Short Term Rental Rules in Various Ontario Municipalities - Cottage Country

Many municipalities have been busy implementing stricter short-term rental rules over the last few years. There are even talks of provincial and federal legislation that will attack short term rentals. We’ve aggregated a summary of short term rental rules in various popular areas below.

Nearly all the popular municipalities now require short term rentals to be licensed and have short term rental insurance. Many require inspections to obtain a license, have limits on what types of homes can be rented, and how long a home can be rented for. Additionally, municipalities are charging licensing fees and accommodation taxes that have increased the cost of operating an airbnb business.

Disclaimer: this list is by no means perfect or comprehensive, please visit the municipalities website for exact details.

Bracebridge

• Must be registered

• No Municipal Accommodation Tax (MAT)

• Licensee is required to have $2 million in liability insurance

Gravenhurts

• Must be registered

• 4% Municipal Accommodation Tax charged on the cost of fixed roof transient accommodations sold for a continuous period of less than 30 days within the boundaries of the Town of Gravenhurst, applicable to all short term rentals

• Administrative Monetary Penalty System (AMPS) by-law which provides set fines and fees if/when by-law violations occur

Huntsville

• Must be registered

• STRA will be inspected to ensure they are up to code

• Process that will allow the establishment of a committee to hear appeals to oversee decisions on which licenses should not be approved, suspended, or revoked due to by-law violations.

• Any accommodation provider of less than 30 days are required to charge and collect Municipal Accommodation Tax. 4% MAT applies only to accommodation revenue, not other incidental charges (ex: cleaning, security deposits or other taxes/fees).

• 3 strike penalty

Lake of Bays

• Classification system (A, B, C) of units with different fees attached to each class

• They have established a maximum of nights rented per year for each unit

• Maximum number of people allowed per rental per night

• Inspection of the STRA to ensure it is compliant with the appropriate by-laws, including fire and building codes

• Process that will allow the establishment of a committee to hear appeals should licenses not be approved be suspended, or revoked due to by-law violations.

• Administrative Monetary Penalty System (AMPS) by-law which provides set fines and fees if/when by-law violations occur

• NO municipal accommodation tax

Collingwood

• Currently short term rentals are banned in Collingwood although many illegal ones exist. A bed and breakfast business may be allowed where the bnb does not occupy the entire gross floor area of a single detached dwelling unit

• The municipality has proposed a new system of giving 200 licenses per year.

• Costs for licenses would be split into three different types: 1. a guest room short-term rental/ partial unit rental would be $250 annually, 2. an entire unit principal residence would be $500 and 3. an entire unit accessory dwelling unit would be $750.

• For both entire-unit options, the property could only be rented out for a maximum of 180 days per year. Owners must apply and pay for a license annually

• The home must be the owner’s principal residence

• Inspection to show compliance with the bylaw, Ontario Building Code and fire codes

Blue Mountain

• Must be licensed and

• There are specific areas of the Town that are zoned to allow for licensed STA

• $80.00 for the Pre-Screening Application

• Application Submission fee of $56.65 is required for reviewing the documents and providing a response.

• Fire safety inspection and fees

Kawarthas

• Short term rentals are 28 days or less

• Must be licensed and the licensing fees are as follows:

  • Hosted (May to October or November to April)$150

  • Hosted (Year Round)$300

  • Un-hosted (May-October or November to April)$750

  • Un-hosted (Year Round)$1,500

• Liability insurance of $2,000,000 must be obtained

• Property must be inspected

Niagara on the lake

• Rentals within the Town of Niagara-on-the-Lake must be licensed to operate

• Municipal accomodation tax of 3% on January 1, 2024, and 4% on January 1, 2025

Niagara Falls

• Vacation Rental Units (VRUs) are not permitted to operate in residential areas

• View a map of permitted areas

• Note that VRUs are different than Bed & Breakfasts. The City of Niagara Falls has traditionally allowed for Bed and Breakfasts (B&Bs) in residential areas, however these properties differ from a traditional VRU as the owner of the property must live on site and be present when the travelling public is using the property. These units must also be licensed by the city.

• VRU license is $500 and renews annually for $250 on April 30^th . Operators must also collect and remit a Municipal Accommodations Tax (MAT) - TWO DOLLARS ($2.00) per night of occupancy

Prince Edward County

• Short Term Accommodation categories include:

  • 1. Secondary residence STAs;

  • 2. Primary residence STAs; and,

• Bed and breakfast establishments that rent up to four bedrooms or suites. Motels, hotels, hostels, tourist inns, or accommodations where no payment is exchanged are not considered STAs

• Primary residence STAs licenses can be attained. There are 2 separate licenses. 1. Host on-site for full calendar year AND 2. Host off-site for (up to 45) total days per calendar year

• Secondary residence STAs - the County of Prince Edward will no longer issue NEW secondary residence STA licenses for applications submitted after September 20, 2022. Licensed STA properties can be sold and licensed by the new owner as the property has legal non-conforming (“grandfathered”) status

• The 4% MAT came into effect February 1, 2021. MAT applies to bookings that are received on or after February 1, 2021

Wasaga Beach

• The Zoning By-law only permits short-term accommodation (rental for less than 30 days) in Tourist Commercial (CT) and Tourist Accommodation (CA) Zones. Short-term rentals are not permitted in Residential Zones.

Penetanguishene

• STR’s are permitted as-of-right in the Shoreline Area One (SA1), Shoreline Area Two (SA2), Rural (RU), and the Downtown and Waterfront Zone (DW) in Zoning By-law 2022-17. You can locate your property and identify your zoning using the zoning map

• If you operate an existing STR that is NOT within the above noted zones, you may still operate a STR as a legal non-conforming use

• A license application fee is $500 for an STR with two (2) rooms or less and $900 for an STR with three (3) rooms or more. A license is renewed annually and the same application fees apply for each renewal

Tay Township

• Tay township seems to be very Airbnb friendly at the time of writing this article

Tiny Township

• Only 300 approved licenses will be allowed, once issued, you’ll have to be on a waiting list for a spot to open up

• $150 annual fee

• Various inspection requirements.

Orillia

• 150 license cap

• $2,000 annual licensing fee

• 4% Municipal Accommodation Tax

Ramara (Brechin/ lagoon city)

• Annual licensing fee of $3,000.00

• Property must not be 300 meters from any other STRA licensed location