Short-Term Rental Licensing By-law - Frequently Asked Questions

Short-term rentals are distinct from the term “Short-term Rental Accommodation” as defined in the City’s Comprehensive Zoning By-law. Short-term rentals are generally understood to be residences, or part of residences (a room), that are rented out, for short periods of time (not more than 28 consecutive days) for a fee. Businesses, such as Airbnb and Expedia, offer a service where individuals can advertise and book their short-term rental.

Who is required to have a short-term rental licence?

Anyone who plans to operate a short-term rental in the City of Stratford in compliance with all Applicable Laws including the City’s Comprehensive Zoning By-law are required to obtain a short-term rental licence.

What is the purpose of the Short-Term Rental Licensing By-law?

• To protect public health and safety and to ensure occupants are provided with safe accommodations in terms of fire and building safety;

• To create accountability for and to residents, short-term accommodators, and the travelling and vacationing public;

• To ensure short-term rental (STR) owners and operators are made aware of their responsibilities to comply with all applicable law, including municipal by-laws and other regulations including but not limited to: Noise By-law, Traffic and Parking By-law, Nuisance By-law, Zoning By-law, Fire Protection Regulations, and Building Code;

• To protect the character, amenities and quality of existing residential neighbourhoods;

• To permit the operation of licensed short-term rental accommodations across the Municipality.

Where are short-term rentals allowed?

Short-term rentals are permitted in a wide range of residential dwelling units and stand-alone buildings such as inns having up to a maximum of 5 guest rooms and hostels, provided a licence is obtained.

A short-term rental is defined to capture all rentals for a period of less than 28 days throughout the City. The draft licensing by-law defines a short-term rental as a bed and breakfast establishment, short-term rental accommodation, hostel, rooming house, boarding house all as defined by and subject to the provisions of the City’s Comprehensive Zoning By-law and also includes Inns and any other short-term guest room as defined in the draft Licensing by-law and provides accommodation for a period of less than 28 consecutive days.

Why are short-term rentals licensed?

The draft Short-term Rental Licensing By-law, once adopted, is intended to help regulate and provide access to short-term rental accommodations that are safe for the public, has parking and results in minimal disruption to the surrounding neighbourhood.

What types of accommodation does the draft Short-term Rental Licensing By-law apply to?

• All types of dwelling units may be used to provide short-term rental accommodations for any period of no more than 28 consecutive days to the same guest:

  • The entire single-detached dwelling, semi-detached dwelling, converted dwelling and townhouse dwelling;
  • Bed and breakfast establishment as defined in the Zoning By-law;
  • Short-term rental accommodation as defined in the Zoning By-law,
  • Hostel as defined in the Zoning By-law;
  • A guest room located in an apartment unit or condominium unit as defined in the Zoning By-law; and subject to any required approvals from the Landlord approval or Condominium Board approval, as applicable and the parking and other requirements set out in the draft licensing by-law;
  • Rooming house as defined in the Zoning By-law;
  • Boarding house as defined in the Zoning By-law;
  • Inns of 5 bedrooms or less as defined in the draft Short-term Rental Licensing By-law;
  • Short-term guest rooms as defined in the draft Short-term Rental Licensing By-law; and

Any other guest room that is provided in accordance with all Applicable Laws; including but not limited to the City’s Comprehensive Zoning By-law for a period of no more than 28 consecutive days.

What types of accommodation does the draft Short-term Rental Licensing By-law not apply to?

• Any dwelling units or part of a dwelling unit or short-term guest room that provides rental accommodation for a period of more than 28 consecutive days to the same guest;

• Inn with 6 or more guest rooms, hotel / motel being a building containing, more than 6 guest rooms for the temporary lodging of the traveling public;

• Any other accommodation that is rented for any period of more than 28 consecutive days to the same guest.

What is the main difference between a short-term rental accommodation, a bed and breakfast establishment and a short-term rental?

A short-term rental accommodation is defined in the City’s Zoning By-law and relates to the rental of the entire dwelling unit, with limits on the number of rooms as set out in section 4.3.1 of the City’s Zoning By-law for any period of no more than 28 consecutive days to the same person and up to a total maximum period of 180 days overall.

A bed and breakfast establishment is defined in the City’s Zoning By-law as requiring that the principal resident be on site during the short-term rental period or when operating as a bed and breakfast establishment.

A short-term rental as defined in the draft licensing by-law includes both a bed and breakfast and short-term rental accommodation and other short-term rentals such as a hostel, rooming house, boarding house, inns having a maximum of 5 guest rooms and any short-term guest room providing accommodation for a period of less than 28 consecutive days. 

Do I need a bed and breakfast license and a short-term rental license?

No. If you are an existing bed and breakfast establishment licensed by the City in 2022, you will not need to obtain a bed and breakfast licence and a short-term rental license starting in 2023.

The bed and breakfast licensing program is being replaced with the short-term rental licensing program that is intended to encompass all short-term rentals in the City.

If the draft Short-term Rental Licensing By-law is adopted by Council, the existing bed and breakfast licensing By-law will be repealed and no longer be in effect in Stratford. 

Yes. A short-term rental accommodation as defined by the City’s Zoning By-law relates to the rental of the entire dwelling unit, with limits on the number of rooms as set out in section 4.3.1 of the City’s Zoning By-law for any period of no more than 28 consecutive days to the same person up to an overall maximum period of 180 rental days per year.

Why “for any period of less than 28 consecutive days”?

The “for any period of less than 28 days” is in the Zoning By-law as part of the definition of Short-term Rental Accommodations. This time limit is applied to all short-term rentals in the draft Short-term Rental Licensing By-law as this specific type of rental is targeted at providing accommodations to the vacationing and travelling public on a short-term basis only and does not include any long-term rentals which would be governed by the Residential Tenancies Act.  

After 28 days, the duration of the use becomes similar to a month-to-month rental or becoming a long term rental that is no longer targeted at the vacationing and travelling public. The purpose of the draft Short-term Rental Licensing By-law is to require Building Code, Fire Code and parking compliance for people living or staying in the dwelling unit even on a short-term basis. 

Can a bed and breakfast establishment also be used as a short-term rental?

A bed and breakfast is defined in and governed by the City’s Comprehensive Zoning By-law and requires that the principal resident be on site during the bed and breakfast operation. The definition of bed and breakfast establishment in the City’s Comprehensive Zoning By-law specifically does not include a restaurant, hotel, inn, short-term rental accommodation, boarding house dwelling, nursing home or any home licensed, approved or supervised under any other general or special Act.

A bed and breakfast establishment requires that the principal use of the dwelling be for residential uses and the bed and breakfast be ancillary to the main residential use. Guest rooms in a bed and breakfast establishment shall not be suites and shall not include separate dining facilities for the preparation of food.

If the principal use of the bed and breakfast establishment is for residential purposes and provides living accommodations to the principal resident and represents a principal residence it may not be a short-term rental as such use would contradict the provisions of the City’s Zoning By-law. 

Why do hostels have to be licensed?

Hostels provide accommodation for the vacationing and travelling public. While they are a different type of short-term rental, hostels still need to be in compliance with all Applicable Laws for the purposes of health and safety to the public. 

Why do Inns (1-5 rooms) have to be licensed and Inns containing (6-10 rooms) do not?

Inns containing 1 to 5 rooms as defined in the draft Short-term Rental Licensing By-law, provide accommodation for any period of no more than 28 consecutive days to the travelling and vacationing public and are small in their size and scale. The purpose of regulating smaller Inns is that they have a limited number of rooms and are similar to short-term rental accommodations. The licensing requirements require all appropriate safety measures be put in place among other items including a parking plan acceptable to the City. Larger Inns are similar to a hotel / motel and are subject to other regulatory provisions. 

Why are hotels / motels exempt from the draft Short-term Rental Licensing By-law?

Hotel and motels provide accommodation to the travelling and vacationing public. These types of accommodation tend to be larger establishments that are permitted only in specific zones in the City. Hotels/motels are governed by Zoning By-law provisions including but not limited to parking. The City is aware of the locations of these types of accommodation due to their size, and therefore are already subject to safety, building code and fire code compliance and inspections. Hotels may also include restaurants, recreational facilities, meetings rooms, and retail stores that are incidental and subordinate to the primary hotel use.

Can I rent out my apartment unit / condo unit as a short-term rental and for how many days?

Yes, subject to being in compliance with the provisions of the City’s Comprehensive Zoning By-law and meeting the requirements of the City’s draft Licensing By-law. Note that there may be a specific terms of a lease if applicable or a condominium that prohibits the renting out of a guest room which is unrelated to the City’s draft Licensing By-law.

The unit can be rented out for no more than 28 consecutive days to the same guest and overall up to 180 days per year maximum.

When does the Principal Resident provision not apply to a short-term rental?

There are different types of short-term rentals available throughout the City. Bed and breakfast establishments for example, include the living accommodations of the principal resident and can be operated throughout the entire year.

A short-term rental accommodation means an entire dwelling unit that is used to provide sleeping accommodations and is operated by the Principal Resident. The principal use of a short-term rental accommodation shall also be for residential purposes with the short-term rental accommodation being ancillary or subordinate to the main use as a residential dwelling. Typically, the entire dwelling unit is being offered up to someone for a short-term rental accommodation and the Principal Resident of the dwelling unit is not present at the same time. However, the dwelling continues to be used by the Principal Resident for the primary purposes of a residential dwelling.

Short-term rental accommodation is defined as being operated by the principal resident in the Zoning By-law. One of the purposes of Table 4.3.2 is to limit impact in a residential area of the operation of a short-term rental accommodation and to limit their ability to be used as a short-term rental for a maximum period of up to 180 days.

Who is a Responsible Person?

A Responsible Person means the Owner, Operator or an Agent assigned by the Owner or Licensee of the Short-term Rental dwelling to ensure that the Short-term Rental is operated in accordance with the provisions of the By-law, the Licence and all Applicable Laws. 

Why is the City consulting with residents about short-term rentals?

The City of Stratford is consulting with residents as part of the consideration of adopting a draft Short-term Rental Licensing By-law that would take effect in January 2023, if approved. The City wants to hear from residents and from operators who provide accommodation to the public of the impacts of short-term rentals.

The feedback received through the public consultation process at the upcoming Public Meeting or in written comments sent to the City, will be provided to Council when the draft by-law comes before Council for consideration in September.

When can I obtain a licence to have a short-term rental?

Application forms will be available online and at the By-law Division at Stratford City Hall Annex on Erie Street on a date to be determined by the City. To obtain a licence, a homeowner or tenant/lessee will be required to submit an application form with the required supporting documents. A decision has not been made on whether or not the City will implement a licensing fee in 2023. 

What happens after submitting a license application to the City?

After the City receives a complete application, which includes but is not limited to letters of compliance from the Electrical Safety Authority, a Fire Safety Checklist, certificate of insurance, parking management plan, the City will confirm the information and review the application. The Owner or the Applicant is responsible to schedule the required inspections – building code and fire.

If the application is approved, the licence will be emailed to the Licensee which must be posted inside the Short-term Rental at all times.

A printed copy of the licence may also be requested by the applicant. The printed copy can be obtained from the Building Division during regular business hours.

The City can deny an application based on the eligibility criteria set out in the draft Short-term Rental Licensing By-law and will inform the applicant of its intent to deny the licence. No one is eligible to obtain a licence or a renewal if the application has been denied or revoked in the last 12 months.

How long does it take to process an application for a short-term rental license?

Processing times can vary based on the information provided in the application form. Each application is reviewed to ensure the applicant meets the requirements of the draft Short-Term Rental Licensing By-law. 

What do I do after I am licensed?

Once licensed as a Short-term Rental Operator, you are required to meet the terms and conditions of the draft Short-term Rental Licensing By-law that includes but is not limited to:

• Providing guests information about the Responsible Person and instructions on how to contact 911 emergency services

• Provide guests with an emergency exit plan

• If you are subject to the maximum of 180 days provision in the draft Short-term Rental  Licensing By-law, you need to keep the following records related to the short-term rental and provide to the City upon request:

  • Number of nights the short-term rental was rented

  • The nightly and total price charged for each rental, and

  • The rental type (the entire home rental or single room rental)

  • Licensee is responsible to ensure that the user of the short-term rental unit shall at all times comply with applicable law and the requirements of the licence

  • Licensee shall ensure that appropriate parking is provided as identified on the Parking Plan filed with the City and pursuant to the provisions of this By-law.

  • Include the licence number in any advertisement or promotion related to the renting out of the property for use as a Short-term Rental

  • Licensee shall ensure that the Responsible Person for the Short-term Rental unit is available to attend the property at all times within 30 minutes from the time of contact in the event of an emergency or similar circumstances, and

  • Licensee to provide certificate of insurance as required by this draft Short-term Rental  Licensing By-law prior to the expiry of the current certificate of insurance

Can I advertise and operate a short-term rental in my home?

Yes, once a licence is obtained to rent out your principal residence, or part of your principal residence for not more than 28 consecutive days to the same guest. 

Do I need to make renovations to my home in order to operate a short-term rental?

It depends on your specific situation. To maintain a level of life-safety for you and your guests, the Building Code establishes minimum construction standards for your dwelling unit. As part of your license application, an inspection is required. Based on he results of the inspection, if the building / room is not compliant, renovations may be required.

 If you are making renovations, such as finishing an unfinished space or adding bedrooms, in order to rent out the space, residents should contact the City Building Division to discuss and other permits/approvals such as a building permit may be required.

 In cases where renovations may be necessary to bring your dwelling unit into compliance, or for further clarification, residents should contact the City Building Division to discuss. 

What do I do if I have an issue with my neighbour’s short-term rental?

Concerns about a short-term rentals can be reported through the Report an Issue form on the City’s website. This will be directed to the City’s By-law Enforcement Division to investigate and follow up with the complainant.

How will the Short-term Rental Licensing By-law be enforced?

The City will be proactive in enforcing the Short-term Rental Licensing By-law. In the first year of the licensing by-law, there will be a focus on education in the community to make short-term rental accommodation operators and providers aware of the requirement to be licensed.

The City will keep a list of licensed short-term rentals that will be made available upon request to the public.

My property is not in a residential zone. What do I do?

The type and location of short-term rentals are governed by the provisions of the City’s Comprehensive Zoning By-law. To discuss the Zoning By-law and your particular circumstances, please call the City By-law Division. 

How many people can stay at my property?

The draft Short-term Rental Licensing By-law does not put a limit on how many people can be in a bedroom. However, the draft Short-term Rental Licensing By-law does require the Operator to comply with the Zoning By-law that imposes restrictions on the number of rooms an Operator may have under the Zoning By-law, in addition to complying with all other Applicable Law including but not limited to the Building and Fire Codes. The Building Code and fire restrictions also place limitations on the number of people permitted in any guest room. 

Does my site plan, floor plan, fire plan and parking plan need to be completed by a professional engineer?

No they do not; however, your submission must be legible and preferably to scale. Drawings prepared by a professional that are to scale make the review process easier for the City and generally results in a quicker approval. However, a hand-drawn map depicting the location and number of short-term guest rooms, the proposed occupancy limit, garbage collection etc may be submitted. This information needs to be submitted as part of your licence application. 

I am selling my property. What do I do?

A licence is non-transferable with the sale of the property. The Licensee must notify the City within 15 days of any change such as:

• Change in business name
• Change in the location of the business premise such as the mailing address of the property owner
• Change in ownership of the business, and
• Change in the licensee’s policy of liability insurance

The new owner can apply for a new licence if they want to continue the short-term rental use. 

What are the short-term rental licensing fees?

The City is proposing to not collect a licensing fee during 2023. For safety reasons, the City wants to encourage all short-term rental operators to apply to be licensed in the first year of the licensing by-law coming into effect. This will allow the City to collect data on the number of operators there are in Stratford, determine how much time will be required to process applications, conduct the required inspections, and follow up on enforcement. Once this data is collected, the City will use the information as the basis for determining the licensing fees in order to recoup the City’s expenses to administer, and enforce the Short-term Rental Licensing By-law. 

What type of insurance is required?

The property owner must have general liability insurance of not less than $5 million and confirmation that the insurance policy contains coverage for damage from fire. The insurance policy must also ensure that the Owner is not prohibited from using the property as a short-term rental. 

Does the Comprehensive Zoning By-law still apply to short-term rental?

Yes. The provisions of the Comprehensive Zoning By-law continue to apply and govern the uses subject to the draft Short-term Rental Licensing By-law. 

Why can an apartment unit or a condo unit on a private road be used as a short-term rental, but cannot be used as a bed and breakfast establishment?

If the owner or the principal resident is not staying in the apartment and the entire “apartment unit” is being rented out, it would not qualify as a bed and breakfast establishment. In addition, the apartment unit being used as a short-term rental must comply with the draft Short-term Rental Licensing By-law. This means the owner needs to submit the information requirements set out in the draft Short-term Rental Licensing By-law, including but not limited to the parking management plan.  

My family and friends usually come to stay with me for holidays or summer vacation? Do I need a short-term rental licence?

No, not unless you are charging them a rental rate to use the guest room(s) and operating as a short-term rental.