City sets out strict new rules for short-term rentals
Only primary residences, cottages allowed to list on sites such as Airbnb
The City of Ottawa is set to impose strict new rules on short-term rental sites such as Airbnb and VRBO, allowing hosts to list only their primary residence or cottage, and only if they get a permit first.
The proposed new bylaw, to be debated at a joint committee Thursday, would effectively prevent people or corporations from running short-stay rentals as a business.
Ottawa city staff and councillors have been sympathetic to neighbours who've been subjected to noisy parties, garbage and even shootings at nearby homes with no permanent residents. The city is also concerned that short-term rentals are exacerbating the current housing emergency.
"I understand that there will be some real estate investors that are not pleased with these rules," said Coun. Matt Luloff, who chairs the community and protective services committee.
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Luloff said staff have attempted to find a middle ground where snowbirds and others can rent their homes while they're away to make a bit of money, but not burden neighbourhoods with what some have termed "ghost hotels."
Technically, short-term rentals are already illegal under current zoning rules. Ottawa city council approved the broad strokes of the new approach in November 2019, and the details look very much like those already implemented in Toronto.
Heavy fines for overcrowding
If the new regulations are approved by committee and council, the city would only issue a host permit to individuals, not corporations. Condo boards, co-ops and landlords who don't want short-term rentals in their midst will be able to opt out, so no permit will be issued for those addresses.
A hosting permit would cost $110 for two years. Applicants would be allowed one for their primary residence, but could also qualify for a permit for a rural coach house or cottage. The idea, Luloff said, is that people will be more careful to rent to someone they trust if it's a property they occupy themselves.
Hosts would have to hold at least $1 million in insurance that specifically covers short-term rental use. The city would set a maximum number of overnight visitors based on the number of bedrooms and floor plan, and cap that number to prevent parties.
Overcrowding could lead to a ticket of anywhere from $500 up to $100,000, not just for the host but for anyone found at the address. The city plans to add six full-time bylaw staff to enforce short-term rental rules.
The city reports it has responded to more than a dozen parties at short-term rentals since the pandemic began. Just two weeks ago, Luloff said bylaw officers had to shut down a party "jam-packed full of Montrealers."
That's despite gathering limits to prevent the spread of COVID-19, and a move by Airbnb last August to ban parties at all its listings.
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