Short-Term Rental Accommodation Licensing (STRA)

 Short-Term Rental Accommodations do not include:

• Inns
• Hotels
• Bed and Breakfast Establishments
• Boarding House Dwellings
• Buildings used for similar commercial or institutional purposes

Short-Term Accommodation Licensing: 

• Ensures that short-term rentals are operated in a safe and legal manner.
• Helps the Municipality understand the housing supply dedicated to short-term rentals, which is believed to remove the supply from the housing market.
• Ensures that rentals located within neighbourhoods do not adversely impact neighbouring property owners.
• Ensures occupants that accommodations comply with the Ontario Building Code.
• Levels the playing field with hotels and motels by ensuring all operators, including short-term rental hosts, are subject to the same regulations, taxes, and safety standards. This creates a more equitable, competitive environment.

Several lakefront municipalities have started to regulate short-term accommodations including Northern Bruce Peninsula, South Bruce Peninsula and Lampton Shores, to name a few.

Here is an outline of the project milestones and timeline for the Municipality of Kincardine should Council decide to proceed with the STRA licensing:

Background and Research

February until May, 2025 

Research will be conducted to identify best practices and gain insights from other municipalities facing similar challenges in regulating short-term accommodations. This would include identifying municipal comparators, market analysis, and consultation with legal experts. Draft the by-law to utilize in the public engagement process.

Stakeholder Engagement and Consultation

April until July, 2025

Engage with various stakeholders, including residents, local businesses, tourism associations, and community groups, especially those around affordable and attainable housing, to gather input and perspectives on the proposed by-law. Public consultation sessions, surveys, and focus groups will be conducted to ensure a well-rounded understanding of community needs. More details will become available in May, 2025.

Development

August, 2025

Compilation and analysis of comparator data and feedback from public engagement to be brought forward to Council as an information report. Development and revisions of draft by-law with an internal review from relevant departments.

Reporting and Implementation

September, 2025 until January, 2026

Report and by-law draft brought to Council for approval. Implementation of new by-law and licensing structure that would come into effect in January, 2026.

Municipalities implement both STRA licensing and a MAT to help manage the impact of short-term rentals on local communities. While the licensing ensures that STRAs are operating safely, the MAT ensures they are contributing to the local economy. Together, both of these tools create a more balanced and sustainable approach to short-term rentals.

Read more about the Municipal Accommodation Tax.