Short-Term Rental Licensing as of January 2026

Who does the Bylaw affect?

Just about everyone in ACW:

• If you rent your cottage a few weeks or all season.
• If you live in the vicinity of a short term rental.
• If you are local and need to book a short term rental for family reunions, weddings, or other event where you need overflow accommodation.
• If you own a business that caters to visitors to our community.
• If your concerned about municipal over-regulation

Understanding the New Short-Term Rental (STR) Licensing By-Law in ACW

The Township of Ashfield-Colborne-Wawanosh (ACW) is introducing a new STR Licensing Bylaw aimed at regulating vacation and cottage rentals of fewer than 30 days. The bylaw is intended to strike a balance between protecting the quiet character of our communities and supporting homeowners who rely on seasonal rental income. 

The main intended goal is to curb nuisance “party houses” and improve accountability. The bylaw also introduces extensive new rules and fines that will affect both small and larger, responsible operators. It applies to those who may rent only a few weeks season to help offset your cottage costs, to those who rent for most of the season. Contrary to the ACW press release on the topic, it does not address housing affordability. Most STRs in ACW are seasonal cottage properties that are without water in the winter, making them unsuitable for long-term housing.

Council plans to approve the draft bylaw for roll out early in 2026 at the January 13th council meeting at 9am. There is one more STR Committee meeting November 18th, to finalize the draft.

Overview of the By-Law

Under the new system, all short-term rental operators must hold a valid municipal license at an initial cost of $350/year. Renting or even advertising a property without one will be an offence, with fines up to $900 per occurrence.

Here’s what property owners should know:

• Who it applies to:
  Anyone offering accommodations for fewer than 30 consecutive nights. This includes homeowners who rent their cottages for a few weeks or most of the summer.

• Licensing requirements:
  Applicants must provide a detailed application, proof of $2 million in liability insurance, parking and waste management plans, site and floor drawings, and signed declarations confirming compliance with fire and building codes, a signed code of conduct from renters, with lists of all approved overnight and visiting guests.

• Occupancy limits:
  A maximum of two guests per bedroom plus two, up to 10 guests total (children under 12 not counted).

• Responsible contact:
  Each property must list a local contact person available to respond within 30 minutes to complaints.

• Renewal:
  Licenses are valid for one year and must be renewed annually.

• Inspections and enforcement:
  Township staff may inspect STR properties at any time to confirm compliance.

• Demerit system:
  Complaints or convictions can result in demerit points. Instead of losing points, licence holders accumulate them. Every STR licence starts at zero, and points are added when the program manager receives complaints. The program manager has sole discretion to apply demerits with or without investigation, substantiation or conviction.

  • 7 points: suspension (up to 6 months)

  • 15 points: permanent revocation

• Appeals:
  Owners have 14 days to appeal a suspension or revocation to an Appeals Committee. The committee’s decision is final. The manager has sole discretion as to whether you will be allowed to operate your STR during the appeal process which is expected to take 6 weeks or more. 

Enforcement and Consequences / Fines and Demerits

Fines for operating or advertising an STR without a license.

Demerits for bylaw infractions.  The fines associated with infractions are determined based on the specific bylaws contravened. (e.g. Open Air Burning By-law fine is $1000.00, while the Noise and Sound bylaw fine is $750-$5000.)

Weighing the Impacts

The Short-Term Rental Licensing Bylaw comes with both benefits and challenges. Supporters see it as a necessary step to address problem properties and protect neighbourhood peace. Others worry it goes too far, creating barriers for responsible hosts who already follow the rules.

The sections below outline some of the key advantages and drawbacks of the bylaw from both community and property-owner perspectives.

This bylaw is part of a growing trend among Ontario municipalities responding to complaints about short-term rentals. While the intent to protect neighbourhoods and ensure safety is widely supported, many feel the approach constitutes municipal overreach.

In ACW, there have been only a handful of problematic rentals, yet dozens of responsible hosts now face new costs, paperwork, and scrutiny. As with any new policy, success will depend on fair, consistent enforcement and clear communication from the Township.

What You Can Do

• Read the draft bylaw: It’s available on the ACW Township website.

• Ask questions: Submit a letter to the Committee or Council, attend council meetings or contact the Clerk’s Office for clarification.

• Share your perspective: Whether you’re a resident concerned about noise or a homeowner who rents responsibly, your input helps shape fair implementation. Contact PACA through this website or via email.

• Stay informed: PACA will continue monitoring the rollout of the bylaw and sharing updates as the licensing process begins.