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

Starting a Short-Term Rental Business in Windsor

In recent years, Windsor, Ontario, has seen growing interest in short-term rentals through booking platforms like Airbnb and Vrbo. However, before listing your property, it's crucial to understand the local regulations surrounding these rentals.

If you're interested in starting a short-term rental business in Windsor, Ontario, it's crucial to understand the local regulations and requirements. As of September 6, 2022, the City of Windsor requires all short-term rental operators to obtain a license to legally rent out their properties on platforms like Airbnb and Vrbo.

While the licensing process may seem daunting, many hosts in Windsor have successfully navigated the requirements and established thriving short-term rental businesses. By following the city's regulations and prioritizing guest safety and neighborhood compatibility, you can be a responsible and successful short-term rental operator in Windsor.

It's important to note that the short-term rental landscape is constantly evolving, so staying informed about changes to local regulations is crucial. Consulting with experienced short-term rental managers or joining local host communities can provide valuable insights and support as you launch and grow your business in Windsor.

Short-Term Rental Licensing Requirement in Windsor

As of September 6, 2022, the City of Windsor requires all short-term rental operators to obtain a license to legally rent out their properties on platforms like Airbnb and Vrbo. This licensing requirement is part of the city's efforts to regulate the growing short-term rental market and address housing availability, neighborhood character, and public safety concerns.

To apply for a short-term rental license in Windsor, property owners must submit the following:

• A completed application form
• Two pieces of government-issued identification, including one photo ID
• Proof of ownership or permission from the owner to operate a short-term rental
• A floor plan of the property
• Proof of insurance with a minimum of $2 million in liability coverage

The initial license application fee is $232, with an annual renewal fee of $191. Licenses must be renewed by November 30th each year.

One key requirement of Windsor's short-term rental regulations is that the rental property must be the operator's primary residence. This rule is designed to prevent investors from buying up multiple properties solely for use as short-term rentals, which can reduce housing stock for long-term residents. By limiting short-term rentals to primary residences, the city aims to strike a balance between allowing homeowners to earn extra income and preserving neighborhood character.

In addition to the primary residence requirement, short-term rental operators in Windsor must also comply with various health and safety standards, such as having working smoke and carbon monoxide detectors, fire extinguishers, and emergency contact information posted in the unit.

Failure to obtain a short-term rental license or comply with the city's regulations can result in fines and legal consequences. The city has the authority to conduct inspections and issue penalties for violations.

While the licensing process may seem daunting for some property owners, many hosts in Windsor have successfully navigated the requirements and continue to operate short-term rentals legally. By obtaining a license and following the rules, hosts can provide a valuable service to visitors while being good neighbors and contributing positively to the local economy.

Required Documents for Windsor Short-Term Rentals

When applying for a short-term rental permit in Windsor, Ontario, property owners will need to provide several documents to demonstrate their eligibility and compliance with local regulations. The specific requirements may vary depending on the applicant's situation, but generally include:

1. Completed application form, which can be obtained from the City of Windsor's Licensing Division.
2. Proof of property ownership, such as a title deed or property tax bill, confirming the applicant's legal right to rent out the property on a short-term basis.
3. Government-issued photo identification, such as a driver's license or passport, for the property owner or the primary applicant if the owner is a corporation.
4. If the applicant is not the property owner, a notarized letter of permission from the registered owner is required, granting the applicant the right to operate a short-term rental on the property.
5. Proof of insurance, with a minimum liability coverage of $2 million, specifically covering short-term rental operations.
6. A property floor plan clearly indicates the rooms and spaces that will be used for the short-term rental and any fire safety features such as smoke detectors and fire extinguishers.
7. If the property is located in a condominium building, a letter from the condominium board confirming that short-term rentals are permitted under the building's bylaws.
8. Electrical Safety Authority (ESA) certificate confirms that the property's electrical system has been inspected and complies with safety standards.
9. Fire safety plan, outlining emergency procedures and evacuation routes for guests.
10. Payment of the applicable license fees may include an initial application fee and an annual renewal fee.

It's important to note that these requirements are subject to change, and the City of Windsor may request additional documentation on a case-by-case basis. Applicants should contact the Licensing Division directly or visit the city's website for the most up-to-date information on short-term rental permit requirements.

Failing to provide all mandatory documents could result in delays in permit approval or rejection of the application. Property owners should allow ample time to gather the necessary paperwork before their anticipated rental start date to avoid any disruptions to their business plans.

By ensuring they have all the required documents in order, short-term rental operators in Windsor can demonstrate their commitment to compliance and help create a safe and well-regulated environment for both hosts and guests.

Windsor Short-Term Rental Taxes

When operating a short-term rental in Windsor, Ontario, it's crucial to understand and comply with the local tax regulations. As of October 2018, the City of Windsor implemented a Municipal Accommodation Tax (MAT) of 4% on all short-term rentals, including those listed on platforms like Airbnb and Vrbo.

The MAT applies to the total price of the accommodation, including any cleaning fees, for stays of 30 nights or less. This tax is in addition to the 13% Harmonized Sales Tax (HST) that applies to most goods and services in Ontario.

As a short-term rental operator in Windsor, you are responsible for collecting the MAT from your guests and remitting it to the city on a quarterly basis. Failure to comply with this requirement can result in penalties and legal consequences.

To ensure compliance with Windsor's short-term rental tax regulations, hosts should:

1. Register their short-term rental property with the City of Windsor and obtain a Municipal Accommodation Tax account number.
2. Clearly communicate the MAT to guests as a separate line item on their booking invoice or receipt.
3. Collect the 4% MAT from guests at the time of payment and hold it in trust until remitting it to the city.
4. File quarterly MAT returns and remit the collected taxes to the City of Windsor's Finance Department by the due dates (typically the 20th day of the month following the end of each quarter).
5. Keep accurate records of all short-term rental transactions, including rental income, taxes collected, and taxes remitted, for a minimum of seven years.

It's important to note that the MAT is separate from the income tax that short-term rental hosts may be required to pay on their rental income. Hosts should consult with a tax professional to understand their income tax obligations and potential deductions.

In addition to the MAT and income tax, short-term rental operators in Windsor should also be aware of the 13% HST that applies to their rental fees. While the HST is not a local tax, hosts are responsible for collecting it from guests and remitting it to the Canada Revenue Agency (CRA) on a regular basis.

By understanding and complying with Windsor's short-term rental tax regulations, hosts can avoid potential penalties and contribute to the city's tourism and economic development initiatives. The MAT helps fund tourism marketing and infrastructure improvements that benefit both residents and visitors to Windsor.

Ontario Wide Short-Term Rental Rules

While municipalities in Ontario have significant authority to regulate short-term rentals (STRs) within their jurisdictions, some province-wide rules and considerations apply across Ontario. These Ontario-wide regulations aim to provide a general framework for the operation of STRs while still allowing local governments the flexibility to tailor their bylaws to the specific needs of their communities.

One key legislation impacting STRs across Ontario is the Residential Tenancies Act, 2006 (RTA). The RTA governs the rights and responsibilities of landlords and tenants in residential rental properties. In general, the RTA does not apply to short-term rentals of less than 28 days, as these are considered temporary accommodations rather than tenancies. However, if a guest stays for 28 days or more, the RTA may come into effect, granting them certain protections as tenants.

Another important consideration for STR operators in Ontario is taxation. Income earned from renting out a property on a short-term basis is generally considered taxable income by the Canada Revenue Agency (CRA). Hosts are responsible for reporting this income on their tax returns and may be eligible to claim certain expenses as deductions. Additionally, the Harmonized Sales Tax (HST) may apply to STR bookings, depending on factors such as the host's total annual revenue and the nature of the accommodation provided.

In terms of safety standards, the Ontario Building Code and Fire Code set out minimum requirements for all residential properties, including those used as STRs. Hosts must ensure that their properties comply with these codes, which cover aspects such as fire safety, means of egress, and structural integrity. Failure to meet these standards can result in fines and legal consequences.

Accessibility is another area where Ontario-wide regulations come into play. The Accessibility for Ontarians with Disabilities Act, 2005 (AODA) requires that all provincial businesses and organizations, including STR operators, provide accessible services and accommodations to individuals with disabilities. Hosts should be familiar with the AODA's requirements and strive to make their properties as accessible as possible.

While not a formal regulation, the Ontario Human Rights Code prohibits discrimination in housing based on factors such as race, religion, disability, and family status. STR hosts must be mindful of this legislation and ensure that their booking practices and guest policies are non-discriminatory.

It's important to note that these Ontario-wide rules and considerations exist alongside the specific STR bylaws enacted by individual municipalities. Hosts must comply with the provincial and local regulations of their properties. As the STR landscape continues to evolve, it's crucial for operators to stay informed about any changes to provincial or municipal rules that may impact their businesses.

By understanding and adhering to the Ontario-wide regulations for short-term rentals, hosts can contribute to a well-regulated and thriving STR market that balances the needs of various stakeholders, including guests, residents, and local communities. As always, seeking guidance from legal professionals and municipal authorities can help ensure full compliance with all applicable laws and bylaws.

Does Windsor Strictly Enforce STR Rules?

Based on discussions from Airbnb hosts in Windsor on Reddit and Bigger Pockets, it appears that enforcement of short-term rental regulations has been somewhat inconsistent so far. While Windsor has rules requiring hosts to obtain a license and limiting rentals to primary residences, many operators report being able to fly under the radar without facing serious consequences.

On the Windsor subreddit, several hosts mentioned that they have been running unlicensed Airbnbs for years without any issues from the city. They suggest that enforcement efforts seem to be complaint-driven rather than proactive, meaning that as long as neighbors don't raise concerns, the likelihood of getting caught is relatively low.

Compared to major cities like Toronto or Vancouver, which have been cracking down more aggressively on short-term rentals, Windsor appears to be a bit more lax and Airbnb-friendly. The consensus among hosts is that while the city has regulations on the books, they are not strictly monitoring compliance across the board.

However, this doesn't mean that short-term rental operators in Windsor can assume they'll be able to evade the rules indefinitely. As one host on Bigger Pockets cautioned, all it takes is one disgruntled neighbor or a shift in the political winds for enforcement to ramp up quickly.

The general sentiment seems to be that Windsor's current approach to short-term rentals is "don't ask, don't tell." Many hosts operate without licenses and bet the city won't proactively come after them. However, they also acknowledge the inherent risk in this long-term strategy.

Ultimately, while Windsor may not be as stringent about enforcing its short-term rental rules as some other Canadian cities, hosts should not assume non-compliance is a viable approach indefinitely. The prudent course of action is still to follow regulations, obtain proper licensing, and be a respectful operator. But in practice, it seems many hosts are skirting the rules for now and hoping for the best.

How to Start a Short-Term Rental Business in Windsor

If you're interested in starting a short-term rental business in Windsor, Ontario, here are the key steps to follow:

1. Research and understand Windsor's short-term rental regulations. Familiarize yourself with the city's licensing requirements, zoning restrictions, and operating standards. Review the information on the City of Windsor's website and contact the licensing department with any questions.
2. Determine if your property is eligible for short-term rentals. In Windsor, the property must be your primary residence, meaning you live there for at least 8 months of the year. Ensure your property complies with all building, fire, and safety codes.
3. Prepare your property for guests. Make any necessary repairs or upgrades to ensure your space is safe, clean, and welcoming. Consider the amenities and furnishings you'll provide to create a comfortable and enjoyable stay for your guests.
4. Obtain necessary permits and licenses. Apply for a short-term rental license with the City of Windsor. You'll need to provide proof of ownership, government-issued ID, a floor plan of the property, and proof of insurance with a minimum of $2 million liability coverage. Pay the applicable fees, which include a $232 initial application fee and a $191 annual renewal fee.
5. Create a compelling listing on short-term rental platforms. Once your property is ready and licensed, create an attractive listing on sites like Airbnb and Vrbo. Use high-quality photos, write an engaging description, and set competitive rates based on similar listings in your area.
6. Establish house rules and guest communication protocols. Develop clear house rules that outline expectations for guest behavior, parking, noise levels, and other important considerations. Decide how you'll communicate with guests before, during, and after their stay.
7. Implement a cleaning and maintenance plan. Ensure your property is thoroughly cleaned and sanitized between guest stays. Consider hiring a professional cleaning service or establishing a detailed cleaning checklist. Plan for regular maintenance and repairs to keep your property in top condition.
8. Manage bookings and guest interactions. Respond promptly to booking inquiries and guest questions. Use a calendar system to keep track of reservations and avoid double bookings. Be available to address any issues that may arise during a guest's stay.
9. Comply with ongoing regulations and tax obligations. Stay up-to-date with any changes to Windsor's short-term rental regulations and ensure ongoing compliance. Collect and remit the 4% Municipal Accommodation Tax (MAT) as required. Keep accurate records of your rental income and expenses for tax purposes.
10. Continuously improve your short-term rental business. Seek feedback from guests and use it to make improvements to your property and hosting approach. Stay informed about industry trends and best practices by connecting with other local hosts and participating in online forums or communities.

By following these steps and being a responsible and proactive host, you can build a successful short-term rental business in Windsor. Remember that regulations can change over time, so staying informed and adapting as needed is essential. With dedication and attention to detail, you can create a profitable and enjoyable short-term rental experience for both you and your guests.

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

To get the most accurate and up-to-date information about short-term rental regulations and zoning requirements in Windsor, it's best to contact the city government directly. Here are some key departments and their contact details:

1. City of Windsor Licensing Division

Address: 350 City Hall Square West, Suite 110, Windsor, Ontario N9A 6S1
Phone: 311 (within Windsor) or 519-255-2489 (outside Windsor)
Email: licenses@citywindsor.ca
Website: www.citywindsor.ca/cityhall/licensingandregistration/

2. City of Windsor Planning Department

Address: 350 City Hall Square West, Suite 210, Windsor, Ontario N9A 6S1
Phone: 519-255-6543
Email: planningdept@citywindsor.ca
Website: www.citywindsor.ca/residents/planning/

3. City of Windsor Building Department

Address: 350 City Hall Square West, Suite 210, Windsor, Ontario N9A 6S1
Phone: 519-255-6267
Email: buildingdept@citywindsor.ca
Website: www.citywindsor.ca/residents/buildingpermits/

These departments should be able to provide guidance on any permits, licenses, or zoning approvals needed to operate a short-term rental in Windsor. They can also clarify the specific regulations around hosting platforms like Airbnb.

Another helpful resource could be the Windsor-Essex County Association of Realtors (WECAR):

Address: 3020 Deziel Drive, Windsor, Ontario N8W 5H8
Phone: 519-966-6432
Email: info@wecar.net
Website: www.wecar.net

WECAR represents real estate professionals in the region and may have insights into how short-term rental regulations are being interpreted and enforced from the perspective of property owners and investors.

It's always best to go straight to the municipal authorities for the most definitive answers. Be prepared to explain the details of your short-term rental plans, including the type of property, target guests, and expected rental frequency. With their guidance, you can ensure you are operating in full compliance with Windsor's rules.

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

Based on discussions from Airbnb hosts in Windsor on Reddit and Bigger Pockets, opinions seem mixed regarding the city's short-term rental regulations:

One host on the Airbnb subreddit mentioned that they have been operating a licensed short-term rental attached to their primary residence in Windsor without any issues. They appreciate that the city limits rentals to owner-occupied properties, as it helps maintain neighborhood character and prevents the proliferation of "ghost hotels."

However, another host on Bigger Pockets expressed frustration with the licensing process, calling it overly burdensome and expensive. They feel that the city's requirements, such as obtaining a fire safety plan and submitting to property inspections, are excessive for small-scale operators renting out a single unit.

A Windsor host on Reddit shared that while they support reasonable regulations, they worry that the city's rules may inadvertently push some operators underground. They suggest that if compliance becomes too onerous or costly, hosts may choose to operate illegally and risk fines rather than navigate the licensing process.

On a Bigger Pockets thread about investing in Windsor real estate, one host cautioned that the city's short-term rental regulations could limit the potential for out-of-town investors to enter the market. With rentals restricted to primary residences, opportunities for non-owner-occupied STRs are minimal.

Conversely, a host on the Windsor subreddit argued that the primary residence requirement is crucial for protecting housing affordability and availability for long-term residents. They believe that without this rule, investors could buy up multiple properties and convert them into full-time STRs, exacerbating the city's housing shortage.

While some Windsor hosts appreciate the city's efforts to regulate short-term rentals and mitigate their impact on neighborhoods, others find the licensing process overly burdensome. The primary residence requirement, in particular, seems to be a point of contention - supported by those who prioritize housing stability, but criticized by hosts who believe it limits their property rights and investment opportunities.

As Windsor continues to refine its short-term rental rules, striking a balance between the needs of hosts, guests, and the wider community will be an ongoing challenge. Engaging hosts in the policy-making process and considering their diverse perspectives could help create an effective and equitable regulatory framework.

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.