The Municipality of Central Elgin has implemented a new bylaw mandating property owners to secure a license for listing on short-term rental platforms like Airbnb and Vrbo. This regulation has garnered a varied response from landlords. The bylaw, approved during the summer, became effective on January 1. Municipal authorities have already received around 40 applications from landlords in Port Stanley, a town that attracts numerous beachgoers, tourists, and cottage residents annually.
According to Central Elgin’s clerk, Delany Leitch, they are actively processing applications, with more units expected to come online as summer approaches. Property owners are now required to possess a valid license before advertising, marketing, or renting out their properties. The initial application fee is $300, coupled with an annual charge of $650 per unit. Additionally, a fire inspection and a declaration confirming compliance with the Building Code Act are mandatory.
While some property owners have expressed concerns regarding affordability and potential impacts on tourism, others believe that the safety aspect of the bylaw will ultimately benefit both renters and operators. Jeff West, a local realtor renting out a three-bedroom cottage in Port Stanley, initially skeptical of increased government intervention, acknowledged the safety benefits for guests and operators. He emphasized the importance of ensuring proper safety measures for all occupants.
The bylaw defines a short-term rental as a property rented to the public for less than 28 consecutive days, encompassing bed and breakfasts, hostels, and rooming and boarding houses. Central Elgin currently hosts approximately 150 short-term rental properties, a number that rises to 250 during peak seasons. Applicants must provide exterior photos of the rental, along with a site and floor plan detailing bedrooms, egress points, and parking areas.
Central Elgin officials aim for the program to be financially neutral for the municipality. However, some landlords, like Christopher Evans, who has been renting his Port Stanley cottage on Airbnb for three years, anticipate potential rent increases to offset costs. Concerns have been raised about the licensing fee allocation and the need for additional bylaw officers to oversee short-term rentals.
Moreover, Central Elgin has launched an online directory of rentals, allowing visitors to verify property licenses and compliance with municipal standards via an interactive map. Residents can report unauthorized short-term rental activity, noise disturbances, and parking issues through an online platform or a 24-hour hotline. The municipality seeks to enhance transparency for renters and promote available listings.
Taking an “education-first” approach, Central Elgin plans to engage with landlords for feedback and outreach to operators beyond the municipality. This move aligns Central Elgin with other municipalities like London, Kitchener, Windsor, Amherstburg, Bluewater, and Lambton Shores, which have implemented regulations for short-term rentals.