Owen Sound will is planning to implement a short-term rental licensing program that will set a maximum occupancy limit of eight people and restrict rentals to homes that are the principal residence of the owner.
Corporate Services Committee chair Brock Hamley said he feels staff “found the sweet spot” in developing the licensing program, which is recommending a $500 annual fee for participating homeowners, along with other requirements. The program is anticipated to come into effect beginning on March 1, 2024 and will be reviewed after the first year of implementation.
It would be an annual licence for any resident that offers rentals of 28 days or less, including bed and breakfasts.
The city is also planning to implement a municipal accommodation tax of 4% on short-term stays. In late June, city council directed staff to have a draft MAT bylaw brought forward for approval after a legal review. Provincial legislation requires that 50% of any funds collected from the tax support tourism in the area, with the other half of the revenue available to be used at the municipality’s discretion.
The proposed licence will permit two people per bedroom and two people in the common area to a maximum of eight people per property.
Along with the annual licensing fee, applicants will be required to supply a site and fire safety plan, proof of insurance, proof of principle residence, proof of municipal accommodation tax registration, written permission of the owner in the case of a tenant and written permission from a condominium board, if applicable, Hamley said.
City officials will conduct inspections as part of the application process, as required.
Other highlights of the program are that licenses would not be transferrable between properties, and each property would need to have its own STR licence, which would require renewal upon change of ownership.
Licences will not be granted where a resident has outstanding enforcement or financial issues, and the city will have the option to suspend, revoke or deny a licence.
On-site parking will be limited to the number of vehicles the property can accommodate as determined by the city.
Property owners will be subject to fines if they advertise without a licence, advertise without a licence number, advertise in contravention of the bylaw, don’t display the licence at the property and don’t provide the visitor code of conduct to renters.
Officers will hold the owner and renter accountable for any violations. Clerk Briana Bloomfield said enforcement officers will be able to use a number of tools to enforce the bylaw, including complaints, advertisements on STR platforms like Airbnb, or witness statements. The report recommends the hiring of a part-time contract position to help with the licensing, but calls for “a modest approach” to enforcement in the first year until the city gets “more information on the numbers we are dealing with,” so no additional bylaw or fire staff are to be hired. The part-time contract position would be paid for through licensing fees, so there would be no cost to taxpayers, Bloomfield said.
Coun. Jon Farmer, who was the lone council member to vote against the motion, said he was generally in favour of the program, but expressed concern about the firm cap of eight people per property. He said it will limit larger properties who may have the space to accommodate larger groups, as well as larger families who may want to stay at a short-term rental together.
The draft licensing bylaw on STRs is scheduled to come to the corporate services committee meeting in September, before coming to council for approval on Oct. 23, with the March implementation.