Brentwood Development and Transportation Committee
Home-based Business Requirements
by Melanie Swailes on behalf of the Development and Transportation Committee
When the City of Calgary places a signboard on a property for a new Development Permit (DP), in most cases it is for new construction such as a renovation, an addition, or an entire new building. However, the DP might also be for a home-based business: the DP is required to ensure that the use of a portion of the property for business purposes still aligns with the Land Use Bylaw, and that the business usage does not negatively impact neighbourhood character, parking, or traffic.
All businesses operating in Calgary are required to register their business with The City of Calgary and get approval for their business location1, usually through a business license. This license ensures that “proper regulations and safety rules are being followed, that businesses are located appropriately and to ensure all businesses are treated fairly.”2 The license must be renewed annually; if it expires, it cannot be reinstated, but rather the business owner will have to reapply, and full fees will be charged.3
A business location could be in an area zoned as commercial or retail, or it might be a home-based business in a residential area. For a home-based business, the most important bylaw is that you must live in the home associated with the business – you cannot live in one dwelling while using all or a portion of another property for your business. If the business owner rents the home, he must have the consent and permission of the property owner. The owner must also inform his insurance provider that a business is being operated on the property or coverage could be denied for a claim.
In Calgary, home-based businesses are split into two categories. Class 1 is for businesses which are not visible from outside the home (no signage and no exterior storage) and are only visited by clients or staff from zero to three times a week. Class 2 is for businesses which have an employee (or business partner) working at the home, and which have between four and fifteen business-related visits per week. If the garage or related structure is used for the business, a Class 2 permit is required.
Regardless of type of permit, the applicant must reside in the home – the dwelling cannot become a commercial venue for licensees who travel to the home for the purpose of their daily work. Licenses cannot be transferred to a new owner or location. The intention is not to stop business, but rather to ensure that the business is put in the right place to be compatible with the surrounding community. For this reason, most Class 2 applications require a Discretionary Development Permit (DP), which means that the local Community Association is circulated on the application and a signboard is placed on the site to inform neighbours who wish to comment on the proposed business usage.
The DP application includes questions about the proposed business venture to ensure that neighbours won’t be adversely affected by high volumes of traffic and customers coming to the home, or by noise, dust, odours, or materials stored outside on the property. Once a home-based business application is approved, there are Conditions of Approval that have to be met. The business owner will have to periodically renew the DP (the period varies from one to three years), so if conditions change, neighbours do have an opportunity to comment again. If a business is found to be operating without a licence, operating contrary to licence conditions, or failing to fulfil license requirements, a violation ticket may be issued.4
Home-based businesses tend to be small, perhaps a start-up or a trial business without the costs of initially renting commercial space. (Depending on the type of business, such as manufacturing, childcare, food preparation, etc., other approvals may be also be required.) Because a home-based business operates in a residential setting, with neighbours directly next door, the City of Calgary uses the Class 1 and Class 2 licensing systems to both allow an owner to operate a business, while also ensuring ongoing compliance with applicable bylaws.
Home-based businesses have an opportunity to be successful: the intent is for the homeowner to work within their home and within the City guidelines. If you are thinking of starting a home-based business in your home, you can find detailed information on the City of Calgary website under “Opening a Business in Calgary”.
References:
2. https://www.calgary.ca/for-business/getting-started.html#HomeBaseLocation
3. https://www.calgary.ca/for-business/changes-to-your-business.html
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