Aurora Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Aurora, Ontario?

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular, allowing homeowners to earn extra income by renting out their properties or spare rooms. However, many cities have implemented regulations to govern the operation of these vacation rentals. If you're considering starting a short-term rental business in Aurora, Ontario, it's crucial to understand the local rules and requirements.

Starting a Short-Term Rental Business in Aurora

In Aurora, individuals who wish to operate a short-term rental must first obtain a General Business License. This process involves submitting an application to the Licensing Division, which is subject to review for adherence to city regulations. The application must include detailed information about the rental property and owner, and must be accompanied by the appropriate fee.

Short-term rentals in Aurora fall under the scope of Home Occupation regulations, necessitating an understanding of the Zoning Code for compliance. The Zoning Code sets forth specific standards that the property must meet to maintain the residential character of the neighborhood. There may be limitations on signage, the amount of space used for the business, and parking regulations.

Additionally, Aurora requires short-term rental operators to obtain a Lodger's Tax License and collect an 8% lodging tax from guests. This tax must be remitted to the city on a regular basis, either monthly or quarterly.

It's important to note that Aurora prohibits operating a short-term rental from an entire dwelling for longer than 180 days in any 365-day period. This regulation aims to prevent homes from being turned into de facto hotels.

Failure to comply with licensing requirements, zoning regulations, or tax obligations can result in fines and penalties. The city has implemented measures to enforce compliance, including monitoring online listings and responding to complaints from neighbors.

While the regulatory requirements are extensive, there is still demand for short-term rentals in Aurora and the surrounding areas. However, some real estate investors report that the market has become more saturated and challenging in recent years.

In summary, to legally operate a short-term rental in Aurora, hosts must obtain the necessary licenses, comply with zoning regulations, collect and remit taxes, and adhere to occupancy restrictions. Careful research and adherence to local bylaws are essential for hosts to avoid penalties and operate within the bounds of the law.

Short-Term Rental Licensing Requirement in Aurora

To legally launch and operate a short-term rental in Aurora, hosts must obtain a General Business License and Lodger's Tax License from the city. The key requirements include:

• Obtain a combined Business License / Lodger's Tax License by submitting an application to the city's Licensing Division. This involves providing detailed information about the rental property and owner.
• Pay the required license fees. As of 2022, the initial license fee is $43, with a $26 renewal fee every two years.
• The short-term rental must be the host's primary residence. Investment properties where the owner does not reside are generally prohibited from operating as short-term rentals in most residential zones.
• Comply with Aurora's home occupation regulations outlined in the zoning code. This includes requirements like:
  1. The rental must be secondary to the primary residential use
  2. No external advertising or signage related to the business
  3. Minimize impacts on the surrounding neighborhood
• Post the city-issued business license number on all online advertisements and listings for the short-term rental property.
• Collect the required 8% lodger's tax from guests and remit it to the city according to the assigned filing schedule (monthly or quarterly).

It's important for hosts to verify their short-term rental does not violate any homeowners association rules or landlord restrictions before applying for the city license.

Prospective hosts should review Aurora's zoning bylaws carefully, as short-term rentals may be prohibited in certain residential areas. The city conducts enforcement by monitoring online listings and responding to complaints about illegal rentals.

Obtaining the proper licensing and paying applicable taxes are critical for hosts to operate a legal short-term rental business in Aurora and avoid potential fines or other penalties for non-compliance.

Required Documents for Aurora Short-Term Rentals

When applying for a General Business License and Lodger's Tax License to operate a short-term rental in Aurora, hosts must submit several required documents to the city's Licensing Division:

1. Completed application form: This includes details about the owner, rental property address, number of guest rooms, parking arrangements, etc.
2. Proof of property ownership: Such as a copy of the deed, mortgage statement, or property tax bill for the rental address.
3. Proof of primary residence (if applicable): Utility bills, driver's license, or other documentation showing the rental property is the owner's principal residence.
4. Floor plan of the rental unit: A detailed floor plan clearly indicating the areas to be used for short-term rental purposes.
5. Parking plan: Information on the number of parking spaces available and how guest parking will be accommodated.
6. Consent from property owner (if applicable): If the applicant is not the property owner, written authorization from the owner is required.
7. Certificate of insurance:Proof of commercial general liability insurance coverage with minimum limits as specified by the city.
8. Criminal record check: A current criminal record check may be required for the applicant and any other persons involved in operating the rental business.
9. Applicable fees: Payment of the initial license fee and any other required fees based on the current fee schedule.

It's important for prospective hosts to carefully review Aurora's short-term rental bylaws and prepare all necessary documents prior to submitting their license application. Incomplete applications may face delays or denials.

Providing accurate and truthful information is critical, as any false statements or misrepresentations can result in fines, license revocation, or other penalties from the city. Hosts must keep their license information updated if any changes occur.

Aurora Short-Term Rental Taxes

Short-term rental operators in Aurora are required to collect and remit two key taxes from guests:

Municipal Accommodation Tax (MAT): Aurora imposes an 8% tax on the rental price of any short-term accommodation under 30 days. This is often referred to as the "lodger's tax."

The 8% MAT applies to the full amount paid by the guest, including any cleaning fees or other additional charges. It must be clearly listed as a separate line item on all guest invoices and receipts.

Short-term rental hosts are responsible for collecting the MAT from guests and remitting it to the City of Aurora according to an assigned filing schedule, either monthly or quarterly.

Federal Goods and Services Tax (GST): The standard 5% GST charged by the federal government also applies to short-term rental revenue in Aurora.

Hosts must register for a GST account with the Canada Revenue Agency (CRA) and remit the collected GST on a regular basis, following CRA requirements.

Some platforms like Airbnb offer a service to automatically calculate, collect and remit certain taxes like the GST on behalf of hosts. However, hosts are ultimately responsible for ensuring full compliance.

Proper record keeping of all rental income, taxes collected, and remittances is essential. Many short-term rental operators choose to work with an accountant to ensure they are meeting all municipal and federal tax obligations correctly.

Failure to collect and remit required taxes like the 8% MAT can result in fines, penalties, and potential revocation of the host's business license from the City of Aurora. Tax evasion related to short-term rental income can also trigger audits and consequences from the CRA.

Hosts should factor the 13% total tax burden into their pricing strategy when listing properties for short-term rental in Aurora. Transparent tax handling is important for maintaining compliance and guest satisfaction.

Ontario Wide Short-Term Rental Rules

While Ontario does not have comprehensive provincial regulations for short-term rentals, it gives municipalities significant authority to implement their own rules and bylaws. However, there are some overarching guidelines that apply across Ontario:

1. Definition: A short-term rental is generally defined as a residential unit rented for less than 28-30 consecutive days, excluding hotels/motels.
2. Municipal Authority: The Municipal Act and City of Toronto Act grant cities broad power to regulate where short-term rentals are permitted, licensing requirements, taxation, and other restrictions.
3. Principal Residence: Many municipalities, including Toronto and Ottawa, only allow short-term rentals in a host's principal residence where they live most of the year. Investment properties are often prohibited.
4. Licensing: Hosts typically must obtain a municipal business license or permit and pay associated fees to legally operate a short-term rental. License numbers must be posted in listings.
5. Taxes: Short-term rental operators are required to collect and remit certain taxes like the Goods and Services Tax (GST), as well as any municipal accommodation taxes. Platforms like Airbnb may assist with tax collection.
6. Zoning Rules: Municipalities can restrict short-term rentals to certain zoning areas or building types through official plans and bylaws. Many prohibit rentals in residential-only zones.
7. Enforcement: Municipalities are deploying various enforcement methods like reviewing online listings, responding to complaints, levying fines for violations, and in some cases, enabling special squads of inspectors.
8. Provincial Oversight: While rules are set locally, the Ontario government has given itself authority to implement a provincial registration system and further regulations if needed.

In summary, short-term rental regulations are implemented at the municipal level in Ontario, but there are some common themes around definitions, principal residences, licensing, taxes, zoning, and enforcement. Hosts must carefully research and comply with their local city's specific bylaws.

Does Aurora Strictly Enforce STR Rules?

Based on discussions from real estate investing forums like Bigger Pockets and Reddit, it appears that Aurora does actively enforce its short-term rental regulations through measures like inspections, fines, and potential license revocation for non-compliant properties. The city seems to take a moderate but firm approach to balancing the interests of residents and the tourism industry.

One Bigger Pockets user mentioned receiving a violation notice from Aurora for operating an unlicensed Airbnb rental. They had to go through the proper channels to obtain permits and bring their unit into compliance with zoning rules. The consensus was that while not draconian, Aurora would cite and penalize hosts who completely disregard the STR ordinances.

However, some hosts also noted a level of discretion from the city if rentals are operating relatively quietly without disturbing neighborhoods. A few landlords admitted to listing properties on Airbnb despite being in zones where non-owner-occupied STRs are technically prohibited. As long as no complaints arose, these illegal rentals seemed to fly under the radar.

Compared to the extremely strict policies of Chicago, which heavily restricts investor-owned Airbnbs, Aurora is viewed as more "Airbnb friendly" overall. But it's also stricter than smaller Illinois towns with minimal oversight of the short-term rental market.

The general sentiment was that while some hosts take their chances, responsible operators should make a good faith effort to comply with Aurora's licensing, tax, and operational requirements for short-term rentals. The city does have mechanisms to identify and crack down on egregious violations that disrupt residential areas or put guests at risk. Prospective Airbnb hosts were advised to thoroughly understand their obligations before listing in Aurora.

How to Start a Short-Term Rental Business in Aurora

To successfully start a short-term rental business in Aurora, hosts must follow these steps:

1. Review Aurora's zoning bylaws and official plan to ensure short-term rentals are permitted in the area where your property is located. Many residential zones prohibit or restrict vacation rentals.
2. Confirm that your intended short-term rental will be your principal residence where you live most of the year. Non-owner occupied investment properties generally cannot operate as short-term rentals.
3. Obtain a combined General Business License and Lodger's Tax License from Aurora's Licensing Division:
   1. Submit a completed application with details on the rental property, owner, number of rooms, parking plan, etc.
   2. Provide required documents like proof of ownership, floor plans, insurance certificate, and pay applicable fees
   3. The license number must be posted on all short-term rental listings
4. Register for a GST/HST account with the Canada Revenue Agency to collect and remit the federal goods and services tax on rental income.
5. Collect the required 8% Municipal Accommodation Tax from guests and remit it to Aurora according to your assigned filing schedule (monthly or quarterly).
6. Ensure compliance with all zoning regulations around home occupations, such as:
   1. No external signage or advertising
   2. Limits on the portion of the home used for business
   3. Adequate parking and minimal community disruption
7. Renew all required licenses and tax accounts annually.
8. Follow rules around maximum rental periods. Aurora prohibits renting an entire dwelling unit for more than 180 days per year.
9. If operating in a condo or community housing, confirm the building's rules permit short-term rentals before proceeding.
10. Maintain appropriate liability insurance, follow all fire and safety codes, and keep records of rental income and taxes for reporting purposes.

Carefully adhering to these steps is essential for hosts to operate a legal short-term rental business in Aurora and avoid penalties for violations of local bylaws and provincial regulations.

Who to Contact in Aurora about Short-Term Rental Regulations and Zoning?

For questions or to begin the process of obtaining permits and licenses for operating a short-term rental in Aurora, hosts should contact the following city departments:

Business Licensing and Renewals
Phone: 905-727-1375
Email: licensing@aurora.ca

This division handles issuing the required General Business License and Lodger's Tax License for short-term rentals. They can provide guidance on application requirements, fees, and the licensing process.

Zoning Information
Phone: 905-727-3123 ext. 4349
Email: zoning@aurora.ca

Contact this department to verify if short-term rentals are permitted under the zoning bylaws for your desired property location. They can advise on home occupation regulations and any additional approvals needed.

By-law Services Division
Phone: 905-727-3123 ext. 4240
Email: bylaw@aurora.ca

This division enforces Aurora's short-term rental bylaws and can provide information on operational requirements, restrictions like the 180-day rental cap, and respond to complaints about illegal rentals.

It's recommended hosts first contact Business Licensing to understand the permitting process. Then, follow up with Zoning and By-law Services to ensure full compliance with all applicable short-term rental regulations in Aurora before listing a property.

Prospective hosts can also email general inquiries to the Planning & Development Services department at planninganddevelopment@aurora.ca for assistance.

What Do Airbnb Hosts in Aurora on Reddit and Bigger Pockets Think about Local Regulations?

From browsing real estate investing forums like Bigger Pockets and Reddit, it's clear many Airbnb hosts in Aurora find the city's regulations around short-term rentals to be quite burdensome and costly.

One Bigger Pockets user complained about having to obtain a business license, lodger's tax license, follow zoning rules, and collect/remit various taxes just to operate a legal Airbnb in Aurora. They felt the licensing fees and tax obligations made it difficult to turn a decent profit.

Another host on a Reddit thread mentioned struggling to understand Aurora's zoning bylaws and home occupation rules around issues like parking, signage, and space usage. They were unsure if their rental setup violated any requirements and feared potential fines.

Some expressed frustration that Aurora prohibits non-owner occupied short-term rentals in most residential zones. This limits the ability of real estate investors to purchase properties solely for operating as Airbnbs.

However, a few hosts felt Aurora's regulations, while strict, were not overly unreasonable compared to some other municipalities. One Redditor noted the licensing helps ensure short-term rentals meet minimum safety standards and don't disturb residential neighborhoods.

Overall, the consensus from these forums seems to be that Aurora has implemented fairly onerous rules and processes around short-term rentals that make it more difficult and costly for hosts to operate compared to more lax regulatory environments. But some hosts begrudgingly accept the need to follow the municipal bylaws, even if they dislike the bureaucracy and taxes involved.

Attempting to completely disregard Aurora's regulations is viewed as risky due to the potential for fines, license revocation, or other penalties from the city. But some hosts likely still try to fly under the radar, especially if enforcement is lacking in certain areas.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.