Key Takeaways

  • Whitehorse banned new standalone STRs in residential zones starting October 2027 but grandfathered existing operations indefinitely.
  • Operators can run up to three STRs on their primary residence property with no limit in commercial zones.
  • Current operators have until October 2026 to establish grandfathered status before new restrictions take effect.

A city in Canada has banned all short-term rental properties altogether.

Not allowed, no questions asked.

The city of Whitehorse drew a line in the sand on standalone short-term rentals — no new ones allowed in residential zones, effective in October 2027.

The city council unanimously approved a new zoning bylaw May 11 that will reshape how operators can run properties in Canada’s Yukon territory.

The regulations give operators until October 1, 2027 to run one standalone STR where they don’t live, but after that date, new STRs won’t be allowed in residential zones unless they’re at the operator’s primary residence. E

xisting STRs will be grandfathered in and allowed to operate indefinitely, according to a CBC report.

What the grandfather clause means for operators

A maximum of three STRs are allowed on the same residential property as the operator’s primary residence.

Commercial zones face no limits. Councillor Lenore Morris floated the grandfather clause on Monday to protect the investment plans of current operators, softening what could have been a complete shutdown.

Related: Georgia city schedules short-term rental listening session

The bylaw caps years of debate over short-term rental regulations in a city wrestling with housing shortages.

Morris said the number of STRs in Whitehorse has grown steadily in recent years, possibly contributing to shrinking vacancy rates in the long-term housing market.

The council heard opposition from current operators, especially seniors running STRs as retirement income.

The rules take effect October 1, 2026. Operators with properties in Whitehorse residential zones have 12 months to decide whether to sell, convert to long-term rentals, or lock in grandfathered status before the door closes for good.