New Rules for Operating a Short-Term Rental in Winnipeg
March 27th, 2024 by Gemma Brown
Operating a short-term rental in Winnipeg will require a licence as of April 1, 2024. This will apply to rentals such as Airbnb, Vrbo, or bed and breakfasts, and it applies to rentals being operated out of the primary place of residence and any non-primary properties.
In following the footsteps of other major cities that regulate the short-term rental industry, the goal is to provide safe rental properties to those who are booking through these platforms and to protect the neighborhood in which these rental properties are located.
Properties purchased after February 23, 2023, can be operated as short-term rentals if they are the primary residence of the operator and the operator is a permanent resident of the City of Winnipeg. There are restricted zones in which a person who meets these criteria will not be allowed to operate a short-term rental – residential mobile home (RMH) and rural residential (RR2, RR5).
Properties purchased on or before February 23, 2023, can be operated as short-term rentals if they are not the primary residence of the operator and the owner is a permanent resident of the City of Winnipeg or is a corporation wholly owned by residents of the City of Winnipeg. Each operator is allowed a maximum of 4 rental properties, one of which can be the operator’s primary residence. Renters can also operate short-term rentals from their home as long as they have received their landlord’s written permission. In the case of condominiums, a letter of permission from the condo board will be required.
The primary residence can be rented for a maximum of 150 nights per year if the operator is not present during the stay. If the operator is present, there is no limit on the maximum number of nights per year that the property is being rented out. For a non-primary residence, there is no limit to the number of nights per year the property can be rented out. All residences are limited to 29 consecutive nights per booking, regardless of whether the operator is present during the stay.
All short-term rentals will also be subject to an Accommodation Tax, which is currently applied on all hotel rooms. This is a 5% tax that must be collected on each listing and be paid to the City of Winnipeg quarterly. Many platforms such as Airbnb and Vrbo allow for this tax to be added in through the property booking system. However, it is still the operator’s responsibility to ensure that the tax is collected and paid out quarterly.
The application will require the owner of the property to provide a floorplan outlining the number of bedrooms and fire exits, two pieces of government-issued identification, if the applicant is not the owner of the property, then they must provide a letter of permission and the licencing fee payment. In the case of a non-primary residence, the application must include a floor plan showing the location of the smoke detectors, carbon monoxide detectors, and fire extinguishers, along with the contact information of someone authorized to address legal issues and complaints. A Winnipeg Police Service records check will be performed after the application is submitted.
Since short-term rentals can be known to attract criminal activity, the City of Winnipeg provides some educational resources for operators to decrease the likelihood of criminal activity occurring at their short-term rental along with where to report if something does occur. These resources can be found on the City of Winnipeg website.
Requirements for Obtaining and Maintaining a Licence
The following are requirements of a short-term rental licence:
- Maintain and provide these records to the City of Winnipeg when requested:
- Number of nights a short-term rental was rented;
- Rental type- such as individual rooms or an entire dwelling unit;
- Names of the customers who provided payment for each booking; and
- Nightly and total price charged for the rental.
- Post the licence number on any online or physical advertisements publicizing the short-term rental;
- Inform the City within 10 days of any change to the information provided during the application process;
- Provide any other information or documents reasonably requested by the City;
- Cease all operations immediately if your licence expires, as they must be renewed annually;
- Receive approval from the Winnipeg Police Service Records Review Board as part of the application process;
- Taking bookings only through licenced platforms, booking privately or through any other advertising medium is prohibited;
- Collect a 5% Accommodation Tax on all short-term rental bookings, to be paid to the City quarterly. (Operators must ensure to collect this tax and it is their responsibility to pay the tax to the City quarterly);
- There is a limit of two adults per bedroom, excluding minors under 18 years of age;
- Must install and maintain (if a non-primary residence):
- Smoke alarms that comply with the City of Winnipeg bylaws;
- Fire extinguishers that are located within the main area of the short-term rental;
- Carbon monoxide detectors that are located within the main area of the short-term rental; and
- Operators must demonstrate that each are operative during annual inspections.
- Must post an emergency exit plan inside and provide to guests;
- Must provide guests with a 24/7 emergency contact number;
- Post the licence number and the 24/7 emergency contact in a visible location at the entrance of the short-term rental while it is being rented. If the short-term rental is the primary residence of the operator, it can be removed while the operator is residing there without short-term renters;
- Print and display the ‘Zero Tolerance for Human Trafficking’ signage in a visible location within the short-term rental;
- Must allow any City enforcement official to conduct an inspection upon reasonable notice at any reasonable time. These inspections can take place on weekdays, weekends, and evenings;
- The short-term rental must comply with all City bylaws.
Short-Term Rental Platforms
A short-term rental platform can be a person, group, or corporation that markets or brokers the booking, reservation, rental, or listing of any part of a dwelling unit that is being used as a short-term rental. These platforms generally collect a fee on behalf of the operator such as Airbnb and Vrbo. The platform must keep the last three years of records for each Winnipeg property listed that includes:
- The listing identification number;
- The corresponding licence number (properties must not be posted without a valid licence);
- The number of nights each property is rented as a short-term rental;
- The rental type (individual room or entire dwelling unit or primary residence); and
- The price paid for each booking.
The platform must provide these records when requested by the City and they must also provide any other documentation or information reasonably requested by the City.
To apply to be a short-term rental platform, one must fill out an application and include the current listing of any Winnipeg properties that are listed on the platform, standard operating procedures on addressing short-term rental complaints, and the licence fee payment.
Licencing Fees
The annual licencing fees based on the property type are as follows:
- Primary residence = $260
- Non-Primary Residence – 1 bedroom property =$260
- Non-Primary Residence – 2 bedroom property = $520
- Non-Primary Residence – 3 bedroom property = $780
- Non-Primary Residence – 4 bedroom property = $1,040
- Non-Primary Residence – 5 bedroom property = $1,300
- Non-Primary Residence – 6 bedroom property (maximum allowed) = $1,560
- Platform that has 1-100 listings = $1,000
- Platform that has 101-500 listings = $2,500
- Platform that has more than 500 listings = $4,000
A licence must be obtained for each individual property that an operator intends to operate as a short-term rental. Please keep in mind that these are the licencing fees and not the Accommodation Tax that will also have to be paid to the City of Winnipeg each quarter.
Penalties
Penalties for not following the above requirements are:
- Warnings;
- Suspension;
- Revocations;
- Fines under the Municipal Enforcement Act (ranging from $500-$1000); and
- Initiating a prosecution in Provincial court for not submitting the Accommodation Tax.
Those that operate a short-term rental without a valid licence are guilty and liable upon summary conviction. For a first offence, a fine in the amount no less than the amount of the applicable licence. For a second offence, a fine in the amount no less than twice the amount of the applicable licence. For third and subsequent offences, a fine in the amount of no less than three times of the applicable licence.
If you have any questions regarding short-term rentals, please contact our office or visit the City of Winnipeg website.
Notice: The articles on our website are provided for general information purposes only and should not be relied upon as legal advice or opinion. They reflect the current state of the law as at the date of posting on the website, and are subject to change without notice. If you require legal advice or opinion, we would be pleased to provide you with our assistance on any of the issues raised in these articles.
