What Are Phase 1 Properties?
Phase 1 refers to a specific covenant on the property title that allows the owner to rent their property on a nightly basis. While the province of British Columbia has introduced new short-term rental rules, Whistler, as a resort municipality, is exempt from those requirements. Instead, usage here is regulated through specific title covenants and municipal zoning.
Phase 1 properties offer the highest level of flexibility in Whistler. Owners have the choice to use the property as a full-time residence, a private vacation home, or to rent it out on a nightly, weekly, or monthly basis to generate income.
Who Phase 1 Is Best For
Phase 1 ownership is ideal for buyers seeking maximum flexibility with their investment.
It perfectly suits those who wish to spend significant time in Whistler as a “home away from home” as well as those who intend to use the property primarily for year-round short-term rentals.
This is the preferred choice for investors who want full control over their property. You have the freedom to manage your own bookings or choose a professional management company that aligns specifically with your goals.
Where Are They Located?
These properties are typically found as condos or townhomes in the main resort hubs:
- Whistler Village & Village North
- The Benchlands (Blackcomb Mountain)
- Creekside
- Blueberry Hill
There are also several smaller “pockets” of Phase 1 properties found in other areas, such as Nicklaus North, Kadenwood and Stonebridge.
Quick Facts
- You can self-manage (Airbnb, etc.), or you can choose to hire any local property management company.
- To operate nightly rentals, you will need to obtain both a municipal business license and a provincial registration.
- Before issuing a license, the municipality may check the property against records for any unauthorized renovations or additions.
- There are some properties that have unique exceptions or special requirements. Ask me!
Income: What Can You Expect?
Many people know Whistler as a destination with premium accommodation rates. However, it is important not to fall into the trap of thinking you can simply list a property on Airbnb and produce a reliable, high income. For a nightly rental operation to be truly successful, it must be expertly run, maintained, and marketed.
Can you cover all of your expenses and make a profit? The general answer to this question is ”Yes, but…”. If a property is successfully rented out year-round, it will typically cover base expenses and, in many cases, a mortgage. However, involving a professional property management company, which is essential for many owners, often tips the expenses past the break-even point.
Financing Realities
Financing for Phase 1 properties is typically similar to other residential properties.
Most major lenders provide financing for Phase 1 properties, often with standard down payment requirements. Some lenders may allow you to use a portion of the projected ”fair market rent” to help qualify for the mortgage.
Typical Expenses to Expect
- Strata Fees
- Tourism Whistler Fees
- Property Taxes
- Most Phase 1 sales are subject to GST
- Management Fees: Typically 20% to 40% of gross revenue if using a professional manager.
- Other operational costs like insurance, hydro, internet, etc.