Rental Housing Licensing Review

Following our recommendations during the Jan 20 Council meeting, Council decided to limit short-term rentals to an owner's principal residence. This is an interim measure that will allow staff to gather critical data on the benefits of Short-Term Rental enforcement until a more comprehensive solution can be analyzed and presented to Council as part of the overall rental licensing review.

Short-term rentals (such as Airbnb or Vrbo) may support increased tourism and provide supplemental income for property owners, but they also present challenges such as reduced long-term housing availability, potential disruptions to residential neighbourhoods and gaps in tenant protections.

Additional community benefits of limiting short-term rentals to an owner’s principal residence include:

• An estimated 100 units available to be converted to long-term rentals or returned to the overall housing stock.
• Short-term rental operators will reside on-site, with the goal of more responsive maintenance and pride of ownership.
• Short-term rentals can no longer be operated as large businesses, but can still provide additional income opportunities for individuals who would like to rent a portion of their home temporarily.

These changes to the bylaw also allows us to qualify and apply for the Federal Government's Short-Term Rental Enforcement Fund (STREF) grant. If approved, the grant will help speed up the implementation of these regulations and strengthen enforcement. If our application is not successful, resources will be managed within the current licensing program.

As part of our review of the Residential Rental Licensing bylaw, we asked the community about short-term rentals and how we can make them safer, while aligning community values and benefits to the local economy.

What we learned

• Many respondents believe that short-term rentals exacerbate the housing crisis by reducing the availability of long-term rental options, driving up housing prices, and creating competition with residents seeking affordable housing.
• Suggestions include stricter licensing requirements, limiting rentals to owner-occupied properties, and enforcing safety and zoning regulations to mitigate negative impacts.
• Negative perceptions include noise, increased traffic, lack of accountability from absentee owners, and reduced community cohesion.
• Some respondents highlight positive impacts, such as well-maintained properties, increased tourism, and providing flexible housing solutions for temporary needs.
• Proponents emphasize that short-term rentals support the local economy by promoting tourism and creating job opportunities for cleaners, maintenance workers, and other service providers.
  
  

What we’re doing

Based on this feedback and the opportunity to apply for a federal grant that could support a future short-term rental licensing program, we’re recommending an interim update to the residential rental licensing bylaw. A more comprehensive bylaw update would follow at a later date.

This will be discussed at the Jan 20 Council Meeting.

Learn more in the short-term rental licensing staff report (starts on page 7)

Thank you to everyone who took the time to share their feedback about rental licensing with us. We had over 600 responses to our surveys in addition to connecting with many residents at our in-person information sessions. Our team will review the feedback we received and share them in a report to council in 2025.

We're hosting two joint info-session with the City of Kitchener about short-term rentals (like VRBO or Airbnb). Join us to learn more and share your feedback on the current licensing framework as well as the challenges and opportunities short-term rentals offer.

• Monday, Nov. 18 from 6 to 8 p.m. at WMRC Community Pavilion, Meeting Hall (101 Father David Bauer Drive, Entrance C)
• Wednesday, Nov. 27 from 1 to 3 p.m. at Kitchener City Hall, Conestoga Room (200 King Street West)

Please register in advance