditions.

Before you buy, review:

• Revenue-sharing terms: What percentage of rental income goes to the management company?
• Personal use limitations: How many days per year can you use the unit?
• Maintenance responsibilities: Who handles cleaning, repairs, and upkeep?
• Reservation system: How are bookings prioritized between owners and guests?

Having a lawyer review this contract ensures you understand your rights and obligations before signing.

5. Step Four: Financing Considerations

Financing a VA property differs from a typical residential mortgage. Because these units are commercially zoned and often part of rental pools, traditional lenders may treat them as commercial investments.

Key points to note:

• Fewer lenders offer financing for VA properties.
• Down payments may range from 25% to 35%.
• Interest rates can be slightly higher than residential mortgages.
• Some buyers choose to purchase with cash or through a holding corporation for tax benefits.

A mortgage broker familiar with Canmore’s market can guide you to lenders who specialize in this type of financing.

6. Step Five: Conduct Due

Diligence and Close the Deal
Once your offer is accepted, your due diligence period should include:

• Reviewing the condominium documents and reserve fund studies.
• Verifying zoning compliance and business licensing requirements.
• Confirming GST/HST implications, as VA properties are considered commercial real estate and may require tax registration.

After all conditions are met, your lawyer will complete the closing — and you’ll officially own a piece of the Rockies that earns income while you sleep.

7. Step Six: Enjoy the Benefits of Ownership

Once you take possession, your property management team will handle day-to-day operations, from marketing to guest check-ins. You’ll receive regular income statements and the flexibility to reserve personal stays within your allowed usage period.

It’s truly a hands-off investment that combines the stability of real estate ownership with the returns of a hospitality business.



Buying a Visitor Accommodation–zoned property in Canmore offers an exciting opportunity to invest in one of Canada’s most desirable mountain markets. However, success depends on understanding the zoning, management structure, and financing nuances that come with this type of ownership.
With the right guidance, due diligence, and long-term perspective, owning a VA property in Canmore can provide both financial rewards and the chance to enjoy your own private retreat in the heart of the Rockies.