At their November council meeting, Township of Lake of Bays councillors were given an overview of how the municipality’s short-term rental licencing program is coming along since its inception about two years ago.
Licencing Coordinator Anne Tapley gave councillors a status update. She said the municipality is on track to receive applications for all of the known 271 short-term rentals in the municipality by the end of the year.
A report to council shows the municipality has received a total of 200 applications of which 105 have been issued, 38 were under review, 7 were denied, 10 applications were withdrawn, 32 were renewals, 4 were under enforcement through the bylaw department and four licenced properties were sold.
The Township hired a third-party system, Granicus, to monitor compliance in the community.
Stephen Watson, Director of Building and By-law Services, explained that Garnicus will search out and find short-term rentals in the community using more than 50 sites. He said every one of the 271 properties known for providing short-term rentals has been sent a letter notifying operators of the municipality’s required licencing program. “So we’re near the end of our two-term cycle and our goal is to get everybody licenced, or at least in the cue to get licenced, after two years,” he explained.
The cost of licencing depends on the frequency the rental is used with the cost running between $400 and $1,000 per year. Watson said about half are a class C licence with a licencing cost of $1,000 per year. He said the municipality had to hire someone to coordinate the program, a third party to search for rentals as well as the technology, computers, etc. He said the idea is to get to a point where the program pays for itself so it’s not costing the taxpayer.
Lake of Bays does not have a Municipal Accommodation Tax like the Town of Huntsville but that may come next, said Watson. He said he hopes to have a report go before council soon with recommended changes to the licencing system. “I’m hoping to have a report go to the next council meeting because we’ve been doing this short-term rental licence for two years, and like any new licence and new bylaw there are always ways we can improve, and we get people who give recommendations including councillors,” said Watson.
In its Fall Economic Statement last month, the federal government said it would be setting aside $50 million over three years to assist provinces and municipalities in enforcing restrictions when it comes to short-term rentals in order to help increase the number of long-term rental units in communities. Other mechanisms include removing tax incentives for STR operators who do not comply. That means that starting January 1, 2024, an operator of a short-term rental in a municipality or province that prohibits STRs will not be able to deduct rental-related expenses. The same will be applied to STR operators who are not compliant with the licencing requirements in their area.
Short-term rental providers maintain that they are not to blame for the situation. They cite bad government policy and issues with the Landlord and Tenant Tribunal which rules over long-term rental disputes. They say the system is broken, decisions take too long and the tribunal favours tenants over landlords and their investments.
Sean Fraser, federal Minister of Housing, Infrastructure, and Communities speaks about the federal government’s approach on X below.
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