Phase 1 Phase 2 Zoning and Residential Zoning in Whistler
Whistler, as a Resort Municipality, boasts a unique character shaped by its zoning and land use regulations. The Municipality has strategically designated property uses to ensure adequate nightly rental accommodations while preserving the residential ambiance in certain areas.
Many of the condominium complexes in Whistler fall under the category of Tourism Accommodation and are subject to rental covenants, classifying them as either Phase 1 or Phase 2 properties. If you’ve encountered condo units with seemingly irresistible price tags, they may belong to Phase 2.
Let’s delve into the key differences between Phase 1 and Phase 2 properties:
Phase 1 Properties:
Phase 1 properties represent the pinnacle of flexibility in Whistler real estate ownership, making them a preferred choice among buyers. Designed explicitly for nightly rentals, these properties allow owners to rent out their Whistler townhome or condo while enjoying it themselves throughout the year. When managed effectively, Phase 1 properties can cover your expenses and generate a handsome return on investment. An intriguing aspect is that Goods and Services Tax (GST) applies to Phase 1 properties when rented out on a nightly basis. Typically, buyers obtain a GST number and continue nightly rentals while deferring the GST payment. However, should the property’s usage shift from nightly rentals to long-term occupancy, GST obligations come into play.
Phase 2 Properties:
Phase 2 units, commonly located in hotel complexes, have specific usage limitations. Owners have the privilege of using their units for 56 days annually, divided into 28 days during the winter season (from October 15 to April 15) and another 28 days in the summer (from April 15 to October 15). It’s important to note that reservations for these owner-usage days must be arranged in advance. Beyond these allotted 56 days, the unit must be available for nightly rentals. In some instances, owners may also be able to book additional short-term stays if the complex’s occupancy rate falls below 80%.
Hotels affected by Phase 2 restrictions include Whistler Village Inn & Suites, Delta Whistler Village Suites, The Coast at Blackcomb Springs, Alpenglow, Carlton Lodge, Cascade Lodge, Pinnacle International, Adara, Westin, the Four Seasons Resort (excluding the Four Seasons Private Residences, which are exempt from Phase 2 regulations), and both Pan Pacific hotels.
When considering which type of property suits you best, keep in mind that Phase 1 properties offer more freedom and flexibility for those who plan to visit Whistler frequently and desire year-round access. In contrast, Phase 2 properties are a great option if you don’t anticipate using your unit for more than 56 days annually and are comfortable with it being available for short-term rentals during the remainder of the year.
The choice ultimately depends on your lifestyle, usage preferences, and investment goals. For further insights into Phase 1 and Phase 2 units or to conduct a specific property search, don’t hesitate to reach out to us. We’re here to assist you in navigating Whistler’s unique zoning landscape.
