Owen Sound City Hall. (photo by Matt Hermiz/Bayshore Broadcasting)
It looks like Owen Sound council has finally settled what the city’s short-term rentals licensing bylaw should look like.
City council decided in a 5-3 recorded vote at Monday’s meeting to cap the number of nights a short-term rental unit can be rented out annually at 180. That’s an increase from 90, a number council had previously agreed on before sending the proposed regulations back to staff for another look last month.
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“The reality is the majority of municipalities that regulate STRs in Ontario use 180 days as their cap. It is as close to a gold standard as you’re going to find in this newly developing space,” says Coun. Brock Hamley, who moved the motion for the 180-day cap. “Tonight’s report make’s it very clear there are significant financial implications for not just the owner-occupied STRs, but the city as well. If we were to cut the rental cap in half to 90 nights, the bylaw would no longer be revenue neutral and would cost the taxpayer.”
City clerk Briana Bloomfield provided councillors an estimate that the city would miss out on about $41,000 in annual revenue through the Municipal Accommodation Tax if a 90-days cap was implemented, instead of 180.
There were a few councillors opposed to implementing any sort of cap days-per-year cap.
“We’ve heard from many individuals who’ve expressed concern for their livelihood if short-term rentals would have a limited number of days per year for the stays,” says Coun. Marion Koepke. “They’ve shown us based on their income from STRs, how they are trying to supplement their income, how hey are trying to be able to keep their homes, how they are trying to be able to meet expenses in running and maintaining a principal residence. And how this business is their only means of income.”
The increased days-per-year cap is the only change city council made Monday to the proposed bylaw.
Owen Sound’s new regulations will require STR operators to obtain a licence from the city. Short-term rentals will be restricted to units only within the principal residence of a property owner. The number of people per stay in a unit will be limited to eight.
It’s expected the city’s new short-term rentals licensing system will be implemented by March 2024.
Council still needs to pass the formal bylaw at its next meeting.