| What is considered a short-term rental? |
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Short-term rentals are defined as all or part of a dwelling unit used to provide sleeping accommodation for any rental period that is a short duration, 28 consecutive days or less. Persons staying in a short-term rental are usually vacationers, but may also include persons travelling for business or work purposes.
More precisely, the proposed definition of a short-term rental is 'a building or structure or any part thereof that operates or offers a place of temporary residence, lodging or occupancy by way of concession, permit, lease, licence, rental agreement or similar commercial arrangement for any periods of less than twenty-eight (28) consecutive calendar days, throughout all or any part of a calendar year. Short-term rental accommodation uses shall not mean or include a motel, hotel, bed and breakfast establishment, hospital, trailer parks, commercial resort unit or similar commercial or institutional use.'
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| How many short-term rentals are in Trent Lakes? |
| The exact number of short-term rentals in the Municipality of Trent Lakes is difficult to determine. The Short Term Rental Working Group searched the web to understand how many short-term rentals were in the Municipality and scoped the number to be a minimum of 150 properties. |
| Were both positive and negative impacts of short-term rentals considered? |
| Yes. Both positive and negative impacts of short-term rentals were considered.
There are generally recognized benefits of short-term rentals, including:
- helps owners afford the mortgage payments
- helps offset costs of maintenance and taxes for ownersboosts tourism
- may bring incremental revenues for local businesses
- allows some new home buyers to purchase, as they offset costs with rental income
- increases the supply of vacation properties, and in different parts of the Municipality
- offers a different kind of experience, compared to available commercial options
The common negative impacts of short-term rentals include the following:
- excessive noise
- septic system under capacity for large groups
- owner not available to address complaints
- overflow parking onto fire routes, road allowances or other properties
- fire hazards - bonfires, fireworks, etc.
- lack of adherence to property standards
- on-site waste management
- renters with no understanding of local rules, norms and processes
- transformation of peaceful residential communities into communities of transients
- the intensity of a commercial-like use in a residential setting
- impacts of short-term rentals on established tourist accommodation businesses (e.g. Resorts)
- lack of (tax) revenue to the municipality
- impact on neighbouring property values - both higher and lower
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Why a licensing program?
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A licensing program:
- protects the character, values and personal enjoyment of neighbourhoods, while ensuring that licensed short-term rentals provide a safe and healthy space for renters to enjoy.
- maintains a balance between supporting short-term rental activity to promote economic development, while placing limits on the scope of activity to preserve the character of local communities.
- benefits the community through the assurance of quality and safe short-term rental accommodations as well as compatibility with the surrounding neighbourhood community.
- helps to ensure that community neighbourhoods are not turned into tourist areas to the detriment of residents and their enjoyment of their property.
- complements zoning regulations and enhances by-law enforcement efforts to address short-term rental concerns.
- holds the owners directly accountable and responsible for the operation of their business.
- is intended to be funded by short-term rental operators and not the taxpayer.
- promotes fairness in the short-term rental market, requiring licensees to maintain rental health and safety standards.
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| What alternatives were considered? |
| As a general principle, the Short-Term Rental Working Group agreed that short-term rentals should not adversely affect the residential character of neighbourhoods in Trent Lakes, nor should they be used in ways that unreasonably interfere with any person’s enjoyment of their residence.
At the same time, it was determined that there are no legal reason short-term rentals can not be operated out of a dwelling. The focus was on solutions that address the public necessity and desirability to regulate the short term rental of residential premises for reasons of health and safety; ensuring required essentials are provided, reducing the impact of rental properties on the surrounding neighbourhood while protecting residential amenity, character and stability of residential areas.
The Working Group reviewed several possible approaches for addressing the growth of short-term rentals in the Municipality.
A zoning solution was considered, but recent court decisions have disallowed restriction of short-term rentals in residentially zoned areas.
A purely educational solution was considered, but not supported by the Working Group because it provides no ability for the Municipality to manage short-term rentals and communicate directly with owners to ensure compliance with safety and health regulations.
Strengthening existing by-laws and fines and augmenting enforcement was considered. This alone did not provide the unique benefits of a Licensing system. The Working Group reached the conclusion that a Licensing approach was the most suitable for managing short-term rentals in Trent Lakes.
The key reasons for this are:
- A license allows for the Municipality to inspect the short-term rental property and ensure compliance with health and safety regulations
- A license holds the owner accountable; whereas bylaws are enforced against the transient perpetrator i.e. the renter
- Under a license system, Municipal Administrative Penalties levied against the owner may be added to that person’s tax bill, and any challenges to penalties are heard by an Appeals Committee, not the court system.
- Several similar Municipalities have adopted or are considering the License approach, including Highlands East, Ramara, Blue Mountain, Prince Edward County, Niagara-on-the-Lake, and Fort Erie.
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