Michael Walmsley was before Huntsville council at its May 24 meeting to tell them about “the very serious repercussions” short-term rental accommodations are having on his Otter Lake community.
He told council Otter Lake is a very small, spring-fed lake that measures a mere two kilometres in circumference and is the start to the Mary Lake watershed. “Two privately owned roads encircle the body of water and provide deeded access to property owners. Otter Lake Road stretches along the western shoreline of Otter Lake,” he said, adding that there are about 20 residences on that road—five permanent residences and 15 seasonal cottages.
“Essentially, the lake is so small that it is our common backyard,” he added.
Walmsley told council that during the past eight months, five residences have been sold with another two currently up for sale and another one about to be listed. “So far, three of the new owners have advertised their properties online with rental agencies as short-term rental accommodations. All of these properties are being advertised prior to being granted a Town-issued STRA (short-term rental accommodation) license.”
Walmsley said with 20 per cent of residences on the road being short-term rentals, and with more residences going up for sale, that use seems to be an upward trend.
“We’re at a crucial point on Otter Lake Road where the number of rental properties will soon outnumber permanent residences. Ours is not a public resort destination, yet current online ads through such agencies as Airbnb would say otherwise…,” he told council. “STRAs are destroying the very fabric of our community.”
He expressed concern about the impact an increase in traffic will have on things like their road, on the lake due to compromised septic systems, and an increase in the risk of fires due to more activities such as campfires.
“I do not want our community to become a resort destination so that owners who rent as absentee landlords, their rental agencies, and the super hosts can make money off of our lake community,” said Walmsley.
The obviously frustrated Otter Lake resident implored council to stop issuing STRA licenses on Otter Lake “and stop issuing STRA licenses to owners who openly defy Town bylaws.” He also asked council to consider rescinding all the licenses already issued and penalize property owners and rental agencies who operate without one.
“Please work with us to keep short-term rentals from impacting so negatively on our community,” he said.
Councillor Dan Armour said, “council is going to have to do something about this.” He said the issue is not limited to Otter Lake but affects other lakes in the municipality.
Councillor Bob Stone told Walmsley his passion for the issue is perfectly clear. “You’re the voice of a great many out there and we as councillors, we do get the phone calls and we’re frustrated with the frustration. We hear that Huntsville is changing and not necessarily for the better. We need to tighten our regulations and come down hard, especially on those who are renting without a license,” he said, adding that those who do have a license need to clearly understand their obligations, otherwise there will be ramifications. “We hear you and we’re on it.”
Councillor Brian Thompson questioned whether in fact licenses can be rescinded without cause. He asked whether there were time limits on the licenses and whether the municipality could simply not renew them.
Director of development services Kirstin Maxwell said whether a license could be revoked without cause would be a legal issue. As per the bylaw, the licenses could only be revoked if there are infractions. She told Thompson that licenses are issued for a year, and applicants are then required to reapply.
Thompson also asked what happens to those who operate without a license.
Mayor Karin Terziano reminded Thompson that the Town does have a licensing committee and a process in place that deals with STRA issues independently from council.
Maxwell said there is a process in place to revoke the license of those who contravene the bylaw. She also said many municipalities are moving to regulate STRAs as Huntsville has done.
Councillor Tim Withey said he is also not a fan of STRAs. “I don’t like what they are doing to our communities. I’m heartened to hear that they’re annual licenses so we can make changes to policy that can have perhaps an effect on a lot of these issues,” he said, adding that it is his understanding that other municipalities are allowing STRAs only in someone’s principal residence. He said in his opinion the municipality needs to provide more funding to its bylaw department and he suggested that rental companies should also be penalized.
Councillor Jason FitzGerald said putting a bylaw in place to regulate STRAs has been a long process and noted that those who ignore the requirement to have a license won’t have a license anymore. “And I think you’re going to see that that’s going to be enforced and that communities won’t stand for it.”
Terziano said when the municipality embarked on the licensing process there were discussions about capping the number of STRA licenses granted. She said she would ask staff to look at restricting the number of licenses issues in specific areas such as the waterfront. “I think we are going to go back to the drawing board and see how we can tighten up this program but maybe even change it in certain respects because what you’re describing isn’t really what we want to see happening,” she told Walmsley.
Council directed staff to meet with the Otter Lake community to discuss STRA regulations and consider capping the number of licenses issued in other areas, particularly along the waterfront.
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I first objected to short term rental businesses over a decade ago (reference the District PKF Report ,2013) because they were increasing numbers of businesses operating without a license on residentially-zoned land.
Now I object to them because they are taking away normal rental housing units so often that people are turning down employment offers in Huntsville because they cannot find rental accommodation.
Any solution to that problem must also involve the provincial government since that is the level of government that administers the Landlord/Tenant Act of 2007.
I have heard stories about how difficult it is to evict a tenant who will not pay or who is irresponsible to the point that many landlords hesitate to stay in that market when they can avoid the Act and earn a higher rental income through Air BnB , VRBO et al.
So, the long term solution is complicated by the need for co ordinated action among our four (!) levels of government !
Nevertheless, there are so many local businesses now who cannot find staff that surely Huntsville could lead the way in trying to solve this difficult set of problems.
I am pleased to note that Huntsvile has already been a leader on this file in Muskoka since it was the first municipality to decide to license the STRAs.
I agree that there needs to be reasonable limitations on the number of cottages used as STRs. The example provided is a good case in point.
However…
From examination of the listings on airbnb, few are actually encroaching on the supply of legitimate rental housing. For example, the owner may wish to keep the [occasionally] rented space for personal /family use, the space is not legally separated and therefore unusable as rental accommodation, cottages cannot be counted as long-term rental accommodation (unwinterizd, unafordable, etc.).
While it is the governments’ responsibility to promote and encourage the construction and renting of affordable housing, it is not the responsibility of the individual homeowner. It is their property and they should, within reasonable limitations, dictate the use of their property. Right now, the oppressive government regulations significantly deter anyone from getting into the rental business, rather, the focus has been on protecting the renter to the detriment of the whole industry (try and evict someone for the non-payment of rent).
Right now, construction of affordable housing is a virtual impossibility, with a single 2×4 costing $9 and wiring costing $1/foot, etc. Even small building lots are now selling for $200k!
B&Bs are not STRs, and the licensing system acknowledges this. B&Bs are rooms in/attached to the owners’ principal residence and serve breakfast (as we do).
The name Airbnb actually stands for air-bed and breakfast, although the organization has come a long way since it listed air-beds!
Agreed with Nancy. Communities around the world are dealing with the unintended consequences of the AirBNB encroachment.
When rentals are in short supply for those seeking to live and work in the Huntsville/Lake of Bays area, there is no room for STRs. Transforming residences into “Investment Instruments” is a grave error. Enforce limits.
Kudos to Mr. Walmsley and his efforts to protect his community.
Let’s face reality here. The Air B&B’s are commercial operations without a manager. People are purchasing cottages that they can’t afford, with the intention of using it for rental so they can manage the expense. The original B&B’s were people inviting folks into their homes. Not using their seconday homes for investment, without supervision.
I’m not sure as to what the solution is here as frankly, many cottages that get rented for short periods of time are handled directly by owners without any license issued by the Town and if an owner applies for and is rejected for a license, they seem to simply go ahead and rent regardless as the by-law has no teeth and is not enforceable nor enforced by the Town.
It’s also worth noting that many can’t afford to own a cottage and so renting for a short period during the year provides families with much-needed/appreciated access to beautiful Huntsville.
Not to worry! Our town council will make the necessary decisions,
some where, some time, some place in the twilight zone.
Without Prejudice.