As the number of short-term rentals in Bluewater continues to grow, the municipality has been able to bring more than half of them into its new licensing system.
According to a report from municipal staff that was included in the April 15 council agenda, 65 per cent of the nearly 500 short-term rental properties in Bluewater comply with the new licensing bylaw.
That compliance figure, however, could be larger since the software includes old listings that may no longer be available for rental.
The short-term rental bylaw, which was adopted in 2023 as the busy tourism season was beginning in June, established a framework for the operation of short-term rentals in the municipality, limiting the number of properties allowed on a street, setting occupancy limits, outlining parking requirements and more.
Since its introduction, the licensing system has brought in more than $128,000 for the municipality through its annual $750 application fee, more than covering the $106,000 in costs for operating the new system, most of which stemmed from staff time in the development services department.
With the goal of the fees being total cost recovery for the program, municipal staff recommended maintaining that $750 licensing fee.
The system’s revenue fell short of staff estimates from 2023, where it was projected the municipality could see as much as $200,000 generated, but the number of property owners participating in the licensing system is well ahead of estimates presented to council that year.
Software company Granicus, which made a presentation to council in 2023 about its software that scours the internet for short-term rental listings, told councillors that fewer than 10 per cent of short-term rental owners volunteer to register and pay all taxes on the properties being rented out without enforcement.
Through the use of scouring software Hamari, the municipality has started nine enforcement files towards the operation or advertisement of a short-term rental without a licence.
In the April 15 report, staff noted the only comments received from the public about changes to the bylaw have been related to limitations on the number of short-term rentals permitted on a street, which is currently capped at 15 per cent of properties. Properties that existed before the bylaw’s introduction, however, were allowed to participate in the new system regardless of those limits.
Staff noted in the report that consideration should be given to the number of properties allowed on a street, though they didn’t recommend making changes to the current bylaw, citing the need for more information as the system is still in its infancy.
The possibility of posting licensed locations on the municipal website is also being explored by staff to allow the public access to that information, but no decisions have been made about that possibility.