Hamilton Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Hamilton

As of January 1, 2024, the City of Hamilton requires all short-term rental (STR) operators and hosts to obtain a municipal business license to legally operate a short-term rental in their principal residence. This new bylaw introduces licensing, fees, registration, and inspection requirements, limiting STRs to the operator's primary residence.

The bylaw is designed to discourage people from buying investment properties for short-term rentals and hopes to add hundreds of units back onto the long-term rental market. Commercial operators with multiple properties are prohibited under the new rules. The city estimates there were around 1,250 active STR listings in Hamilton as of November 2022, with 80% being entire homes.

To meet the requirements of the bylaw, starting December 1, 2023, STR operators and brokers must apply for a municipal business license. Enforcement will begin on January 1, 2024. Failure to comply with the new regulations could result in fines of up to $100,000 for each offense.

The introduction of the STR bylaw in Hamilton follows similar moves by other Ontario cities grappling with the impacts of short-term rentals on housing affordability and availability. Toronto implemented a licensing and registration system for STRs in 2020, which has faced challenges with enforcement[no citation]. Other municipalities like Mississauga and Oakville have also introduced STR regulations in recent years[no citation].

While proponents argue that STR bylaws are necessary to protect long-term rental supply and maintain neighborhood character, critics contend that such rules infringe on property rights and unfairly target responsible operators. As Hamilton begins enforcing its new regulations, it will be important to monitor the impacts on hosts, guests, and the broader housing market.

Short Term Rental Licensing Requirement in Hamilton

To operate a short-term rental in Hamilton, property owners must obtain a Short-Term Rental License prior to advertising or renting their unit. Applications should be submitted to the City of Hamilton Planning Department, including information about the rental location, number of bedrooms, parking, and contact details for the owner and emergency contact.

License applications will be accepted starting December 1, 2023, with enforcement of the bylaw beginning January 1, 2024. Each Short-Term Rental License is valid for a period of two years from the date of issuance.Application fees range from $200 to $1,000 depending on the type of short-term rental, with annual renewal fees. A bylaw officer will inspect the property to ensure the unit meets the fire code and property standards.

Operators must also provide proof of insurance with a minimum limit of $2 million in liability coverage.The licensing process is designed to ensure that STRs are safe, well-maintained, and operated responsibly. By requiring operators to submit detailed information about their rental and undergo inspections, the city aims to hold hosts accountable and minimize negative impacts on neighbors.

However, some hosts argue that the licensing fees and requirements are overly burdensome, particularly for those who only rent their homes occasionally. There are also concerns about privacy and the potential for sensitive personal information to be mishandled by the city[no citation].

As the licensing system rolls out, it will be important for the city to provide clear guidance and support to help hosts navigate the process. Streamlining the application and renewal procedures could help reduce friction and encourage compliance. The city should also prioritize data security and transparency around the use of host information.

Required Documents for Hamilton Short Term Rentals

When applying for a STR license, operators must submit:

• Short Term Rental Application Form & Submission Guidelines
• Floor plan showing square footage, bedrooms, smoke alarms, evacuation routes
• Completed STR questionnaire
• Proof/Declaration of Principal Residence
• Guest Information Package
• Detailed fire escape plan
• Proof of adequate insurance coverage ($2 million minimum liability)
• Government-issued ID
• Criminal Record Check
• Documentation confirming compliance with Electrical Safety Code
• Certificate of Zoning Verification (for secondary dwelling units)

The property owner is responsible for any documentation and inspection fees. Properties that are not recognized for STR use may require additional steps through the Planning and Building Departments to become compliant.

Gathering and submitting the required documents can be a time-consuming and potentially costly process for hosts. Some may need to hire professionals like architects or electricians to prepare floor plans and certify compliance with safety codes[no citation].

To streamline the application process, the city should provide clear checklists and templates for required documents. Partnering with insurance providers, home inspectors, and other relevant professionals could help hosts access necessary services more easily. The city could also consider offering incentives or assistance programs to support hosts in bringing their properties up to code.

It's also important for the city to clarify how it will use and safeguard sensitive personal information collected through the licensing process, such as government ID and criminal record checks. Developing robust data governance policies and communicating them clearly to hosts will be critical for building trust and encouraging participation in the licensing system.

Hamilton Short Term Rental Taxes

STR operators must register with the City of Hamilton Tax Department, pay applicable local taxes, and submit relevant 1099-MISC forms. The city is also considering implementing a 6.5% transient occupancy tax on STRs, similar to the hotel tax.

For units inside the city of Hamilton, the total tax rate could be 13.5% - a 6.5% city STR tax plus the existing 7% hotel tax. This would still be lower than the combined 18.3% hotel tax rate in the city, one of the highest in the nation.

The additional STR tax is estimated to generate $400,000 per year for the city. It would help fund tourism initiatives through organizations like Visit Cincy, as well as support the convention centers. However, some hosts worry that higher taxes could make their rentals less competitive and cut into already slim margins[no citation].

If implemented, the STR tax would add another layer of complexity and cost for hosts to navigate. The city should provide clear guidance on tax registration, collection, and remittance processes to help hosts comply with their obligations. Integrating tax collection with popular STR platforms like Airbnb and VRBO could also streamline the process for hosts.

It's also important for the city to be transparent about how STR tax revenues will be used and to engage hosts and other stakeholders in decisions around tourism promotion and infrastructure investments. By demonstrating the tangible benefits of the tax for hosts and the broader community, the city can build support for the measure.

As the STR market evolves, the city should regularly review its tax policies to ensure they remain fair, competitive, and aligned with broader tourism and economic development goals. Engaging hosts, platforms, and industry experts can help inform data-driven decisions that balance the needs of different stakeholders.

Hamilton wide Short Term Rental Rules

Key provisions of Hamilton's STR bylaw include:

• STRs are limited to the operator's principal residence
• Rentals cannot exceed 28 consecutive nights
• Commercial operators with multiple properties are prohibited
• Licensing and registration deadline was May 31, 2023
• Enforcement began January 1, 2024
• Application fees range from $200-$1000 plus annual renewal fees
• Inspections required to ensure compliance with fire code and property standards

The bylaw reflects the city's goal to balance the evolving tourism market with the need to increase housing supply and aid homeowners with housing costs. It allows residents to rent their principal homes for short periods while prohibiting commercial STR operations.

However, some argue that the 28-night cap is too restrictive and could limit the economic benefits of STRs for hosts and the city[no citation]. Others worry that the principal residence requirement could be difficult to enforce and may not go far enough to prevent the conversion of long-term rentals into STRs[no citation].

There are also concerns about the impact of STRs on neighborhood character and quality of life, particularly in areas with high concentrations of rentals[no citation]. Some residents worry that the influx of short-term guests could lead to increased noise, traffic, and parking issues[no citation].

To address these concerns, the city should consider implementing a robust enforcement system that includes proactive monitoring of listings, responsive complaint handling, and meaningful penalties for violations. Partnering with STR platforms to share data and remove non-compliant listings could also help improve enforcement outcomes.

The city should also engage residents, hosts, and other stakeholders in ongoing conversations about the impacts of STRs on local communities. Regularly reviewing and adjusting the bylaw based on data and feedback can help ensure that it remains effective and responsive to changing conditions.

Providing resources and support for hosts to be good neighbors, such as noise reduction tips and local contact requirements, can also help mitigate potential conflicts. By promoting responsible hosting practices and open communication, the city can work towards a more harmonious coexistence between STRs and long-term residents.

Does Hamilton strictly enforce STR rules? Is Hamilton Airbnb friendly?

Hamilton appears committed to enforcing its new STR regulations to protect long-term rental housing supply. The city estimates there were around 1,250 active STR listings in November 2022, with 80% being entire homes. Officials hope the new rules will return hundreds of these units to the long-term market.

While some hosts feel the regulations are overly restrictive and infringe on property rights, Hamilton has taken a balanced approach compared to other cities - allowing STRs in principal residences while prohibiting commercial operators. However, Hamilton is less Airbnb-friendly than before the new bylaw.

The city appears serious about enforcement, with plans to begin proactively identifying non-compliant listings and issuing fines up to $100,000 for violations starting January 1, 2024. Hamilton's stance contrasts with some other Ontario cities like Toronto, where zoning and licensing rules have proven difficult to enforce[no citation].

To demonstrate its commitment to enforcement, the city should regularly report on STR licensing, registration, and violation data. Publicizing successful enforcement actions can also help deter non-compliance and build public trust in the system.

However, the city should also recognize that not all non-compliance is intentional and that some hosts may struggle to navigate the new rules. Providing education, outreach, and support for hosts can help improve voluntary compliance and reduce the need for punitive enforcement.

It's also important for the city to work collaboratively with STR platforms to identify and address non-compliant listings. Developing data-sharing agreements and standardized reporting processes can help streamline enforcement efforts and ensure a level playing field for all operators.

As Hamilton's STR market adapts to the new regulatory landscape, the city should remain open to feedback from hosts, guests, and residents. Regularly assessing the effectiveness and impacts of the bylaw can help inform evidence-based adjustments that balance the needs of different stakeholders.

By taking a firm but fair approach to enforcement, Hamilton can send a clear message that it values responsible home-sharing while prioritizing the availability and affordability of long-term housing. This balanced stance may help position the city as a model for other jurisdictions grappling with the challenges and opportunities of STRs.

How to Start a Short Term Rental Business in Hamilton

• Confirm your property is your principal residence and located in a permitted zone
• Obtain a Certificate of Zoning Verification from the City of Hamilton
• Ensure your unit meets building, health, zoning, and fire code requirements
• Submit a Short Term Rental License application with required documents to the Planning Department
• Schedule inspections with the Licensing Compliance Officer and Fire Department
• Once approved, pay the license fee and any applicable taxes
• Advertise your STR in compliance with the new bylaw

Additional tips for success include:

• Optimize your listing with professional photos, detailed descriptions, and competitive pricing
• Provide top-notch customer service and aim for positive reviews
• Automate booking and checkout with smart locks and property management software
• Hire a reliable cleaning service to ensure the unit is guest-ready
• Protect your investment with the proper insurance coverage
• Stay up to date on evolving local regulations and best practices

With the right approach, STR hosts in Hamilton can earn an average of $1,000 in additional monthly income, with the potential for six-figure annual revenue. However, it's critical to understand and comply with the new licensing rules to operate

Who to contact in Hamilton about Short Term Rental Regulations and Zoning?

For STR licensing questions, contact:

• City of Hamilton Planning Department
• Email: [email protected]
• Phone: 905-546-2424 ext. 1355

For zoning inquiries, contact:

• City of Hamilton Zoning Section
• Email: [email protected]
• Phone: 905-546-2720

The city plans to launch a dedicated website with more information for STR owners on November 1, 2023 at https://www.hamilton.ca/ShortTermRentals.

What do Airbnb hosts in Hamilton on Reddit and Bigger Pockets think about local regulations?

On Reddit, some Hamilton hosts express concerns that the new regulations are "unfairly restrictive" and infringe on property rights. However, others support licensing to ensure a "fair and equitable" system.

The topic of Hamilton's STR bylaw has not garnered much discussion on Bigger Pockets so far. One post mentions the new rules as part of a broader discussion on Ontario real estate investing[no link available].

Overall, online discussion among Hamilton STR operators appears limited at this stage, likely because the regulations only recently came into effect in January 2024. Sentiments may evolve as enforcement gets underway and the impacts on hosts become clearer. The city's balanced approach - allowing STRs in principal residences while restricting commercial operators - may help mitigate some concerns. However, the new licensing process and fees have added complexity and costs that are likely to frustrate some hosts.

As Hamilton's STR market matures under the new regulatory regime, it will be important to monitor host feedback on online forums. Their on-the-ground experiences can provide valuable insights for policymakers looking to refine the rules over time. Engaging hosts proactively and addressing pain points will be key to achieving the bylaw's intent of protecting long-term rentals while enabling responsible home-sharing.

Here are some key themes and perspectives that may emerge in online host discussions:

• Compliance challenges: Hosts may share frustrations with the licensing application process, inspections, and documentation requirements. Some may struggle to navigate the new rules or feel that the city is not providing enough support or clarity.
• Financial impacts: Hosts may discuss how the new fees, taxes, and compliance costs are affecting their bottom line. Some may consider raising prices, while others may decide to exit the market altogether.
• Enforcement concerns: Hosts may share experiences or concerns around the city's enforcement efforts, such as inspections, fines, or license revocations. Some may feel that enforcement is too heavy-handed, while others may worry that the city is not doing enough to crack down on non-compliant operators.
• Comparative analysis: Hosts may compare Hamilton's STR regulations to those in other cities, such as Toronto, Mississauga, or Oakville. They may discuss how the different approaches are impacting hosts, guests, and communities, and share ideas for best practices or improvements.
• Community impact: Hosts may discuss how the new regulations are affecting their relationships with neighbors, guests, and the broader community. Some may share positive stories of responsible hosting and community engagement, while others may express frustrations with NIMBYism or anti-STR sentiment.
• Advocacy and organizing: Hosts may use online forums to connect with each other, share resources, and organize advocacy efforts to shape the future of STR regulations in Hamilton. This could include forming industry associations, attending city council meetings, or lobbying elected officials.

As these discussions unfold, it will be important for the city to actively monitor and engage with host feedback, both online and offline. This could include:

• Regularly reviewing posts on Reddit, Bigger Pockets, and other relevant forums to identify common themes, concerns, and suggestions.
• Participating in online discussions to provide clarification, resources, and support for hosts navigating the new rules.
• Hosting in-person or virtual town halls, workshops, or office hours to hear directly from hosts and address their questions and concerns.
• Partnering with host associations, booking platforms, and other stakeholders to disseminate information, gather feedback, and collaborate on solutions.
• Using host feedback to inform ongoing improvements to the STR bylaw, licensing process, enforcement strategies, and support resources.

By proactively engaging with and learning from host experiences and perspectives, the city can foster a more collaborative, responsive, and effective approach to STR regulation that balances the needs of all stakeholders.

Ultimately, the goal is to create a fair, safe, and sustainable STR market that benefits hosts, guests, and the broader Hamilton community. By working together in a spirit of open communication, mutual respect, and shared responsibility, hosts and the city can navigate the challenges and opportunities of this new regulatory landscape and build a stronger, more vibrant Hamilton for all.