Short-Term Rentals

On May 11, 2023, staff presented Report CR-23-045 to the Corporate Services Committee respecting STRs. Highlights of the report include:

• Consultation will begin June 1 and run through until June 25.
• Feedback from the consultation will be presented at the Corporate Services Committee meeting on July 13.

On July 13, 2023, staff presented Report CR-23-065 to the Corporate Services Committee respecting feedback from the consultation and next steps. Highlights of the report include:

• There were 583 responses to the STR survey.
• A majority of respondents (75%) support the implementation of a STR licensing program.
• Staff recommend implementing a licensing program, taking a modest approach in the first year to collect more data.

On July 24, 2023, City Council approved the following recommendation from the Corporate Services Committee:

"THAT in consideration of Staff Report CR-23-065 respecting Short Term Rentals (STRs) feedback and next steps, the Corporate Services Committee recommends that City Council direct staff to:

1. Implement a STR licensing program as follows:

a. Using the staff recommended approach as outlined in the report, save and except:

i. the occupancy limit changing from a maximum of 10 people to a maximum of 8 people; and

ii. the inclusion of a maximum night allowance in the September staff report; and

b. Using option 1, respecting resources; and

2. Continue with the next steps, phase II, as outlined in the report."

Next Steps

A staff report will be presented to the Corporate Services Committee at its meeting on September 14, 2023 which will provide a draft STR Licensing By-law, proposed set fines, method of restricting to principal residences, and a summary of complimentary zoning provisions to support licensing. 

Following this staff report, the steps listed below will be taken:

• STR Licensing By-law provided to Council for approval on October 23, 2023, with the by-law coming into effect on March 1, 2024.
• Notice via a media advisory and the City's social media platforms will be provided to inform the public that the new Licensing By-law comes into effect on March 1, 2024.
• Staff report to the Corporate Services Committee in the first quarter of 2024 to update the Fees and Charges, Fireworks, Noise, and Public Nuisance By-laws.
• Hire a Licensing Coordinator to implement the licensing system which will consist of, but not limited to, an online application process, procedures, licence, inspection bookings, and visitor code of conduct.
• Notice to STR operators in late February 2024 that the new Licensing By-law comes into effect on March 1, 2024 and the licensing requirements.
• Staff report to the Corporate Services Committee in the second quarter of 2025 with a review of the first year of the licensing program.

Contact Information

Please direct any questions to:

Briana Bloomfield, City Clerk
bbloomfield@owensound.ca
519-376-4440 ext. 1247

Kristen Van Alphen, Manager of Legislative Services
kvanalphen@owensound.ca
519-376-4440 ext. 1268

STRs are generally defined as rentals taking place for a period of 28 days or less that fall outside of the traditional commercial accommodations such as hotels and motels. STRs occur in various forms of residential dwellings such as single-detached dwellings, semi-detached, apartments, etc.

STRs can generally occur in several distinguishable ways:

• Operator’s Residence and Operator Present: A property owner rents one or more bedrooms in the dwelling and is also present in the dwelling. This is 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, but does use the dwelling themselves. This would be similar to a traditional cottage rental when the owner may rent their cottage periodically when not using to assist with paying the “carrying costs” of the cottage.
• Investment Real Estate: A property owner may purchase a property, with no intention of residing or using the property, but rather rents it out as an STR to generate income.
• Multiple Dwelling Units: a property has additional dwelling units within the main building and/or detached structures and rents out one or more of the units as a STR, possibly residing in one of the units or not.

The benefits of STRs include, but are not limited to:

• Increased options for visitor and employment related accommodations;
• Additional income for property owners;
• Increased capacity for visitors, especially during peak times which broadly benefits the tourism sector;
• An inviting, home-like atmosphere, similar to traditional bed and breakfasts; and
• Increased Municipal Accommodation Tax (MAT) revenue.

The drawbacks of STRs, include, but are not limited to:

• Environmental (e.g. exceeding capacity of approved sewage/septic);
• Parking (e.g. inadequate supply at STR);
• Noise complaints;
• Building Code, Fire Code and other safety concerns;
• Housing affordability;
• Housing availability;
• Compatibility with existing neighbourhoods;
• Neighbourhoods with few permanent residents and a lack of sense of community; and
• Competition with existing traditional accommodation providers such as hotels.

The City of Owen Sound does not currently licence STRs; however, Council has approved the implementation of a licensing program that will come into effect on March 1, 2024.

Currently, by-law complaints relating to STRs are addressed through various regulatory by-laws such as the Noise By-law, Traffic By-law, and the Waste Management By-law. The City’s By-law Enforcement team enforces by-laws during regular office hours and Police Services enforces by-laws outside of regular office hours.

By-law can be contacted by calling 519-376-4440 ext. 1905 or emailing enforcement@owensound.ca. 

Police Services can be contacted by calling 519-376-1234.