Renting out properties on platforms like Airbnb, Vrbo, and others has become a popular way for owners to earn extra income. However, due to issues like insufficient regulation, resident and guest safety, and affordable housing shortages, several jurisdictions have introduced restrictions on short-term rentals. If you're thinking about buying a property for short-term rental purposes, it's crucial to understand the local rules that could influence your investment.
Are you aware of the new regulations in Winnipeg that started on April 1st, 2024?
As of April 1st, 2024, Winnipeg implemented new regulations for short-term rentals. Anyone operating a short-term rental or listing them on a platform now has to obtain a license from the city. This initiative aim to regulate these operations, ensuring that the short-term rental owners provide safe accommodations and maintain respect for their neighbors.
Key Points of the New Regulations:
1. Licensing: All short-term rental operators must have a city-issued license.
2. Primary Residence Requirement: Properties purchased after February 23rd, 2023, can only be used as short-term rentals if they are the owner's primary residence.
3. Property Limits: Owners with properties purchased before February 23rd, 2023, can continue using them as short-term rentals but are limited to three short-term rental properties.
4. Zoning Restrictions: New short-term rentals are prohibited in areas zoned as residential mobile home (RMH) or rural residential (RR2 or RR5).
5. Rental Duration Limits: There are limits on the number of consecutive nights per booking and the total number of rental nights per year.
6. Occupancy and Age Restrictions: Specific occupancy and age restrictions apply to short-term rentals.
Additional Requirements:
- Accommodation Tax: Similar to hotel rooms, short-term rental operators must collect a 6% accommodation tax on all bookings, paid to the city quarterly.
- Safety Inspections: Short-term rentals will undergo regular inspections and must have working carbon monoxide detectors, fire extinguishers, and smoke alarms that comply with fire prevention bylaws.
- Emergency Contact: Guests must be provided with an emergency contact number for the property owner.
- Anti-Human Trafficking Measures: Property owners have an obligation to take steps to help prevent human trafficking.
Similar Regulations in Surrounding Areas
Municipalities like Gimli and Harrison Park have enacted similar bylaws. These areas also require property owners to apply for a license to operate a short-term rental and impose additional obligations and restrictions. Short-term rentals in these municipalities are subject to a municipal accommodation tax as well.
Provincial Considerations
In some areas of Manitoba, short-term rentals have been prohibited by provincial health authorities due to potable water concerns. If the property is not connected to a municipal water system, it's crucial to confirm that this won't be an issue.
Condominiums and Short-Term Rentals
If you're considering purchasing a condominium for short-term rental purposes, review the specific rules and bylaws of the condominium corporation. The Condominium Act of Manitoba does not prohibit owners from renting their units; however, it does not apply to short-term rentals. Therefore, condominium corporations may forbid unit owners from operating short-term rentals. Ensure there are no proposed amendments to the rules related to short-term rentals, and obtain a letter of permission from the condo board if required.
Final Thoughts
As concerns about short-term rentals continue to evolve, it's essential to stay informed about the current regulations in your area. Always verify the rules affecting any property you intend to purchase for short-term rental purposes. By understanding and complying with these regulations, you can ensure a smooth and profitable operation of your short-term rental property.
For more detailed information about the short-term rental requirements in Winnipeg, please refer to the link below. For information on short-term rental in your municipality, please contact your local RM office.
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