Oro-Medonte council will consider a report at Wednesday's meeting that recommends the township implement a licensing program for legal short-term rental (STR) accommodations, as well as bed-and-breakfast uses.
The report also recommends the municipality continues to seek compliance through orders under the Municipal Act (section 440) where needed to prohibit illegal STRs; that a draft licensing bylaw be prepared and tabled at the Feb. 5 development services committee meeting; that council direct staff to continue to explore third-party enforcement services; and that the development services committee hold an information meeting on the draft licensing bylaw prior to presenting it to council for formal consideration.
According to the report, written by George Vadeboncoeur, the township's manager of planning special projects, only a limited number of municipalities in Ontario have entirely prohibited STRs, given the many challenges with enforcing a ban.
“In the absence of any provincial legislation or regulation governing STR accommodations, there is no standard way to regulate STR accommodations in Ontario, therefore each municipality must determine its own approach,” Vadeboncoeur wrote in his report.
“There are also restrictions as to what can be regulated through planning policies, such as the zoning bylaw and Official Plan," he added.
Vadeboncoeur's report detailed four options township council could consider:
- Use the zoning bylaw
- Use section 440 of the Ontario Municipal Act
- Implement a licensing bylaw for STRs and bed-and-breakfasts
- Implement a licensing bylaw for STRs and bed-and-breakfasts and use section 440 of the Ontario Municipal Act to seek orders against STRs operating illegally.
Vadeboncoeur’s report recommends option No. 4.
Under this option, the township would continue to use its zoning bylaw and other municipal regulatory bylaws to enforce STRs that are operating contrary to the zoning bylaw.
Vadeboncoeur said using the zoning bylaw on its own is not recommended, as the enforcement of illegal STRs under the bylaw is difficult due to the level of proof required to prove commercial accommodation to secure a conviction.
Additionally, the province excluded zoning-bylaw infractions from being included under the administrative monetary penalties (AMP) program. Oro-Medonte launched its AMP program on Dec. 11, 2024.
“Finally,” he wrote, “if successful, the fines imposed, in particular for a first offence, are minimal.”
Vadeboncoeur dismissed option No. 2 as a stand-alone option given the time and evidentiary requirements. It requires a submission to the court along with affidavits from witnesses indicating the property is being used for commercial purposes.
He also noted that the property owner is provided with an opportunity to refute the evidence being provided to the court, and the onus rests with the municipality to demonstrate that a commercial activity is taking place in contravention of the zoning bylaw.
“It can be expensive to prepare the material for court,” he wrote. “Members of the community impacted by illegal STRs have shared their preference that the municipality implement a section 440 program in support of the provisions of the zoning bylaw as a first step.
“Staff are of the view that this tool can best work in combination with a licensing tool,” he added.
In that regard, option No. 3 by itself is not enough, Vadeboncoeur noted.
Vadeboncoeur wrote that option No. 4 would allow the township to “implement a comprehensive approach to dealing with illegal STRs.“
Under this option, council would adopt a licensing bylaw, making it a requirement that a licence would be needed to operate a STR and/or a bed-and-breakfast in the township.
“This is the most common means of addressing illegal STRs,” Vadeboncoeur wrote in his report. “A licensing bylaw outlines when the municipality may issue a licence, refuse to issue or renew a licence, and enables the suspension or revocation of a licence if infractions occur.”
He wrote that a licence can be issued conditional upon certain criteria (e.g., proof of fire plan, primary residency, etc.) and a requirement that the licence holder adheres to certain performance standards (e.g., maximum occupancy, availability of a contact person, etc.).
As Oro-Medonte recently implemented an AMPs program as a system/method for enforcing compliance with municipal bylaws, including licensing bylaws, penalties can be an effective deterrent to illegal operators as any fines must be paid or they are levied on the property taxes.
The implementing bylaw includes an appeal process, which is administered by the municipality, Vadeboncoeur noted.
“The resources required to facilitate this option would correspond to the complexity and extent of the STR licensing framework,” Vadeboncoeur said.
According to his report, a number of municipalities use a software tool called ‘Host Compliance’ from a company called Granicus.
The tool features a menu of services relating to the enforcement of STRs, including address identification, permitting and registration, tax collection, compliance monitoring, rental activity monitoring, complaints hotline services, and regulations consulting that a municipality can choose from, depending on their needs.
Vadeboncoeur said most municipalities subscribe to the following three modules:
- Address Identification Module – Automated monitoring of 60-plus STR websites and online dashboards with complete address information and screenshots of all identifiable STRs provided to the municipality.
- Compliance Monitoring – Ongoing monitoring of STRs for zoning and permit compliance coupled with systemic outreach to illegal STR operators with no licence. Granicus and township staff can contact property owners directly to address illegal STRs.
- 24/7 Hotline – Members of the public can use the 24/7 hotline by phone call or text to report, prove, and resolve non-emergency (i.e. noise, parking, etc.) STR-related problems in real-time.
“Granicus contacts the property owner or person responsible for the STRA (short-term rental accommodation) to address the complaint,” Vadeboncoeur wrote. “Township staff are notified when a complaint is received to take appropriate action as per the licensing bylaw.”
According to the report, system integration between the township and Granicus is required in order to share licensing information.
Granicus estimated the annual cost for Oro-Medonte for the three modules outlined above would be approximately $13,000, plus HST, based on the number of STRs in the township.
According to Vadeboncoeur, municipal law enforcement already has processes in place for the issuance of licenses and a vacant enforcement position exists that could be filled and used to enforce illegal STRs. It is also preparing for the implementation of the AMPs program.
Township staff recommend revenue generated through a licensing program and other ancillary fees cover the cost associated with the cost of administration and enforcement. They are also exploring the use of cloud permit to receive applications, a tool already in use by the building and planning departments.
“If council proceeds with this option, staff would propose a licence fee that recovers, to the extent possible, administrative costs relating to licensing so that the system users are funding the program's expenditures and costs are not passed onto other residents,” Vadeboncoeur wrote.
The report recommends licence fees should be reasonable so that operators willingly apply to the township for a licence.
The report’s review of licensing fees indicated that they range from no cost to $1,500 annually. Other fees associated with licence applications (e.g., fire inspection, re-inspection) and administrative matters (e.g., set fines, appeals) are also set by municipalities to support the licensing regime.
Vadeboncoeur advised council in his report that if it wishes to pursue an STR licensing bylaw, it will be necessary to draft the bylaw.
“To ensure that the bylaw meets Oro-Medonte requirements, staff are proposing to engage Paul Dray and Associates to prepare a draft licensing bylaw and present it to council at a public meeting,” Vadeboncoeur wrote.
The estimated cost would be $11,500 for this service.
If council approves the staff recommendation, a draft licensing bylaw will be prepared and tabled with council in February and a public meeting scheduled in March to gather public input on the draft bylaw.
