A plan to license short-term rental properties in Kitchener has been put on hold as owners continue to voice concerns about the proposal.
Councillors agreed this week to defer the issue for now, until outstanding issues including licensing fees and insurance requirements can be further reviewed.
A number of owners of Airbnb rental properties have said the proposed licensing framework and associated costs could prompt them to pull their listings as they’d likely be losing money.
Councillors heard at meetings this week and earlier this month that short-term rentals such as those offered on platforms like Airbnb and Vrbo play an important role in providing temporary housing for everyone from newcomers to the region to those visiting family or children at local post-secondary institutions.
The city had initially planned to combine a new licensing framework for lodging houses — defined as a dwelling unit where five or more people, not including an owner living in the property, can rent rooms but share a kitchen and other common areas — and short-term rentals into one new bylaw.
Lodging house owners are currently required to have a licence in Kitchener, but many are believed to be operating illegally without a licence; there are presently 15 licensed lodging houses in the city.
Short-term rental operators are not currently licensed.
Council this week decided to separate the two, with a revised bylaw for lodging houses coming back to council in August.
Staff have been asked to consult further with potential stakeholders on the short-term rental issue and report back before the end of the year.
Council did approve changes that will allow lodging houses city-wide, wherever residential uses are permitted.
Minimum separation distance requirements (which prevented lodging houses from locating too close to each other) are also being removed after such rules were deemed discriminatory by the Ontario Human Rights Commission.
One of the chief concerns from many of the Airbnb operators who addressed council are insurance requirements that include $2 million in liability insurance and a policy that indemnifies the city should something happen.
That could require the owners to have expensive commercial insurance that they may not currently need.
City staff maintain that businesses operating under a licensing framework typically need commercial insurance.
Some hosts are also concerned about a public registry that would list the addresses of licensed properties along with the most recent inspection date. Many rental platforms don’t provide a specific address until after an accommodation is booked.