Lakeshore Takes Action on Short-term Rental Accommodations

At the regular meeting on October 10, 2023, Council of the Municipality of Lakeshore approved a Zoning By-law amendment to define and prohibit Short-Term Rental Accommodations throughout the municipality.

“First off, I would like to thank everyone who took the time to come to speak at last night’s meeting. Council heard from delegates who both supported and opposed these measures, and their feedback was critical to our decision-making,” said Mayor Tracey Bailey. “This was certainly not an easy decision, but it was the right one.”

“Municipalities around the world are struggling to regulate the explosion of these types of operations, which has been facilitated by technology and digital platforms. What we are really looking to do is level the playing field and ensure businesses like these operate under the same regulations as others, like the many successful bed and breakfast operators that call Lakeshore home.”

“The fact is, we are dealing with an unprecedented housing crisis, which has prompted commercial enterprises to invest in houses and offer them as short-term rentals,” Mayor Bailey added. "These trends have increased pressure on our housing stock and contributed to making housing unattainable for many.”

Council also noted concerns about safety standards, particularly in terms of the monitoring and enforcement of the Ontario Building and Fire Codes.

Under the approved Zoning By-law, short-term rental accommodations are defined as: “the commercial use of any residential dwelling unit, or part thereof, or a mobile home or accessory structure on a residential property, used as a place of temporary habitation, lodging or occupancy under authority of a concession, permit, lease, license, rental agreement or similar commercial arrangement authorizing such temporary habitation, lodging or occupancy for a period equal to or less than twenty-eight (28) consecutive calendar days but does not include a Bed and Breakfast Establishment”

The Report to Council noted that the new definition ensures that the prohibition will not apply to renting individual rooms, secondary suites, or homes to long-term tenants. It also clarifies that Short-Term Rental Accommodations are a commercial use, which is distinct from allowing someone to stay as a guest without charge on a short-term basis.

Under the amended Zoning By-law, Short-Term Rental Accommodations are not permitted in any zone, however, the rental or leasing of any residential property for overnight accommodation for fewer than 28 consecutive days, shall be subject to the same regulations as Bed and Breakfast Establishments, which are permitted in several zones. Bed and Breakfast establishments are only permitted within a single detached dwelling and must meet minimum standards such as off-street parking and compliance with the Building Code and other municipal by-laws.

“As a Council, we feel this is a fair and balanced approach which gives Short-term Rental Accommodation operators the opportunity to continue to provide their services to tourists and visitors,” Mayor Bailey said.

Council also approved a motion to direct administration to provide a report on options for licensing and regulation of bed and breakfast establishments prior to the consideration of the 2024 budget.