Short Term Rental Bylaw groundwork done by NF Council Members

Jeff Green | Sep 07, 2022

Short Term Rentals are a growing business in rural Ontario.

A report on Short Term Rentals (STR), prepared by politicians from North Frontenac, was presented to a working group comprising politicians from North and Central Frontenac and Addington Highlands, with South Frontenac observing with interest, on August 19.

John Campbell of the North Frontenac Lake Association Alliance, and John Inglis and Gerry Martin from North Frontenac Council, are listed as the main authors of the report.

The report quoted a McGill University study that found STRs are growing twice as fast in rural areas as they are in large cities.

Also, the Federation of Ontario Cottage Associations (FOCA) is tracking 26 Ontario municipalities that have, or are currently developing, policies to address STRs in their own municipalities. The most prevalent complaint about STRs, according to the report, are infractions of municipal noise bylaws.

“Most infractions occur late at night, usually on a weekend, and a Bylaw Officer is not available,” the report said, “and the OPP are not quick to respond.”

The report also mentioned other concerns that “are greater than noise”, including “parking outside designated areas, trespassing, fireworks, burning during fire bans, aggressive boat behaviour, over crowded rental spaces, and potential liability on private lanes.”

Before discussing the rules that will apply to the kinds of STRs that have caused concerns across Ontario in recent years, the reports’ authors drew a distinction between the kinds of rentals that will be subject to a new bylaw and those that, they say, should be excluded from the bylaw entirely.

Supervised rentals, where the property owner resides on the same or an adjoining property and is on site during the rental period, and rentals that occur less than 3 times a year, for a total of 14 days or less.

It then goes on to define two categories of STRs. Category 1 is for those who rent their property for less than 4 weeks per year. The property owners in Category 1 would not be required to pay a fee or be subject to periodic inspection, but would need to register with the municipality, abide by municipally defined best practices, provide contact information during rental periods to both the municipality and their neighbours, among other requirements. Category 1 is intended to maintain the status quo, with a few extra rules, mostly for waterfront seasonal property owners who rent their cottage out for a few weeks each summer to help defray costs.

It would be difficult for municipalities, who take full advantage of waterfront tax rates to help fund their municipalities all year long, to take away the largest opportunity for those waterfront property owners to help cover the cost of municipal taxes. These taxes are often equal or greater than the municipal taxes these property owners pay for their year-round dwellings in urban municipalities with greater levels of service.

Category 2 is for the kinds of STRs that are of concern in cottage country around Ontario, the commercial operations.

“Those STR operators that wish to rent for more than 4 weeks per year, must rent on land that is zoned commercial. Such rental activity is considered a business activity” the report says.

They would need to be licensed, subject to inspections by the township, and subject to a special municipal tax totalling up to 4% of the revenue they generate.

“Category 2 STR owners often treat the facility as a business and are not cottagers in the same neighbourhood sense. It is interesting to note that the insurance industry requires STR operators that engage in STR for more than 4 weeks per year to pay a commercial rate.

“Other Commercial tourist establishments in the township are required to meet numerous hospitality service standards. Larger STRs should also be required to meet these standards. This is a cost of doing business and would level the playing field between other tourist establishments and commercial STR operators.”

The report also recommends that the four municipalities (North, Central, and South Frontenac and Addington Highlands) should work to ensure their bylaws are consistent with each other’s and that the four townships also explore the possibility of sharing enforcement resources.

Given the timing of the report, at the August 19 meeting, the working group decided to request that the report be sent to the Chief Administrative officers of each township for further study of financial and implementation issues.

The groups also requested that the CAOs of each township present the report as the basis for a new bylaw to be brought to their council before October. That way, STRs can officially be on the work program of each township when new councils take office, after the municipal election process is complete.