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

Starting a Short-Term Rental Business in Oshawa

If you're considering starting a short-term rental business in Oshawa, it's important to understand the local regulations. The City of Oshawa introduced a new licensing system for short-term rental operators in September 2020.

Under the new rules, anyone using their home or property to provide temporary accommodation through a short-term rental platform like Airbnb must obtain a valid license. The licensing process involves submitting an application with supporting documents and paying applicable fees.

Key requirements for short-term rental operators in Oshawa include:

• Obtaining a license from the city with an annual fee of $75 plus a $75 application fee
• Providing the short-term rental only in your principal residence
• Allowing a maximum of 180 rental days per year, with no more than 28 consecutive days
• Limiting rentals to 2 bedrooms with a maximum of 2 guests each or the entire home
• Having a local contact available to attend to the property within 1 hour at all times
• Providing renters with a copy of the city's Visitor's Code on acceptable behavior
• Maintaining detailed rental records for 6 years

The licensing system aims to ensure short-term rentals don't negatively impact neighborhoods while allowing hosts to earn extra income. Oshawa's zoning bylaw also restricts short-term rentals to certain residential areas.

Before applying for a license, Oshawa hosts should:

1. Confirm their property is eligible based on zoning
2. Obtain permission from landlords or condo boards if applicable
3. Ensure the property meets building, fire, health and safety standards
4. Secure appropriate insurance coverage
5. Establish guest screening and rental management processes

Failure to comply with Oshawa's short-term rental regulations can result in fines of up to $25,000 for individuals and $50,000 for corporations. The city primarily enforces the rules on a complaints basis.

"I've been operating my short-term rental in Oshawa for over a year now and the licensing process was very straightforward," said one host on a local real estate investing forum. "As long as you do your homework upfront and play by the rules, it's a great way to generate some extra revenue from your home."

Short-Term Rental Licensing Requirement in Oshawa

To legally operate a short-term rental in Oshawa, hosts must obtain a Short-Term Rental Operator License from the city. This annual license costs $75 plus a $75 application fee.

The licensing process involves submitting an application package to the city that includes:

1. Completed application form
2. Government-issued ID
3. Proof of principal residence (e.g. driver's license, tax bill, utility bill)
4. Proof of ownership or lease with landlord permission
5. Floor plan of the rental unit
6. Parking plan showing required on-site parking
7. Proof of insurance with $2 million liability coverage
8. 24/7 local contact information
9. Electrical Safety Authority inspection certificate
10. Signed declaration of compliance with short-term rental standards

Hosts must also pass a city inspection to verify building, fire, and safety compliance before a license is issued. Licenses are valid for one year and must be prominently displayed in online listings and in the rental unit.

Operating a short-term rental without a valid license can result in fines of $250-$500 per day. Repeated violations may lead to legal action and revocation of the license.

"Getting properly licensed shows you're a responsible host who cares about providing safe and legal accommodations," advised one Oshawa Airbnb operator on Reddit. "It takes a bit of effort, but it's worth it for peace of mind."

Required Documents for Oshawa Short-Term Rentals

When applying for a short-term rental license in Oshawa, hosts need to submit a comprehensive application package to the city. The required documents include:

1. Completed Short-Term Rental License Application form
2. Two pieces of government-issued ID for the host
3. Proof of principal residence, such as:
4. Driver's license
5. Property tax bill
6. Utility bill
7. Lease agreement

If the host is not the property owner:

1. Consent from the property owner
2. Copy of the lease agreement
3. Floor plan of the short-term rental unit clearly showing:
4. Dimensions of each room
5. Location of smoke alarms and CO detectors
6. Designated bedrooms and maximum occupancy
7. Exits and emergency escape routes
8. Parking plan indicating required on-site parking spaces
9. Proof of insurance with $2 million liability coverage
10. 24/7 local contact information for emergencies or complaints
11. Electrical Safety Authority inspection certificate dated within 6 months
12. Signed declaration of compliance with Oshawa's short-term rental standards

Hosts should ensure all documents are complete and accurate before submitting their application to avoid delays in processing. The city may request additional information as needed.

Once the application package is approved, the city will conduct an inspection of the short-term rental unit. If the property passes, the host will receive their Short-Term Rental Operator License. This license number must be included in all online listings and postings.

Oshawa hosts are required to keep detailed records of each booking, including guest names, dates of stay, and confirmation that guests received the Visitor's Code. These records must be maintained for 6 years and available for city review upon request.

"Putting together the application was a bit daunting at first but the city provides a clear checklist of what's needed," shared one Oshawa host on a short-term rental forum. "Just make sure you give yourself enough time to get all the paperwork in order before your busy season hits."

Oshawa Short-Term Rental Taxes

Short-term rental operators in Oshawa are responsible for collecting and remitting certain taxes on their rental income. This includes the Harmonized Sales Tax (HST) and the Municipal Accommodation Tax (MAT).

The HST is a 13% value-added tax that applies to most goods and services in Ontario, including short-term rental accommodations. Hosts must register for an HST account with the Canada Revenue Agency (CRA) and charge this tax on their rental fees. HST collected is remitted to the CRA, typically on a quarterly basis.

In addition to the HST, the City of Oshawa implemented a 4% Municipal Accommodation Tax (MAT) on short-term rentals effective January 1, 2022. This tax applies to all rental contracts of less than 30 consecutive days. Hosts are required to collect the MAT from guests and remit it to the city on a quarterly basis.

Failure to collect and remit the required taxes can result in penalties, interest, and legal action from the CRA and the city. Hosts should keep detailed records of their rental income and tax payments.

Some short-term rental platforms like Airbnb collect and remit certain taxes on behalf of hosts. However, the ultimate responsibility for tax compliance lies with the individual host. Consulting a tax professional can help ensure all obligations are met.

"Dealing with taxes is probably my least favorite part of being an Airbnb host, but it's a necessary evil," said one Oshawa operator on BiggerPockets. "I just make sure to keep good records and put aside the tax amounts from each booking so I'm not scrambling come payment time."

Ontario Short-Term Rental Rules

In addition to municipal regulations like those in Oshawa, short-term rental operators in Ontario must follow provincial rules around taxation, consumer protection, and land use planning.

Provincially, short-term rentals are subject to the 13% Harmonized Sales Tax (HST) on rental fees. Hosts must register with the Canada Revenue Agency to collect and remit this tax.

Ontario's Residential Tenancies Act generally exempts short-term rentals from landlord-tenant laws, as long as the rental period is less than 28 consecutive days. This means guests do not have the same rights as long-term tenants.

However, the province's Innkeepers Act does apply to short-term rentals, requiring hosts to safeguard guests' property, limit their liability, and follow specific eviction procedures.

From a land use planning perspective, the province's Planning Act allows municipalities to regulate short-term rentals through zoning bylaws and licensing. This is how cities like Oshawa have implemented their own rules.

The Ontario government has published a guide for municipalities considering short-term rental regulations, outlining common policy levers like:

1. Restricting rentals to principal residences
2. Capping the number of rental nights per year
3. Requiring hosts to register or obtain a license
4. Limiting the number of guests or rooms rented
5. Restricting rentals to certain zones or building types

"The regulatory landscape for short-term rentals in Ontario is evolving quickly," said one host on an online forum. "It's important to stay on top of both the provincial and municipal rules to make sure you're always operating above board."

Does Oshawa Strictly Enforce STR Rules?

Based on discussions among local hosts on forums like BiggerPockets and Reddit, Oshawa does enforce its short-term rental regulations but primarily on the basis of a complaint rather than proactive investigations.

The city's Municipal Law Enforcement and Licensing Services department responds to issues raised by neighbors or guests, such as noise complaints, parking problems, or suspected unlicensed rentals. Officers can issue fines or order non-compliant listings to be removed.

However, compared to larger cities like Toronto that have dedicated short-term rental enforcement teams, Oshawa is seen as less aggressive in systematically identifying and penalizing rule-breakers. Some hosts claim to have operated without a license for extended periods without facing consequences.

That said, Oshawa officials have made it clear they will crack down on egregious violations, particularly those that impact community safety and well-being. Failure to comply with licensing, zoning, and operational requirements can result in hefty fines and legal action.

The general consensus among experienced Oshawa hosts is that while the city may not proactively police every listing, it's not worth the risk of flouting the rules. Getting properly licensed and following regulations is the only way to run a sustainable and reputable short-term rental business.

"I've been hosting in Oshawa for three years and have never had an issue with bylaw," wrote one operator on Reddit. "But I made sure to dot all my i's and cross all my t's from day one. It's just not worth gambling your livelihood to save a few bucks on fees or cut corners on safety."

How to Start a Short-Term Rental Business in Oshawa

If you're looking to start a short-term rental business in Oshawa, here are the key steps to follow:

1. Confirm your property is eligible for short-term rentals under Oshawa's zoning bylaw. Short-term rentals are only permitted in the operator's principal residence and cannot exceed 28 consecutive days or 180 total days per year.
2. Obtain necessary permits and licenses, including a Short-Term Rental Operator License from the City of Oshawa. The annual license costs $75 plus a $75 application fee. You'll need to provide proof of ownership, insurance, a floor plan, and other required documents.
3. Prepare your property for rental by ensuring it meets all safety, cleanliness, and amenity standards. This includes having working smoke alarms, carbon monoxide detectors, and clearly posted emergency instructions. If renting individual rooms, you can have a maximum of two rooms with two occupants each.
4. Designate a local contact person, such as a co-host or property manager, who is available 24/7 to respond to any issues at the property within one hour. Provide their full contact information to the city as part of your license application.
5. Secure proper insurance coverage with a minimum of $2 million liability and the City of Oshawa listed as an additional insured. Provide proof of this insurance when applying for your operator license.
6. Create detailed listings on popular short-term rental platforms like Airbnb and Vrbo. Include your Oshawa Short-Term Rental Operator License number on all listings and advertisements. Use high-quality photos and descriptions to make your property stand out.
7. Establish clear house rules and provide all guests with a copy of Oshawa's Visitor's Code, which outlines the city's expectations and bylaws for short-term rental guests. Keep records confirming each guest has received this code.
8. Implement a system for managing bookings, guest communication, key exchanges, cleaning, and maintenance. Consider using vacation rental software to automate and streamline these processes.
9. Keep detailed records of all short-term rental activity, including dates, durations, guest information, and Visitor's Code confirmations. Maintain these records for at least six years and have them available for city inspections upon request.
10. Stay up to date on any changes to Oshawa's short-term rental regulations and ensure ongoing compliance. The city is reviewing the current bylaw in early 2023, so rules may evolve.

By following these steps and prioritizing compliance with local regulations, you can build a successful and sustainable short-term rental business in Oshawa. While the licensing process does add some red tape, it helps ensure a level playing field for operators and protects the quality of life for residents in the community.

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

If you have questions about short-term rental regulations or zoning requirements in Oshawa, there are several key contacts who can provide guidance.

For general inquiries related to short-term rental rules and licensing, contact Service Oshawa:

1. Phone: 905-436-3311
2. Toll-Free: 1-800-667-4292
3. Email: service@oshawa.ca

Service Oshawa is the central point of contact for most city services and can direct you to the appropriate department for short-term rental matters.

To report an unregistered short-term rental or file a complaint about a licensed property, you can also contact Service Oshawa using the phone numbers and email above. Provide as much detail as possible about the address and nature of the issue.

For more specific questions about zoning bylaws that may impact short-term rentals, reach out to the Planning Services Department:

1. Phone: 905-436-3853
2. Fax: 905-436-5699

The city's planners can help clarify which zones allow short-term rentals and any applicable restrictions or approval processes.

If you need to report a suspected zoning violation related to a short-term rental, contact Municipal Law Enforcement and Licensing Services:

• Phone: 905-436-3311
• Email: mlels@oshawa.ca

This department investigates bylaw complaints, including those related to short-term rental licensing and zoning compliance. They work to resolve infractions through voluntary compliance or prosecution when necessary.

By contacting these key departments at the City of Oshawa, short-term rental hosts and concerned residents can get the information and support they need to understand and comply with local regulations. City staff are generally available during regular business hours to provide guidance and address issues that may arise.

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

Opinions on Oshawa's short-term rental regulations are mixed among hosts on online forums like Reddit and Bigger Pockets. Some appreciate the city's efforts to create a clear framework and level playing field. Others find the licensing process burdensome and the rules overly restrictive. Here are a few examples of host perspectives:

On the Oshawa subreddit, one host shared their experience going through the licensing process. "It was a bit of a hassle gathering all the required documents, but overall not too bad. The city staff were helpful in answering my questions. I'd rather be licensed and above board than always worrying about getting caught."

Another Oshawa host on the same thread countered, "The occupancy limits and parking requirements are ridiculous. I have a 4 bedroom house but I'm only allowed 4 guests max. It really limits my earning potential. The city should be encouraging short-term rentals to support tourism, not making it harder with all these rules."

On the Bigger Pockets forums, an Oshawa host complained about the cost of complying with the regulations. "By the time you add up the licensing fee, the fire inspection, and any upgrades you need to make, it's a significant expense. I'm not sure it's worth it for me to keep hosting on Airbnb with these new rules."

However, a different Bigger Pockets member argued that the regulations help protect the community and good hosts. "I'm glad the city is cracking down on party houses and illegal ghost hotels. It gives those of us who are doing it right a bad name. The permit process weeds out some of the bad apples."

Some Oshawa hosts on Reddit expressed frustration with the city's complaint-based enforcement approach. "My neighbor has been running an unlicensed Airbnb for months and the city hasn't done anything, even though I've reported it multiple times. Why bother following the rules if there are no consequences for breaking them?"

Others pushed back, saying the regulations are still new and enforcement will likely ramp up over time. "The licensing system just came into effect last year, so I think the city is still getting up to speed. I'd rather be proactive and get my permit now than risk fines or getting shut down later."

Overall, the conversations among Oshawa hosts online suggest that opinions are divided on whether the benefits of the regulations outweigh the costs and administrative burden. While some see them as necessary to ensure safety and community compatibility, others view them as an overreach that stifles the growth of short-term rentals. As the city continues to tweak its rules, the debate is likely to continue.

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.