City sets out strict new rules for short-term rentals

The City of Ottawa is set to impose strict new rules on short-term rental sites such as AirbnbandVRBO, allowing hosts to list only theirprimary residenceor cottage, and only if they get a permit first.

The proposed new bylaw, to be debated at a joint committee Thursday, wouldeffectively prevent people or corporations from running short-stay rentals as a business.

Ottawa city staff and councillors have been sympathetic to neighbours who've beensubjected tonoisy parties, garbage and even shootingsat nearby homes with no permanent residents.The city is also concernedthat short-term rentals are exacerbatingthe currenthousing emergency.

"I understand that there will be some real estate investors that are not pleased with these rules," said Coun. Matt Luloff, who chairs the community and protective services committee.

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Luloff said staff have attempted to find a middle ground where snowbirds and others can rent their homes while they're away to make a bit of money, butnot burden neighbourhoods with whatsome havetermed "ghost hotels."

Technically, short-term rentals are already illegal under currentzoning rules. Ottawa city council approved the broad strokes of the new approach in November 2019, and the detailslook very much like those already implemented in Toronto.

Heavy fines for overcrowding

If the new regulations are approved by committee and council, the city would only issue a host permit to individuals, notcorporations. Condo boards, co-opsand landlords whodon't want short-term rentals in their midst will be able to opt out, so no permit will be issued for those addresses.

A hosting permit would cost $110for two years. Applicants would be allowed one for their primary residence, but could also qualify for a permit fora rural coach house or cottage. The idea, Luloff said, is that people will be more careful to rent to someone they trust if it's a property they occupy themselves.

Hosts would have to hold at least $1 million in insurance that specifically covers short-term rental use.The city would set a maximum number of overnight visitors based on the number of bedrooms and floor plan, and cap that number to prevent parties.

Overcrowding could lead to a ticket of anywhere from $500 up to $100,000, not just for the host but for anyone found at the address. The city plans to add six full-time bylaw staff to enforce short-term rentalrules.

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The city reports it hasresponded to morethan a dozen parties at short-term rentals since the pandemic began. Just two weeks ago, Luloff said bylaw officers had to shut down a party "jam-packed full of Montrealers."

That's despitegathering limits to prevent the spread of COVID-19,and a move by Airbnblast August to ban parties at all its listings.