ACW Council will be voting to pass a motion to approve the STR Bylaw at the Dec 2nd Council Meeting.

If passed, the bylaw will come into effect in January 2026. If you have reservations in place for next summer, it’s important you review the bylaw and be prepared to apply for a license well in advance of the summer.

Download ACW's Bylaw

If you’d like more background on STR bylaws in Ontario in general, read on.

You can also just jump to the table where you can see how our bylaw stacks up against other communities’ bylaws.

Jump to the Comparison Table

Municipalities across Ontario have taken very different approaches to managing short-term rentals. While some have developed detailed licensing and enforcement bylaws, others have concluded that new regulations are unnecessary or unsustainable and instead rely on strengthened enforcement of existing tools such as noise, property standards, and zoning bylaws.

When did the STR bylaw trend start in Ontario?

Pre-2017: Very few regulations

Before 2017, most municipalities relied solely on existing bylaws (noise, zoning, property standards). STRs were treated informally, and Airbnb/VRBO were still maturing.

2017–2019: The “Big City” wave

While Toronto and Ottawa initiated the first major STR regulatory frameworks around 2017–2019, Toronto’s STR Bylaw did not take effect until 2021 due to appeals.
Key drivers were housing affordability concerns, pressure from hotel associations and noise and nuisance issues in dense areas.

This period marks the start of STR licensing/registration as a policy conversation in Ontario.

2020–2022: The “Cottage Country” wave

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

2022–2025: Rapid expansion in small municipalities ACW’s 2025 draft is emerging in this wave.

This is the current phase, where municipalities are adopting substantial STR licensing regimes. These communities have:

sparse enforcement staff
limited bylaw infrastructure
short peak seasons
high cottage-to-resident ratios

Some did so because neighbouring municipalities passed bylaws, creating peer pressure, rather than because of a proven need. Since STR Bylaws for smaller communities has been short-lived, there is no clear evidence they work.

Opting-Out

It’s important to note that some communities have choosen to opt-out. The City of Kitchener decided not to pursue an STR licensing program and chose to work harder on enforcing existing bylaws primarily because the:
• financial and staffing demands of a city-run STR Licesning system outweighed the perceived benefits.
• costs of implementing and managing such a program would be too high.
• burden on STR owners and taxpayers would be unfair.

The continued use of existing bylaws in municipalities like Haldimand County, demonstrate that a full licensing regime is not the only option available.

Because licensing programs in smaller municipalities are so new, there is little data available on their actual benefits or the real costs of running them. Whatever approach is chosen must be tailored to the community’s needs and applied fairly to all residents.

Legal Challenges to STR Bylaws in Ontario – Tiny and Oro-Medonte

There are examples of Ontario municipalities facing legal challenges to their short-term rental bylaws with mixed outcomes.

Township of Tiny
STR Bylaw Upheld

Tiny introduced a licensing bylaw regulating short-term rentals, including caps, inspections, and registration requirements.
A group of STR operators challenged the bylaw, arguing that the Township had exceeded its authority under the Municipal Act and Planning Act.
The Ontario Superior Court dismissed the challenge, finding that the bylaw was within the Township’s powers and did not constitute an unlawful prohibition.
Tiny’s bylaw remains in force, and the municipality continues to operate its licensing system.
Tiny’s bylaw is one of the most restrictive and expensive bylaws in Ontario.

Download the Judgement

Township of Oro-Medonte
STR Bylaw Struck Down

Oro-Medonte attempted to regulate STRs using extreme zoning prohibitions and licensing restrictions.
The Ontario Land Tribunal (OLT) ruled that the bylaw did not represent good planning and was not in the public interest, striking it down.
The Township appealed the OLT decision to the Ontario Superior Court, but the appeal was dismissed, leaving the OLT ruling in place.
As a result, Oro-Medonte was unable to enforce the bylaw and had to reconsider its regulatory approach.
The township now focuses on enforcing existing Zoning and Noise bylaws.

Download the Judgement

Both Tiny and Oro-Medonte show that STR bylaws must be carefully designed, proportionate, evidence-based, and grounded in proper planning authority. When bylaws overreach by effectively banning STRs, restricting legitimate residential uses, or lacking a clear planning rationale, they risk legal challenge. Municipalities must balance regulation with fairness, due process, and respect for property rights.

How does ACW's Bylaw Stack Up?

The following table compares the range of approaches taken by small municipalities across Ontario. How does the ACW Bylaw hold up in comparison?

Untitled Document

Key Elements	ACW	Bluewater	Lambton Shores	Georgian Bay	Greater Madawaska	Township of Tiny
Cost (to Operators)	$350 (for the first year, and then adjusted for actual cost in following years)	$750	$500	Light Host $150 Regular Host $1000	$300	$2000
Demerits	Complaint or Conviction	Conviction/ Non-Compliance of an Order	Conviction or Non-Compliance of an Order	Conviction or Non-Compliance of an Order	Complaint or Conviction	Conviction/Non-Compliance of an Order and Fines
Occupancy	2 people/ bedroom +2 (overnight ) Unlimited children under 12.	2 people/ bedroom +2 (overnight or on premises)	2 persons / bedroom +2, to a max of 10; Unlimited children under 12	2 Persons per Guest Room above the age of 2 (overnight or on premises)	2 per bedroom over age 2 with no more than 6 bedrooms (12 overnight occupants max)	2 per bedroom, (10 overnight occupants max)
STR License required	<30 day stays	<30 day stays	<=30 day stays	<=30 day stays (tiered light host 21 or less days a year, regular host 22 or more per year.)	<28 day stays	<=28 day stays
Fines/Demerits -operate or advertise without a license	$900	$900	$900 + 4 demerits	No demerit system. Person is liable to a max fine of $5,000 Corp. liable to $50,000	unknown	3-5 demerits
Applies to Bed and Breakfasts	Yes	Yes	Yes	No	Yes	No
App to administer	None	Cloudpermit portal to process applications	Granicus/Host Compliance	None	Granicus/ Host Compliance	Granicus Host Compliance

Download and review the full bylaws for other municipalities to learn more (if you enjoy reading bylaws).

How does ACW’s Short-Term Rental Bylaw stack up?