Regulating Short term Rentals. Harold G. Elston June 15, 2017

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1 Regulating Short term Rentals Harold G. Elston June 15, 2017

2 OPTIONS Amend the City s zoning by laws to create a new land use called short term rental that is permitted in defined areas and/or dwellings across the Township Prohibit short term rentals that are not in a person s principal residence in the Township License companies that facilitate short term rental activity Create a registry for anyone who operates a short term rental in their home

3 Short term Rental Any rental of a residential unit lasting up to 28 days in a row Distinguish between activity in the principal residence of the operator ( Home sharing ) and activity that does not occur in a principal residence ( commercial STR )

4 ISSUES Housing availability and affordability Neighbourhood and nuisance issues Economic development and tourism Taxation Benefits to individual operators

5 Current Regulatory Framework Businesses that provide short term accommodation to the travelling public are required to operate in accordance with the Hotel Registration of Guests Act, the Innkeepers Act, the Ontario Building Code Act, the Accessibility for Ontarians with Disabilities Act, the Taxation Act and the Workplace Safety and Insurance Act

6 PRINCIPLES OF TORONTO S PROPOSAL Allow people to rent their homes for short periods Minimize the negative impacts on housing affordability and availability Enable greater diversity in tourism accommodations Maintain community stability, including in vertical communities Minimize nuisances, such as noise and garbage, associated with short term rentals Create a set of integrated regulations and taxation systems that are clear and easy to follow for residents and companies

7 PROPOSED REGULATIONS IN TORONTO All short term rental companies would be required to register All short term operators would be required to register Operators required to comply with all municipal by laws Remove operator from the registry if operator does not meet the registration requirements or is convicted of causing nuisance or being involved in criminal activity related to the short term rental Companies required to disclose information about activity of operators and not permitted to list properties not registered

8 LICENSING FRAMEWORK Short term rental companies and operators to register Companies pay an annual licence fee Companies may only advertise rental properties that are registered Companies required to provide information about specific operators Possible integrated of operator registration with the Township Operators may also register directly Operator issued a registration number to be used in all ads Operators to meet minimum requirements and pay annual fee Township to audit and investigate operators to ensure they are operating in compliance

9 REGISTRATION AND LICENCE FEES Based on cost of administering and enforcing the regulations Toronto estimates that company licence would have a base fee of between $5,000 and $20,000 and a scalable fee based on the number of nights rented (for example $1 per night) Registration fee for operators would be between $40 and $150 per year

10 TAXES Toronto getting authority to levy a hotel and short term rental tax A 4% tax on registered short term rental hosts estimated to raise annual revenues from $1 million to $3 million

11 ZONING Amend zoning by law to provide a new definition for short term rentals Identify where the use is permitted Provide conditions under which the use is permitted Principal residence how to define in the Township? Ensures oversight of the property and retains intended residential use Protects community character, avoids nuisance issues, and assists inkeeping long term rental units available and affordable

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