Based on survey results compiled this past summer, 80 per cent of respondents were in support of the Town of Collingwood proceeding with licensing for short-term rentals.
And during the Oct. 16 committee of the whole meeting, Collingwood council gave initial approval for the town to start a short-term accommodation licensing program in a phased approach that would see guest room rentals permitted as of February 2024.
Currently, as a rule, most short-term accommodations (STA) outside of hotels and motels are prohibited in Collingwood by the town's zoning bylaw. Bed and breakfast units are allowed for short-term rental only if the owner or proprietor also lives in the same building where the units are being rented.
Despite this rule, according to the staff report, third-party data from Granicus indicates approximately 360 short-term rentals are operating across Collingwood.
“Despite the current ban, there are significant challenges with enforcement which has led to an influx in STAs,” wrote Amanda Fone, the town’s licensing and compliance officer, in her report to councillors.
“The growth of the STA market in Collingwood has raised concerns about the negative impacts on neighbourhoods and has shed light on the limits of the current regulations,” she noted.
Under the new system proposed by staff this week, short-term rentals will only be permitted in someone’s principal residence, or in an accessory unit where the owner lives in the principal residence.
The program is planned to launch in February 2024 with guest room rentals operations to start as phase one of the program.
Phase two would roll out to all short-term accommodations, and would be dependant on making changes to the town’s planning policies. If all goes well, phase two could roll out in the third quarter of 2024.
While staff has said phase one can be accomplished using existing staff resources, when the town moves to phase two, more staff resources are being requested which include one additional bylaw enforcement officer, a part-time licensing officer and a part-time bylaw services co-ordinator. The request has been included in the 2024 draft budget.
Estimated costs for the program are expected to be between $206,748 and $245,063 in the first year for phase 1, and between $161,753 and $229,411 in subsequent years depending on when phase two rolls out.
The licensing fees to be paid by operators are intended to fully fund the program and ongoing costs, however the town will leverage funds from the annual parking surplus for up to two years to make sure the program stays revenue-neutral.
Annual licensing fees are proposed as $1,250 for a guest room rental, $2,250 for a principal resident short-term accommodation and $2,500 for an accessory dwelling unit.
Enforcement will be reactive based on public complaints. Fines would range from between $500 to $2,000, and demerit points would be issued when non-compliance orders are laid. Fifteen demerit points would result in the revoking of a licence for two years.
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.
A maximum of 200 licences will be issued by the town annually on a first come, first served basis with a wait list, should one be deemed necessary.
In February 2023, council was presented with multiple options on how they thought the town should proceed to regulate short-term rentals, and voted at that time to move ahead with a principal-residence approach.
Following that decision, the town proceeded with a short-term accommodation survey this summer to gather public feedback on licensing short-term rentals in town. Out of that consultation, 80 per cent of 253 survey respondents supported proceeding with some form of licensing.
Survey responses were mainly from year-round Collingwood residents (87 per cent) and homeowners (93 per cent). Most participants (81 per cent) indicated owning one property in town, 65 per cent of respondents have stayed at a STA, and 57 per cent were aware of STAs in their neighbourhood.
Only four per cent of participants were current providers of a STA, and seven per cent had previously operated one in town.
During discussions on Oct. 16, Coun. Brandon Houston and Mayor Yvonne Hamlin said they were fully in support of a licensing program. Houston asked if bed and breakfasts already operating in Collingwood could be grandfathered and therefore exempt from licensing fees.
Fone said the challenge is the town doesn’t license bed and breakfasts, so they don’t have concrete numbers on who is legally operating such a business.
“These businesses have additional start-up and business costs, so I’m not sure if I support...them being required to pay these licensing fees. I equate them to hotels,” said Houston.
Staff agreed to bring further information on bed and breakfasts in Collingwood forward when the matter comes to council.
“It’s long overdue,” said Coun. Deb Doherty, noting that only single detached dwelling units were eligible for licenses.
“Why are we excluding apartments, townhouses or duplexes?” she asked.
Fone said the majority of STAs are in single detached dwellings as it stands, and the choice to exclude other types of housing was done in recognition of the town prioritizing affordable housing.
“We didn’t want (to allow this) in types of units that typically have lower rent or are more affordable,” she said.
Doherty acknowledged that point, but shared concerns about equity.
“If we’re basing this decision, in part, because it’s a good way for some of our residents to earn extra income, if they happen to own a duplex, or townhouse, or apartment, they may also need some assistance in carrying that,” she said.
Coun. Kathy Jeffery asked about staggering bylaw shifts so some staff would work in the evenings for enforcement.
“I know how frustrating it’s been for me in the past, and I’m a council member and I’m supposed to know my way around these complaint processes,” said Jeffery.
Clerk Sara Almas reminded council that Collingwood OPP can also respond to complaints after hours, and that there would be conversations about safety concerns.
Coun. Christopher Baines raised concerns about allowing accessory dwelling units – specifically detached units on the same property – to serve as short-term rentals.
“We’re coming up on the first anniversary of our election to council where we heard affordable housing was the No. 1 issue,” said Baines. “Accessory dwelling units represent the fastest and most cost-effective means to deliver on that need.”
“To implement that (accessory dwelling unit) program and then immediately transfer it over to the use of short-term rentals, in my opinion, flies completely counter to our overarching goal of affordable housing,” he said.
Almas reminded council that accessory dwelling units that go through the town’s incentive program are not eligible for short-term rental licenses.
At the end of discussion, council voted in favour of proceeding with the short-term accommodation licensing program in a phased approach, with phase one starting February 2024. Staff will report back to council on phase one of the program so necessary changes can be made before proceeding to phase two.
The decision will need to be ratified at the next regular meeting of council on Nov. 6 before going into effect.
To read the whole staff report on short-term accommodation licensing, click here.
