Short Term Rentals

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At the September 8, 2021, meeting of the Committee of the Whole a referral item was requested of the Planning and Community Development Department to bring forward a report on Short Term Rentals (STRs) and options for a licensing by-law to regulate them.

STRs are becoming more popular across many municipalities and Penetanguishene is no exception having seen an increase in inquiries over the past several years. Many municipalities in Simcoe County have rules in place whereas others have tasked staff with researching STRs and mechanisms for regulating them to lessen impacts on neighbours and communities.

At the September 8, 2021, meeting of the Committee of the Whole a referral item was requested of the Planning and Community Development Department to bring forward a report on Short Term Rentals (STRs) and options for a licensing by-law to regulate them.

STRs are becoming more popular across many municipalities and Penetanguishene is no exception having seen an increase in inquiries over the past several years. Many municipalities in Simcoe County have rules in place whereas others have tasked staff with researching STRs and mechanisms for regulating them to lessen impacts on neighbours and communities.

  • STR Licensing By-law Revisions

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    On August 10, 2022 staff presented a revised version of the STR Licensing By-law for consideration. The tracked changes version of the by-law is available on the Council agenda on page 59 here: https://penetanguishene.civicweb.net/filepro/document/307681/Council%20-%2010%20Aug%202022%20-%20Agenda%20-%20Pdf.pdf


    Staff received additional comments from Council and will return with an updated draft of the By-law on September 14, 2022.


    The staffing resources and implementation timeline was approved by Council on August 10 and staff will proceed with implementing a part-time bylaw enforcement officer as well engaging a third-party STR compliance system to manage the licensing system. More information on the implementation strategy is available on page 386 of the July 13 Committee of the Whole agenda here: https://penetanguishene.civicweb.net/filepro/document/306836/Committee%20of%20the%20Whole%20-%2013%20Jul%202022%20-%20Agenda%20-%20Pdf.pdf


    Further information on implementation and key milestones will be provided soon. Staff anticipate the by-law to be implemented by January 1, 2023.

  • Updated Draft Licensing By-law

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    The updated draft Licensing By-law will be reviewed at the Committee of the Wole meeting on Wednesday, May 11.The accompanying report details proposed staffing resources, application fees, and implementation timelines. The report and updated draft by-law can be viewed on the Committee of the Whole agenda here:

    https://penetanguishene.civicweb.net/filepro/document/304760/Committee%20of%20the%20Whole%20-%2011%20May%202022%20-%20Agenda%20-%20Pdf.pdf (see pages 429 – 457).

  • Draft Licensing By-law

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    At the March 9 Council meeting, staff received direction to prepare a draft licensing by-law for review to regulate short term rentals. The draft licensing by-law, together with a summary of public comments heard to date will be provided at the April 13 Committee of the Whole meeting. The Committee of the Whole meeting agenda and draft by-law can be viewed here: https://penetanguishene.civicweb.net/filepro/document/303803/Committee%20of%20the%20Whole%20-%2013%20Apr%202022%20-%20Agenda%20-%20Pdf.pdf


    If you would like to participate in the electronic Zoom meeting please contact otaylor@penetanguishene.ca or call 705-549-7453 and instructions will be sent to you with how to participate.

  • Public Meeting - March 9 2022 at 7:00 PM

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    The Public Meeting is a meeting of Council that provides an opportunity for members of the public to submit written and verbal comments on the licensing of short term rentals. The Public Meeting is Wednesday March 9, 2022 at 7:00 p.m.

    The meetings will be held virtually using the Zoom (www.zoom.us) online platform. Please contact Stacey Cooper, Clerk by telephone at 705-549-7453 or by email at scooper@penetanguishene.ca who will provide information and instructions on how to participate electronically.

  • Open House and Public Meeting

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    The Town of Penetanguishene is hosting an open house and public meeting to receive public feedback on a potential licensing by-law to help regulate short term rentals.

    The Open House is an opportunity to learn and ask questions about how a licensing by-law works, and how it will impact short term rentals in Town. The follow two (2) Open House sessions are scheduled:

    • March 1, 2022 at 2:00 p.m. with a presentation at 2:00 p.m. followed by Question & Answer.
    • March 2, 2022 at 7:00 p.m. with a presentation at 7:00 p.m. followed by Question & Answer.

    The Public Meeting is a meeting of Council that provides an opportunity for members of the public to submit written and verbal comments on the licensing of short term rentals. The Public Meeting is Wednesday March 9, 2022 at 7:00 p.m.

    How Can I Participate?

    Short term rentals are have become increasingly popular and the Town is seeking feedback from the community. The meetings will be held virtually using the Zoom (www.zoom.us) online platform. Please contact Stacey Cooper, Clerk by telephone at 705-549-7453 or by email at scooper@penetanguishene.ca who will provide information and instructions on how to participate electronically.

    How Can I Submit Feedback?

    If you wish to make written comments or make a verbal presentation at the public meeting please contact the Planning and Community Development Department by telephone 705-549-7453 or email Owen Taylor, Planner at otaylor@penetanguishene.ca.

  • Background Information

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    What are Short Term Rentals?

    A new Zoning By-law is being prepared which is proposing a definition of Short-Term Rental Unit as: a dwelling or dwelling unit, that in whole or in part, is rented or available for rent with the intention of financial compensation for an occupancy period of not more than 28 consecutive days but shall not include a bed and breakfast establishment, hotel, motel or any other use otherwise defined by this By-law.”

    Some common examples of STRs are rentals on popular sites like AirBnb or VRBO.

    What are Rules about Short Term Rentals?

    STRs are permitted in certain areas of the Town under the draft new Zoning By-law. The following performance standards are proposed:

    Where permitted by this By-law, a maximum of one short term rental unit is permitted on a residential lot in accordance with the following:

    a) A short-term rental unit may only be located in a single detached dwelling that is the principal building on the lot;

    b) A short-term rental unit shall not be permitted:

    i) within a detached accessory building;

    ii) in a recreational vehicle;

    iii) in a tent or other similar temporary structure; or

    iv) on a lot containing an additional dwelling unit, garden suite, home occupation, or boarding and rooming house;

    c) A short-term rental unit shall only be permitted on a lot fronting on an open and municipally maintained street or road;

    d) A short-term rental unit shall only be permitted on a lot serviced by municipal water services and municipal sewage services; and,

    e) A short-term rental unit shall have a maximum of four (4) guest rooms with an overall total maximum occupancy of 8 persons for the rental unit as a whole.

    A parking standard being 1 parking space per guest room.

    Licensing under the Municipal Act

    Under the Municipal Act, municipalities can enact licensing by-laws to regulate and govern STRs. Specifically, Section 8(3) authorizes a municipality to provide for a system of licenses and further under Section 151 details the licensing of businesses that enable the Town to prohibit a business without a license, refuse to grant or revoke a license, and impose conditions on a license holder.

    Under a licensing by-law the Town would have the benefit of:

    1. Knowing the location of all legal STR in the Municipality;
    2. Requiring the online platform such as AirBnB to require a municipal license in order to advertise;
    3. Empowering staff to revoke or refuse licenses for properties where issues and non-compliance with municipal by-law are identified.
    4. Creating a “Renter’s Code of Conduct” to clearly identify the expectations of the municipality and neighbourhood regarding STR.
Page last updated: 11 Aug 2022, 10:21 AM