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

Starting a Short-Term Rental Business in Oakville

Oakville, a picturesque town located in the Greater Toronto Area, has seen a surge in the popularity of short-term rental platforms like Airbnb and VRBO in recent years. However, it's crucial for potential hosts to understand and comply with the local regulations governing this industry. Here's what you need to know about starting a short-term rental business in Oakville:

Licensing Requirements: The Town of Oakville requires all short-term rental operators to obtain a Short-Term Accommodation (STA) Operator Licence. This licence ensures that the rental property meets specific safety, zoning, and operational standards.

Zoning Regulations: Short-term accommodations are permitted in most housing types in Oakville, including detached, semi-detached, and townhomes. However, they are not allowed in gated communities or properties governed by homeowners' associations that prohibit such activities.

Principal Residency Requirement: According to Oakville's bylaws, the host must be the principal resident of the short-term rental property. This means that the property cannot be used solely as a short-term rental business; it must be the host's primary residence.

Taxation and Fees: Hosts are required to collect and remit applicable taxes, such as the Municipal Accommodation Tax (MAT) and the Harmonized Sales Tax (HST), on their short-term rental income. Additionally, they may be subject to licensing fees and other charges imposed by the town.

Noise and Nuisance Regulations: Hosts must ensure that their guests do not create excessive noise or disturbances that may disrupt the peace and tranquility of the neighborhood. Failure to comply with these regulations may result in fines or the revocation of the STA licence.

Enforcement and Penalties: The Town of Oakville takes a proactive approach to enforcing its short-term rental regulations. Non-compliance may result in fines, administrative penalties, or legal action. Residents are encouraged to report any suspected violations to the town's bylaw enforcement department.

It's important to note that short-term rental regulations in Oakville are subject to change, and hosts should regularly check for updates or consult with local authorities or legal professionals to ensure compliance with the latest rules and regulations.

By following the established guidelines and maintaining open communication with the relevant authorities, hosts can contribute to the growth of the short-term rental industry in Oakville while ensuring a positive experience for both guests and local residents.

Short-Term Rental Licensing Requirement in Oakville

In Oakville, all short-term rental accommodations (STAs) that offer rentals for less than 28 consecutive days require a Short-Term Accommodation License. The town has established two categories of STA licenses: an operator license and a company license.

For an operator license, applicants must meet the following requirements:

• Provide a property maintenance and parking plan, property floor plan, and owner/tenant consent form (if applicable).
• Submit proof of ownership (transfer/deed) for the STA property.
• Obtain an inspection certificate from an Electrical Safety Authority (ESA)-licensed electrical contractor.
• Provide a heating, ventilation, and air conditioning (HVAC) inspection report performed by a licensed HVAC installer in Oakville.
• Obtain zoning approval to operate an STA at the requested location.
• If a corporation, provide incorporating documents and a certified copy of an annual tax return with a list of shareholders.
• If a partnership, provide photocopies of partners' driver's licenses and contact information.
• Provide photocopies of the applicant's and/or agent's driver's licenses (must be at least 18 years old).
• Submit proof of commercial general liability insurance with at least $2 million coverage for the STA.
• Provide a recent Canadian criminal reference check from an accredited police service.
• List all advertising platforms used for the STA property.

For a company license, applicants must provide:

1. Incorporating documents and corporate number (if a corporation).
2. A certified copy of an annual tax return with a list of shareholders (if a corporation).
3. Photocopies of partners' driver's licenses and contact information (if a partnership).
4. Proof of commercial general liability insurance in the amount of $5 million.
5. A list of all STA operators, including their full names, addresses, activation dates on the platform, and confirmed bookings.
6. Photocopies of the applicant's and/or agent's driver's licenses (must be at least 18 years old).
7. An indemnity in favor of the town against claims, demands, losses, costs, damages, actions, suits, or proceedings arising from the STA company's business and services.

Once licensed, STA operators must display their license number on all advertisements, provide a copy of the Renters Code to all renters, and maintain a record of each renter's information for inspection purposes. Failure to comply with the licensing requirements may result in fines or penalties under the town's Administrative Penalty By-law.

Required Documents for Oakville Short-Term Rentals

To obtain a Short-Term Accommodation (STA) Operator License in Oakville, hosts must provide the following documents and information:

1. Property Maintenance and Parking Plan: A detailed plan outlining how the property will be maintained and how parking will be managed for guests.
2. Property Floor Plan: A floor plan of the rental unit or property clearly indicates the areas to use for short-term rental purposes.
3. Owner/Tenant Consent Form: If the applicant is a tenant, they must provide a consent form signed by the property owner, granting permission to operate a short-term rental.
4. Proof of Ownership: A copy of the property's transfer/deed, demonstrating ownership of the rental property.
5. Electrical Safety Authority (ESA) Inspection Certificate: An inspection certificate from an ESA-licensed electrical contractor, confirming the electrical system's safety and compliance.
6. Heating, Ventilation, and Air Conditioning (HVAC) Inspection Report: A report from a licensed HVAC installer in Oakville, verifying the proper functioning of the heating, ventilation, and air conditioning systems.
7. Zoning Approval: Confirmation from the town that the property's zoning permits the operation of a short-term rental at the requested location.
8. Corporate Documents (if applicable): If the applicant is a corporation, they must provide incorporating documents and a corporate number.
9. Annual Tax Return (if incorporated): Incorporated entities must submit a certified copy of their annual tax return, including a list of shareholders.
10. Partnership Information (if applicable): If the applicant is a partnership, photocopies of each partner's driver's license and contact information are required.
11. Identification Documents: Photocopies of the applicant's and/or agent's driver's licenses, confirming they are at least 18 years old.
12. Insurance Proof: Proof of commercial general liability insurance with a minimum coverage of $2 million, specifically covering the short-term rental property.
13. Criminal Reference Check: A recent Canadian criminal reference check from an accredited police service.
14. Advertising Platforms: A list of all online platforms used to advertise the short-term rental property.

Once licensed, hosts must display their license number on all advertisements, provide a copy of the Renters Code to all guests, and maintain a record of each renter's information for inspection purposes. Failure to comply with the licensing requirements may result in fines or penalties under Oakville's Administrative Penalty By-law.

Oakville Short-Term Rental Taxes

Short-term rental operators in Oakville are subject to various taxes and fees, including the Municipal Accommodation Tax (MAT) and the Harmonized Sales Tax (HST).

Municipal Accommodation Tax (MAT):

1. Oakville imposes a mandatory 4% MAT on all short-term accommodations (rentals less than 30 consecutive days).
2. The MAT applies to the purchase price of the accommodation, including hotels, motels, bed and breakfasts, and short-term rentals like Airbnb.
3. Short-term rental operators are responsible for collecting the MAT from guests and remitting it to the Town of Oakville.
4. 50% of the net MAT revenue is allocated to the municipality for tourism-related projects and initiatives, while the remaining 50% (less a 5% administrative fee) goes to Visit Oakville for tourism promotion and development.

Harmonized Sales Tax (HST):

1. Short-term rental operators in Oakville must charge and remit the 13% HST on their rental income.
2. The HST applies to short-term rentals of less than 30 consecutive days.
3. Operators must register for a GST/HST account with the Canada Revenue Agency (CRA) if their annual rental income exceeds $30,000.
4. Even if the $30,000 threshold is not met, operators can voluntarily register for GST/HST to claim input tax credits on expenses related to their rental business.

Income Tax:

1. The Canada Revenue Agency (CRA) considers income earned from short-term rentals taxable income.
2. Operators must report their rental income on their personal tax returns and pay applicable income taxes.
3. Expenses related to the rental business, such as maintenance, utilities, and advertising, may be deductible from the rental income.

Short-term rental operators in Oakville must comply with these tax regulations to avoid penalties and fines. Accurate records of rental income, expenses, and taxes are essential for proper reporting and compliance.

Ontario Wide Short-Term Rental Rules

While many municipalities across Ontario have implemented their own short-term rentals regulations, there has been growing discussion about the need for province-wide rules to address the issue more comprehensively.

Proponents of provincial regulations argue that a consistent framework would help fill gaps and inconsistencies among different municipal bylaws. It could establish minimum health and safety standards, such as requiring working smoke detectors, carbon monoxide alarms, and adherence to fire codes. This would provide a baseline level of protection for guests and neighboring residents.

Provincial rules could also streamline STR operators' registration and licensing process, potentially reducing administrative burdens and costs associated with navigating different municipal requirements. A centralized registry or database could improve transparency and aid in enforcement efforts.

However, critics argue that a one-size-fits-all approach may not be appropriate, as the challenges and concerns surrounding STRs can vary significantly between urban centers, rural areas, and tourist destinations. Local communities may be better positioned to tailor regulations to their specific needs and priorities.

There are also concerns about potential overreach and infringement on municipal autonomy if the province were to impose overly restrictive rules. Some argue that municipalities should maintain the flexibility to determine appropriate zoning, density limits, and other localized measures.

Enforcement remains a contentious issue, with debates over whether the province or municipalities should bear the primary responsibility for monitoring compliance and imposing penalties on illegal or non-compliant operators.

Ultimately, any potential provincial regulations would need to strike a balance between establishing consistent standards and allowing for local customization. Extensive consultation with municipalities, industry stakeholders, and community members would be necessary to ensure a fair and effective framework.

As the short-term rental market continues to evolve, the discussion around provincial involvement is likely to persist, with both proponents and opponents advocating for their respective positions on the appropriate level of regulation.

Does Oakville Strictly Enforce STR Rules?

Based on the responses from forums like Bigger Pockets and Reddit, it appears that Oakville takes a strict approach to enforcing its short-term rental (STR) regulations, making it a challenging environment for Airbnb hosts compared to some other cities.

Many users report that Oakville actively pursues and penalizes unlicensed STR operators, especially those who do not reside at the property being rented out. The town requires hosts to obtain a Short-Term Accommodation (STA) Operator License and adhere to various rules, such as being the principal resident of the rental property.

While some hosts may attempt to operate under the radar, the consensus seems to be that Oakville is not particularly Airbnb-friendly due to its stringent regulations and enforcement efforts. Numerous accounts suggest that the town swiftly issues warnings, fines, and legal actions against non-compliant hosts once violations are reported or discovered.

In contrast, some neighboring municipalities like Toronto are perceived as having a more relaxed approach to STRs, with less rigorous enforcement and a larger presence of Airbnb listings. However, this does not mean that Oakville's regulations should be disregarded, as the consequences for doing so can be severe.

Overall, the prevailing opinion is that Oakville takes a firm stance against unlicensed and non-compliant STR operations, making it a challenging environment for hosts who do not strictly adhere to the town's rules and licensing requirements. While some hosts may still operate in Oakville despite the regulations, the risk of fines and legal action is significant, and the town appears committed to enforcing its STR bylaws.

How to Start a Short-Term Rental Business in Oakville

Starting a short-term rental business in Oakville requires careful planning and adherence to the town's regulations. Here are the steps to get started:

1. Determine Eligibility: Ensure that your property meets the zoning requirements for short-term rentals in Oakville. Short-term accommodations are permitted in most housing types, but not in gated communities or properties governed by homeowners' associations that prohibit such activities.
2. Obtain a Short-Term Accommodation (STA) Operator License: Apply for an STA Operator License from the Town of Oakville. This process involves submitting various documents, including a property maintenance and parking plan, floor plan, proof of ownership, inspection certificates, and zoning approval.
3. Meet Principal Residency Requirement: According to Oakville's bylaws, the host must be the principal resident of the short-term rental property. This means that the property cannot be used solely as a short-term rental business; it must be the host's primary residence.
4. Comply with Safety and Inspection Requirements: Ensure that your property meets all safety and inspection requirements. This includes obtaining an inspection certificate from an Electrical Safety Authority (ESA)-licensed electrical contractor and a heating, ventilation, and air conditioning (HVAC) inspection report from a licensed HVAC installer.
5. Obtain Necessary Insurance: Secure commercial general liability insurance with a minimum coverage of $2 million, specifically covering the short-term rental property.
6. Register for Taxes: Register for applicable taxes, such as the Municipal Accommodation Tax (MAT) and the Harmonized Sales Tax (HST), and ensure proper collection and remittance.
7. Create a Listing: Once licensed and compliant, create a listing on popular short-term rental platforms like Airbnb or VRBO. Provide detailed information about your property, including high-quality photos, amenities, and house rules.
8. Manage Bookings and Guest Communication: Establish a system for managing bookings, guest communication, and check-in/check-out processes. This can be done personally or through a property management company.
9. Maintain Records: Keep accurate records of guest information, including dates of stay, home addresses, and confirmation of receipt of the Renters Code. These records must be readily available for inspection by town officials.
10. Renew License Annually: Ensure that you renew your STA Operator License with the Town of Oakville on an annual basis to maintain compliance with the regulations.

It's important to note that short-term rental regulations in Oakville are subject to change, and hosts should regularly check for updates or consult with local authorities or legal professionals to ensure ongoing compliance.

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

If you have questions or need further information about short-term rental regulations and zoning in Oakville, you can contact the following:

1. Town of Oakville Service Oakville

Phone: 905-845-6601
Email: service@oakville.ca

For inquiries related to zoning and zoning approval for short-term rental properties, you can email:

zoningrequests@oakville.ca

For general inquiries about the Short-Term Accommodation Licensing By-law, the application process, or to report non-compliance, you can contact:

2. Enforcement Services

Town of Oakville
1225 Trafalgar Road
Oakville, ON L6H 0H3
Phone: 905-845-6601

Additionally, you can visit the Town of Oakville's website (www.oakville.ca) for more information on short-term rental regulations, licensing requirements, and the application process.

It is recommended to consult with the appropriate town officials or seek legal advice to ensure compliance with Oakville's latest regulations and bylaws governing short-term rentals.

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

Reddit Post: A host in the nearby town of Newmarket shares their frustration with the local regulations prohibiting short-term rentals in townhomes. The post sparks a discussion about the legality of such bylaws and the challenges faced by hosts operating in residential areas.

Bigger Pockets Forum Thread: A Canadian investor inquires about the differences in rental property investing between the US and Canada, citing the significant price discrepancies. Some responses highlight the stricter regulations and licensing requirements for short-term rentals in cities like Oakville as potential barriers.

Reddit Comment (r/oakville): In a thread discussing the feasibility of legalizing a basement apartment for rental purposes, several Oakville residents weigh in on the local regulations, zoning restrictions, and the need to obtain proper permits and licenses for short-term rentals.

Bigger Pockets Forum Post: A detailed post outlines the specific requirements for obtaining a Short-Term Accommodation (STA) Operator License in Oakville, including zoning approvals, safety inspections, and insurance requirements. Some hosts express concerns about the stringent regulations and enforcement efforts.

Reddit Comment (r/PersonalFinanceCanada): A discussion emerges around the challenges of claiming tax credits for short-term rentals in Ontario, with hosts noting the lack of clear guidance and the absence of HST numbers provided by platforms like Airbnb for unlicensed hosts in Oakville.

Overall, the sentiment among Airbnb hosts in Oakville on these forums and Reddit threads reflects a mix of frustration with the strict regulations, concerns about enforcement, and a desire for clearer guidelines and support from local authorities.

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.