Short-Term Rental Accommodations

Beginning September 30, 2021, the new Short-Term Rental Registration Licensing By-Law will go into effect. All new and existing short-term rental operators will require a license to operate legally.

To receive a copy of the licensing application, click here or call 905.874.2100.

What you need to know:

Short-term rentals are permitted in the principal residence only for a maximum of 180 days per calendar year
No more than three (3) bedrooms are to be rented individually
The Property owner muse have proof of Commercial General Liability Insurance
Annual license renewal is required
Any STR host who contravenes the provisions of the By-Law is guilty of an offence and liable to fines and other penalties

What is a Short Term Rental?

The term “Short-Term Rental” or “Short-Term Accommodation” is when all or part of a dwelling unit is used to provide sleeping accommodations for any rental period that is less than 30 consecutive days in exchange for payment.

Online short-term rental (STR) platforms such as Airbnb, VRBO, HomeAway, and FlipKey fall within the ‘sharing economy’ which describes online platforms that connect consumers to each other, in order to sell or rent things to one another. Home sharing has increased in popularity because it provides a more personal alternative to hotels during vacations or business travel, and income potential to the home owner that can help supplement mortgage payments.

STR's present challenges to existing regulations like local municipal by-laws (i.e. property taxes, zoning and licensing by-laws) and home-owners may not be aware they are violating provincial legislation in addition to municipal rules and/or condominium corporate rules.

The Impacts of Short-Term Rentals

Similar to other municipalities, the City of Brampton experiences a numbers of challenges related to short-term rentals, such as:

Decreased number of affordable rental units available
Properties being used as ‘party-houses’
Maintenance of the property
Number of parked vehicles
Increase in garbage complaints
Change in neighbourhood character
Community safety
Commercialization of STRs (i.e. Ghost Hostels)

Home-sharing platforms allow individuals to make more money renting on the short-term market than the long-term market, which in turn can deplete the available housing stock and raise market value rent in the area. To help combat the issue of affordable housing, regulatory measures can be taken such as limiting home-sharing to the principal residence only and the number of days a unit can be rented.

Frequently Asked Questions

Why did the City undertake this review?

As the City struggles with a low rental vacancy rate of 1.2 percent in 2019 (The Canada Mortgage and Housing Corporation), finding affordable housing remains a challenge in the City and surrounding areas. Many rental units are being advertised for short-term rentals as there is greater potential for the investor/operator to profit from higher monetary gains than long-term rentals. Similar to other GTA municipalities, the City identified the need to develop provisions to regulate short-term rentals and prohibit investment properties being scooped up in the City for STR and driving the cost of housing up for both rental and homeownership.

On September 14, 2020, the City’s Planning and Development Committee supported staff’s recommendation to move forward with the implementation of a Business Licensing By-law to regulate short-term rental accommodations in the City. On July, 7, 2021 Brampton adopted a new Short-Term Rental Business Licensing By-Law coming into effect on September 30, 2021 where all STR operators are required to be in compliance.

What is a Short-Term Rental?

The term “Short-Term Rental” or “Short-Term Accommodation” typically described as all or part of a dwelling unit used to provide sleeping accommodations for any rental period that is less than 30 consecutive days in exchange for payment, and does not include bed and breakfasts, hotels and motels.

Framework of the licensing by-law

Limiting STR accommodations to the principal residence;
Placing a cap the maximum number of consecutive days for one stay between 27 to 30 days;
Limiting the number of days per year that the property will be permitted to be rented, between 120 to 180 days;
Limiting the number of rooms that will be permitted to be rented;
Prohibiting STR accommodations in basement apartments or registered secondary suites to help lessen the loss of rental housing stock; and,
Requiring that the STR operator comply with all other relevant by-laws (i.e. noise, garbage, parking, etc.) and repeat violations can result in the suspension of license issuance.

What is a principal residence?

A principal residence is the primary location that a person inhabits, also referred to as primary residence or main residence. It does not matter whether it is a house, apartment, trailer, or boat, as long as it is where an individual, couple, or family household lives most of the time.

Source: Investopedia

Are inspections required for each STR?

The City will not be requiring inspections, at this time, as part of the registration process. Inspections may be required if there are complaints/concerns regarding a property and will be needed to maintain the STR licence.

Are STR operators required to register annually?

Yes, licenses must be renewed every year.

How much time will an operator be given to registration their property?

The STR program will be implemented on September 30, 2021, requiring all STR hosts of a principal property to register. All STR hosts are required to renew their registration on an annual basis (September 30th). The City will be accepting application starting August 16, 2021.

Are STRs allowed in two-unit dwellings?

Yes. An occupant of a two-unit dwelling is can operate a STR provided they have proof it is their principal residence, written permission from the landlord to operate the STR and satisfies all other application requirements.

How will it affect current STR operators who own multiple investment properties?

You are no longer permitted to operate an investment property for the purpose of a short-term rental accommodation as it will be in violation of the business licensing by-law.

Resources

We would like to hear from you. Should you have any questions or comments, please contact:

shorttermrentals@brampton.ca