Restrictions on rentals and costs to comply with municipal bylaws are the real reasons behind lagging cottage values and sales according to a Tiny Twp resident, who says she and her husband have spent a great deal of money to be able to rent out their cottage when not using it.
“The reason cottage prices have gone down and there is a lot of inventory on the market is because of the rules imposed on owners regarding short-term rentals (STRs),” says Susan Barbi, who along with her husband purchased a beachfront cottage (“really a four-season house”) near D’aoust Bay a decade ago.
Barbi points to a recent article that spoke of a buyer’s market due to current economic uncertainty and what she says are “realtors who don’t want to jeopardize their sales or commission because having the truth come out, would obviously dissuade buyers” from investing in cottage country.
“I’ll tell you what’s really going on,” says Barbi, who notes that she’s not afraid to be “painfully blunt” because she’s neither a seller nor a realtor.
“My husband and I both didn’t make a lot of money with the jobs we had so we had to get a pretty sizable mortgage to be able to purchase it,” she says, noting they’re now both in their 70s.
“We also knew that we wouldn’t be able to enjoy it and would be renting it out to pay the mortgage. The plan was to rent it until we retired and then move to cottage country full time.”
But in the interim, she says her husband developed serious health issues and the plan changed because he wanted to be near his specialists and hospital.
“We have been renting since we bought the cottage and we offer our renters a spotless, well-maintained safe place,” Barbi says, noting they only rent to “mature people with families who just want to relax for a week or two.”
But this year, Barbi says the township has forced them into a “sea of red tape” with restrictions regarding short-term rentals.
“They voice their concerns under the guise of safety issues but all it is, is a money grab,” she says. “It is because of my experience with this bullshit that I have realized why people are selling their cottages.
“I couldn’t understand why prices were going down and sitting on the market for years but after this experience with Tiny Township and the hoops I had to jump through to get my license, I can tell you the truth about falling cottage prices.”
Mayor David Evans says that short-term rental regulations can be challenging for some property owners, especially those who rely on rental income to help manage the costs of owning a cottage property.
“When council developed the STR bylaw, it was after extensive public consultation to address growing concerns in the community about noise, parking, property standards and neighbourhood safety,” Evans tells MidlandToday.
“My goal, and council’s goal, has always been to find a fair balance between the needs of property owners who wish to rent their properties and the rights of neighbours to enjoy their homes without disruption.”
But Barbi doesn’t buy it, noting that among their added costs are a $1,750 annual licensing fee, a $300 electrical inspection, increased liability insurance and a $300 fire inspection.
“When this STR (rule) was first implemented, there were approximately 900 applications but Tiny restricts it to 300,” she says. “When we applied this year, we found out that the applications are down to 150.”
Barbi says they also lost three weeks of potential rental income waiting for the township’s licence to be approved.
“This will be coming off our piddly savings,” she says, pointing out that many think they must be wealthy to have a cottage.
“In our situation, it is a lot of hard work and a great financial responsibility to own a cottage. We have to drive two hours to our cottage where I clean it for four hours, my husband cuts the grass and cleans the barbecue and waters the plants.
“Then we greet our renters, and drive two hours home. We still have a hefty mortgage on the cottage as do most buyers who bought cottages during COVID and if we don’t rent it out, we honestly would have to sell it. The last thing we needed is Tiny’s ridiculous, unnecessary and money-grabbing rules.”
From the municipality’s standpoint, Evans also sought to clarify for residents that the STR licensing program is entirely self-funded.
“The fees paid by STR operators cover all costs associated with licensing, monitoring and enforcement,” he says. “No property tax dollars are used to operate the program, which ensures it does not create additional financial pressure on the broader community.”
Evans says the municipality appreciates that most owners operate their STRs responsibly.
“Remember our bylaw does not prohibit short-term rentals; it simply establishes licensing, safety and compliance standards so that all operators are held to the same expectations. The bylaw has been a success in Tiny.”
As for property sales, Evans notes that there are many factors that can influence the real estate market, including interest rates and broader economic conditions.
“While some owners may choose to sell for various reasons, I have not seen clear evidence that the STR rules alone are responsible for this trend,” he says.
“I remain committed to reviewing the STR program and listening to feedback from both property owners and residents. If anyone has specific suggestions for improvements, I would be more than happy to hear them as part of future reviews.”