Municipalities in Ontario Implementing Short-Term Rental Licensing Rules, Frustrating Cottage Owners

In Ontario, new short-term rental licensing rules are causing frustration among cottage owners, leading some to pull their properties off the rental market. The rules, which vary by municipality, require property owners to pay fees and provide documentation, adding to their costs. Some owners, like Gabriel Leclerc, are selling their properties due to the added burden of licensing.

New short-term rental licensing rules in Ontario are causing significant frustration among cottage owners, with some pulling their properties off the rental market due to the added burden and costs. The regulations, which vary by municipality, are designed to ensure safety standards and preserve community character but have led to a backlash from property owners.

Gabriel Leclerc, who owns two cottages in Calabogie, Ontario, is one of the frustrated owners. He has decided to take his properties off Airbnb and is even considering selling them due to the new licensing rules. "The rules and the intrusiveness of the process just became more excessive," Leclerc said [1].

The licensing rules require property owners to pay annual fees and provide detailed documentation, including maps of their septic systems and property layouts. In Greater Madawaska, where Leclerc's cottages are located, the annual fee is $300. Other municipalities have different fees and requirements, leading to inconsistencies and added complexity for owners [1].

Kelly Percival-Green, who owns a cottage in Calabogie, also found the new rules too onerous. She had been renting her cottage to cover maintenance costs but decided to pull it from the market due to the need to hire someone on-call for emergencies and check detectors after each stay. "It just became so that it was not worth renting anymore," she said [1].

Not all cottage owners are against the new rules. Meghan James, general manager of the Somewhere Inn in Calabogie, supports the regulations as they enforce safety standards and create a level playing field for all accommodators. "Change is always hard. But if you're running your home or your second home or cottage as a business, I think there's fees that are associated with that," she said [1].

However, the regulations have also led to a black market of rentals, with owners renting out their properties quietly to avoid licensing fees. J.T. Lowes, owner of All Season Cottage Rentals in Haliburton County, has seen a significant drop in business since the implementation of STR bylaws in October 2024. "It's leading to a big black market of rentals," he said [1].

Municipalities are still working to find a balance between supporting tourism and managing the number of short-term rentals taking up valuable housing space. Pam Sayne, a Minden Hills Councillor, believes that provincial oversight could help fine-tune the bylaws more effectively [1].

References:
[1] https://www.cbc.ca/news/canada/ottawa/cottage-owners-pull-rentals-as-new-licensing-rules-affect-ontario-1.7589412