New Ottawa By-law - Short Term Rentals & AirBnb Affected
The city of Ottawa has announced a change to their temporary use zoning for short-term rentals. This is a huge change for investment properties across the city who currently use their property with Airbnb or (other services).
We have taken the main points from the By-law and created an easy-to-understand guide of all the changes, and new steps you will have to take to register a property, as well as see if your property is eligible.
For the full by-law, visit here: LINK
This by-law is titled “Short Term Rental By-law” and was set to be effective as of June 1, 2021.
It has been under appeal until just recently and is set to officially come into motion April 1, 2022.
The new rules are as follows.
You must obtain a host permit to operate a short term rental
You cannot market or provide short term rentals over a certain number of guests
You cannot market, provide, or operate a short term rental in
An accessory building
A motor vehicle
An unlawful residential unit
Community housing
A Residential unit that isn’t a principal residence, unless its a cottage or dedicated short term rental
A building where short term rentals are prohibited
You cannot provide a short term rental on a platform not registered in this bylaw
Any advertisement has to include the serial number of the host permit issued to that unit, and the maximum overnight guest limit
You must remove any advertisements for short-term rentals within 72 hours of becoming aware of the prohibition
You must maintain insurance, and during a lapse of insurance, your permits are not valid
About host permits
For a short term rental in their principal residence
Or at one cottage rental
You are only eligible for one host permit for a principal residence, and one for a cottage rental
You cannot receive a permit in a zone or area where ‘bed and breakfast use’ is prohibited
How to apply
Complete the application form: full name, address of the property, contact information, and any other information asked for, including:
Proof you are 18
Proof that the renter of a unit (if applicable) consents to its use for short term rentals
Proof that you currently reside in the home you would like to use as a short term rental, unless it is a cottage or dedicated short term rental
A floor plan of the space
Proof of insurance
A declaration that you will comply with the requirements of this new by-law
Paying full fees
What to do once you get a short term rental
Provide the guest with an information package for EACH rental period
Both electronic beforehand, and within the unit, printed.
In this package, you must include
Contact information for the host or property manager
911 information, emergency system information
Name and address of the nearby hospitals
311 information
Non-emergency contact - Ottawa police
Floor plan for the unit, including evacuation plans and safety equipment
Notice of any video or audio recording devices within or outside the unit
Instructions for waste disposal
Instructions for parking
Instructions about vaping and smoking
Schedule of fines and offences that have to do with guest activities
A copy of the host permit and all of its relevant information
Guests
2 guests per sleeping room is the maximum occupancy of your unit
You can only have:
4 sleeping rooms, 8 overnight guests - Dwelling Unit/Mobile Home
8 sleeping rooms, 10 guests - Oversize Dwelling Unit
8 sleeping rooms, 10 guests - Legally Non-Conforming Dwelling Unit
Sleeping rooms must comply with sleeping occupancy provisions
Occupancy limits can be changed and reduced at any time to protect public health or to reduce noise and nuisances to the neighbourhood
Fire Safety
Your unit must include a smoke alarm, carbon monoxide (if you have a fireplace or fuel-burning appliance), and an ABC class fire extinguisher
Insurance
You cannot be a property manager without registering with the city
You will need to fill out a registration form with a host of information, proofs, declarations, and more. Full details in the Ottawa By-Law
You are responsible for any costs associated with this application
You must renew this application on an annual basis
The fee for this registration will be paid on an annual basis
Standards for Property Managers
You must ensure your property and listing complies with the by-law
You must notify by-law when you assume management of a short-term rental - include permit number, address, name, dates, and authorization of the host permit holder
You must notify by-law when you stop the management of a rental
You must maintain a record of properties you manage, which includes the name of the owner, occupier, contact information of those, signed authorization to represent them, a host permit number, and a Universal Resource Locator of all advertisements used for this rental
You must submit these records immediately upon request by a by-law officer
You must respond to any complaints about your rental, within two hours of being requested
Short Term Rental Platforms
Platform owners can register with applicant or corporation names, or partnership names. If you are a person, rather than a company, you must be 18 or older. You will need to include other details like criminal record checks, addresses, contact information, and more
Platforms must maintain records of addresses, nights a rental has been rented, revenue, tax, complaints, and more
These records must be given if asked
You must have a system in place for receiving complaints
You must collect municipal accommodation tax for each rental
You must be registered and maintain Commercial General Liability Insurance of no less than 2 million dollars. Other details on insurance are included in the by-law
Other prohibitions
Landlords, condominiums, or housing co-operatives can prohibit short-term rentals.
Your permits can be revoked at any time without notice for a variety of reasons. Be sure to read all of these through carefully. However, you are within your rights to ask for a review, if need be. This may take place in a hearing.
Fines for breaking this by-law range from $500 to $100,000 for each day an offence occurs. By-law officers can come for an inspection at any ‘reasonable time’ to inspect a property. You are not permitted to obstruct them.
