What is a short term rental?

    Short-term rental accommodations (STRs) are generally private residential dwellings that are rented to provide sleeping accommodations to a paying guest for a limited period of time (generally less than 28 days). 

    STRs occur in various forms of dwellings such as single-detached, semi-detached, apartments, etc. 

    STRs can generally take place in several arrangements: 

    • Operator’s residence and operator present – a property owner rents one or more bedrooms in the dwelling and is also present in the dwelling (similar to a traditional bed and breakfast) 
    • Operator’s residence and operator not present – a property owner rents the entire dwelling while the dwelling is not being used and uses the dwelling themselves (similar to a traditional cottage rental where the owner may rent their cottage periodically when not using to assist with paying the ‘carrying costs’ of the cottage) 
    • Not operator’s residence and operator not present – a property owner may purchase a property with no intention of residing in or using the property, but rather rents it out as an STR to generate income 
    • Multiple dwelling units – a property had additional dwelling units within the main building and/or detached structures and rents out one or more of the units as an STR, possibly residing in one of the unit.

    Do other municipalities or towns license or regulate short term rentals?

    Yes. The growing prevalence of STRs in communities across Ontario has presented municipalities with new challenges and opportunities as their impacts become better understood. 

    The Town of the Blue Mountains was the first municipality in Ontario to address the subject in 2009 with the adoption of an Official Plan Amendment, Zoning By-law, and licensing regime. 

    The Official Plan Amendment and Zoning By-law were subsequently appealed to the Ontario Municipal Board, which were approved on the basis that short-term rentals do represent a unique form of use, and the municipality was justified in distinguishing that use and imposing regulations separate from traditional residential use. 

    From there, largely in relation to the growing pressure for housing capacity and studies demonstrating the strong correlation between STRs and lack of affordable housing, many municipalities have adopted regulatory regimes for STRs. Licensing is the most common form of regulatory regime implemented.

    Will there be a cost for operators of short term rentals?

    One of the guiding principles in developing the licensing program is that the program be revenue neutral.

    A licensing fee estimate has not been provided at this time. Licensing fees from comparable municipalities range from $250 to $2,500, with annual renewal required. An appropriate fee schedule in Central Elgin would require further investigation and be contemplated in relation to further review of the average STR rates in the municipality. A more fulsome understanding of resource requirements would inform the fee amounts in order to ensure revenue neutrality.

    Will the licensing program be in effect for the upcoming summer season?

    No. The intention is that the program be in effect January 1, 2026.  

    If I rent a family cottage to some friends in the summer, will I be required to obtain an STR license?

    No - The application of the proposed by-law definition of an STR encompasses most STRs that are operating for financial compensation to members of the public and excludes those properties that may be rented to family/friends for no financial compensation.

    How can I report complaints and concerns about an STR?

    When the program is operational, a 24/7 call system will be in place that registers complaints and allows a 30-minute period for the property’s Responsible Person to address the issue. If it is not addressed, the complaint will be referred to Municipal By-law Enforcement, who will respond within 72 hours.

    How will the program be enforced?

    Municipal By-law Enforcement will be responsible for enforcement, using an education-first approach consistent with the Municipal By-law Enforcement program, but Notices of Violation will be issued and administrated when required. Where there is a chronic offender a Part III offence may be pursued under the Provincial Offences Act.

    Will I have to renew my license every year?

    Yes, licenses will be issued on an annual basis, but fire inspections will be accepted every two years provided no significant changes were made to the licensed unit.

    What is required in order to be licensed?

    •The name and contact information of the property owner

    •An exterior photograph of the STR

    •An interior floor plan confirming the number of bedrooms

    • A 24/7 contact who will respond to complaints about the licensed unit by

    phone (call or text) within a period of 30 minutes

    • A site plan that indicates the location of parking, buildings, septic system,

    enclosed garbage bins (garbage not to be left out before sunset the day

    before collection per existing municipal waste collection by-law).

    • A parking plan identifying the parking spaces available for STR guests –

    consideration could be given to require a parking management plan for

    those STRs that may not have sufficient parking based on occupancy, such

    as Maud, Bessie, and William Streets in Port Stanley, where some property

    owners may purchase overnight parking passes for their guests

    • Proof of liability insurance in the amount of $5M

    • Record of fire inspection by Municipality of Central Elgin Fire Rescue

    Services

    • Written attestation of Building Code compliance

    What is the timeline for program implementation?

    Following Council decision on the key program details, Staff will draft a Short-Term Rental Accommodations Licensing By-law as directed. The draft by-law will be posted on the Let’s Talk project page for a two-week public comment period before a finalized by-law is considered by Council on June 16. Staff will continue to receive feedback both directly and through the public survey that will remain active on Let’s Talk throughout the summer.

    A report with further detail regarding resource requirements and program financial structure will be brought forward for Council consideration in June. Over the summer, Staff will gather data and prepare to implement set fines in advance of the program launch. In fall, the program will be finalized with resources and technology implemented in preparation for the period in which operators are required to become licensed, by January 2026.


    What is the licensing fee?

    Council will decide on the licensing fee in June based on the program principle of revenue neutrality.

    Where will the draft by-law be posted?

    On the STRs project page at https://www.letstalkcentralelgin.ca/str - social media, media, and regular website posts will direct residents to the page.

    Do bed and breakfasts require an STR license?

    Yes, because they are similar in nature to STRs.