Lakeshore, Ontario, joins the expanding list of Canadian communities imposing regulations on short-term rentals. In a recent decision, the councillors implemented a ban on such rentals in the area, citing their commercial nature and arguing they should be regulated like bed-and-breakfast operations.
At an Oct. 10 meeting, local resident Amy Green voiced her support for the ban. She lamented that local families and retirees can no longer find housing in their lifelong home-town due to the rise of short-term rentals.
“Short-term rentals in Lakeshore have tripled, displacing over 150 families due to the commercialization of family homes. That’s upwards of 400 locals pushed out of Lakeshore by investors,” Green stated.
Defining “short-term rental housing” as the rental or lease of any residential property for less than 28-days, Lakeshore Mayor Tracey Bailey spoke to the challenges faced by municipalities the world over. She named technology and digital platforms as major catalysts for the proliferation of such operations.
Bailey expressed her intention to level the playing field by ensuring such businesses adhere to the same regulations as other lodging ventures such as bed-and-breakfasts. The mayor noted that Lakeshore houses a plethora of such successful operators.
Prices offered on Airbnb listings in Lakeshore range from $100 to $430 per night. Realtor Danial Malik voiced his concerns about the implications of an already tight housing supply becoming even tighter, especially for first-time homebuyers and seniors.
Communities across Windsor and Essex County have also been taking measures to control short-term rentals. In Essex town, STRs are allowed solely in existing residential districts established before May 2022, and a zoning permit is a prerequisite for any new ones. Meanwhile, Windsor residents can only operate short-term rentals out of their primary residence.
All these regions necessitate STR operators to secure a license, and the costs vary between the communities.
In a market impacted by high interest rates, real estate agent Jazz Chappus identified investors as about 30% of her clientele. The increased restriction in availability paired with high interest rates adds to the challenge for buyers.
Inventory continues to be very low, with most available homes being quickly snapped up to become investment properties or short-term rentals, Chappus added.
The Windsor-Essex County Association of Realtors’ board president, Mark Lalovich, declared their support for measures promoting access to longer-term housing.
Lakeshore administration has been instructed by councillors to draft a report furnishing options for licensing and regulating bed-and-breakfast establishments ahead of the region’s 2024 budget.
In similar news, the B.C. government recently launched new legislation necessitating that individuals offering short-term lodging must reside on the premises, much like Windsor’s rules. The government is also preparing to increase penalties for short-term rental hosts who defy local regulations and will require short-term rental platforms to submit data to the province for enforcement and taxation purposes.
