Whitby Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Whitby

If you're considering starting a short-term rental business in Whitby, it's important to understand the local regulations. The Town of Whitby has been working to create new rules and licensing standards for short-term rentals.

In 2019, Whitby town staff prepared a report outlining options for regulating short-term rentals. The report considered three approaches:

• Prohibiting short-term rentals entirely
• Allowing short-term rentals with no additional regulations
• Permitting short-term rentals with a licensing and regulatory framework

The report recommended the third option of allowing short-term rentals with regulations as the best approach. Key proposed regulations included:

1. Requiring short-term rental operators to obtain a license from the town
2. Restricting short-term rentals to an operator's primary residence only
3. Limiting the number of consecutive days a unit can be rented (e.g., 28 days)
4. Capping the total number of days per year a unit can be rented short-term (e.g., 180 days)
5. Requiring operators to provide a local contact person, such as a co-host or property manager
6. Mandating minimum insurance coverage

As of 2023, Whitby has not yet implemented a short-term rental bylaw or licensing system. However, the town continues to study the issue and gather public input through surveys and consultations.

Currently, short-term rental operators in Whitby must follow existing bylaws related to noise, property standards, parking, and zoning. For example, the zoning bylaw allows bed and breakfasts as a home-based business in residential zones, subject to certain requirements.

Before starting a short-term rental, check with Whitby's Planning and Development Department to confirm rules for your property's zone. You may need to apply for a minor variance or zoning change.

It's also a good idea to review your insurance coverage and condo or homeowner association rules, if applicable. Some insurers and condo boards have restrictions on short-term rentals.

Short-Term Rental Licensing Requirement in Whitby

While Whitby does not currently have a short-term rental licensing requirement, this will likely change in the near future. The town's 2019 staff report proposed a license and registration system for all short-term rental operators.

Under the preliminary proposal, short-term rental hosts would need to apply for an annual permit from the town. The application would require proof of primary residence, a floor plan, a parking plan, and proof of insurance, among other items.

The permit fee would help offset the costs of bylaw enforcement and administration related to short-term rentals. Fines and penalties would apply for operating without a valid permit.

Many other Ontario municipalities, including Toronto, Ottawa, Mississauga, and Oakville, have already implemented short-term rental licensing systems. As Whitby moves to regulate the industry, operators should be prepared for a similar permit process.

Obtaining a short-term rental permit will add some red tape and costs. However, most hosts accept this as part of doing business legally. "I'd rather jump through a few hoops and pay a fee than worry about getting shut down," said one Whitby Airbnb host on a real estate investing forum.

Required Documents for Whitby Short-Term Rentals

While Whitby has not finalized short-term rental regulations, the town's preliminary report provides a preview of what documents will likely be required from operators:

1. Completed permit application form
2. Government-issued ID showing the short-term rental address as the operator's primary residence
3. Proof of ownership or lease for the property
4. Floor plan of the short-term rental unit
5. Parking plan showing required on-site parking
6. Proof of insurance with a minimum $2 million liability coverage
7. Contact information for a local responsible person who can respond to issues 24/7
8. Electrical Safety Authority inspection certificate
9. Fire safety plan and fire extinguishers/smoke alarms information
10. Site plan and property maintenance plan

Operators may also need to provide a Zoning Certificate of Occupancy confirming the short-term rental use complies with the zoning bylaw. This involves a property inspection by the town's Building Division.

The exact documents and process will be confirmed once Whitby passes a short-term rental bylaw. But, collecting these items in advance can help you prepare for the anticipated licensing system.

Whitby Short-Term Rental Taxes

Short-term rental operators in Whitby may soon need to collect and remit a Municipal Accommodation Tax (MAT) on their bookings. The town is considering implementing a MAT for short-term rentals as part of its regulatory framework.

Many other Ontario cities, including Toronto, Ottawa, and Mississauga, require short-term rental hosts to charge a MAT, which is typically 4% of the booking fee. The tax is paid by guests and then remitted by hosts to the municipality on a quarterly basis.

Revenue from the MAT is used to fund tourism marketing and projects. Whitby town staff have noted a short-term rental MAT could generate over $30,000 per year based on the estimated 250 active listings in the town.

For hosts, registering for and collecting the MAT will add some administrative work. But those in other cities have adapted to the process. "The MAT is pretty easy to manage once you get set up," advised one Toronto Airbnb host on Reddit. "I just add it to my listing price so guests pay it upfront."

If Whitby implements a MAT, short-term rental platforms like Airbnb and Vrbo may have the option to collect and remit the tax on behalf of hosts. However, hosts are ultimately responsible for compliance.

Does Whitby Strictly Enforce STR Rules?

Currently, Whitby does not have a comprehensive short-term rental bylaw to enforce. The town relies on existing regulations around noise, parking, property standards, and zoning to address any issues with short-term rentals.

However, this may change as Whitby moves to implement a licensing system and stronger rules in the coming years. The town's 2019 staff report noted the lack of a clear regulatory framework makes enforcement challenging.

"The Town does not have the tools to effectively manage (short-term rentals) or the resources to proactively enforce them," the report stated. "A regulatory framework would provide a clear and consistent approach to managing STRs."

That said, Whitby bylaw officers do respond to complaints about problem short-term rentals. Residents can report suspected illegal rentals or disturbances to the town's Bylaw Enforcement Division.

On Reddit and other online forums, some Whitby hosts say they have operated without a license for years without any issues. But they recognize the risk of stricter enforcement.

"I've been lucky so far, but I know I'm taking a chance," one host commented. "As soon as the new rules come in, I'll be first in line to get my permit."

Compared to cities like Toronto, which has dedicated short-term rental enforcement staff, Whitby is seen as relatively lax. But that is likely to change as the town formalizes its regulatory approach.

"The wild west days are coming to an end," said one industry watcher. "Whitby hosts who want to stay in business long-term need to play by the rules, whatever those end up being."

How to Start a Short-Term Rental Business in Whitby

If you want to start a short-term rental business in Whitby, here are the key steps to follow:

1. Research the local market and regulations, including zoning bylaws, noise and parking rules, and any anticipated permit requirements. Consult with Whitby's Planning Department if needed.
2. Choose an appropriate property that complies with zoning and has the amenities and space to operate as a successful short-term rental. Consider the location, parking, safety features, etc.
3. Develop a business plan that covers your startup and operating costs, target market, pricing strategy, and marketing approach. Have a clear plan for managing bookings, turnovers, maintenance, and guest issues.
4. Secure financing to purchase a property or make any required upgrades to an existing property. Consider the ongoing costs of furniture, utilities, supplies, cleaning, etc.
5. Obtain required permits and licenses once Whitby implements its proposed registration system. Prepare the necessary documentation and fee payment.
6. Set up your business structure, such as a sole proprietorship or corporation, and register with the province of Ontario. Open a business bank account.
7. Furnish and equip your short-term rental property to appeal to your target guests. Invest in quality furniture, linens, amenities, and technology. Create a welcoming space.
8. List your property on platforms like Airbnb and Vrbo. Take professional photos, write a compelling description, and set competitive rates. Consider creating your own direct booking website as well.
9. Implement systems to manage inquiries, reservations, guest communication, and reviews. Consider hiring a co-host or property manager if you need help.
10. Launch your marketing efforts to attract bookings. Optimize your listing, run paid ads, partner with local businesses, and build your brand on social media.

By following these steps and staying on top of evolving regulations, you can build a successful and compliant short-term rental business in Whitby. While the regulatory landscape is shifting, there is still opportunity for hosts who adapt and provide great guest experiences.

Who to Contact in Whitby about Short-Term Rental Regulations and Zoning

If you have questions about short-term rental regulations and zoning in Whitby, here are the key contacts:

Planning and Development Department - For questions about zoning, permitted uses, and minor variances. Contact them at 905-430-4306 or planning@whitby.ca.

Building Division - For questions about building permits, fire codes, and property standards. Contact them at 905-430-4305 or building@whitby.ca.

Bylaw Enforcement Division - To report suspected illegal short-term rentals or bylaw infractions like noise and parking issues. Contact them at 905-430-4345 or bylaw@whitby.ca.

Licensing and Standards Division - For questions about the anticipated short-term rental licensing process and requirements, once implemented. Contact them at 905-430-4300 or licensing@whitby.ca.

You can also check the Town of Whitby's website at whitby.ca/shorttermrentals for updates on the evolving short-term rental regulations and bylaw. The town posts public notices, staff reports, and survey results related to the ongoing consultations.

For advice on how to set up your short-term rental business to comply with local rules, consult with a lawyer or paralegal who specializes in municipal law and licensing. They can review your specific situation and property.

What Do Airbnb Hosts in Whitby on Reddit and Bigger Pockets Think about Local Regulations?

On Reddit and Bigger Pockets forums, short-term rental hosts in Whitby have mixed views on the prospect of local regulations. Some see the rules as necessary to curb problem properties and create a level playing field. Others worry the licensing process will be costly and cumbersome.

"I think some kind of permit system is inevitable at this point," wrote one host on the r/AirBnB subreddit. "As long as the fees are reasonable and the process isn't too onerous, I'm okay with it. Better than having a few bad apples ruin it for everyone."

Another Whitby host on the Bigger Pockets Canada forum expressed concerns: "I've been operating without a license for years and it's been fine. I provide a great service and never had any complaints. I don't see why I should have to jump through hoops and pay a bunch of money just to keep doing what I'm doing."

Some hosts question whether Whitby will have the resources to enforce a licensing system. "They can barely keep up with noise complaints and illegal parking now," said one skeptical host. "How are they going to inspect and enforce permits on top of that?"

Despite the concerns, most hosts seem resigned to the fact that regulations are coming. "It's the direction things are going, not just in Whitby but all over," said a host on Reddit. "We'll have to adapt. As long as everyone is treated fairly and the rules are clear, I think it will work out."

Ultimately, many hosts say the key is to stay informed and engaged as Whitby develops its short-term rental bylaw. "Go to the public meetings, fill out the surveys, talk to your councilor," advised a Bigger Pockets member. "If we want regulations that make sense for hosts, we need to speak up and be part of the process."

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.