Collingwood will be issuing up to 200 licences for short-term rental properties like those posted on AirBnB, but only to people who are also living in the home they're renting out.
Those who don't follow the new rules will be fined if they're caught, as any unlicensed short-term rental operating is in contravention of town bylaws.
Council approved a new short-term accommodation bylaw at their regular meeting on Nov. 18. If no appeals to the new bylaw are received within 20 days of that approval, the town estimates they will start receiving applications for short-term rentals on Jan. 6, 2025.
It would mark an end to short-term rentals officially not being permitted in Collingwood, which bylaw staff have said led to difficulty monitoring the estimated 400 rentals that continued to operate in town despite them being prohibited.
Under the new rules, only 200 licences for short-term rentals will be handed out annually on a first-come, first-served basis.
Once the latest phase is launched on Jan. 6, the town will institute a combination of both proactive and reactive enforcement of the new bylaw. Penalties for non-compliance with the bylaw (whether owners have a licence or not) will range between $500 and $2,000 for a first offence, depending on the offence, and revocation of a license is possible as a consequence of repeated offences. A 24/7 hotline will be made available for short-term rental complaints and concerns.
The town will also have the ability to go through the provincial court system, and could levy fines up to $100,000 for non-compliance.
The licensing fees to be paid by operators are intended to fully fund the program and ongoing costs, however, the town will leverage some funds from the annual parking surplus for up to two years to make sure the program stays revenue-neutral.
About one year ago, Collingwood council first approved new short-term rental rules for Collingwood, which would be phased in. The first phase launched in February, where bed and breakfasts had to apply for a "class A" license from the town.
Previous to this, short-term rentals were prohibited in Collingwood, aside from bed and breakfasts.
During their May 22 council meeting, a public meeting was held regarding short-term accommodations in Collingwood, and feedback from the community was mixed.
According to new information presented earlier this month by town staff, the first phase led to 24 applications for licenses. This resulted in seven Class A licenses being issued, two applications being placed on hold due to building compliance issues, four applications being withdrawn by the applicant and 11 applications being found ineligible.
This final phase of the rollout includes two more classes: Class B licences allow residents to rent their entire single-detached dwelling if it is their principal residence, while Class C licences permit property owners to rent an additional residential unit on the same lot as a single-detached dwelling, provided the single-detached dwelling is their principal residence.
Under the new rules, once a licence is issued, the licensee will be responsible for maintaining a guest register which indicates the guests’ names, addresses, telephone numbers, number of guests, length of stay, and confirmation that the smoke and carbon monoxide alarms have been checked and are in working condition after guests leave.
The licensee is also responsible for monitoring guests' compliance with existing town bylaws. Licensees will be required to include their license number on any advertisements for their rental.
For more information on short-term rentals in Collingwood, click here.
