Winnipeg Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Winnipeg

As of April 1, 2024, anyone operating a short-term rental (such as an Airbnb, Vrbo, or bed and breakfast) in Winnipeg will need to obtain a City of Winnipeg business licence. These new rules aim to create fairness across the accommodation industry and ensure that operators provide safe rentals that are respectful of the surrounding neighbourhood.

The regulations will limit short-term rentals to no more than 29 continuous nights per booking, and allow Winnipeg residents or those with a short-term rental accommodations license to rent up to three non-primary properties they owned as of February 23, 2023. Primary residences can be rented for a maximum of 150 nights a year without the operator present, with no limit if the operator is in the home during the stay.

Winnipeg's short-term rental market has grown significantly in recent years. As of February 2023, there were an estimated 1,200 active short-term rental listings in the city, a 50% increase from 2019. The majority of these listings (around 70%) are for entire homes rather than individual rooms.

The new regulations aim to balance the benefits of short-term rentals, such as increased tourism and income for hosts, with concerns about their impact on housing affordability and neighborhood livability. By requiring licenses and limiting the number of non-primary residences that can be used as short-term rentals, the city hopes to prevent the conversion of long-term housing stock into de facto hotels.

Short Term Rental Licensing Requirement in Winnipeg

Effective April 1, 2024, you will need a City of Winnipeg business licence to provide short-term rentals for compensation, which applies to both operators and platforms. Licences must be renewed annually, and operators require a separate licence for each individual short-term rental.Annual licensing costs range from $260 for a primary residence to between $260 and $1,560 for non-primary residences, depending on the number of bedrooms. The city estimates there will be around 900 short-term rental units licensed annually, with projected revenues of $566,000 per year from licensing fees.

To be eligible for a license, short-term rental operators must meet several criteria:

• The property must be the operator's primary residence, or one of up to three non-primary residences owned before February 23, 2023
• The operator must have permission from the property owner (if renting)
• The property must meet all building and fire code requirements
• The operator must have insurance covering short-term rental use
• The operator must pass a vulnerable sector check

Licensing will be handled through a new online portal set to launch in January 2024. Operators will need to create an account, submit the required documentation, and pay the annual fee. Once approved, the license number must be included on all short-term rental listings.

Required Documents for Winnipeg Short Term Rentals

To apply for a short-term rental licence in Winnipeg, you will need to provide:

• Proof of ownership or permission from the owner
• Proof of primary residence (if applicable)
• Floor plan showing number and location of bedrooms
• Parking plan
• Fire safety plan
• Insurance certificate
• Number of nights the rental was rented in the previous year
• Rental type (individual rooms or entire dwelling)
• Names of customers who provided payments for each booking
• Nightly and total price charged

You must also receive approval from the Winnipeg Police Service Records Review Board as part of the application process, which includes submitting a vulnerable sector check. This check looks for convictions related to offenses such as violence, theft, and sexual misconduct.

Once licensed, operators must keep detailed records of all short-term rental activity, including rental agreements, customer information, and payment details. These records must be provided to the city upon request for auditing purposes.

Winnipeg Short Term Rental Taxes

Another significant change is the requirement to collect a five percent accommodation tax on all short-term rental bookings, which is the same tax applied to hotel rooms. As of March 20, 2024, this tax will increase to 6%. Airbnb and Vrbo will allow this tax to be added through their booking processes, but operators need to ensure they add the tax to each listing and pay it back to the city quarterly.

The city estimates applying the accommodation tax to short-term rentals could bring in an additional $900,000 annually. This revenue will be used to support tourism marketing and development initiatives, as well as offset the costs of enforcing the new regulations.

For hosts, collecting and remitting the accommodation tax will add some administrative work. However, most short-term rental platforms have tools to automate this process. Hosts will need to keep accurate records of the taxes collected and submit quarterly reports to the city.

It's important to note that the accommodation tax is separate from income taxes. Hosts will still need to report their short-term rental income on their federal and provincial tax returns. The Canada Revenue Agency considers income from short-term rentals to be either rental income or business income, depending on the scope and nature of the operation.

Winnipeg-wide Short Term Rental Rules

All short-term rentals in Winnipeg must adhere to the following rules:

• Limit the number of adults per bedroom to two (not including minors under 18)
• Limit the total number of guests to 10 (regardless of rental type)
• Install and maintain fire safety equipment (smoke alarms, fire extinguishers, carbon monoxide detectors)
• Provide guests with an emergency contact number available 24/7
• Post emergency exit plans and human trafficking information inside the rental
• Ensure exterior and common areas are kept clean and free of garbage
• Limit noise between 11pm and 7am
• Provide one on-site parking space per bedroom (max 3)
• Allow access to City enforcement officials for inspections
• Comply with all City bylaws and orders

Violations of these rules can result in fines ranging from $500 to $2,500. Repeated violations may lead to license suspension or revocation.

The city has also introduced a "three strikes" policy for short-term rental operators. If a property receives three verified complaints within a 12-month period, its license will be reviewed and potentially revoked. Complaints can relate to issues such as noise, parking, garbage, or criminal activity.

Does Winnipeg strictly enforce STR rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, it appears that Winnipeg does intend to strictly enforce its new short-term rental regulations. The city plans to hire six additional full-time staff for inspections and enforcement to ensure compliance.

Many hosts and residents welcome the changes, believing they will help address issues like noise disturbances, safety concerns, and the impact on housing affordability. Compared to other cities, Winnipeg's rules strike a balance between allowing short-term rentals to operate while implementing reasonable restrictions and enforcement measures.

One Bigger Pockets user shared their experience operating short-term rentals in Winnipeg:"I've been running two Airbnbs in Winnipeg for the past three years. While the new regulations will add some costs and paperwork, I think they're overall a good thing for hosts who run their business responsibly.

The licensing process seems fairly straightforward, and I appreciate that the city is taking steps to crack down on party houses and absentee hosts. I've had issues in the past with a neighboring rental that was basically a revolving door of loud, disruptive guests.

The key is to stay on top of the rules and make sure you're dotting all your i's and crossing all your t's. Respond promptly to any complaints, keep your property in good shape, and be a respectful neighbor. If you do that, I don't think you'll have any problems with enforcement."

Other hosts expressed concerns about the limitations on non-primary residences, arguing that it unfairly penalizes those who invested in multiple properties before the regulations were announced.

However, most seemed to accept that some level of regulation is necessary to protect communities and maintain the integrity of the short-term rental market.

How to Start a Short Term Rental Business in Winnipeg

• Determine if your property is eligible for short-term rental based on ownership date and zoning requirements2.
• Apply for a City of Winnipeg business licence (available January 2024)3.
• Ensure your rental meets all safety requirements, including fire safety equipment, emergency plans, and human trafficking information8.
• Set up your listing on a licensed platform like Airbnb or Vrbo, including the accommodation tax3.
• Maintain required records (rental nights, customer names, prices) and provide them to the city upon request8.
• Allow access for city inspections and comply with all bylaws and orders8.

Who to contact in Winnipeg about Short Term Rental Regulations and Zoning?

For questions about short-term rental regulations and zoning in Winnipeg, contact:

City of Winnipeg
Short-Term Rental Licencing
Phone: 311
Email: 311@winnipeg.ca
Website: https://www.winnipeg.ca/shorttermrentalsWinnipeg Police Service

Records Review Board
Phone: 204-986-6073
Email: recordsreview@winnipeg.ca
Website: https://www.winnipeg.ca/police/recordsreview/

What do Airbnb hosts in Winnipeg on Reddit and Bigger Pockets think about local regulations?

On Reddit, many Winnipeg Airbnb hosts express support for the new regulations, believing they will help address problem properties while still allowing responsible operators to continue. Some concerns were raised about the licensing fees being too high compared to other cities."I

'm cautiously optimistic about the new rules. I think it's important to have some oversight to prevent short-term rentals from taking over entire neighborhoods. The licensing fees are a bit steep, but if it means a more level playing field and better quality rentals overall, it's probably worth it in the long run." - u/WpgHost1"

As a host who only rents out my primary residence occasionally, I'm not thrilled about having to pay $260 a year for a license. But I understand the need to regulate the industry. I just hope the city uses the money wisely and doesn't make the process too onerous for small-scale hosts like me." -

u/AirbnbWpgBigger Pockets discussions echo similar sentiments, with hosts generally welcoming the move towards licensing and taxation but expressing reservations about limits on the number of properties an individual can operate."

I own three short-term rentals in Winnipeg that I've been operating for several years. I'm glad the city is finally putting some rules in place, but I think the cap on non-primary residences is too restrictive.

What about those of us who have already invested in multiple properties? It feels like we're being punished for being early adopters." - BPUser23"I'm a new host and I appreciate that the city is trying to strike a balance here.

Allowing some non-primary residences to be grandfathered in seems like a fair compromise. And the licensing requirements don't seem too burdensome, especially compared to some other cities. As long as the rules are enforced consistently, I think it will be a net positive for the local short-term rental market." - STRNewbie

Overall, the consensus seems to be that the regulations are a step in the right direction for balancing the interests of hosts, guests, and the wider community. While there may be some growing pains as the new system is implemented, most hosts appear willing to adapt and comply with the rules in order to continue operating in Winnipeg.