Governor’s Harbour, Bahamas Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Governor's Harbour, Bahamas?

The Bahamas government recently launched a new registration portal requiring all short-term vacation rental owners to register their properties by April 30, 2023. The goal is to regulate the growing short-term rental industry, ensure owners are meeting tax obligations, and maintain high standards of service.

Starting a Short-Term Rental Business in Governor's Harbour

To start operating a short-term rental in Governor's Harbour, property owners must:

• Register their property on the Department of Inland Revenue's new short-term rental portal by April 30, 2023
• Provide details like property location, real property tax assessment number, and other relevant information when registering
• Comply with local zoning regulations that restrict certain areas to residential use only
• Obtain any required business licenses

Registration is free for the remainder of 2023 to encourage compliance. Successful registrants may then be eligible for funding through entities like the Small Business Development Centre and highlighted in domestic and international tourism marketing.

The short-term rental market appears healthy in the Bahamas, especially for nice properties. However, occupancy rates and seasonality are important considerations. The summer months can be ideal, with warm, calm waters great for swimming and snorkeling. Winter brings more temperate weather but occasional cold fronts and rain.

Governor's Harbour has several popular areas for vacation rentals, with many luxury homes and villas available. Local zoning laws should be reviewed carefully, as some restrict development to residential homes only, while others allow apartments, hotels, shops, and marina facilities.

Overall, the Bahamas government sees short-term rentals playing an important role in expanding room inventory and ownership opportunities. By striking a balance between regulation and growth, they aim to strengthen the industry and tourism product as a whole. Registering properties is an important first step for owners to become officially recognized providers.

Short-Term Rental Licensing Requirements in Governor's Harbour

As of 2024, all property owners operating short-term vacation rentals in Governor's Harbour are required to register their properties through the Department of Inland Revenue's online portal. Registration is currently free to encourage compliance.

To register, owners must provide the following information via the vacation rental tab on the DIR website (inlandrevenue.finance.gov.bs):

1. Name of property owner
2. Detailed location of the property
3. Real Property Tax assessment number
4. Other relevant details

Non-Bahamian owners have additional requirements:

1. Properties must be lodged with the Registrar General
2. Properties must be submitted for VAT stamp
3. Properties must be declared with the Department of Inland Revenue (DIR)
4. If ownership has changed, a change of ownership form must be submitted
5. Any property improvements must be declared

Fees for non-Bahamian owners include:

1. Application for registration: $25
2. Application for permit: $25
3. Permit: $500
4. Certificate of Registration: $50-$100 based on property value

Once registration is approved, owners may qualify for funding through entities like the Small Business Development Centre (SBDC) and Tourism Development Corporation.

The government's goal is to identify over 10,000 short-term vacation rental properties throughout the Bahamas. By registering, owners become officially recognized providers. The DIR states that registration will lead to more uniform standards, consistent experiences, expanded opportunities, increased revenues, and an improved tourism product.

Owners operating unregistered short-term rentals may face penalties and fines. The government is cracking down on properties circumventing tax obligations and engaging in unregulated activities like renting cars and boats without proper licenses.

For more information on registering vacation rental properties, owners can contact the Department of Inland Revenue at (242) 225-7280. The registration process is still new as of 2023, so exact processing times are not yet available. However, the DIR encourages all owners to register as soon as possible to avoid potential consequences.

Required Documents for Governor's Harbour Short-Term Rentals

To register a short-term vacation rental property in Governor's Harbour, owners must provide the following information and documents via the Department of Inland Revenue's online portal (inlandrevenue.finance.gov.bs):

1. Name of property owner - For identification purposes and to ensure the owner is registering the property.
2. Detailed location of the property - The exact address is required to verify the property is within Governor's Harbour.
3. Real Property Tax assessment number - This unique identifier links the property to tax records. It can be found on the owner's Real Property Tax bill.
4. Other relevant details - The DIR may request additional information to complete registration, such as a description of the property, maximum occupancy, safety features, etc.

Non-Bahamian owners have these extra requirements:

1. Proof the property is lodged with the Registrar General - Required to legally own property in the Bahamas as a non-citizen.
2. Proof the property is submitted for VAT stamp - Confirms Value Added Tax (VAT) has been paid on the property purchase.
3. Proof the property is declared with the DIR - Shows the owner has registered the property with Inland Revenue and is current on taxes.
4. Change of ownership form (if applicable) - If the property has been sold, this form updates the owner of record with the government.
5. Declaration of property improvements - Owners must report any renovations or upgrades that increase the property's value for tax purposes.

These documents help the Bahamian government identify and track vacation rental properties to ensure regulatory compliance. By gathering owner details, location information, tax records, and more in one centralized registry, the Department of Inland Revenue aims to legitimize the growing short-term rental industry while capturing previously uncollected tax revenues.

The online registration portal is the only way to submit the required documents. Property owners can contact the DIR at (242) 225-7280 with any questions about the registration process or required information.

Governor's Harbour Short-Term Rental Taxes

Short-term vacation rentals in Governor's Harbour are subject to several taxes that owners must collect and remit to the government. Understanding these tax obligations is a key part of operating a compliant and successful rental business.

The main taxes that apply to short-term rentals in the Bahamas are:

Value Added Tax (VAT) - A consumption tax of 10% charged on the supply of most goods and services, including vacation rental accommodations. Owners must register for VAT if their annual revenue exceeds $100,000.

Business License Fees - Annual fees paid to operate a business in the Bahamas. Short-term rental owners earning under $100,000 per year may be exempt if they register their properties with the Department of Inland Revenue by April 30, 2023.

Occupancy Taxes - Some destinations charge an additional occupancy or room tax on short-term rentals. However, there is currently no occupancy tax in Governor's Harbour or Eleuthera.

Possible tax deductions for short-term rental businesses may include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Repairs and maintenance
6. Supplies
7. Cleaning and management fees
8. Depreciation on furniture and appliances

Owners should consult with a qualified accountant to determine which expenses they can write off. Proper record-keeping is essential to claim any deductions.

It's important to note that tax rates and regulations can change over time. In early 2023, some Bahamian officials proposed increasing taxes on vacation rentals, with one bill suggesting a combined rate of 33%. However, this legislation was postponed.

The government's new registration requirement aims to bring more owners into tax compliance and create a level playing field in the lodging industry. By identifying up to 10,000 short-term rental properties throughout the Bahamas, officials hope to capture previously uncollected revenues.

Short-term rental owners in Governor's Harbour should stay informed about their tax obligations, keep detailed records, and file returns promptly to avoid penalties and maintain good standing. With the proper planning and processes in place, vacation rentals can provide a profitable business opportunity while contributing to the local economy.

Bahamas Wide Short-Term Rental Rules

In addition to the registration requirements specific to Governor's Harbour, short-term rental owners must also comply with several Bahamas-wide laws and regulations:

Business License Act, 2023

Under the new Business License Act that took effect in 2023, non-Bahamian individuals and companies operating short-term vacation rentals are required to obtain an annual business license, regardless of their revenue. Bahamian individuals renting properties short-term do not need a business license unless their rental activity is considered a business (e.g. apartment complex).

Value Added Tax (VAT) Act

As of 2023, all non-Bahamian short-term rental owners must register for VAT and charge a 10% tax on rental income, no matter their annual turnover. Bahamian individuals only need to register for and collect VAT if their rental revenue exceeds $100,000 per year.

The obligation to levy VAT lies with the property owner, who must report and pay it to the government. However, owners can authorize online rental platforms like Airbnb to collect VAT on their behalf and remit it to the Department of Inland Revenue.

International Persons Landholding Act

Non-Bahamians who purchase property with the intent to rent it out short-term must apply for a permit under the International Persons Landholding Act. This involves an application fee, permit fee, and surcharge based on the property value.

Building & Rental Property Taxes

All property owners in the Bahamas, including those offering short-term rentals, are subject to annual Real Property Tax based on the assessed value of their property. Additionally, owners must pay a 1% Stamp Duty on rental income.

Health & Safety Regulations

Short-term rental properties must meet certain health and safety standards, such as having working smoke detectors, fire extinguishers, and clearly marked emergency exits. Regular inspections may be conducted to ensure compliance.

Governor's Harbour hosts should be aware of these Bahamas-wide requirements in addition to local registration rules. With the government cracking down on unregulated rentals, it's important for owners to understand and adhere to all applicable laws to avoid fines and maintain good standing.

As the short-term rental industry continues to grow throughout the Bahamas, regulations are likely to evolve. Owners should stay informed of any legal changes and work with local officials to ensure their properties are operating in full compliance.

Does Governor's Harbour Strictly Enforce STR Rules?

Based on discussions in short-term rental forums like Bigger Pockets and Reddit, Governor's Harbour appears to be taking a stricter approach to regulating vacation rentals compared to some other destinations in the Bahamas. The government's new registration requirement and crackdown on unregulated properties has hosts paying close attention to compliance.

While the Bahamas as a whole has historically been fairly welcoming to short-term rentals, the tide seems to be turning, especially in popular tourist spots like Governor's Harbour. With the Department of Inland Revenue threatening fines up to $10,000 per day for unregistered rentals, many hosts are scrambling to get their paperwork in order by the April 30, 2023 deadline.

Some owners have complained that the registration process is cumbersome and the fees for non-Bahamians are too high. Despite the hassle, most agree that ignoring the rules is too risky. "I wouldn't chance operating under the radar in Governor's Harbour," one Reddit user advised. "They seem to be taking enforcement seriously and the penalties are steep."

Others point out that registering properties levels the playing field and ensures everyone is contributing their fair share in taxes. "It's about time the government cracked down on illegal rentals," a Bigger Pockets member wrote. "Those of us following the rules are at a competitive disadvantage against hosts who skirt the law."

Compared to more lenient destinations, Governor's Harbour is positioning itself on the stricter end of the short-term rental spectrum. While some hosts may still attempt to fly under the radar, the consensus is that the risks outweigh the rewards. For most owners, working with local officials to achieve compliance is the prudent path forward.

As one host summarized, "Governor's Harbour wants to find a middle ground - supporting rentals but with reasonable oversight. If you play by the rules, you should be fine. But if you try to skirt them, be ready to face consequences." Only time will tell how aggressively the government enforces its new ordinances, but all signs point to Governor's Harbour taking short-term rental regulation seriously.

How to Start a Short-Term Rental Business in Governor's Harbour

Starting a successful short-term rental business in Governor's Harbour requires careful planning and compliance with local regulations. Here are the key steps to get your vacation rental up and running:

Research local laws and regulations

1. Familiarize yourself with Governor's Harbour's short-term rental ordinances, including zoning restrictions, licensing requirements, and tax obligations.
2. Understand the registration process and gather necessary documents like your Real Property Tax assessment number.

Register your property with the government

1. Create an account on the Department of Inland Revenue's online portal (inlandrevenue.finance.gov.bs).
2. Provide required information and documents, including property details, ownership records, and tax declarations.
3. Pay any applicable fees, which vary based on property value and owner nationality.
4. Submit your registration by the April 30, 2023 deadline to avoid penalties.

Obtain necessary licenses and permits

• Apply for a Business License if your rental activity qualifies as a business (e.g. multiple properties, high revenue).
• Secure a permit under the International Persons Landholding Act if you're a non-Bahamian owner.
• Verify that your property meets all health and safety standards, such as fire safety equipment and emergency exits.

Set up your rental property

• Furnish and equip your property with essential amenities like linens, kitchenware, and toiletries.
• Hire a professional photographer to showcase your rental with high-quality photos.
• Create a detailed property description highlighting unique features, nearby attractions, and amenities.

List your property on vacation rental platforms

• Choose popular booking sites like Airbnb and VRBO to maximize exposure.
• Optimize your listing with an enticing title, description, and photos.
• Set competitive rates based on comparable properties and seasonal demand.
• Establish clear house rules and booking policies, such as minimum stay requirements and cancellation terms.

Manage your bookings and guests

• Use a reliable system to track reservations, payments, and guest communication.
• Consider hiring a local property manager to handle day-to-day operations, cleaning, and maintenance.
• Provide excellent customer service to earn positive reviews and repeat business.
• Promptly address any guest complaints or issues that arise during their stay.

Comply with ongoing regulations and taxes

• Stay current on any changes to local short-term rental laws and ordinances.
• Collect and remit required taxes, such as VAT and occupancy taxes, on time.
• Maintain accurate records of all income and expenses for tax purposes.
• Renew your business license and permits annually as required.

By following these steps and prioritizing compliance, you can build a thriving short-term rental business in Governor's Harbour. While the regulatory landscape may seem daunting at first, working with local officials and staying informed can help you navigate the process successfully.

As the Bahamas continues to refine its approach to vacation rentals, owners who adapt and comply with evolving regulations will be well-positioned for long-term success in this growing industry. With its stunning beaches, laid-back lifestyle, and strong tourist appeal, Governor's Harbour offers an enticing opportunity for short-term rental entrepreneurs.

Who to Contact in Governor's Harbour about Short-Term Rental Regulations and Zoning?

For the most up-to-date information on short-term rental regulations and zoning in Governor's Harbour, contact the Department of Inland Revenue:

• Phone: (242) 225-7280
• Email: inlandrevenue@bahamas.gov.bs
• Website: https://inlandrevenue.finance.gov.bs/

The DIR launched an online portal in March 2023 requiring all short-term vacation rental owners to register their properties by April 30, 2023. Owners can register via the vacation rental tab on the DIR website and must provide details like:

• Name of property owner
• Detailed location of the property
• Real Property Tax assessment number
• Other relevant information

For general questions about starting a short-term rental business in Governor's Harbour, you can also reach out to local property management companies that specialize in vacation rentals, such as:

Governors Harbour Collection

• Email: stay@governorsharbourcollection.com
• Phone: +1 (242) 805-0234 or +1 (242) 818-3113
• Website: https://governorsharbourcollection.com/

The knowledgeable team at Governors Harbour Collection, led by Joy and Dominic, are experts on the local short-term rental market. They oversee a portfolio of luxury properties and can provide insider tips on navigating the regulatory landscape.

While there don't appear to be any Governor's Harbour specific online communities for short-term rental hosts, the following Facebook groups cover the Bahamas more broadly:

• Airbnb Hosts Bahamas: https://www.facebook.com/groups/2070189199912991/
• Airbnb Bahamas: https://www.facebook.com/groups/1672038689734271/

These groups can be a useful resource for connecting with other hosts, asking questions, and staying informed about industry developments across the islands.

Overall, the Department of Inland Revenue should be the first point of contact for any regulatory inquiries. But local property managers and online host communities can also provide valuable guidance and support as you navigate the process of starting or operating a short-term rental in Governor's Harbour.

What Do Airbnb Hosts in Governor's Harbour on Reddit and Bigger Pockets Think about Local Regulations?

While there aren't many Governor's Harbour specific discussions about short-term rental regulations online, a few relevant threads provide insight into how hosts in the Bahamas are reacting to the government's new registration requirement and enforcement efforts:

In the r/bahamas subreddit, a local Bahamian offered advice to tourists and mentioned the growing short-term rental market on islands like Eleuthera, where Governor's Harbour is located. They noted that while the government is starting to regulate vacation rentals more strictly, renting a home or apartment is still a good option for visitors. Source

On the Bigger Pockets forums, a post about investing in short-term rentals in upstate New York turned into a discussion about regulation. One user commented that as major cities like NYC crack down on Airbnbs, some investors are looking to nearby vacation markets instead. However, others cautioned that many towns are also passing stricter rules in response to the proliferation of vacation rentals. Source

Another Bigger Pockets thread on house hacking expensive markets touched on the challenges of making short-term rentals profitable in high-cost areas. Commenters suggested that while the 1% rule for estimating rental income often doesn't work for pricey real estate, it's still important to run the numbers carefully. Strategies like using a property as an Airbnb could boost cash flow. Source

These discussions suggest that while the Bahamas and Governor's Harbour are an attractive market for short-term rentals, hosts are paying close attention to regulatory changes. Some see registration as a necessary step to legitimize the industry, while others worry the added costs and oversight could hurt profitability.

As one Harbour Island homeowner association member told the Tribune newspaper, "We aren't against the government ensuring Airbnb is regulated and persons are paying their fair share of taxes, but we also want to ensure the livelihood of Bahamians are not impacted negatively by any new laws."

The general sentiment seems to be that Governor's Harbour officials are trying to find a middle ground - supporting short-term rentals while putting reasonable guardrails in place. Hosts who educate themselves on the rules and make an effort to comply are optimistic they can continue to operate successfully. But those who try to fly under the radar may face increasing risks as enforcement ramps up.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.