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.