Short-Term Rental Accommodation (STRA) Licensing

Short-Term Accommodation Licensing: 

• Ensures that short-term rentals are operated in a safe and legal manner.
• Helps the Municipality understand the housing supply dedicated to short-term rentals, which is believed to remove supply from the housing market.
• Ensures that rentals located within neighbourhoods do not adversely impact neighbouring property owners.
• Ensures occupants that accommodations comply with the Ontario Building Code.
• Levels the playing field with hotels and motels by ensuring all operators, including short-term rental hosts, are subject to the same regulations, taxes, and safety standards. This creates a more equitable, competitive environment.

Several lakefront municipalities have started to regulate short-term accommodations including Northern Bruce Peninsula, South Bruce Peninsula and Lambton Shores, to name a few.

Here is an outline of the project milestones and timeline for the Municipality of Kincardine should Council decide to proceed with the STRA licensing:

• Background and Research (February to May) - Research will be conducted to identify best practices and gain insights from other municipalities facing similar challenges in regulating short-term accommodations. This would include identifying municipal comparators, market analysis, and consultation with legal experts. 
• Community Engagement (May to August) - Community Engagement will take place throughout the process to understand the potential impacts, both positive and negative, before implementing a MAT and STA licensing. 
• Identify Resources (May to September): This undertaking will require staff resources from across the organization and has additional budgetary implications over multiple years if they are both enacted. Work to identify both financial and human resources needed to implement STRA licensing, and/or MAT tax, including assessment of third-party resources will take place during this quarter. Cost comparison will be investigated and reported to Council in the next update. 
• Potential uses of the MAT revenue (July to September): We will identify how MAT revenues might be applied to tourism most effectively, and where the non-tourism-related dollars could be spent. 
• Potential governance structures and processes (August to October): We will explore options for the structure and accountability needed internally as well as for the not-for-profit tourism entity governance structure.
• Short Term Accommodation (STRA) licensing (November):  A draft STRA licensing by-law should council wish to proceed will be drafted. 
• STRA licensing (January 2026): Should council wish to proceed with the STRA licensing, STRA accommodators will need to obtain a permit in order to operate their STRA. 

Municipalities implement both STRA licensing and a MAT to help manage the impact of short-term rentals on local communities. While the licensing ensures that STRAs are operating safely, the MAT ensures they are contributing to the local economy. Together, both of these tools create a more balanced and sustainable approach to short-term rentals.

Read more about the Municipal Accommodation Tax.