Council has opened the door to the possibility of bringing a short-term rental licensing option to Collingwood.
Based on public consultation and staff review of options for short-term rentals, councillors considered staff recommendations during Monday’s (Feb. 6) strategic initiatives standing committee meeting to create a short-term rental licensing system in Collingwood which will allow short-term rentals only in someone’s principal residence, or in an accessory unit where the owner lives in the principal residence.
Although, some councillors still have concerns about whether licensing is the best approach forward for the town.
“There are dozens of permutations we’ve looked at,” said town Clerk Sara Almas in her remarks to councillors. “The principal-residence approach is based on public consultation and consideration of the local context.”
Almas noted that the town’s current approach of not permitting short-term rentals has been difficult to enforce and therefore, ineffective.
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, as of Jan. 31 the Town of Collingwood has identified 318 unique STA units advertised through 402 online listings.
Of these STAs, 89 per cent occupied the entire home, 12 per cent occupied part of a home (similar to a traditional B&B), 70 per cent occupied single-family homes and 30 per cent occupied multi-family dwellings.
“We have 318. If we went to a licensing regime, you either have a license or you don’t. It’s easily enforced,” she said. “A principal-resident approach limits the opportunity for individuals or corporations to use STAs for investment purposes – buying up homes in residential neighbourhoods.”
Almas also noted a system could be set up to be self-sustaining, where the licensing fees collected annually from short-term rental owners would pay for the staff needed to enforce the licensing bylaw. She estimated two additional bylaw staff would be required to enforce such a bylaw.
A short-term accommodation or rental refers to a unit rented for fewer than 31 days.
As part of the short-term accommodations review completed last year, staff conducted a public survey and an open house to gather feedback. Five-hundred-and-seventy-four residents completed the public survey, while about 50 residents attended the open house.
Of the survey respondents, 44 per cent said they do not support STAs in Collingwood, while 22 per cent said they would support, and 34 per cent said they would support, but only under certain conditions.
Legal advice was also sought from Miller Thomson law firm regarding certain options, which confirmed that the greatest control will be through a licensing regime as there are certain restrictions of what can be regulated through planning policies.
“I think this policy proposal splits the hair in the right place,” said the town’s Chief Administrative Officer Sonya Skinner during Monday’s meeting. “I like how this proposal has come forward because it’s not a done deal. It asks what path you want to be on.”
However, some councillors were not convinced and raised concerns, specifically how licensing STAs could impact affordability in Collingwood.
“I have a lot of concerns, to be honest with you,” said Coun. Rob Ring. “I know this is just for consideration right now, but I have concerns when we’re renting out any form of ADU (accessory dwelling unit) as STAs (short-term accommodations).”
“I think one of the biggest issues we’re facing right now is affordable housing and the more (homes) we take off the market from long-term rentals, I think is not good for us,” he said.
Ring said he would be reserving a point of view on the matter pending input from the town’s affordable housing task force. Coun. Chris Potts also noted he had a lot of concerns with STAs.
Coun. Steve Perry asked how the licensing bylaws would be enforced.
“If we’re having trouble (with enforcement) right now with 318, how are we going enforce it?” he asked.
Manager of Bylaw Enforcement Adam Harrod said that through licensing, requirements can be made that operators must include information on that licensing in their advertisements.
“As of now, trying to prove that a property is being used as a STA is very difficult. We require individuals to attend court to testify that they were using that property for that purpose, and it’s very difficult if someone is living a distance away to force them to come to court,” said Harrod. “Sometimes they’re reluctant to even speak to an officer.”
“We get calls all the time asking, ‘Why aren’t you doing more?’ It’s because we can’t,” he said. “A licensing bylaw would allow us to do more.”
Coun. Deb Doherty said she was in support of a direction toward licensing short-term rentals, however said she would be interested in knowing if it would be possible to regulate how many STAs would be granted licenses in a specific neighbourhood.
“I know of one neighbourhood where there are six full-time STAs in a row in this neighbourhood. It was a resident nightmare times six,” she said.
Coun. Brandon Houston asked if there were any other municipalities that have prohibited STAs, and if the town had any information on whether that impacted overall housing affordability in those municipalities.
“There are very few municipalities that are fully prohibiting short-term accommodations just because of all the challenges we’ve gone over today, including enforcement challenges,” said Amanda Fone, licensing and compliance officer with the town. “Most are currently reviewing and shifting away from a prohibition.”
Houston said he felt having homeowners on-site through the principal-residence approach was a “great way to afford accountability.”
He also said with mortgage interest rates rising, that having a short-term rental option in Collingwood is a method that can be used by homeowners to help them stay in their homes. Deputy Mayor Tim Fryer agreed.
“I think (keeping) the status quo isn’t an option,” said Fryer.
The full list of short-term accommodation approaches that were considered by councillors include:
Policy options:
- Permit B&Bs only (i.e., maintain existing regulations)
- Permit in principal residences (includes B&Bs) (staff recommended)
- Permit in an accessory unit (a) Where the principal residence is occupied by the property owner (staff recommended) or (b) Where the principal residence is occupied by a long-term tenant
- Permit all STAs
- Prohibit all STAs (including B&Bs)
Enforcement options:
- Licensing bylaw (staff recommended)
- Registration bylaw
- Enhanced enforcement
To read the full report with all options, click here.
At the end of discussion, the committee voted unanimously in favour of moving ahead with the staff recommendations to move toward a principal-residence approach for short-term rentals in Collingwood. Mayor Yvonne Hamlin and Coun. Kathy Jeffery were absent from the meeting.
If council votes in favour of the recommendation at their next regular meeting, staff would be directed to prepare a follow-up report on the issue no later than May 2023 which would include potential next steps, draft bylaws and framework before any changes would go into effect.
Staff noted another round of public consultation would also occur before the follow-up report is prepared.
UPDATE: During the Feb. 21 regular meeting of council, councillors voted unanimously in favour of moving ahead with the staff recommendations to move toward a principal-residence approach for short-term rentals in Collingwood, and to prepare a staff report no later than May 2023 on a framework and next steps.
