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Development Services Report DS2024-34
To:
Committee of the Whole Council
Date:
December 3, 2024
Subject:
Short Term Rental Accommodations
Origin:
Development Services, By-law Branch
Recommendations
1. That Development Services, By-laws Branch Report DS2024-34, dated
December 3, 3024, entitled "Short Term Rental Accommodations," be received;
and
2. That Council directs the Town to continue managing short-term rental
accommodations through enforcement of the existing regulations under the
Town's Zoning By-law as outlined in Development Services Report DS2024-34;
and
3. That the enforcement of short-term rental accommodations, as outlined in
DS2024-34, be reviewed in one year's time to assess any changes.
Purpose
The report is being presented to the Committee of the Whole Council to provide a
comprehensive update on the Town's current administration and enforcement of Short-
Term Rental Accommodation (STRAs). It includes information on current regulations,
the volume of complaints received, the number of estimated STRA listings in the Town,
and a comparative analysis with other municipalities.
Background
On July 23, 2024, at Municipal Council, correspondence was received from C. Hobbs
dated June 1, 2024, regarding vacant and unoccupied homes in the Town of East
Gwillimbury. Council directed staff to research options for a short-term rental policy with
a municipal comparative and report back.
Report DS2024-34
Short Term Rental Accommodations
December 3, 2024
Page 2 of 7
Analysis
Current Regulations for Short Term Rental Accommodation
Short Term Rental Accommodations (STRAs) are currently defined through the Town's
Zoning By-law as a "dwelling unit or structure of any part thereof that operates or offers
a place of temporary residence, lodging or occupancy by way of concession, permit,
lease, license, rental agreement or similar commercial arrangement for any period less
than thirty (30) consecutive calendar days, throughout all or any part of a calendar year.
This does not include a hotel/motel, bed and breakfast establishment, tourist cabin or
cottage, hospital, commercial resort unit or similar commercial or institutional use."
STRAs are only permitted in mix-used zones subject to site plan approvals.
Notwithstanding the limited permissibility of STRAs, the Town's Zoning By-law also
regulates bed and breakfast establishments as a similar revenue generating opportunity
for property owners. Bed and breakfast establishments are to be located within a single
detached dwelling that provide sleeping accommodation (including breakfast and other
meals, services, facilities and amenities for the exclusive use of guests), for the
travelling or vacationing public limited to three guest rooms within a single dwelling that
is the principal residence of the proprietor of the establishment. Unlike STRAs, bed and
breakfast uses are permitted in certain residential, rural, and Oak Ridges Moraine zones
and could be subject to site plan approval.
Enforcement
The Town's By-law Branch continues to enforce the adopted regulations under the
Zoning By-Law through a complaint-based approach.
Enforcement files opened for STRAs are primarily linked with concerns of parking,
noise, and/or property maintenance often resolved through the following mechanisms:
- Education;
- Formal written notices;
- Charges through the Provincial Offences Court and/or injunction through
external council where continued non-compliance is present;
- Changing their business practices to offer accommodations for over 30
days; or
- Ceasing operations all together.
The Town does not have any approved STRA locations at this time. The By-law Branch
has received approximately 5 complaints in 2022, 9 in 2023, 9 in 2024 to date, totalling
approximately 23 complaints within a 3-year span. Out of the 23 complaints, only one
this year is presumed to escalate with charges through the Provincial Offences Court.
Report DS2024-34
Short Term Rental Accommodations
December 3, 2024
Page 3 of 7
Municipal Comparison
A review was conducted of municipalities in York Region, to determine how they are
addressing STRAs in their communities. This municipal comparison has been included
as Appendix 1.
STRAs in the Town of East Gwillimbury
A review of Airbnb listings within the Town of East Gwillimbury, along with other STRAs
sites suggest an approximate fluctuating range between 30-40 locations as of
November 2024 in residential and rural zones.
While the suggested online STRA listings outweigh the number of complaints and
competitors, the challenge is that investigations will only occur on a complaint basis,
and without the active assistance of STRA hosting sites. Given the permissibility for
STRAs is restricted to mix-used zones only, no licenses would be granted according to
the suggested zones in which the approximate 30-40 STRAs are currently operating as
they would not meet the Town's current zoning requirements. Investigating STRAs pro-
actively with current staffing numbers, three (3) full-time Officers and one (1)
administrator, will impact enforcement service levels and not see a cost recovery phase.
Hypothetically, if the Zoning By-law was amended to allow for STRAs in residential and
rural areas and East Gwillimbury were to implement a STRA by-law through licensing,
using the current listing numbers - approximately 40 potential STRA licenses could be
issued if enforcement was pro-active. Using an average initial license fee of $340
(based on the average fee levied by comparator municipalities), the total revenue
generated would approximately be $13,600 annually. This projected amount is unlikely
to cover the costs associated with existing staff's time on each investigation annually
particularly given the limited number of complaints and hosts. The remainder of the
operational costs would need to be funded through increases to taxation. An example of
the cost associated is located below in the Financial Implications.
East Gwillimbury's low complaint volume, limited areas of operation through the Zoning
By-law resulting in limited number of potential STRA licenses, and the projected costs
indicate that a dedicated STRA By-law would not be necessary or financially viable. The
municipality can continue to effectively address STRA issues through existing
regulations without incurring additional expenses.
Additionally, when homes are converted into STRAs, they are taken off the market for
potential buyers or long-term tenants, limiting the availability of housing for those
seeking permanent residence. While the current number of STRAs may not be a major
driver of the housing shortage, the introduction of a more permissive by-law allowing for
an increase in STRAs could exacerbate this issue. As more homeowners potentially
turn to short-term rental platforms to capitalize on higher short-term rental income, it
Report DS2024-34
Short Term Rental Accommodations
December 3, 2024
Page 4 of 7
could create further scarcity in available housing stock. This shift could also result in
additional enforcement challenges and costs, as highlighted in the report, due to the
need to regulate and monitor an expanding pool of short-term rental properties. Such a
change would likely require increased staffing, resources, and administrative oversight
to manage compliance and zoning issues associated with a larger number of STRAs,
putting further strain on municipal enforcement efforts and budget.
The cost of administration, loss of available housing, and costs associated with
complaints regarding misuse, exceed any potential benefits that could be achieved
through licensing.
Financial Implications
The total estimated cost for managing 40 suspected STRAs is $16,420, comprised of
$6,420 for enforcement and administration, along with $10,000 for the necessary
software.
Projected operating costs would exceed projected revenue by approximately $2,820
based on current numbers.
For comparison, municipalities like Aurora have incurred annual costs of $10,000 just
for software monitoring not accounting for additional enforcement expenses currently.
They are relying on the significant amount (178) of hosts currently advertising to recover
and generate revenue. Given East Gwillimbury's current complaint levels and limited
number of hosts, implementing a STRA by-law would likely result in insufficient revenue
to achieve cost recovery, making it financially unsustainable.
Need For Public Consultation
There is no requirement for public consultation directly associated with this report. All
agendas, reports and minutes are made available to the public through posting on the
Town's website.
Alignment to Strategic Plan
Culture of Municipal Excellence
The recommendations of this report align with the Town's strategic priority of municipal
excellence through ensuring strong fiscal responsibility and value for tax dollars.
Report DS2024-34
Short Term Rental Accommodations
December 3, 2024
Page 5 of 7
Conclusion
Staff propose to maintain enforcement of the current regulations under the Town's
Zoning By-law. This approach would maintain the current status of STRAs as prohibited
under the Zoning By-laws, unless they comply with the requirements for bed and
breakfast establishments or boarding and lodging houses. Enforcement services staff
will continue to monitor and enforce existing By-laws, including Zoning By-laws, the
Traffic By-law, and the Noise By-law, to address illegal STRAs.
Appendices
Appendix 1 - Municipal Comparison
Approval
Report Author:
Harinder Singh, B.A., C.P.S.O, C.M.L.E.O., CMM III MLE Executive Prop. Standards
Executive
Manager, By-law Services
Development Services
This report was reviewed and recommended by:
András Szönyi, P.Eng., CBCO
Director Building Standards Branch/Chief Building Official
Development Services, Building Standards Branch
This report was reviewed and recommended by:
Margot Bégin, Ec.D.(F)
General Manager of Development Services
Development Services
This report was approved by:
Mark Valcic
Chief Administrative Officer
Report DS2024-34
Short Term Rental Accommodations
December 3, 2024
Page 6 of 7
Appendix 1 - Municipal Comparison
Municipality/
Estimated
Population in
2024
Legislation
for STR
Complaints
Complaints
(2022-2023)
Issued STR
Licenses
(2022-2023)
Staff
Dedicated to
STR
STR License
Fee
Additional
Software fees
Cost
Recovery/
Revenue
Aurora
65,918
STR By-Law
through
licensing
2022: 5, 2023:
11
0 licenses
issued, 178
STRs
identified
through Host
Compliance
1 Admin with
existing
Enforcement
Officers
Initial: $395,
Renewal:
$374
Granicus -
Host
Compliance,
$10,000/year
Full cost
recovery, net
positive from
fees
Markham
364, 516
No STR By-
Law (zoning &
property
standards)
2022: 220,
2023: 301
N/A
16 Existing
Officers
N/A
N/A
Service fee for
Zoning
Notices on
violations
Stouffville
56,583
STR By-Law
through
licensing
N/A
22 licenses
issued
1 Licensing
Officer -
Existing
Initial: $1,057,
Annual: $845,
Late Renewal:
$951
Granicus -
Host
Compliance
Cost neutral
(penalties
generate
revenue)
West
Bradford
Gwillimbury
48,000
No STR By-
Law (zoning &
property
standards)
N/A
N/A
N/A
N/A
N/A
N/A
Georgina
52,002
STR By-Law
through
licensing
74 complaints
55 licenses
issued
2 Licensing
Coordinators,
2 existing
Officers
Initial: $550,
Various
additional
fees (up to
$1,194.80)
Granicus -
Host
Compliance
$10,000
Full cost
recovery from
fees
Report DS2024-34
Short Term Rental Accommodations
December 3, 2024
Page 7 of 7
Richmond Hill
217,890
No STR By-
Law (zoning &
property
standards)
2022: 8, 2023:
23, 2024: 22
N/A
2 Officers
investigating-
existing staff
N/A
N/A
N/A
Vaughan
348,344
STR By-Law
through
licensing
2022: 83,
2023: 47
Brokers: 3,
Operators/O
wners: 2022:
88, 2023: 136
1 Property
Standards
Officer
Owner/Opera
tor: Initial:
$200,
Renewal:
$169; Broker:
Initial: $334,
Renewal:
$280
None
Unknown
Township of
King
28,796
No STR By-
Law (zoning &
property
standards)
N/A
N/A
N/A
N/A
N/A
N/A
Newmarket
93,323
STR By-Law
through
licensing
28 complaints
(since 2022)
54 licenses
issued
2 Licensing
Officers -
existing
1-bedroom:
$107.04, 2-
bedroom:
$215.15, 3-
bedroom:
$322.11
Granicus -
Host
Compliance,
$10,000/year
Full cost
recovery
East
Gwillimbury
41,058
No STR By-
Law (zoning &
property
standards)
2022: 5, 2023:
9, 2024: 9
30-40
suspected
STRs
1 Admin and
3 Officers -
existing
N/A
N/A
Service Fees:
$189.20
(Orders/Notic
es), $190.50
(Re-
inspection)